Written questions by Duncan-Jordan.

Whether she has made an assessment of the merits of the Bank of England paying interest on reserve accounts maintained by commercial banks.

The Bank of England has operational independence from the government to carry out its statutory responsibilities for monetary policy and financial stability. Monetary policy, including quantitative easing, is the responsibility of the independent Monetary Policy Committee at the Bank of England. There are no plans to change the way reserves are remunerated at the Bank of England. The government continues to support the Bank to bring inflation in line with its target, including by managing the public finances responsibly.

Whether she plans to extend the freeze on beer duty.

At the Autumn Budget, the Chancellor cut alcohol duty on qualifying draught products, including mostly draught beer – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint. This reduction increased the relief available on draught products to 13.9% came into effect on 1 February 2025. Other alcohol duties were increased in line with inflation. As with all taxes, the Government keeps alcohol duty under review as part of its Budget process.

Whether she plans to introduce a permanent reduction in business rates for pubs.

We intend to introduce permanently lower tax rates for retail, hospitality and leisure (RHL) properties, including pubs, with rateable values below £500,000 from 2026-27, and fund this by introducing a higher multiplier on properties with rateable values of £500,000 or more. The multiplier rates will be confirmed at Autumn Budget 2025. During the interim period, for 2025-26, RHL businesses will receive a 40 per cent relief on their business rates up to a cash cap of £110,000 per business, and the tax multiplier applied to small properties will be frozen. Under the previous government, RHL relief was due to end entirely in April 2025, and so by extending it, the Government has saved the average pub, with a ratable value of £16,800, over £3,300. The Government has also published a Discussion Paper setting out priority areas for business rates reform and inviting industry to co-design a fairer business rates system. In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.

How she determines which state benefits are (a) subject to and (b) exempt from tax.

The tax treatment of social security benefits depends on their purpose. Generally, benefits that replace income are subject to tax, while those intended to support specific needs are exempt.

What assessment she has made of the potential merits of reclassifying weapons as ethical investments for pension funds.

Trustees and fund managers are responsible for making investment decisions in line with their fiduciary duty and member preferences. In a time of increasing geopolitical instability, maintaining a robust and thriving defence sector is essential to our national security. The Government has therefore been clear that supporting our defence industry is entirely consistent with ethical investing. The Defence Industrial Strategy Statement of Intent, published in December 2024, recognised issues with regards to access to finance for the defence industry. The Government has consulted with a wide range of stakeholders, including defence suppliers and financial institutions, to assess the ways in which we can reduce these barriers and create a strong and resilient defence sector.

If she will take steps to increase the level of child benefit in line with inflation.

To ensure that Child Benefit retains its value, the Government will increase Child Benefit in line with the consumer prices index for the year to September 2024, which is 1.7%. This means that, from 7 April 2025, the Child Benefit rate for the eldest child will increase to £26.05 per week and the rate for other children will increase to £17.25 per week.

If she will make an estimate of the number of (a) nurses, (b) teachers and (c) police offers that could be employed via an increase in spending equivalent to 0.2 per cent of GDP.

The Government values the vital contribution that public sector workers make across the UK, delivering the public services we all rely on. The Treasury does not hold information on how many additional public sector workers could be employed via a specific increase in spending, which would depend on a variety of factors, however the Government is committed to ensuring we can recruit and retain the right set of people to run our public services and has plans in place to do so. This includes a commitment to deliver 13,000 more neighbourhood policing personnel, deliver an additional 6,500 teachers, and refresh the NHS Long Term Workforce Plan.

Whether she is taking steps to reduce the Cash ISA allowance.

ISAs are tax-free savings accounts, which incentivise individuals to save and invest. An ISA investor does not pay tax on interest, income, or gains received in an ISA and there is no need to declare any ISA interest, income, or capital gains on a tax return. This is made clear within the self-assessment process. Detailed information on how ISAs operate, and their tax-free status, can be found on GOV.UK and in the promotional and other material provided by ISA managers to prospective customers.The Government recognises the important role that cash savings play in helping households build a financial buffer for a rainy day. The Government also wants to see more consumers participate in capital markets and benefit from the long-term financial security and returns that investing can provide.As with all aspects of the tax system, the Government keeps ISA policy under review.

What steps she has taken to ensure that savers are aware of their tax liabilities in relation to the use of ISAs.

ISAs are tax-free savings accounts, which incentivise individuals to save and invest. An ISA investor does not pay tax on interest, income, or gains received in an ISA and there is no need to declare any ISA interest, income, or capital gains on a tax return. This is made clear within the self-assessment process. Detailed information on how ISAs operate, and their tax-free status, can be found on GOV.UK and in the promotional and other material provided by ISA managers to prospective customers.The Government recognises the important role that cash savings play in helping households build a financial buffer for a rainy day. The Government also wants to see more consumers participate in capital markets and benefit from the long-term financial security and returns that investing can provide.As with all aspects of the tax system, the Government keeps ISA policy under review.

Whether the review of the UK’s national resilience will include the impact of wealth inequality on society.

The Government is committed to making sure the wealthiest in our society pay their fair share of tax. That is why the Chancellor announced a series of reforms at Autumn Budget 2024 to help fix the public finances in as fair a way as possible.While income and wealth are not always directly correlated, distributional analysis shows that Government decisions at Autumn Budget 2024 and Spending Review 2025, Phase 1 are progressive and benefit households in the lowest income deciles the most, on average as a percentage of income in 2025-26. The increases in tax are concentrated on the highest income households. Overall, on average, all but the richest 10% of households will benefit from policy decisions in 2025-26.

What assessment she has made of the potential implications for her policies of recent trends in the level of wealth inequality.

The Government is committed to making sure the wealthiest in our society pay their fair share of tax. That is why the Chancellor announced a series of reforms at Autumn Budget 2024 to help fix the public finances in as fair a way as possible.While income and wealth are not always directly correlated, distributional analysis shows that Government decisions at Autumn Budget 2024 and Spending Review 2025, Phase 1 are progressive and benefit households in the lowest income deciles the most, on average as a percentage of income in 2025-26. The increases in tax are concentrated on the highest income households. Overall, on average, all but the richest 10% of households will benefit from policy decisions in 2025-26.

With reference to the Office for National Statistics Wealth and Assets Survey, published on 24 January 2025, if she will make an assessment of the reasons for the trends in (a) financial and (b) physical wealth for the top (i) 10% and (i) 1% decile between round seven and round eight.

The Government is committed to making sure the wealthiest in our society pay their fair share of tax. That is why the Chancellor announced a series of reforms at Autumn Budget 2024 to help fix the public finances in as fair a way as possible.While income and wealth are not always directly correlated, distributional analysis shows that Government decisions at Autumn Budget 2024 and Spending Review 2025, Phase 1 are progressive and benefit households in the lowest income deciles the most, on average as a percentage of income in 2025-26. The increases in tax are concentrated on the highest income households. Overall, on average, all but the richest 10% of households will benefit from policy decisions in 2025-26.

What assessment she has made of the implications for her policies of the data on monitoring the longitudinal fluctuations in the wealth held by the wealthiest 1% of households in Round 8 of the ONS Wealth and Assets Survey, last published on 24 January 2025.

The Government is committed to making sure the wealthiest in our society pay their fair share of tax. That is why the Chancellor announced a series of reforms at Autumn Budget 2024 to help fix the public finances in as fair a way as possible.While income and wealth are not always directly correlated, distributional analysis shows that Government decisions at Autumn Budget 2024 and Spending Review 2025, Phase 1 are progressive and benefit households in the lowest income deciles the most, on average as a percentage of income in 2025-26. The increases in tax are concentrated on the highest income households. Overall, on average, all but the richest 10% of households will benefit from policy decisions in 2025-26.

What estimate she has made of the amount of money lost annually through tax (a) avoidance and (b) evasion.

HM Revenue and Customs (HMRC) estimates the size of the tax gap, which is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. The tax gap statistics are published annually and are available at: Measuring tax gaps 2024 edition: tax gap estimates for 2022 to 2023 - GOV.UK (www.gov.uk). Table 7.1 of the online tables shows the illustrative tax gap time series by behaviour, including avoidance and evasion. The tax gap for avoidance was £1.8 billion and for evasion was £5.5 billion in tax year 2022 to 2023. The online tables are available at: Measuring tax gaps tables - GOV.UK (www.gov.uk).

If she will make an assessment of the potential impact of introducing VAT exemptions for (a) gyms and (b) other providers of fitness services on the number of people using these services.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for public services and must represent value for money for the taxpayer. At Autumn Budget 2024, the Government took a number of difficult but necessary decisions on tax, welfare, and spending to fix the public finances, fund public services, and restore economic stability. This stability is critical to boosting investment and growth, and to making people across the UK better off. One of the key considerations for any potential 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, meaning that cutting VAT may not be an effective way to reduce prices for consumers.

When she next plans to review the overseas scale rates.

As with all taxes and allowances, the Government keeps flat rates expenses, including Overseas Scale Rates, under review. Any decisions on future changes in this area will be taken in the context of the wider public finances.

Pursuant to the Answer of 9 September 2024 to Question 3666 on Private Education: VAT, what steps she plans to take to monitor the impact of the policy changes on military families.

HMRC routinely monitors the impact of policy changes. The measure to remove the VAT exemption for education and boarding services provided by private schools will be kept under review through communication with affected stakeholder groups and stakeholders as well as education departments across the devolved governments. The government greatly values the contribution of diplomatic staff and serving personnel and provides the Continuity of Education allowance (CEA) to ensure that the need for frequent mobility does not interfere with the education of their children. As the government set out in its Summary of Responses to the Technical Note on Applying VAT to Private School Fees, the MoD has increased the funding allocated to the 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. A Tax Information and Impact Note (TIIN) has been published which gives a clear explanation of the policy objective together with comprehensive assessment of the impacts on the Exchequer, individuals and families, businesses and the wider economy, equalities impacts, and any other specific area of impact. The TIIN can be found here: Applying VAT to private school fees - GOV.UK (www.gov.uk).

If she will make it her policy to replace the public sector pay review bodies with collective bargaining.

The PRB process is the established mechanism for determining pay uplifts for many workforces in the public sector. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role – and which unions campaigned to establish in the first place. The Chancellor is committed to this process but recognises that confidence in the process has fallen in recent years. The Government is committed to restoring this confidence That is why the Government took the decision to launch the 2025/26 pay round in September 2024 - three months earlier than last year. This will mean public sector workers get their pay awards closer to the start of the financial year, putting us on track to restore the process to its proper timetable by 2026/27.

If she will extend the Employment Allowance to (a) GPs and (b) other people providing public services.

The Government has not changed the eligibility rules on the Employment Allowance beyond removing the £100,000 eligibility threshold. Government guidance on the Employment Allowance states that you ‘cannot claim if you’re a public body or business doing more than half your work in the public sector – unless you’re a charity’. The eligibility of a specific sector or organisation will depend on the make-up of an individual business's work.

If the Government will propose that the principles of (a) human rights, (b) workers' rights and (c) climate justice are contained within the UN Tax Convention.

The UK is committed to working with all stakeholders to ensure inclusive and effective international tax cooperation, and has been actively engaging in negotiations at the UN over a future Framework Convention. The UK believes that a UN Tax Framework Convention has the potential to further advance international tax cooperation, but to be successful, it needs to be clear in its aims, avoid duplicating initiatives, and seek to secure the broad support and participation of members. The UK was disappointed that these principles were not fully reflected in the Terms of Reference agreed by the UN Ad Hoc Committee in August, but will continue to engage constructively in support of key principles for strengthening international tax cooperation.