HM Revenue and Customs (HMRC) fights fuel fraud on a wide range of fronts, from special units performing thousands of roadside checks to dismantling laundering plants. Additionally the UK will shortly implement an improved new marker for rebated fuel, which will make it much harder for criminals to launder marked fuel and sell it at a profit. The impact of this activity is shown by the fact that 2.11m litres of illicit fuel were seized in the UK in 2013/14 (including 0.57m in Northern Ireland) and 44 laundering plants were dismantled in the same period (38 of these were in Northern Ireland).

HMRC arrests those involved in fuel fraud, but decisions over prosecutions are made by the judiciary. It is not possible to break down figures to determine prosecution specifically for fuel smuggling in Northern Ireland, but prosecutions for all forms of fuel fraud are as follows (figures are not available for years before 2011/2012):

HMRC works closely with the Revenue Commissioners in the Republic of Ireland at a number of levels; this includes regular exchange of information, joint operational activity and the gathering of evidence for use in criminal prosecutions.

At a strategic level the development of the new fuel marker has been a joint initiative between HMRC and the Revenue Commissioners. The Revenue Commissioners are also partners in the Cross Border Fuel Group. This sub-group of the Organised Crime Task Force is chaired by HMRC and includes representatives from the Police Service of Northern Ireland, National Crime Agency, Environmental Agency, plus their equivalents from the Republic of Ireland. It last met on 23 October 2014. In addition to identifying emerging trends and areas of common interest, this Group also identifies opportunities to take multi-agency action against organised fuel crime.

No assessment has been made of the loss of revenue specifically due to fuel laundering. However, tax gap figures published by HMRC estimate the market share for all illicit diesel in Northern Ireland as 13%, or £80M in 2012/13. Petrol fraud is negligible.

HM Revenue and Customs (HMRC) fights fuel fraud on a wide range of fronts, from special units performing thousands of roadside checks to dismantling laundering plants. Additionally the UK will shortly implement an improved new marker for rebated fuel, which will make it much harder for criminals to launder marked fuel and sell it at a profit. The impact of this activity is shown by the fact that 2.11m litres of illicit fuel were seized in the UK in 2013/14 (including 0.57m in Northern Ireland) and 44 laundering plants were dismantled in the same period (38 of these were in Northern Ireland).

HMRC arrests those involved in fuel fraud, but decisions over prosecutions are made by the judiciary. It is not possible to break down figures to determine prosecution specifically for fuel smuggling in Northern Ireland, but prosecutions for all forms of fuel fraud are as follows (figures are not available for years before 2011/2012):

HMRC works closely with the Revenue Commissioners in the Republic of Ireland at a number of levels; this includes regular exchange of information, joint operational activity and the gathering of evidence for use in criminal prosecutions.

At a strategic level the development of the new fuel marker has been a joint initiative between HMRC and the Revenue Commissioners. The Revenue Commissioners are also partners in the Cross Border Fuel Group. This sub-group of the Organised Crime Task Force is chaired by HMRC and includes representatives from the Police Service of Northern Ireland, National Crime Agency, Environmental Agency, plus their equivalents from the Republic of Ireland. It last met on 23 October 2014. In addition to identifying emerging trends and areas of common interest, this Group also identifies opportunities to take multi-agency action against organised fuel crime.

No assessment has been made of the loss of revenue specifically due to fuel laundering. However, tax gap figures published by HMRC estimate the market share for all illicit diesel in Northern Ireland as 13%, or £80M in 2012/13. Petrol fraud is negligible.

HM Revenue and Customs (HMRC) fights fuel fraud on a wide range of fronts, from special units performing thousands of roadside checks to dismantling laundering plants. Additionally the UK will shortly implement an improved new marker for rebated fuel, which will make it much harder for criminals to launder marked fuel and sell it at a profit. The impact of this activity is shown by the fact that 2.11m litres of illicit fuel were seized in the UK in 2013/14 (including 0.57m in Northern Ireland) and 44 laundering plants were dismantled in the same period (38 of these were in Northern Ireland).

HMRC arrests those involved in fuel fraud, but decisions over prosecutions are made by the judiciary. It is not possible to break down figures to determine prosecution specifically for fuel smuggling in Northern Ireland, but prosecutions for all forms of fuel fraud are as follows (figures are not available for years before 2011/2012):

HMRC works closely with the Revenue Commissioners in the Republic of Ireland at a number of levels; this includes regular exchange of information, joint operational activity and the gathering of evidence for use in criminal prosecutions.

At a strategic level the development of the new fuel marker has been a joint initiative between HMRC and the Revenue Commissioners. The Revenue Commissioners are also partners in the Cross Border Fuel Group. This sub-group of the Organised Crime Task Force is chaired by HMRC and includes representatives from the Police Service of Northern Ireland, National Crime Agency, Environmental Agency, plus their equivalents from the Republic of Ireland. It last met on 23 October 2014. In addition to identifying emerging trends and areas of common interest, this Group also identifies opportunities to take multi-agency action against organised fuel crime.

No assessment has been made of the loss of revenue specifically due to fuel laundering. However, tax gap figures published by HMRC estimate the market share for all illicit diesel in Northern Ireland as 13%, or £80M in 2012/13. Petrol fraud is negligible.

HM Revenue and Customs (HMRC) fights fuel fraud on a wide range of fronts, from special units performing thousands of roadside checks to dismantling laundering plants. Additionally the UK will shortly implement an improved new marker for rebated fuel, which will make it much harder for criminals to launder marked fuel and sell it at a profit. The impact of this activity is shown by the fact that 2.11m litres of illicit fuel were seized in the UK in 2013/14 (including 0.57m in Northern Ireland) and 44 laundering plants were dismantled in the same period (38 of these were in Northern Ireland).

HMRC arrests those involved in fuel fraud, but decisions over prosecutions are made by the judiciary. It is not possible to break down figures to determine prosecution specifically for fuel smuggling in Northern Ireland, but prosecutions for all forms of fuel fraud are as follows (figures are not available for years before 2011/2012):

HMRC works closely with the Revenue Commissioners in the Republic of Ireland at a number of levels; this includes regular exchange of information, joint operational activity and the gathering of evidence for use in criminal prosecutions.

At a strategic level the development of the new fuel marker has been a joint initiative between HMRC and the Revenue Commissioners. The Revenue Commissioners are also partners in the Cross Border Fuel Group. This sub-group of the Organised Crime Task Force is chaired by HMRC and includes representatives from the Police Service of Northern Ireland, National Crime Agency, Environmental Agency, plus their equivalents from the Republic of Ireland. It last met on 23 October 2014. In addition to identifying emerging trends and areas of common interest, this Group also identifies opportunities to take multi-agency action against organised fuel crime.

No assessment has been made of the loss of revenue specifically due to fuel laundering. However, tax gap figures published by HMRC estimate the market share for all illicit diesel in Northern Ireland as 13%, or £80M in 2012/13. Petrol fraud is negligible.

The roles and responsibilities of the Government and the devolved administrations are explained in various provisions made in the devolution Acts, as well as in non-statutory publications setting out the relationship.

As set out in HM Treasury’s ‘Statement of Funding Policy’,

‘the devolved administrations will be fully accountable for the proper control and management of their public expenditure allocation and for securing economy, efficiency and value for money through scrutiny by the relevant Parliament or Assemblies and the detailed accountability and audit procedures listed in the Devolution Acts.’ (3.2.5)

The Government’s commitment to the integrity and autonomy of the devolved administrations is outlined in the ‘Devolution: memorandum of understanding and supplementary agreement’:

‘The United Kingdom Parliament retains the absolute right to debate, enquire into or make representations about devolved matters. It is ultimately for Parliament to decide what use to make of that power, but the UK Government will encourage the UK Parliament to bear in mind the primary responsibility of devolved legislatures and administrations in these fields and to recognise that it is a consequence of Parliament’s decision to devolve certain matters that Parliament itself will in future be more restricted in its field of operation.’

Since Spending Review 2010, the Northern Ireland Executive has received additional allocations following the application of the Barnett Formula. The cumulative amounts are set out in the table below.

At Autumn Statement, the Government set out that it recognises the strongly held arguments for devolving corporation tax rate-setting powers to Northern Ireland, including its land border with the very low corporation tax environment in the Republic of Ireland, and the shared goal of the UK Government and the Northern Ireland Executive of rebalancing the Northern Ireland economy and securing the peaceful economic progress made since the Good Friday Agreement. Work by HMRC and HM Treasury has concluded that this proposal could be implemented provided that the Northern Ireland Executive is able to manage the financial implications. If this legislation is introduced, a Tax Information and Impact Note will be published alongside the Bill as part of the usual legislative process.

A cadre of officers has been trained to use vehicle stop and search powers. There is no estimate available of the cost.

The Smith Commission reported on 27 November and the Government has announced it will now prepare draft legislative clauses to implement the Heads of Agreement by the end of January. The Smith Commission did not agree that corporation tax would be devolved to Scotland.

The Wales Bill, currently in Parliament, provides the legislative framework to support the implementation of the recommendations made in the first report of the Commission on Devolution in Wales (Silk Commission). The Wales Bill does not feature any devolution of corporation tax powers to Wales.

At Autumn Statement 2014, the Government announced that the devolution of a corporation tax rate-setting power to Northern Ireland could be implemented provided that the Northern Ireland Executive is able to manage the financial implications. The parties in the Northern Ireland Executive are continuing talks aimed at resolving a number of issues including agreeing budgets for 2015-16 and putting the Executive’s finances on a sustainable footing for the future.

Northern Ireland faces unique cross-border challenges from the very low corporation tax rate in the Republic, significant over-reliance on public sector employment and the challenging legacy of the Troubles. The devolution of corporation tax to Northern Ireland recognises those factors and is consistent with the UK’s asymmetrical approach to devolution.

Any devolution of tax powers, such as corporation tax rate-setting powers, would require a corresponding reduction in the block grant to reflect the tax revenues that the UK Government would forego.

The Smith Commission reported on 27 November and the Government has announced it will now prepare draft legislative clauses to implement the Heads of Agreement by the end of January. The Smith Commission did not agree that corporation tax would be devolved to Scotland.

The Wales Bill, currently in Parliament, provides the legislative framework to support the implementation of the recommendations made in the first report of the Commission on Devolution in Wales (Silk Commission). The Wales Bill does not feature any devolution of corporation tax powers to Wales.

At Autumn Statement 2014, the Government announced that the devolution of a corporation tax rate-setting power to Northern Ireland could be implemented provided that the Northern Ireland Executive is able to manage the financial implications. The parties in the Northern Ireland Executive are continuing talks aimed at resolving a number of issues including agreeing budgets for 2015-16 and putting the Executive’s finances on a sustainable footing for the future.

Northern Ireland faces unique cross-border challenges from the very low corporation tax rate in the Republic, significant over-reliance on public sector employment and the challenging legacy of the Troubles. The devolution of corporation tax to Northern Ireland recognises those factors and is consistent with the UK’s asymmetrical approach to devolution.

Any devolution of tax powers, such as corporation tax rate-setting powers, would require a corresponding reduction in the block grant to reflect the tax revenues that the UK Government would forego.

The information requested is not held by HM Revenue & Customs.

Switching provision from Capital budgets to Resource budgets requires the approval of Treasury Ministers, as set out in the Consolidated Budgeting Guidance.

In reaching agreement on a draft budget for 2015-16, the Northern Ireland Finance Minister requested that the Treasury consider flexibilities in relation to specific Capital to Resource switches within the Northern Ireland Executive’s allocations. This request will be considered as the Northern Ireland Executive moves towards setting final 2015-16 budgets.

Switching provision from Capital budgets to Resource budgets requires the approval of Treasury Ministers, as set out in the Consolidated Budgeting Guidance.

In reaching agreement on a draft budget for 2015-16, the Northern Ireland Finance Minister requested that the Treasury consider flexibilities in relation to specific Capital to Resource switches within the Northern Ireland Executive’s allocations. This request will be considered as the Northern Ireland Executive moves towards setting final 2015-16 budgets.

The Treasury has already set out Northern Ireland Executive allocations for 2015-16, as determined at Spending Round 2013 and amended at subsequent Budgets and Autumn Statements. Final revisions to Northern Ireland Executive allocations for 2015-16 will be set out at the Supplementary Estimates round in January 2016.

The Northern Ireland Executive has been granted exceptional access to the DEL Reserve of up to £100m in 2014-15. In granting this access, the Chancellor of the Exchequer specified that an equivalent amount would be deducted from the Executive’s 2015-16 allocations.

The Treasury has already set out Northern Ireland Executive allocations for 2015-16, as determined at Spending Round 2013 and amended at subsequent Budgets and Autumn Statements. Final revisions to Northern Ireland Executive allocations for 2015-16 will be set out at the Supplementary Estimates round in January 2016.

The Northern Ireland Executive has been granted exceptional access to the DEL Reserve of up to £100m in 2014-15. In granting this access, the Chancellor of the Exchequer specified that an equivalent amount would be deducted from the Executive’s 2015-16 allocations.

The Government has not yet agreed with the Northern Ireland Executive how the block grant adjustment will be calculated if corporation tax rate-setting powers are devolved

The Northern Ireland Executive were informed of their allocations for the years 2011-12 to 2014-15 as part of the 2010 Spending Review in October 2010. The allocations set out at that Spending Review are shown in the table below.

Northern Ireland Executive budgets were then adjusted at subsequent Budgets, Autumn Statements and Estimates rounds to reflect Barnett consequentials flowing from those events.

The Northern Ireland Executive were informed of their allocations for 2015-16 as part of the 2013 spending round in June 2013. The allocations made as part of the spending round are shown in the table below.

Northern Ireland Executive budgets have been adjusted at subsequent Budgets and Autumn Statements to reflect Barnett consequentials flowing from those events.

The table below sets out the percentage changes in real terms to devolved administration budgets, year-on-year, for the period requested. It reflects the settlements set out at the 2010 Spending Review, and incorporates changes made at subsequent fiscal events.

The tax changes necessary to deliver the Freedom and Choice in Pensions agenda are contained in the Taxation of Pensions Bill. The provisions in this Bill will apply across the UK as the relevant tax legislation is not, in the main, a matter over which powers have been devolved.^[1] The Pension Schemes Bill is being used to introduce further changes relevant to the Freedom and Choice agenda. Where these do relate to devolved matters in Northern Ireland, the Government is in the process of obtaining the necessary legislative consent motion and approval from the Northern Ireland Assembly.

[1] Explanatory notes for the Taxation of Pensions Bill were published on the Parliament Website. Territorial extent is detailed in paragraph 52 http://www.publications.parliament.uk/pa/bills/cbill/2014-2015/0097/en/15097en.htm