Written questions by Bowie.

With reference to paragraph 2.40 of the Autumn Budget 2024, HC 295, published on 30 October 2024, what assessment he has made of the potential impact of an increase in the rate of employers' National Insurance Contributions on (a) pubs and (b) small restaurants in Scotland.

This Government inherited a £22 billion black hole in the nation’s finances. The action we are taking in this Budget restores economic stability so we can invest in the future.The government recognises the need to protect the smallest businesses, including small restaurants, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of businesses with NICs liabilities either gain or see no change next year.In addition, we are making business rates in England fairer to protect the high street. The Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values less than £500,000, alongside 40% relief next year for RHL properties up to a cash cap of £110,000 per business. Business rates are devolved and the Scottish Government could support Scotland;s high streets by using some of the record budget settlement it received to match these reforms.Also, to recognise the economic and cultural importance of pubs, and commitment to supporting smaller brewers, the government is cutting alcohol duty on draught products from February next year.

When he next plans to meet the Scotch Whisky Association.

I have had several meetings with the Scotch Whisky Association (SWA) in recent months, including during my first week in office, and am pleased to be working closely with them on a range of shared priorities. I will be driving growth in Scotland around the world through the Brand Scotland initiative, and will work closely with the SWA to promote the UKs largest food and drink export across all four corners of the globe.

What assessment she has made of the potential impact of proposed increases to the Energy Profits Levy on supply chain resilience.

At Autumn Budget 2024 the government confirmed that from 1 November 2024, the Energy Profits Levy (EPL) rate would increase by 3 percentage points to 38%, the EPL investment allowance would be abolished and the EPL decarbonisation allowance rate would be adjusted to 66%. The government also confirmed an extension to the period the levy applies from 31 March 2029 until 31 March 2030. The government has carefully considered the impact of the increase to the EPL. Treasury publishes impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside the Finance Bill. The summary of impacts from these changes to the EPL can be found here: https://www.gov.uk/government/publications/energy-profits-levy-reforms-2024

What assessment he has made of the potential impact of proposed increases to the Energy Profits Levy on future employment levels in Scotland.

The UK Government recognises that oil and gas will continue to have a role in the UK’s energy mix for decades to come and is committed to managing the energy transition in a way that supports jobs in existing and future industries. But we require the sector to contribute to the ambition to make the UK a clean energy superpower. At Autumn Budget 2024, the government confirmed that from 1 November 2024, the Energy Profits Levy (EPL) rate would increase by 3 percentage points to 38%, the EPL investment allowance would be abolished and the EPL decarbonisation allowance rate would be adjusted to 66%. The government also confirmed an extension to the period the levy applies from 31 March 2029 until 31 March 2030. To support jobs and provide certainty, the government decided to make no additional changes to the availability of capital allowances in the EPL. The government has carefully considered the impact of the removal of the EPL’s investment allowance. HM Treasury publishes impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside the Finance Bill. The summary of impacts from these changes to the EPL can be found here: https://www.gov.uk/government/publications/energy-profits-levy-reforms-2024

What steps he is taking to promote (a) Scotch whisky exports and (b) other Scottish exports.

The recent budget saw the Scotland Office awarded 750 thousand pounds to expand its international trade activities and establish the Brand Scotland initiative.Brand Scotland funding will support industry via trade missions, projects delivered by the overseas network, and promotional events in the UK and overseas. The Scotland Office routinely promotes Scotch Whisky at events we run overseas, for example during my visits to Norway, and South East Asia this month. Scottish exports, including whisky, will all benefit from this work.

What assessment he has made of the impact of the proposed increase in national insurance contributions on general practices in Scotland.

We have taken necessary decisions to fix the foundations in the public finances at Autumn Budget 2024, which enabled the Spending Review settlement of a £22.6 billion increase in resource spending for the Department from 2023/24 outturn to 2025/26.  The employer national insurance rise will be implemented in April 2025, with the Department setting out further details on allocation of funding for next year in due course.Whilst the Department holds some reserved functions, health is predominantly devolved. This includes the National Health Service in Scotland, which is therefore the responsibility of the Scottish Government.It is for the devolved governments to allocate their funding across devolved areas as they see fit, and they are accountable to their respective legislatures for the decisions they take.

What steps his Department is taking to incorporate the judgement in UKSC 2022/0064 into the decision-making process for oil and gas licences.

The Supreme Court's Finch judgment relates to Environmental Impact Assessments associated with applications for development consent for offshore oil and gas projects that have already secured a licence. On 30 October the Government launched a consultation on guidance that will help developers understand how to account for the Court judgment when undertaking Environmental Impact Assessments associated with those consent applications. The consultation will close on 8 January and the Government aims to have the finalised guidance in place in the Spring.

What assessment his Department has made of the potential impact of the judgement in UKSC 2022/0064 on the remaining (a) oil and (b) gas licence applications made under the 33rd licensing round.

The Supreme Court's Finch judgment relates to Environmental Impact Assessments associated with applications for development consent for offshore oil and gas projects that have already secured a licence. On October 30th the Government launched a consultation on guidance that will help developers understand how to account for the Court judgment when undertaking Environmental Impact Assessments associated with those consent applications. The consultation will close on January 8th and the Government aims to have the finalised guidance in place in the Spring. The North Sea Transition Authority (NSTA) has paused considering any further licences from the 33rd round pending the finalisation of the Government’s consultation process into the future of licensing.

How many (a) oil and (b) gas licence applications made under the 33rd licensing round are yet to be determined.

The North Sea Transition Authority (NSTA) has paused considering any further licences from the 33rd round pending the finalisation of the Governments consultation process into the future of licensing.

What estimate his Department has made of the number of pending (a) oil and (b) gas licence applications delayed due to the judgement in UKSC 2022/0064.

The Government does not expect the Finch judgement to delay licence applications because it relates to Environmental Impact Assessments associated with applications for development consent for offshore oil and gas projects that have already secured a licence. The Government will consult later this year on the implementation of our manifesto position not to issue new oil and gas licences to explore new fields. The North Sea Transition Authority has paused considering any further licences from the 33rd round pending the finalisation of the Government’s consultation process into the future of licensing.

When his Department expects the North Sea Transition Authority to publish decisions on the remaining (a) oil and (b) gas licence applications made under the 33rd licensing round.

The North Sea Transition Authority (NSTA) has paused considering any further licences from the 33rd round pending the finalisation of the Governments consultation process into the future of licensing.

What steps he is taking to support (a) advanced reactors, (b) nuclear fusion and (c) other innovation in nuclear technology.

Advanced Modular Reactors have the potential to help tackle hard-to-abate emissions in energy intensive industries. The Government continues to fund research and innovation to develop High Temperature Gas Reactor technology and their advanced fuels through the Advanced Nuclear Fund. The current programme is also providing funding to the UK’s nuclear regulators to ensure they can develop capabilities to regulate novel reactor types. The STEP (Spherical Tokamak for Energy Production) is the UK’s flagship fusion programme, which aims to deliver a commercially viable fusion power plant prototype by the 2040s. The commercial process for the STEP powerplant is underway, we are investing in cutting-edge fusion research programmes and facilities and are implementing the UK’s proportionate regulatory framework to encourage investment.

What definition his Department uses of Sovereign Capability.

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. As part of the strategy it is expected the categorisation of sovereign production capacity will be considered, working closely with industry.

If she will make an estimate of the potential impact on the economy of raising the threshold of Rural Rates Relief above the rateable value of (a) £8,500 for (i) village general stores, (ii) food shops and (iii) post offices and (b) £12,500 for (A) public houses and (B) petrol stations.

Rural Rate Relief aims to ensure that key amenities are available, and community assets protected in rural areas. It provides 100% rate relief for properties that are based in eligible rural areas with populations below 3,000. To be eligible, the business must also be: the only village general store, food shop or post office, with a rateable value of up to £8,500; or the only public house or petrol station, with a rateable value of up to £12,500. The government is committed to creating a fairer business rates system that protects the high-street, supports investment, and is fit for the 21st century. At Autumn Budget 2024, the government published a discussion paper which sets out priority areas for further reform and invites stakeholders to a conversation about transforming the system over the Parliament.

Food and Rural Affairs, what steps he is taking to support farmers to increase the (a) volume and (b) variety of fruit and vegetables they produce.

The Government appreciates and values the vital work of the horticulture industry and recognises its role in maintaining a secure food supply.  As part of our mission-driven government, and in partnership with the sector, we are considering how best to support our fruit and vegetable growers in the future to achieve our ambitious, measurable, and long-term goals for the sector. Innovation, such as the development of new crop varieties and growing systems, has added to the huge range of top quality and nutritious fruit and vegetables already grown in the UK, and has allowed our growers to extend the growing seasons of a variety of crops, for example strawberries. We also continue to support long-term Genetic Improvement Networks (GINs) to improve crop varieties by developing traits to improve their nutritional quality, and enhance productivity levels, sustainability and resilience.

What steps she is taking to improve access to cash in rural areas.

The Government recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses. The most recent data from the Financial Conduct Authority shows 98 per cent of people in rural areas live within 3 miles of a free-to-use cash access point offering withdrawals. The Financial Conduct Authority (FCA) has recently assumed regulatory responsibility for access to cash. and its rules went live on 18 September. These rules require the UK’s largest banks and building societies to assess the impact of a closure of a relevant cash withdrawal or deposit facility and put in place a new service if necessary. Where a consumer, or anyone with a strong connection to a local area, feels access to cash in their community is insufficient, they can submit a request for a cash access assessment. Further information about submitting a cash access request can be found at the following link: https://www.link.co.uk/helping-you-access-cash/request-access-to-cash

If she will make an assessment of the potential merits of extending the /25 Retail, Hospitality and Leisure Business Rates Relief scheme into 2025/26.

At Autumn Budget 2024, the government announced that Retail, Hospitality and Leisure (RHL) relief will be extended for 2025-26 at 40% up to a cash cap of £110,000 per business.

Food and Rural Affairs, what assessment he has made of the environmental impact of consumers shopping locally; and what assessment he has made of the potential impact on net zero targets if consumers are unable to shop locally.

The Secretary of State recognises the importance of consumers having access to local shops for environmental sustainability and for supporting net zero goals. The Secretary of State, Defra Ministers and officials meet regularly with retailers where discussions have included to understand initiatives to support efforts that enable consumers to shop locally.

Whether she is taking steps with Cabinet colleagues to support collaboration between local businesses and schools on work experience and apprenticeship placements in rural areas.

The department wants to support all young people to access education and training opportunities, to break down the barriers to opportunity and support economic growth.That is why young people in rural areas can benefit from the high quality training that apprenticeships offer. Apprentices in England can choose from apprenticeships in a wide range of sectors including agriculture, environmental and animal care, engineering and manufacturing, and business and administration. The department is introducing new foundation apprenticeships, a pre-apprenticeship training offer, that will give more young people a foot in the door and support clear pathways into work-based training and employment.The department is also taking steps towards introducing two weeks’ worth of high quality work experience to all young people, irrespective of their background. This will open doors to a wider range of employers and businesses and give young people a greater insight into the labour market.The department recognises that young people need support to capitalise on these workplace experiences, reflect on what they have learned and set future career goals. The department will therefore train 1,000 new careers advisers so that young people can get the expert advice they need.

If she will make an assessment of the potential merits of a ring-fenced, multi-annual improved funding settlement for the agricultural sector.

The first phase of the Spending Review 2025, which concluded alongside Autumn Budget 2024, has set budgets for 24-25 and 25-26. As agricultural policy is devolved, it is for the Devolved Governments to allocate their funding as they choose. This is a key principle of devolution, and we are respecting that by not ringfencing funding for agriculture. The second phase of Spending Review 2025 which will conclude next year, will set multi-year budgets.