Written questions by Medi.

What estimate she has made of the potential impact of business property relief and agricultural property relief reforms on local investment levels among small and medium-sized construction firms that form part of local supply chains.

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.

What discussions her Department has had with representatives of family-run construction companies on the potential workforce and skills implications of 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.

Whether she has made an assessment of the potential impact of proposed reforms to business property relief and agricultural property relief on the availability of full-time equivalent jobs in Wales.

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.

When she expects the Crown Estate Commissioners with special responsibilities for (a) Wales, (b) England and (c) Northern Ireland to be appointed.

These Crown Estate Commissioner appointments are governed by the Code for Public Appointments. The recruitment campaign for the Crown Estate Commissioner with special responsibility for Wales will launch this autumn, with a view to making an appointment by early 2026. The appointments of the Commissioners with special responsibility for Northern Ireland and England will follow later.

What discussions she has had with the Welsh Government on the appointment of a Crown Estate Commissioner with special responsibility for Wales, in the context of the Crown Estate Act 2025.

The UK Government has regular discussions with the Welsh Government at official and ministerial level. The Financial Secretary to the Treasury will next meet with Mark Drakeford, Cabinet Secretary for Finance and Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning on 10 September. This will include discussion of the appointment of a Crown Estate Commissioner with special responsibility for Wales.

If she will provide funding to the National Vehicle Crime Intelligence Service in the Autumn Budget 2025 to enable it to expand its operations in key hotspots.

The National Vehicle Crime Intelligence Service (NaVCIS) is a national policing unit which provides dedicated specialist intelligence and enforcement on vehicle crime. NaVCIS is funded by industry, including finance and leasing companies, insurers and hauliers. In the financial year 2024-25, Home Office provided one-off funding of £250,000 to help support work at the ports to prevent stolen vehicles and vehicle parts being shipped abroad, including providing additional staff and specialist equipment. This Government is committed to tackling vehicle crime. In the Crime and Policing Bill, we have banned electronic devices used to steal vehicles, empowering the police and courts to target the criminals using, manufacturing, importing and supplying them.

If she will make an assessment of the potential merits of moving electricity bill levies into general taxation, in the context of average annual costs of household energy bills.

Energy levies support vital investment to secure the UK’s electricity system with homegrown, clean power. Through public and private investment, the Government is protecting billpayers from volatile international fossil fuel markets. To help those that most need it, the Warm Home Discount provides a £150 discount off electricity bills to around 3 million households. The government has consulted on expanding the scheme to around 6 million households in total for winter 2025/26 and will respond to the consultation in due course.

What assessment she has made of the potential impact of the Spending Review 2025 on businesses in Wales.

Spending Review 2025 (SR25) delivers for businesses UK-wide, including across Wales. Public finance institutions will work in collaboration with the devolved governments and local stakeholders to invest in businesses and technologies, and drive growth across all the nations of the UK. The British Business Bank, National Wealth Fund, and Great British Energy are already investing in businesses across Scotland, Wales and Northern Ireland. The government is due to publish its modern Industrial Strategy setting out how the government will accelerate growth in eight growth-driving sectors and strengthen economic resilience across the UK. The growth-driving sectors – advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services – are active across the regions and nations, each with their own specialisms. Supporting the success of these sectors, and the places where they are based, will be crucial in delivering high-quality jobs, new opportunities and higher living standards across the whole country. Further detail on what SR25 delivers for businesses across the UK can be found at: Spending Review 2025 document - GOV.UK

If she will make an estimate of the potential impact of planned changes to business property relief on levels of investment made by affected family businesses in (a) Wales and (b) the UK in each of the next three years.

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, and fixing the public finances. 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 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. 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 OBR certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact.

If she will make an estimate of the potential impact of technical issues associated with the (a) Customs Handling of Import and Export Freight, (b) common health entry document and (c) Cargo Community Systems for the UK on costs incurred by exporters since January 2024.

HMRC’s Customs Handling of Import and Export Freight (CHIEF) system is no longer in use. No new declarations have been made on CHIEF since July 2024, and the system was fully decommissioned in December 2024. HMRC’s customs systems, including CHIEF prior to its decommissioning, have remained resilient, and in the unlikely event of system issues HMRC has contingency processes to maintain the flow of goods. Common health entry documents (CHEDs) for UK exporters are a requirement of EU member states that they are exporting to, and the associated systems and processes are outside the control of UK Government. CHEDs for UK imports are issued by the Import of Products, Animals, Food, and Feed System (IPAFFS) and system reliability to enable CHEDs to be issued to traders has generally been good. Cargo Community Systems for the UK is a recognised Community System Provider but is a private sector entity responsible for its own systems and processes, including resolution of technical issues.

How many people the Crown Estate employs in the United Kingdom.

The average number of staff during the year 2023-24 was 642, as set out in Table 7 Staff Costs of The Crown Estate Integrated Report and Accounts 2023/24. The figure will be updated in The Crown Estate’s annual report for 2024-25, which is due for publication in the summer.

Whether the Crown Estate charges private businesses (a) lease fees and (b) royalty fees on profits.

The Crown Estate as a landowner charges occupiers/tenants, which can be private businesses, rent in accordance with their lease agreements. In some cases, the rent structure under The Crown Estate’s leases can include a turnover rent element whereby the amount of rent charged is either a percentage of the occupier/tenant’s turnover made at the leased property or the higher of fixed rent and a percentage of the occupier/tenant’s turnover at the leased property. These rent structures are commonly used in the retail market. Royalty fees are used in certain specific situations within a lease structure.

Pursuant to the Answer of 5 September 2024 to Question 3769 on Crown Estate: Wales, what assessment she has made of the ability of the commissioners with special responsibilities for Wales as provided for within the Crown Estate Bill to perform their functions without disaggregated net revenue profit data for Wales.

The Crown Estate Bill, as amended in the House of Lords, requires the appointment of a Commissioner responsible for giving advice about Wales (alongside separate equivalent appointments for England and Northern Ireland). The Bill confirms that ‘giving advice about’ means the relevant Commissioner would give advice to the Commissioners about conditions in Wales, in so far as it relates to their functions in relation to Wales. It is the Treasury’s view that the ability to give that advice does not depend on having disaggregated net revenue profit data. The Crown Estate operates across England, Wales and Northern Ireland, but its operations are not divided into business units by nation. It is not possible to disaggregate by nation without applying a high degree of subjective judgment in relation to costs. As was noted in the Answer of 5 September 2024 to Question 3769, The Crown Estate does already publish a Wales Review to supplement the annual report, which highlights The Crown Estate’s work in Wales.

Pursuant to the Answer of 24 January 2025 to Question 25389 on Crown Estate: Wales, if she will list all ministerial level meetings with the Welsh Government where the devolution of the Crown Estate in Wales has been discussed.

The UK Government has regular discussions with the Welsh Government at official and ministerial level on a range of issues. This has included a request from the Welsh Government that the UK Government considers devolution of the management of The Crown Estate in Wales.In the last three months, there has been one ministerial meeting within the Treasury with the Welsh Government which included The Crown Estate and Wales. This was held on the 25 November 2024 between the Financial Secretary to the Treasury and Cabinet Secretary for Finance and Welsh Language. The meeting covered growth, resetting our relationship with the EU, Great British Energy and The Crown Estate.

Pursuant to the Answer of 13 January 2025 to Question 22766 on Crown Estates: Wales and with reference to the Answer by the First Minister of Wales to the Question from Rhun ap Iorwerth MS of 21 January 2025, for what reason the First Minister said that there had been discussions on devolving the Crown Estate to Wales.

The UK Government has regular discussions with the Welsh Government at official and ministerial level on a range of issues. This has included a request from the Welsh Government that the UK Government considers devolution of the management of The Crown Estate in Wales.As set out in the answer of 13 January 2025 to Question 22766: Crown Estates: Wales, the UK Government and Welsh Government have not entered discussions to take forward the devolution of The Crown Estate in Wales. However, the matter has been discussed at Ministerial level.Whilst we acknowledge the policy position of the Welsh Government put forward during discussions, as previously set out, the UK Government does not believe devolution of the Crown Estate is currently in the best interests of Wales as it could fragment the energy market, complicate existing processes, and potentially delay grid connectivity reform as well as the further development of offshore energy. Together this gives rise to concerns it would delay progress towards net zero and undermine investment in Welsh waters.We will continue to engage constructively with the Welsh Government on a wide range of topics relevant to the operation of the devolution settlement, including how to ensure that The Crown Estate works in the interests of Wales.

What recent discussions she has had with the Welsh Government on devolving management of the Crown Estate to Wales.

The UK Government has had no discussions with the Welsh Government on devolving the Crown Estate. The Crown Estate has played a significant role in attracting international investment into Wales to support the UK’s net zero target and will continue to do so through future leasing rounds for offshore wind developments, including floating wind projects in the Celtic Sea. They work closely with the Welsh Government and Natural Resources Wales in support of shared priorities, ensuring that these resources are sustainably managed for the long term. Introducing a new entity would fragment the market, complicate existing processes, and likely delay further development offshore, undermining investment in Welsh waters.

If she will make an assessment of the potential merits of zero rating for VAT buildings retrofitted to (a) Passivhaus and (b) AECB standards.

This Government is committed to improving the quality and sustainability of our housing stock, through improvements such as low carbon heating, insulation, solar panels, and batteries. This will be vital to making the UK more energy resilient and meeting our 2050 Net Zero commitment.Installations of qualifying energy-saving materials in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent.VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax forecast to raise £171 billion in 2024/25. Taxation is a vital source of revenue that helps to fund vital public services.One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as savings will not always be passed on to consumers.The Government has no current plans to formally review the VAT treatment of building works. However, all taxes are kept under review as part of the tax policymaking process. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.