Written questions by Duncan-Jordan.

If she will make an assessment of the potential merits of increasing draft duty relief for (a) consumers (b) pubs and (c) breweries in Poole constituency.

The Chancellor’s draught rate cut at Autumn Budget 2024 applied to approximately 60% of the alcoholic drinks sold in pubs. Draught beer and cider now pay 13.9% less in duty than their packaged equivalents – a 50% increase on the previous draught discount of 9.2%. This took a penny of duty off a typical strength pint.Draught beer and cider now pay 13.9% less in duty than their packaged equivalents – a 50% increase on the previous draught discount of 9.2%.The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.

If she will make it her policy to maintain the differential between the levels of the (a) new state pension and (b) lower personal tax allowance.

This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement. Through our commitment to protect the Triple Lock, over 12 million pensioners benefitted from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast. The Personal Allowance - the amount an individual can earn before paying tax - will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.

How many Equitable Life members are still waiting for compensation.

The Equitable Life Payment Scheme has been fully wound down and closed since 2016. The only remaining part of the Payment Scheme in operation is the annual payments made to eligible With-Profit-Annuitants and the Scheme is on track to distribute the remainder of the £1.5 billion originally allocated as planned. Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.

What plans she has for infrastructure investment in (a) Dorset, (b) Hampshire and (c) Wiltshire.

This week, the government published its 10-year infrastructure strategy. The strategy brings together a long-term plan for the social, economic and housing infrastructure across the UK. Alongside considering the UK’s economic and social infrastructure needs, the strategy sets out how we are reforming institutions and changing the way we make decisions and deliver infrastructure, maximising the benefits of our strong fiscal and spending frameworks, breaking down regulatory and planning barriers, and resetting our relationship with the private sector.

What assessment she has made of the potential implications of the level of the new state pension for the finances of people subject to the lower personal tax allowance.

This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirementThrough our commitment to protect the Triple Lock, over 12 million pensioners benefitted from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecastThe Personal Allowance - the amount an individual can earn before paying tax - will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds.

If she will make an assessment of the potential merits of introducing a flat-rate 20% inheritance levy on unused pension funds.

Most unused pension funds and death benefits will be included within the value of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions resulting from changes that have been made to pensions tax policy over the last decade, which have led to pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than as a way to fund retirement. These reforms also remove inconsistencies in the inheritance tax treatment of different types of pensions.

When she plans to respond to the Technical consultation - Inheritance Tax on pensions: liability, reporting and payment which closed on 22 January 2025.

As announced at Autumn Budget 2024, from 6 April 2027 most unused pension funds and death benefits will be included within the value of a person’s estate for inheritance tax purposes.The Government is considering the responses to the technical consultation on the liability for reporting and paying any inheritance tax on pensions, which closed on 22 January.The government will publish a response document and draft legislation later this year in the normal way.

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.

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.

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.

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.

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.