Written questions by Byrne.

What metrics she plans to use to assess the value for money of capital spending allocated over the next five years.

Economic growth is the number one mission of the government. Through the growth mission, the government will deliver a milestone of higher living standards in every part of the United Kingdom by the end of the Parliament. Investment is a vital part of addressing the growth challenge. Autumn Budget began rebuilding Britain by increasing public investment and unlocking private investment. Public sector net investment will average 2.6% of GDP over the Parliament, with over £100 billion of additional capital investment over the next five years. This will strengthen the UK economy over the long term. When making allocation decisions, the Treasury scrutinises individual capital spending proposals in line with the principles set out in the Green Book and Five Case Model, to ensure that they deliver value for money. It also considers these in line with the government’s wider priorities, such as growth, and their overall deliverability and affordability. The independent Office for Budget Responsibility produces regular and comprehensive forecasts on the impact of current government policies, including judgements about fiscal multipliers. The OBR confirms that the Budget will have a positive impact on GDP in the next parliament and into the longer term from additional public investment. If sustained, the OBR judges the higher public capital spending, and the higher private sector investment this incentivises, could increase potential output by 0.4% after 10 years, and 1.4% in the long run.

What (a) metrics and (b) fiscal multipliers she plans to use to take allocation decisions for capital spending to Departments in the next five years.

Economic growth is the number one mission of the government. Through the growth mission, the government will deliver a milestone of higher living standards in every part of the United Kingdom by the end of the Parliament. Investment is a vital part of addressing the growth challenge. Autumn Budget began rebuilding Britain by increasing public investment and unlocking private investment. Public sector net investment will average 2.6% of GDP over the Parliament, with over £100 billion of additional capital investment over the next five years. This will strengthen the UK economy over the long term. When making allocation decisions, the Treasury scrutinises individual capital spending proposals in line with the principles set out in the Green Book and Five Case Model, to ensure that they deliver value for money. It also considers these in line with the government’s wider priorities, such as growth, and their overall deliverability and affordability. The independent Office for Budget Responsibility produces regular and comprehensive forecasts on the impact of current government policies, including judgements about fiscal multipliers. The OBR confirms that the Budget will have a positive impact on GDP in the next parliament and into the longer term from additional public investment. If sustained, the OBR judges the higher public capital spending, and the higher private sector investment this incentivises, could increase potential output by 0.4% after 10 years, and 1.4% in the long run.

What assessment her Department has made of the potential impact of capital spending on economic growth in the next (a) five and (b) ten years, specifying (i) the fiscal multipliers targeted and (ii) the private sector investment included.

Economic growth is the number one mission of the government. Through the growth mission, the government will deliver a milestone of higher living standards in every part of the United Kingdom by the end of the Parliament. Investment is a vital part of addressing the growth challenge. Autumn Budget began rebuilding Britain by increasing public investment and unlocking private investment. Public sector net investment will average 2.6% of GDP over the Parliament, with over £100 billion of additional capital investment over the next five years. This will strengthen the UK economy over the long term. When making allocation decisions, the Treasury scrutinises individual capital spending proposals in line with the principles set out in the Green Book and Five Case Model, to ensure that they deliver value for money. It also considers these in line with the government’s wider priorities, such as growth, and their overall deliverability and affordability. The independent Office for Budget Responsibility produces regular and comprehensive forecasts on the impact of current government policies, including judgements about fiscal multipliers. The OBR confirms that the Budget will have a positive impact on GDP in the next parliament and into the longer term from additional public investment. If sustained, the OBR judges the higher public capital spending, and the higher private sector investment this incentivises, could increase potential output by 0.4% after 10 years, and 1.4% in the long run.

What assessment she has made of the potential impact of R&D tax reliefs on (a) business investment and (b) economic growth.

The Government recognises the important role that research and development (R&D) plays in driving innovation and economic growth as well as the benefits it can bring for society. Overall, R&D reliefs will support an estimated £56 billion of business R&D expenditure in 2029-30, a nearly 20 per cent increase from £47 billion in 2022-23. The latest evaluations (“Evaluation of the research and development tax relief for small and medium-sized enterprises” and “Evaluation of the research and development expenditure credit”) were published in 2020 by HMRC and can be found on the gov.uk website. In the Corporate Tax Roadmap published at Autumn Budget, the government committed to periodically evaluating the R&D reliefs to ensure they are as effective as possible and underpinned by a credible, up to date evidence base.

If she will publish economic impact assessments for all corporate tax policies.

The Office for Budget Responsibility produces regular and comprehensive forecasts on the fiscal and economic impact of government tax policies, including those relating to corporate tax. HMRC releases a corporation tax statistics publication annually, which provides a thorough breakdown of receipts and liabilities, including by industry sector and company size.

If she will make an assessment of which corporate tax reliefs have the largest positive impact on economic growth, ranked by scale of impact.

The government has committed to maintaining a range of generous investment incentives, including full expensing, R&D reliefs, and the Audio Visual Expenditure Credit. While the government does not maintain a ranking of economic impact, we seek to regularly monitor and assess economic impacts and the independent OBR also publishes their assessments. For example, the OBR's paper on the economic effects of full expensing sets out that they expect to increase business investment by £14bn over next five years. Since 2020 HMRC have published 14 tax relief evaluations covering 19 different reliefs, and some of these evaluations cover economic impacts. On 5th December HMRC published statistics covering the costs of non-structural and structural reliefs, this includes 46 costings that cover corporation tax reliefs.

What assessment she has made of the fiscal multipliers for (a) corporate tax reliefs and (b) capital spending authorised by her Department.

The independent Office for Budget Responsibility (OBR) assesses the economic and fiscal outlook, including the impact of policy decisions made by the Government. The OBR regularly publish reports which include explanations of their methodology. The 2024 Economic and Fiscal Outlook published alongside the Autumn Budget is published here: https://obr.uk/efo/economic-and-fiscal-outlook-october-2024/ In November 2023, the OBR published an article ‘Dynamic scoring of policy measures in OBR forecasts’ detailing how the fiscal multiplier framework is used to analyse the macroeconomic impacts of policy measures. Appropriate multipliers are applied to corporate tax reliefs and capital spending. More recently, in August 2024, the OBR published a discussion paper ‘Public investment and potential output’ outlining further detail on how public investment, including capital spending, affects the macroeconomic forecast. HMRC delivers proportionate and systematic monitoring and evaluation of tax reliefs to help provide evidence-based policy advice to Ministers. Since 2020 HMRC have published 14 tax relief evaluations covering 19 different reliefs, and some of these evaluations cover economic impacts. On 5th December HMRC published statistics covering the costs of non-structural and structural reliefs, this includes 46 costings that cover corporation tax reliefs.

What assessment she has made of the (a) economic impact and (b) fiscal multipliers of the corporate tax reliefs implemented by her Department; and what steps she is taking to monitor that impact.

The independent Office for Budget Responsibility (OBR) assesses the economic and fiscal outlook, including the impact of policy decisions made by the Government. The OBR regularly publish reports which include explanations of their methodology. The 2024 Economic and Fiscal Outlook published alongside the Autumn Budget is published here: https://obr.uk/efo/economic-and-fiscal-outlook-october-2024/ In November 2023, the OBR published an article ‘Dynamic scoring of policy measures in OBR forecasts’ detailing how the fiscal multiplier framework is used to analyse the macroeconomic impacts of policy measures. Appropriate multipliers are applied to corporate tax reliefs and capital spending. More recently, in August 2024, the OBR published a discussion paper ‘Public investment and potential output’ outlining further detail on how public investment, including capital spending, affects the macroeconomic forecast. HMRC delivers proportionate and systematic monitoring and evaluation of tax reliefs to help provide evidence-based policy advice to Ministers. Since 2020 HMRC have published 14 tax relief evaluations covering 19 different reliefs, and some of these evaluations cover economic impacts. On 5th December HMRC published statistics covering the costs of non-structural and structural reliefs, this includes 46 costings that cover corporation tax reliefs.

What estimate she has made of the amount of additional business investment due to the capital allowances measures in the corporate tax roadmap.

As a government, we are determined to provide the stability needed by businesses to make investments that are critical to boosting growth in the UK. That is why, in the Corporate Tax Roadmap, the Government has committed to maintaining the fundamental features of our world-leading capital allowances system, for the duration of this Parliament. This includes permanent full expensing system and the £1 million Annual Investment Allowance. As a result of permanent full expensing, the OBR expect business investment to increase by around £3 billion each year, and in the long run GDP will be 0.2% higher each year. With a stable and predictable capital allowances system, businesses will be able to rebuild the confidence they need to make significant long-term investment decisions.

When he expects the end of (a) animal testing and (b) testing on beagles at MBR Acres.

This Government has made a commitment to the development of alternative methodologies to the use of animals in science. The plan we develop will maintain the UK’s place at the forefront of science development and innovation.In the limited circumstances where there is no animal alternative and procedures are required to deliver important benefits to people, the environment, and other animals then we deliver robust, rigorous and trustworthy regulation of those procedures.The Home Office assures that, in every research proposal: animals are replaced with non-animal alternatives wherever possible; that experiments are appropriate designed and analysed experiments that are robust, reproducible, and add to the knowledge base; and that we assure the methodologies use the latest technologies to minimise pain, suffering and distress and improve understanding of the impact of welfare on scientific outcomes.

Commonwealth and Development Affairs, pursuant to the Answer of 9 October 2024 to Question 8320 on Gaza: Israel, what role his Department's International Humanitarian Law Compliance Assessment Process Cell plays in the overall assessment of Israel's compliance with International Humanitarian Law; and if he will list the dates of each of the Cell's assessments since 4 July 2024.

The FCDO's International Humanitarian Law Cell undertakes regular assessments of Israel's commitment and capability to comply with International Humanitarian Law in relation to the conflict in Gaza, in order to meet our legal obligations under the Strategic Export Licensing Criteria (SELC). Since 4 July 2024 assessments were submitted on 24 July 2024 and 1 October 2024. Assessments continue to take place.

Commonwealth and Development Affairs, when his Department’s International Humanitarian Law Compliance Assessment Process Cell made its most recent assessment of Israel’s compliance with International Humanitarian Law.

We continue to keep Israel's compliance with International Humanitarian Law (IHL) in Gaza under review through a regular assessments process. Our judgment on Israel's IHL compliance remains as set out in the Foreign Secretary's statement to Parliament on 2 September.

On how many occasions the Export Controls Joint Unit has initiated a Change in Circumstances Review assessment since January 2020; and what the destination country was in each case.

The Export Control Joint Unit (ECJU) has in place an established process for responding at pace to changing conditions in a country where the UK has previously granted export licences, and where those licences remain extant.The FCDO advises DBT on the situation in country and the risks this poses with respect to the UK’s export control responsibilities. The MOD advises DBT on the risks of diversion of exported goods and national security risks arising from hostile state activity. The Department of Business and Trade, with DBT Secretary of State as the decision-making authority, decides whether to amend, suspend or revoke any relevant licences.Given its diplomatic sensitivity, the Government is unable to disclose the specific number and destination countries of Change in Circumstances Reviews.

What steps his Department plans to take to meet the NATO defence industrial capacity expansion pledge; and how this will be incorporated into developing the new Defence Industrial Strategy.

This Government is committed to bringing forward a Defence Industrial Strategy which ensures the imperatives of national security and a high-growth economy are aligned. Our NATO-first approach will be a vital part of our new Defence Industrial Strategy, with NATO’s industrial and operational requirements and integration with our allies and partners at the heart of our defence plans. The Department is taking steps to meet the NATO defence industrial capacity expansion pledge, including through our NATO Multinational Procurement Initiatives through which we are encouraging more joint procurement amongst NATO allies.

What progress his Department has made on commissioning a new Defence Industrial Strategy.

This Government is committed to bringing forward a Defence Industrial Strategy which ensures the imperatives of national security and a high-growth economy are aligned. The development of the Defence Industrial Strategy will explore how to establish a better, more innovative and more resilient defence sector, enabling the UK to innovate, deter its adversaries and seize opportunities presented by the technologies of the future. The Defence Industrial Strategy will be developed at pace in parallel with, but separate from, the Strategic Defence Review and will be published in 2025.

When he plans to publish the UK Strategic Export Controls Annual Report 2023.

The UK Strategic Export Controls Annual Report 2023 is due to be published by the end of this year. It will be laid before Parliament and made available on Gov.uk at: https://www.gov.uk/government/collections/united-kingdom-strategic-export-controls-annual-report.

What (a) country and sector policy specialist, (b) legal, (c) administrative, (d) compliance, (e) enforcement, (f) industry engagement, (g) budgetary and (h) other resources he has allocated to the Office for Trade Sanctions Implementation.

The Office for Trade Sanctions Implementation (OTSI) has recruited people with a wide range of professional experience from across government and the private sector to fulfil OTSI’s responsibilities of policy, licensing and enforcement of certain trade sanctions, and industry engagement, along with financial management, project delivery and business support specialists. OTSI is also supported by legal, analytical and digital experts.OTSI is funded from the £50m Economic Deterrence Initiative (EDI) for 2023/24 and 2024/25. The Foreign, Commonwealth and Development Office (FCDO) is expected to publish more information on the EDI in the near future.

What (a) training and (b) support his Department plans to provide to businesses in respect of the new Office for Trade Sanctions Implementation.

The Office for Trade Sanctions Implementation (OTSI) will support businesses to meet their obligations under the UK’s trade sanctions regime through issuing guidance and engaging with a range of sectors and businesses.OTSI has already undertaken a major programme of industry engagement and outreach and is committed to ongoing business engagement to support compliance. OTSI has already published a suite of online guidance for businesses and launched new online tools which make it easier to report a breach and apply for a licence.OTSI is committed to supporting businesses to comply with trade sanctions by improving existing guidance as well as creating and promulgating new guidance, where necessary.

Commonwealth and Development Affairs, what the Government’s sanctions policy priorities are; and whether his Department plans to publish an updated strategy.

The UK uses sanctions to deter and disrupt malign behaviour and demonstrate our defence of fundamental principles, including democracy, human rights and the rule of law.I recently convened Ministers from across government to deepen our cooperation on sanctions, and review enforcement measures. I also discussed sanctions enforcement with leaders of the Overseas Territories during the Joint Ministerial Council. We regularly coordinate with allies including in the United States, Canada, EU and others to maximise our impact.This month we announced our largest sanctions package against Russia since May 2023, and working with our allies we will continue to use sanctions to further restrict the revenues and military goods Russia relies on. We have also recently used sanctions to respond to Iran's malign activity, as part of UK efforts to support a more stable West Bank, and targeted members of a Russian cybercrime gang.

Whether the Office for Trade Sanctions will publish an annual report.

The Office for Trade Sanctions Implementation intends to publish an annual review covering an overview of its activities across the year, following the model set by similar units such as the Office for Financial Sanctions located in HM Treasury and the Export Control Joint Unit in the Department for Business and Trade.