Written questions by Medi.

What assessment she has made of the potential merits of updating the Approved Mileage Allowance Payments rate.

Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee's expenses for business mileage in their private vehicle. These rates are also used by self-employed drivers to claim tax relief on business mileage (simplified motoring expenses) and can be used by organisations to reimburse volunteers who use their own vehicle for voluntary purposes. Employees can claim up to 45p/mile for the first 10,000 miles annually, followed by 25p/mile thereafter. An additional 5p/mile can be claimed for each passenger transported. The government recognises while AMAP rates have not changed since 2011, the motoring landscape has evolved significantly and it is an important issue for many people who claim motoring expenses. As the Chancellor announced earlier this month, the government will review this issue and will consider this matter further as part of a future fiscal event.

With reference to Written Statement UIN HCWS1315, what Barnett consequentials will be provided to the Welsh Government as a result of the grants awarded to local authorities in England to address SEND deficits.

Any Barnett consequentials generated will be confirmed when departments formally receive funding; the next opportunity is Spring Forecast 2026.

What recent assessment she has made of the potential merits of increasing draught duty relief.

This Government is proud to have been able to significantly expand the generosity of Draught Relief this parliament, in recognition of the economic and cultural importance of pubs, and the wider “on trade”. In February 2025, the Chancellor delivered a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This took a penny of duty off a typical strength pint and reduced overall duty receipts by £85m. Draught beer and cider now pay 13.9% less in tax than their packaged equivalents. The Government keeps duty rates under review, and the Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the on trade sector on the effectiveness of Draught Relief in advance of the Budget.

What Barnett consequential funding the Welsh Government will receive from the Warm Homes Plan.

The Barnett formula applies to all increases or decreases to Departmental Expenditure Limits (DEL). The Barnett formula is not applied to the individual programmes driving the change in a UK department’s DEL budget, so the total Barnett consequentials associated with the Warm Homes Plan cannot be identified.

When she last met with the Welsh Government to discuss the potential impact of the increase in employer National Insurance Contributions on public sector employers in Wales.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy. The Welsh Government received £185 million of this support through the Barnett formula. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. It is for the Welsh Government to allocate this funding in devolved areas including funding for local authorities as it sees fit, reflecting its own priorities and local circumstances, and it is accountable to the Senedd for these decisions. HM Treasury ministers regularly engage with their Welsh Government counterparts, including through forums such as the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales, including the impact of changes to employer National Insurance contributions on Welsh Government funding. The most recent F:ISC was on 17 October where these topics were discussed.

With reference to the statement by the Welsh Government entitled Funding to Support Devolved Public Sector Employers with Increased National Insurance Costs, published on 30 May 2025, what steps her Department is planning to take to address the remaining £36 million shortfall in funding for Welsh public sector employers arising from the increase in employer National Insurance Contributions.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy. The Welsh Government received £185 million of this support through the Barnett formula. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. It is for the Welsh Government to allocate this funding in devolved areas including funding for local authorities as it sees fit, reflecting its own priorities and local circumstances, and it is accountable to the Senedd for these decisions. HM Treasury ministers regularly engage with their Welsh Government counterparts, including through forums such as the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales, including the impact of changes to employer National Insurance contributions on Welsh Government funding. The most recent F:ISC was on 17 October where these topics were discussed.

How much funding was provided to the Welsh Government (a) through the Barnett consequentials and (b) any other mechanisms as a result of the increase in employer National Insurance Contributions for public sector employers in Wales in the 2025-2026 financial year.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy. The Welsh Government received £185 million of this support through the Barnett formula. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. It is for the Welsh Government to allocate this funding in devolved areas including funding for local authorities as it sees fit, reflecting its own priorities and local circumstances, and it is accountable to the Senedd for these decisions. HM Treasury ministers regularly engage with their Welsh Government counterparts, including through forums such as the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales, including the impact of changes to employer National Insurance contributions on Welsh Government funding. The most recent F:ISC was on 17 October where these topics were discussed.

Pursuant to the answer of 28 March 2025 to question 41189, how many private businesses based in Wales paid (a) lease and (b) royalties fees to the Crown Estate in 2024-25.

This information is not held centrally and could only be provided at disproportionate cost. The Crown Estate will provide separate reporting for Wales in its 2025-26 annual report and accounts.

What recent estimate she has made of the number of jobs to be created through the first phase of the Floating Offshore Wind Programme in the Celtic Sea; and how many of these will be in Wales.

As part of the tender process for Offshore Wind Leasing Round 5, bidders were required to set out plans for creating onshore benefits from the development of the new wind farms. This included committing to creating new apprenticeships, and supporting those currently not in education, employment or training. Research commissioned by The Crown Estate found that across the UK up to 5,300 new jobs and up to £1.4 billion could be generated for the economy by galvanising the supply chain and infrastructure opportunities arising from the development of these new floating wind farms off the coast of South Wales and Southwest England.

What assessment she has made of the potential merits of introducing a cut in VAT for the hospitality sector in Wales.

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK. VAT is a reserved tax, applying UK wide. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services, including alcohol, whether served in hospitality establishments or sold in supermarkets. HMRC estimate that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £10 billion this financial year. If the scope were also to include alcoholic beverages, the cost would be approximately £3 billion greater. The Government is supporting the hospitality sector through the business rates system. To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, from 2026/27. Ahead of these changes being made, we have prevented RHL relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.

Pursuant to the Answer of 28 March 2025 to Question 41189, what was the total value of (a) rents and (b) royalty fees paid by private businesses to the Crown Estate in Wales in the 2024-2025 financial year.

The Crown Estate’s Integrated annual report and accounts are published each year, and laid before Parliament. These set out details of The Crown Estate’s financial returns and information on how it delivers value for the long-term benefit of the UK. The Crown Estate will provide separate reporting for Wales in its 2025-26 accounts.

What recent discussions she has had with the Welsh government on the (a) implementation of and (b) planned timelines for the McCloud remedy for public sector pensions in Wales.

The McCloud remedy under the Public Service Pensions and Judicial Offices Act 2022 took effect from October 2023 and will deliver a full remedy to all affected public service pension scheme members. Schemes are currently implementing the remedy. As part of this, all affected members are receiving a remediable service statement setting out the details of their pension entitlements and some members will also receive a Remediable Pension Savings statement in respect of their annual allowance position during the remedy period. Scheme managers are responsible for supplying members with these statements and for setting out timetables for sending out the remaining statements. HM Treasury encourages schemes to complete this process as quickly as possible and regularly discusses McCloud remedy progress and timetables with responsible authorities, including the Welsh Government, which has responsibility for the Firefighters’ pension scheme in Wales.

What steps her Department is taking to help reduce the time taken to issue remaining (a) Remediable Service Statements and (b) Remedial Pension Saving Statements to people affected by the McCloud remedy.

The McCloud remedy under the Public Service Pensions and Judicial Offices Act 2022 took effect from October 2023 and will deliver a full remedy to all affected public service pension scheme members. Schemes are currently implementing the remedy. As part of this, all affected members are receiving a remediable service statement setting out the details of their pension entitlements and some members will also receive a Remediable Pension Savings statement in respect of their annual allowance position during the remedy period. Scheme managers are responsible for supplying members with these statements and for setting out timetables for sending out the remaining statements. HM Treasury encourages schemes to complete this process as quickly as possible and regularly discusses McCloud remedy progress and timetables with responsible authorities, including the Welsh Government, which has responsibility for the Firefighters’ pension scheme in Wales.

Whether her Department has received information from relevant Departments on their plans to issue remaining (a) Remediable Service Statements and (b) Remedial Pension Saving Statements to all people affected by the McCloud remedy for pubic sector pensions.

The McCloud remedy under the Public Service Pensions and Judicial Offices Act 2022 took effect from October 2023 and will deliver a full remedy to all affected public service pension scheme members. Schemes are currently implementing the remedy. As part of this, all affected members are receiving a remediable service statement setting out the details of their pension entitlements and some members will also receive a Remediable Pension Savings statement in respect of their annual allowance position during the remedy period. Scheme managers are responsible for supplying members with these statements and for setting out timetables for sending out the remaining statements. HM Treasury encourages schemes to complete this process as quickly as possible and regularly discusses McCloud remedy progress and timetables with responsible authorities, including the Welsh Government, which has responsibility for the Firefighters’ pension scheme in Wales.

When she plans to issue remaining (a) Remediable Service Statements and (b) Remedial Pension Saving Statements to people affected by the McCloud remedy.

The McCloud remedy under the Public Service Pensions and Judicial Offices Act 2022 took effect from October 2023 and will deliver a full remedy to all affected public service pension scheme members. Schemes are currently implementing the remedy. As part of this, all affected members are receiving a remediable service statement setting out the details of their pension entitlements and some members will also receive a Remediable Pension Savings statement in respect of their annual allowance position during the remedy period. Scheme managers are responsible for supplying members with these statements and for setting out timetables for sending out the remaining statements. HM Treasury encourages schemes to complete this process as quickly as possible and regularly discusses McCloud remedy progress and timetables with responsible authorities, including the Welsh Government, which has responsibility for the Firefighters’ pension scheme in Wales.

What recent assessment her Department has made of the potential impact of the increase in employers' National Insurance contributions on levels of business (a) investment and (b) closures in Wales.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer National Insurance contributions (NICs) announced at Autumn Budget 2024. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts. The Government decided to protect the smallest businesses from these changes by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change.

Pursuant to the Answer of 9 September 2025 to Question 75165 on Crown Estate: Wales, if he will publish the full minutes of the meeting between the Financial Secretary to the Treasury, the Welsh Government's Cabinet Secretary for Finance and the Welsh Government's Cabinet Secretary for Economy, Energy and Planning on 10 September 2025.

It would not be appropriate to share the minutes of this meeting as it would inhibit open and frank discussion in the development of government policy.

Pursuant to the Answer of 9 September 2025 to Question 75166 on Crown Estate: Wales, whether (a) the recruitment campaign has begun for a Crown Estate Commissioner with special responsibility for Wales and (b) a specific date for the appointment of that Commissioner has been decided upon.

The recruitment campaign started on 16 October and will progress in accordance with the Governance Code for Public Appointments. This is also a Crown appointment and as such the Prime Minister will make a recommendation to His Majesty The King and a Royal Warrant issued.

Whether she has had discussions with the Welsh Government on the potential impact of proposed reforms to Business Property Relief and Agricultural Property Relief on the housebuilding sector in Wales.

The UK Government has discussions with the Welsh Government on a range of issues and I refer the Honourable Member to the answer given to UIN 75735.

Whether she has made an estimate of the reduction in gross value added in Wales from proposed reforms to business property relief and agricultural property relief.

The Government has received representations, including from the construction and plant hire sector, about the reforms to both agricultural property relief and business property relief. The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free. Information from claims is not recorded to enable regional or national breakdowns of the number of estates expected to be affected. However, the Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data. The Government has also set out that around 1,500 estates across the UK only claiming business property relief are expected to pay more inheritance tax in 2026-27, with around 1,000 of these expected to only hold shares designated as “not listed” on the markets of recognised stock exchanges, such as the Alternative Investment Market. The remaining 500 estates will include business assets from sectors across the economy that are eligible for business property relief. These reforms mean that around three-quarters of estates claiming business property relief in 2026-27 (excluding those estates only holding shares designated as “not listed”) will not pay any more inheritance tax in 2026-27. The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The independent Office for Budget Responsibility certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact.