Written questions by Glen.

Which Department is responsible for the (a) UK Climate Transition Benchmarks and (b) UK Paris-aligned Benchmarks.

HM Treasury is responsible for financial services policy, including financial benchmarks.

Pursuant to the Answer of 4 March 2025 to Question 33375 on Environment Protection: Finance, whether the Taskforce for Climate-related Financial Disclosures rules for listed companies to refer to the new International Sustainability Standards Board standards will allow for investments in (a) defence companies and (b) companies supporting Trident nuclear deterrent renewal.

The new International Sustainability Standards Board (ISSB) Standards, so called S1 and S2, are designed to replace the Taskforce for Climate-related Financial Disclosure (TCFD) framework. These are disclosure standards that ask firms to disclose financially material climate related risks to their business. The objective of these is to provide investors with consistent, comparable and reliable information about companies' sustainability-related risks and opportunities. These standards are designed to enhance transparency and do not dictate how a company should invest. They do not prevent or impose restrictions on investment in specific sectors, including defence or the Trident nuclear deterrent. The previous government committed to establishing a framework to assess the suitability of ISSB Standards for endorsement in the UK. A Technical Advisory Committee of external experts have conducted a detailed assessment of the ISSB’s inaugural standards, and this process has now concluded. The government aims to consult on the UK Sustainability Reporting Standards (UK SRS) shortly, after which point they will be made available for use later in 2025.

With reference to her Department's consultation on the UK Green Taxonomy, published in November 2024, what assessment she has made of (a) the potential regulatory costs of a UK Green Taxonomy and (b) the duplication with other regimes.

The government has set out its ambition for the UK to be the world leader in sustainable finance. This includes delivering a regulatory framework to support sustainable growth and enable the private sector to realise the opportunities of the transition. Through the consultation, the government was keen to explore whether a UK Green Taxonomy can be a useful tool in contributing to this ambition. The government is reviewing and analysing the consultation responses, this includes considering the potential costs and how it fits in with existing regulation and regimes. We will publish a formal consultation response in due course which will set out next steps.

What estimate she has made of the cost of the 2024-25 civil service pay settlements.

Pay for civil servants outside of the Senior Civil Service is not set centrally; rather, departments and bodies have freedom to make decisions on pay within the parameters of the Pay Remit Guidance published annually by the Cabinet Office. The Pay Remit Guidance for 2024/5 can be found using the following link: https://www.gov.uk/government/publications/civil-service-pay-remit-guidance-2024-to-2025/civil-service-pay-remit-guidance-2024-to-2025.

With reference to paragraph 2.45 of the Spring Statement 2025, 26 March 2025, CP1298, what the monetary value is of the baseline spending on administrative budgets on which the 15% saving will be based; what the baseline spending on back-office functions is on which the £2.2 billion savings in 2029-30 will be based; and whether the £2.2 billion is a cumulative saving over the period.

The 15% saving on administration budgets will be made against the counterfactual assumption that these budgets would have remained flat in real terms over the period 2025-26 to 2029-30. The £2.2 billion represents the value of this 15% saving in the final year only rather than being a cumulative total.Further details will be published as part of the Spending Review later this year.

With reference to Annex 2 of the Commission Delegated Regulation (EU) 2020/1816, whether Trident renewal is classified as a controversial weapon for the purposes of (a) environmental, social, and governance and (b) ethical investments.

The UK Benchmarks Regulation sets out the requirements for UK Climate Transition Benchmarks and UK Paris-aligned Benchmarks. The Financial Conduct Authority (FCA) monitor and supervise benchmark administrators according to the Benchmarks Regulation to ensure that benchmarks are produced robustly and with due transparency. The FCA published a statement regarding their position on sustainability regulations and UK defence investment on 11 March 2025. It is for benchmark administrators to decide if they wish to provide UK Climate Transition Benchmarks and UK Paris-aligned benchmarks under the Benchmarks Regulation, including by paying due regard to the relevant FCA guidance, and which companies to include in their benchmarks. It is then up to firms and investors to choose whether to use these benchmarks. This Government does not see a conflict between sustainable investment and investment in our world-leading defence sector.

Pursuant to the Answer of 4 March 202, to Question 33375 on Environment Protection: Finance, whether (a) UK Paris-aligned Benchmarks and (b) UK Climate Transition Benchmarks require investment in firms which support the renewal of Trident nuclear deterrent to be excluded.

The UK Benchmarks Regulation sets out the requirements for UK Climate Transition Benchmarks and UK Paris-aligned Benchmarks. The Financial Conduct Authority (FCA) monitor and supervise benchmark administrators according to the Benchmarks Regulation to ensure that benchmarks are produced robustly and with due transparency. The FCA published a statement regarding their position on sustainability regulations and UK defence investment on 11 March 2025. It is for benchmark administrators to decide if they wish to provide UK Climate Transition Benchmarks and UK Paris-aligned benchmarks under the Benchmarks Regulation, including by paying due regard to the relevant FCA guidance, and which companies to include in their benchmarks. It is then up to firms and investors to choose whether to use these benchmarks. This Government does not see a conflict between sustainable investment and investment in our world-leading defence sector.

Whether the EU Green Taxonomy regulations apply to Northern Ireland.

The EU Taxonomy Regulation, which is part of the EU's sustainable finance framework, does not directly apply in Northern Ireland. There are some circumstances where a UK company may be subject to the EU Taxonomy reporting requirements because of its operations in the EU. This could apply to relevant companies in Northern Ireland, just as elsewhere in the UK.

If she will make an assessment of the potential impact of her policies on tackling non-compliance in the umbrella company market on the labour supply chain.

The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year. HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures. The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.

If she will make an assessment of the potential implications for her policies of the report by the FCSA entitled Regulating the UK’s umbrella market - FCSA’s response to proposals in Budget 2024, published on 11 March 2025.

The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year. HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures. The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.

If she will make an assessment of the potential impact of her policies on tackling non-compliance in the umbrella company market on the level of pension contributions made by affected people.

The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year. HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures. The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.

Whether she made an assessment of the potential merits of undertaking an impact assessment of her policies on tackling non-compliance in the umbrella company market.

The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year. HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures. The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.

What assessment her Department has made of the potential impact of her policy on tackling non-compliance in the umbrella company market on (a) freelancers and (b) temporary workers seeking to evidence a stable income for mortgage applications.

The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year. HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures. The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.

With reference to paragraph 2.19 of the Autumn Budget 2024, whether she plans to provide additional funding for tackling non-compliant umbrella companies.

The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year. HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures. The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.

If she will make an assessment of the potential impact of her policies on tackling non-compliance in the umbrella company market on the number of joint employment models.

The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year. HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures. The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.

If she will make an estimate of the potential impact of her policy on tackling non-compliance in the umbrella company market on revenues to the Exchequer.

The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year. HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures. The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.

Pursuant to the Answer of (a) 27 November 2024 to Question 14255 on Civil Service and (b) 27 November 2024 to Question 14946 on Government departments: communications and consultations, what the financial reduction in consultancy spending is in absolute terms required to deliver the policy of having spending on consultancy; and what the estimated baseline spending on government consultancy was in 2024-25 prior to the planned reduction of £550 million for 2024-25 and £680 million in 2025-26.

The baseline aggregate annual cash figure for the 24-25 savings target is based on an in-year monthly forecast outturn figure from the government’s cross central financial management system. In-year forecast outturn figures at this level of detail are not released publicly due to their security classification and sensitivity. The baseline for the £680 million 25-26 saving is based on a 50% cut to the average figure that HMG spent on consultancy across the six financial years 2017/18 to 2022/23. This figure was calculated using HM Treasury estimates from spending figures published via the annual release of data from the Online System for Central Accounting and Reporting (OSCAR) database.The government’s policy is to reduce consultancy spending by £550m in 2024-25 and to halve spending in 2025-26 against a baseline of average HMG spend on consultancy across the six financial years 2017/18 to 2022/23. This figure was calculated using HM Treasury estimates from spending figures published via the annual release of data from the Online System for Central Accounting and Reporting (OSCAR) database. This financial reduction in spending will deliver cash savings of £680m. The estimated baseline spending on consultancy in 2024-25 prior to the planned reduction of £550m is based on an in-year monthly forecast outturn figure from the government’s cross central financial management system. In-year forecast outturn figures at this level of detail are not released publicly due to their security classification and sensitivity.

What role management consultants will play in determining efficiency savings for phase 2 of the Spending Review.

There is no formal role for management consultants in determining efficiency savings. In developing their plans for the forthcoming Spending Review departments will need to find 5% savings and efficiencies against their current budgets, to help drive out waste and ensure all funding is focused on the Government’s priorities. The Government will set out its spending plans in the multi-year Spending Review in June 2025.

Pursuant to the Answer of 5 December 2024 to Question 16601 on Employer’s Contributions: Public Sector, what her planned timetable is to update Parliament on allocations by department.

Allocations of support for additional Employer National Insurance Contributions costs by department will be published alongside spending estimates at Main Estimate.

Pursuant to the Answer of 22 January 2025 to Question 23883, on Public Finance: Brexit, if she will make a comparative estimate of the net difference between the two invoices from the European Union relating to the Financial Settlement under the Withdrawal Agreement and the annual payments when the United Kingdom was a member of the European Union.

It is not possible to meaningfully compare the net payments under the Financial Settlement and the UK's financial contributions during its time as a Member State poses substantial analytical issues. The former relates to historic liabilities of and receipts due to the UK, while payments to the EU budget cover participation in the EU’s ongoing activities. The UK’s contributions and receipts to and from the EU as a Member State, as well as those made under the Financial Settlement are detailed in the annual European Union Finances Statement (available in the library of the House and on Gov.uk).