Written questions by Lake.

In pursuant to the answer to Question 91154, what assessment she has made of the potential merits of (a) collecting and (b) publishing data on the revenue raised from the Apprenticeship Levy from (a) businesses who work across the UK but have a presence in Wales and (b) businesses primarily based in Wales.

Receipts data for the Apprenticeship Levy is published by HM Revenue and Customs in their Tax and NIC Receipts publication which can be found online at:https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk HMRC does not require or collect data on where in the UK the economic activities occurs in order to collect the Apprenticeship Levy. Receipts data based on company registered addresses do not necessarily reflect where liabilities are accrued. For example, the data on receipts from companies with registered addresses in Wales will not include businesses registered in Northern Ireland, Scotland, or England, who have a presence and pay employees in Wales.

What discussions she has had with the Welsh Government on the current real terms value of their capital borrowing powers as compared with their real terms value when they were introduced.

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. We remain committed to working in partnership with the Welsh Government to ensure the smooth delivery of their funding settlement.

What recent assessment has she made of the potential merits of conducting a Wales specific impact assessment on the implementation of changes to Agricultural Property Relief and Business Property Relief announced at the Autumn Budget 2024.

Ministers from several Government departments have met with organisations, including NFU Cymru and the Farmers’ Union of Wales, to discuss the reforms to agricultural property relief and business property relief from 6 April 2026. The Government believes its reforms 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. The Government published a tax information and impact note on 21 July 2025 and this is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms.

With reference to the total identifiable expenditure per head on railways as shown in her department's Public Expenditure Statistical Analysis 2025, what assessment she has made of the adequacy of spending on railways in Wales in the last five years.

Our 10 year UK Infrastructure Strategy, published in June 2025, acknowledged that for too long Wales’s long-term rail infrastructure needs have not been recognised and committed the UK Government to delivering at least £445 million of rail enhancements funding for Wales. This transformative rail package, the majority of which will be delivered over the Spending Review Period to 2030, will reconnect Wales’s industrial heartlands, improve commuter journeys and drive economic growth in communities that have long suffered from poor transport links. This funding is on top of the almost £2 billion that Network Rail will invest in the operation, maintenance, and renewal of railways in Wales during Control Period 7 (2024-2029), to tackle climate change, improve train performance from current levels, and invest in the areas that matter most to passengers and freight users.

How much funding raised by the Apprenticeship Levy was passed to the Welsh Government as part of the Welsh Block Grant in each year of the past five years.

While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. The Block Grant Transparency publication breaks down all changes in the devolved governments’ block grant funding from the 2015 Spending Review up to and including Spending Review 2025. The most recent report was published in October 2025:https://www.gov.uk/government/publications/block-grant-transparency-july-2023

How much of the total Apprenticeship Levy funding collected by HMRC from employers (a) primarily based in Wales and (b) who work across the UK but have a headcount in Wales was transferred to the Treasury in each of the past five years.

UIN 91154 - While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.UIN 91152 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses who work across the UK but have a presence in Wales are not available.While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.UIN 91151 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses primarily based in Wales are not available.While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

How much funding was raised by the Apprenticeship Levy from employers who work across the UK, but have a headcount in Wales, in each year of the past five years.

UIN 91154 - While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.UIN 91152 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses who work across the UK but have a presence in Wales are not available.While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.UIN 91151 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses primarily based in Wales are not available.While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

How much funding was raised by the Apprenticeship Levy from employers primarily based in Wales in each of the past five years.

UIN 91154 - While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.UIN 91152 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses who work across the UK but have a presence in Wales are not available.While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.UIN 91151 - Reliable estimates of the revenue raised from the Apprenticeship Levy from businesses primarily based in Wales are not available.While the Apprenticeship Levy is UK wide, apprenticeship policy and spending is devolved. This means that the devolved governments receive funding through the Barnett formula in relation to English apprenticeship spending as part of their block grant. It is for the devolved governments to allocate their funding in devolved areas as they see fit, including investing in their skills programmes.

What assessment she has made of the potential merits of exempting search and rescue vehicles from Vehicle Excise Duty.

The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.

Innovation and Technology, what steps her Department is taking to ensure that pricing mechanisms for infrastructure access do not adversely impact private investment in rural gigabit rollout.

As the independent regulator for telecommunications, Ofcom is responsible for making regulatory decisions in the fixed telecoms sector, including on the Physical Infrastructure Access (PIA) product.In July, we published our draft Statement of Strategic Priorities for telecommunications, the management of radio spectrum, and postal services that sets out the Government’s view on infrastructure sharing in the fixed telecoms sector, including asking Ofcom to demonstrate greater transparency in how they calculate and set PIA prices.In the draft Statement we also set out the importance of continued investment, competition and fair pricing. The government is considering consultation responses, market development and the economic context before the final version is published.

Pursuant to the Answer of 3 April 2025 to Question 42630 on Employers' Contributions: Welsh Government, what mechanism her Department will use to provide compensation for public services in Wales for the increase in employers’ National Insurance contribution costs after 2025/26.

The Welsh Government’s budget is growing in real terms between 2024-25 and 2028-29 and their Spending Review settlement is the largest in real terms since devolution in 1998. At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support with the changes to employer National Insurance. The devolved governments received funding through the Barnett formula in 2025-26, including on this support. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy.The current Welsh Government Spending Review settlement is the largest settlement in real terms of any since devolution.

With reference her Department's policy paper entitled Finance: Interministerial Standing Committee – 17 October 2025, what options were discussed for enhancing the fiscal flexibilities available to devolved Governments; what elements of the operation of the Barnett formula were identified as areas which could be improved; and whether a formal review of (a) Wales's fiscal framework and (b) the operation of the Barnett Formula in Wales were discussed.

It is important that the Finance: Interministerial Standing Committee remains a space for confidential discussions between governments, so it would not be appropriate to comment on the detail of those discussions. I look forward to continued engagement with devolved government finance ministers on a wide range of topics.

Pursuant to the Answer of 9 April 2025 to Question 43325 on Deposit Return Schemes: VAT, for what reason her Department is considering applying VAT to unredeemed deposits in the deposit return scheme in the context of HMRC expecting the impact on exchequer receipts to be negligible.

The Deposit Returns Scheme (DRS) will launch in the UK in October 2027, introducing mandatory refundable deposits on drinks containers with the aim of increasing recycling. 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 third largest tax, forecast to raise £180 billion in 2025/26. Exceptions to the standard rate have always been limited and balanced against affordability considerations. The previous administration legislated for a simplification to the normal VAT rules so that VAT will only be accounted for on unredeemed deposits rather than on a deposit at the point of sale. We remain committed to supporting the circular economy through successful implementation of the DRS, and we are keen to ensure that VAT is not a barrier to its effective operation. We are continuing to consider how best to achieve this while maintaining the integrity of the tax and will provide clarity on the VAT treatment of unreturned deposits as soon as possible.

What assessment she has made of the potential merits of increasing the level of the Digital Services Tax.

Decisions on tax are a matter for the Chancellor and any changes will be announced at the budget in the usual way. The Digital Services Tax is an interim solution to widely held concerns with the international corporate tax framework, and the UK remains committed to remove it once a global solution on the reallocation of taxing rights is in place.

Whether future compensation funding provided to the Welsh Government for increased National Insurance contributions costs for the public sector in Wales will cover this cost in full.

The Welsh Government’s budget is growing in real terms between 2024-25 and 2028-29 and their Spending Review settlement is the largest in real terms since devolution in 1998. At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support with the changes to employer National Insurance. The devolved governments received funding through the Barnett formula in 2025-26, including on this support. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy.The current Welsh Government Spending Review settlement is the largest settlement in real terms of any since devolution.

Innovation and Technology, pursuant to the Answer of 22 October to Question 82973 on Broadband: Rural Areas, if she will make her policy to include direction to Ofcom on revising the Physical Infrastructure Access pricing model to ensure consistent competitive conditions in the forthcoming Statement of Strategic Priorities.

In July, DSIT published a consultation on the draft Statement of Strategic Priorities for telecommunications, the management of radio spectrum, and postal services that sets out the Government’s view on infrastructure sharing in the fixed telecoms sector. The draft Statement sets out the government’s view on the importance of competition to promote investment in broadband deployment across the UK, including in rural areas.We are currently reviewing responses to the consultation and will publish our response in due course.

What estimate she has made of the total amount of funding to be allocated to the Welsh Government through the Barnett Formula following the the full rollout of free childcare in England.

The Barnett formula is applied when departmental budgets change – not when departments announce how they are spending their budgets or when policy is delivered. The Barnett formula was applied in the usual way following Spending Review 2025The published Block Grant Transparency document provides a detailed breakdown and the most recent iteration was published on October 2025: Block Grant Transparency: October 2025 - GOV.UK

What assessment she has made of the potential impact of reducing VAT on domestic energy bills on fuel poverty in Wales.

The Government believes that we need to support households who are struggling with energy bills now whilst we transition to cheaper clean power by 2030. We are providing targeted support that reaches low income households directly across Great Britain, including Wales.This winter, 2.7 million extra households will receive £150 off their energy bills as the Warm Home Discount is expanded - putting money directly into people’s pockets. This increases the number of households who are eligible to over six million in total - including 900,000 families with children and a total of 1.8 million households in fuel poverty.More widely, gas and electricity are subject to a reduced rate of VAT at five per cent, rather than the standard 20 per cent. The reduced rate for domestic fuel and power cost the Exchequer £8 billion in 2023-24, and going further would come at a significant additional cost.

What recent assessment she made has made of the potential impact of providing compensation to local authorities in Wales via the Barnett Formula on the adequacy of funding to cover the additional Employer National Insurance costs announced at the Autumn Budget 2024 incurred by Local Authorities in Wales.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support with the changes to employer National Insurance.The devolved governments received funding through the Barnett formula in 2025-26, including on this support. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy.The current Welsh Government Spending Review settlement is the largest settlement in real terms of any since devolution.

What recent assessment he has made of the potential impact of the freeze on local housing allowance on levels of homelessness in Wales.

The causes of homelessness are multi-faceted and often complex; they interact dynamically making it very difficult to isolate the relative importance of individual factors. Responsibility for housing and homelessness is devolved to the Welsh Government, while social security is reserved to the UK Government. In April 2024, Local Housing Allowance (LHA) was increased to the 30th percentile of local market rents, including across Wales, costing an additional £1.2bn in 2024/25 and approximately £7bn over 5 years. The Secretary of State reviews LHA rates annually in the Autumn, this includes consideration of latest rental data, stakeholder evidence from organisations across GB, including in Wales, homelessness levels and the current challenging fiscal environment. Future funding decisions will be taken in the context of Government priorities. For those who need further support, Discretionary Housing Payments (DHPs) are available from local authorities.