📚 Oral Answers to Questions

• Tax Evasion:
  • The Government is taking significant steps to tackle tax evasion, with plans to raise an additional £7.5 billion annually by 2029-30 through measures introduced in the autumn Budget and spring statement.
  • These measures aim to close the tax gap, which grew by £5 billion in 2023 under the previous government.
  • The funds will be used to fund public services and priorities, including free breakfast clubs in primary schools and a forthcoming child poverty strategy.
• Economic Growth:
  • The Government has prioritized economic growth, unlocking £113 billion for capital spending across the UK.
  • Specific initiatives include support for the automotive sector and life sciences, as well as adding 60,000 construction skill places to help build homes and infrastructure.
  • The Chancellor emphasized cross-departmental collaboration to address issues impacting growth, such as special educational needs, homelessness, and temporary accommodation.
• Second Homes:
  • Policies to address the impact of second homes include enabling councils to charge a premium on council tax and increasing stamp duty on second homes.
  • The Government abolished the furnished holiday lets tax regime and is considering further actions, including potential reforms to the small business rate relief system and exploring a registration or licensing scheme for second homes.
• New Homes: Affordability:
  • The Government aims to build 1.5 million new homes during the Parliament, with a £2 billion investment in social and affordable housing planned.
  • Reforms to the planning system and investment in construction skills are part of the strategy to increase housing availability and affordability, particularly addressing issues like temporary housing costs in London.
• Economic Growth in the North-East:
  • The Government is working in partnership with the North East Mayor and combined authority to develop local growth plans.
  • Investments in local infrastructure, such as upgrading roundabouts, are being considered to boost regional economic growth as part of the spending review.
• Farmers: Tax Reliefs:
  • Discussions have been held with farming representatives regarding the potential impact of changes to agricultural and business property reliefs.
  • The Government asserts it has listened extensively to concerns from the farming community despite the changes made to fix public finances.
• Foreign Investment:
  • The UK International Investment Summit 2024 secured £63 billion in investment commitments, expected to create 30,000 jobs.
  • The Government is focusing on ensuring that these investments turn into action, with projects expected to get underway in the near future.
• Economic Growth: Transport Infrastructure:
  • An increase of £1.1 billion in the transport budget was announced to enhance economic growth through new infrastructure.
  • Specific projects, such as the Portishead and Pill railway line, are expected to support regional economic development by improving connectivity and opening new job and leisure opportunities.
• National Wealth Fund: Regional Growth:
  • The national wealth fund is engaging with regional mayors to tailor economic growth strategies for their areas.
  • Investments in sectors like defense and dual-use technologies are expected to create jobs in regions like Stockport and Belfast.
• Pensioners: Cost of Living:
  • The state pension has been increased by 4.1%, ahead of inflation, providing an annual increase of £470 for those on the full new state pension.
  • Additional measures to support pensioners include extending the warm home discount and increasing access to pension credit.
• High Streets:
  • The Government is investing in local communities through the UK shared prosperity fund, with plans for permanently lower tax rates for high street businesses starting in 2026-27.
  • Efforts to support high streets include addressing the closure of bank branches through the rollout of banking hubs across the UK.
• Investment: Regulatory Policies:
  • A regulatory action plan aims to cut the administrative costs of regulation by 25% by the end of the Parliament, making the UK more attractive for business and investment.
  • The Government is working across departments and with key regulators to streamline regulation and encourage innovation and growth.
• Lowest Incomes: Support:
  • The national living wage has been increased by 6.7%, expected to provide a significant income boost for full-time workers.
  • Welfare reforms focus on supporting people into work and financial independence, with additional investment in employment, health, and skills support.
• Wealth Tax:
  • The Government has made changes to tax policies to ensure the wealthiest contribute fairly, including increasing capital gains tax and stamp duty on second homes.
  • While a wealth tax is discussed, the focus remains on balancing public finances without disproportionately affecting specific sectors or small businesses.
• Banking Services:
  • The Government is working to ensure rural communities have access to banking hubs, with over 220 hubs already announced.
  • Efforts are ongoing to protect in-person banking services and make it easier to establish banking hubs in communities losing traditional bank branches.
• Defence Sector and Economic Security:
  • An increase in defense spending to 2.5% of GDP supports national and economic security, with specific investments like the £9 billion deal with Rolls-Royce to create jobs in Derby.
• Hospitality and VAT:
  • Businesses in the hospitality sector have expressed concerns about trading conditions. The Government is considering options to support these businesses, including through business rates relief and permanently lower tax rates from 2026-27.
• Energy Trading with the EU:
  • The Government aims to improve energy trading with the EU to unlock investment in interconnectors, supporting the target of clean power by 2030.
• Child Poverty:
  • A child poverty strategy is planned for later in the year, with the taskforce’s work feeding into the spending review decisions.
• Global Trade:
  • The Government is addressing trade issues, particularly in response to US tariffs and concerns about China’s trade practices, by seeking to improve trade relations with the EU and other global partners.

The session displays a moderate level of disagreement, warranting a rating of 2. Several instances of disagreement can be observed, but they are generally addressed in a constructive manner with responses focusing on policy explanations and future actions rather than escalating conflicts. Notably, disagreements include:

1. Tax Evasion and Child Poverty Strategy: Paul Waugh critiques the previous government’s handling of tax evasion and pushes for investment in the child poverty strategy. This is not directly challenged but is addressed with an acknowledgment of the importance of both issues by James Murray.

2. Economic Growth and Departmental Collaboration: Deirdre Costigan raises concerns about the need for better departmental collaboration for economic growth. Rachel Reeves responds positively, emphasizing the government’s efforts in cross-departmental working, indicating a disagreement resolved through policy affirmation.

3. Tariffs Impact and Fiscal Rules: Dame Meg Hillier expresses concern over the potential impact of tariffs and suggests changing fiscal rules. Rachel Reeves counters this by stressing the need for stability in fiscal policy, showing a disagreement on economic strategy but handled with a focus on maintaining fiscal discipline.

4. Second Homes and Tax Loopholes: Andrew George voices concerns over second homes and tax loopholes, advocating for action. James Murray acknowledges the concerns and suggests ongoing evaluation of the issues, indicating a mild disagreement without open conflict.

5. Access to Banking Services: Several MPs highlight issues with access to banking services in rural communities and the criteria for banking hubs. Emma Reynolds responds by explaining the current framework and expressing willingness to further discuss specific cases, showing a disagreement resolved through communicative willingness.

6. Wealth Tax and Public Support: Neil Duncan-Jordan advocates for a wealth tax citing public support, whereas James Murray resists this, emphasizing existing tax reforms. The disagreement is clear but is handled through explaining alternative approaches.

Overall, while there are clear disagreements throughout the session, most are handled with a focus on policy solutions and future action plans, suggesting a moderate level of contention but no severe discord.