Written questions by Cartlidge.

Whether the children of US military families based in the UK are exempt from paying VAT on independent school fees.

Since 1 January 2025, all education services and vocational training provided by private schools in the UK for a charge have been subject to VAT at the standard rate of 20 per cent. Entitled individuals in US Forces have always been able to benefit from the VAT free purchase scheme, providing relief on goods and services in the UK. Private school fees fall into the category of services for these purposes. The Government greatly values the contribution of our serving military personnel. The Ministry of Defence has increased the funding allocated to the Continuity of Education Allowance (CEA) to account for the impact of any private school fee increases on the proportion of fees covered by the CEA in line with how the allowance normally operates.

If she will estimate the revenue expected to be raised from applying business rates to independent schools in South Suffolk constituency in the next financial year.

At Autumn Budget 2024, the Government reconfirmed that it is removing private schools’ eligibility for charitable rate relief under business rates in England from April 2025. This intervention will raise around £140 million per year.Business rates retention means that local authorities retain a proportion of all business rates revenue. As such, the increase in rates receipts due to the reduction in charitable rate relief for private schools will be shared between central and local government.

If she will make an estimate of the total revenue to be raised from applying VAT to independent schools in South Suffolk constituency in the next financial year.

The Government does not have an estimate of the revenue from this measure specifically from the South Suffolk constituency. At the Autumn Budget the Government published a detailed response to the consultation conducted between July and September. Annexed to this is the costing methodology used to calculate the total revenue generated by this policy. Included is a breakdown of the exchequer impact by year, including 2025/26. This was published online and can be found here: Government_Response_to_the_Technical_Note_on_Applying_VAT_to_Private_School_Fees_and_Removing_the_Business_Rates_Charitable_Rate_Relief.pdf

Whether the children of EU nationals serving in the armed forces in the UK are exempt from VAT on school fees.

Since 1 January 2025, all education services and vocational training provided by private schools in the UK for a charge have been subject to VAT at the standard rate of 20 per cent. There is not an exemption for the children of EU nationals serving in the armed forces in the UK. The Government greatly values the contribution of our serving military personnel. The Ministry of Defence has increased the funding allocated to the Continuity of Education Allowance (CEA) to account for the impact of any private school fee increases on the proportion of fees covered by the CEA in line with how the allowance normally operates.

Whether the Office for Value for Money will assess the proposed Chagos settlement.

The Chagos agreement, as an international treaty, falls outside the remit of the OVfM, which is focused on removing inefficiency, scrutinising investment proposals and provide advice on system reforms.

Pursuant to the Answer of 14 January 2024 to Question 22961 on Defence: Expenditure, whether the future fiscal event will take place before June 2025.

Government set out in Autumn Budget 2024 that it will set a path to spending 2.5% of GDP at a future fiscal event. The government does not comment on speculation about decisions outside of fiscal events.

What assessment she has made of the potential impact of recent trends in borrowing costs on the Government's capacity to increase defence spending to 2.5% of GDP expenditure.

This government is fully committed to economic stability and sound public finances. That is why the Chancellor has made clear that meeting the fiscal rules is non-negotiable. Economic stability is one of the foundations that underpins the Prime Minister's Plan for Change, and the government has restored it with tough decisions, strict spending rules and robust institutions. The Spending Review will rewire government spending, to deliver the Plan for Change priorities, focusing on driving growth and reforming public services, whilst living within the spending envelope that has been set out. The first duty of government is to keep the country safe and protect our citizens. Under this government the Ministry of Defence’s budget is increasing by £2.9 billion from 2024-25 to 2025-26. It means the Defence budget will grow in line with the economy in 2025-26, ensuring the UK comfortably exceeds the NATO target of 2% of GDP. As the Chancellor set out at Budget, we will set a path to spending 2.5% of GDP on defence at a future fiscal event.

With reference to paragraph 5.52 of the Autumn Budget 2024, published on 30 October, what assessment she has made of the potential impact of changes to inheritance tax on Death in Service awards for surviving spouse

Most unused pension funds and death benefits will be included within the value of a person’s estate for inheritance tax purposes from 6 April 2027.Transfers to spouses and civil partners are exempt from inheritance tax. This means death benefits paid to s...

Whether she plans to review Public Works Loan Board rates offered to councils.

The PWLB lending facility exists to provide cost effective loans to local authorities to support investments and service delivery. HMT keeps all PWLB rates under review, including the discounted rate for investment in social housing which we extended in A...

With reference to the Autumn Budget 2024, published on 30 October 2024, HC 295, what estimate her Department has made of the cost of the increase to employer's national insurance contributions on the Ministry of Def

The Government will be supporting departments with the cost of additional employer national insurance contributions. This is in line with the Government’s usual approach to supporting the public sector, as was the case with the previous government’s Healt...

With reference to her Department's policy paper entitled Fixing the foundations: public spending audit 2024-25, updated on 2 August 2024, whether the results of the Spending Review will be announced at a future fisc

The results of ‘Phase 1’ of the Spending Review, announced in July, were laid with the Autumn Budget on 30 October. 'Phase 1’ covers the financial years 2024-25 and 2025-26. The Budget fixed the envelope for ‘Phase 2’ of the Spending Review, which will co...

With reference to the Oral Statement of 22 October 2024 on Ukraine, Official Report, columns 183-4, whether she has had discussions with her Ukrainian counterpart on the proportion of the £2.26 billion loan to Ukrai

With regard to the UK’s disbursement of its £2.26bn contribution to the Extraordinary Revenue Acceleration scheme, the loan agreement and full terms remain in discussion and no decision has yet been made on what Ukraine will buy using this money. The UK i...

Whether the £2.26bn loan for Ukraine will be included in the GDP figure for defence expenditure.

The UK’s contribution to the ERA will be provided to the Government of Ukraine as a loan from the UK Government, for them to spend on military procurement. Because it is not direct UK defence spending, HMG’s assessment is the £2.26bn ERA loan will therefo...

If she will hold discussions with the Financial Conduct Authority on trends in the level of insurance premium increases for people involved in a motor insurance claim.

Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors on an ongoing basis. The Government is determined that insurers should treat all customers fairly and insurance companies are req...

Whether she has had recent discussions with the Financial Conduct Authority on the regulation of the car insurance sector.

Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors on an ongoing basis. The Government is determined that insurers should treat all customers fairly and insurance companies are req...

If she will make an estimate of the average annual cost per school of abolishing business rates relief for fee-paying schools.

As announced on 29 July 2024, the government will legislate to remove the eligibility of private schools in England to business rates charitable rates relief. The Government will confirm the introduction of these tax policy changes at Budget, at which poi...

Whether she has made an assessment of the sanction compliance of LetterOne’s recent acquisition of a 15 per cent stake in Harbour Energy.

The UK’s financial sanctions regime is overseen by HM Treasury’s Office for Financial Sanctions Implementation (OFSI). OFSI’s position regarding the ownership and control status of LetterOne is that the entity is not subject to UK financial sanctions. In ...

Pursuant to the answer of 5 September 2024 to Question 3748 on Private Education: Business Rates, whether she has made an assessment of the potential impact of removing the eligibility of private schools to business

As announced on 29 July 2024, the government will legislate to remove the eligibility of private schools in England to business rates charitable rates relief. The Government will confirm the introduction of these tax policy changes at Budget, at which poi...

Pursuant to the Answer of 5 September to Question 3748 on Private Education: Business Rates, what estimate she has made of the amount of revenue that will be raised in each remaining year of the current Parliament a

As announced on 29 July 2024, the government will legislate to remove the eligibility of private schools in England to business rates charitable rates relief. The Government will confirm the introduction of these tax policy changes at Budget, at which poi...

If she will make an assessment of the potential economic impact of the introduction of VAT on independent schools in South Suffolk constituency.

On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boardin...