Instruments reported
At its meeting on 30 April 2025 the Committee scrutinised a number of instruments in accordance with Standing Orders. It was agreed that the special attention of the House of Commons should be drawn to one of those considered. The instrument and the grounds for reporting are given below. The relevant departmental memorandum is published as an appendix to this report.
1 S.I. 2025/386: Reported for failure to comply with proper legislative practice
The Taxes and Duties, Etc (Interest Rate) (Amendment) Regulations 2025
1.1 The Committee draws the special attention of this House to these Regulations on the ground that they fail to comply with proper legislative practice in one respect.
1.2 These Regulations amend legislation to increase the late payment interest rate on amounts payable to HMRC in respect of unpaid tax liabilities. The Regulations were laid on 26 March 2025 and came into force 11 days later on 6 April 2025. Accordingly, this instrument broke the 21-day rule, which provides that for negative instruments there should be at least 21-days between an instrument being laid and coming into force. In its Explanatory Memorandum, His Majesty’s Revenue and Customs (HMRC), on behalf of HM Treasury, said that the reason the instrument was laid on 26 March 2025 was for it to be laid on the same day as other announcements to tackle tax debt. The Committee asked HMRC whether it had anything to add to this explanation.
1.3 In a memorandum printed at Appendix 1, the Department acknowledges the value of upholding the conventions of the rule wherever possible and apologises for the breach. The Department goes onto explain that the policy was first announced at Autumn Budget on 30 October 2024 and received media coverage at the time, and while it recognises this does not rectify the breach, the Department asserts that this prior notice may have gone some way to mitigate its practical impact. The Department also explains that a range of other measures on tax debt were introduced in the Spring Statement and it was therefore deemed necessary to delay laying the instrument to confirm the position of this measure alongside these other announcements. The Committee refers to its First Special Report of Session 2017–19, Transparency and Accountability in Subordinate Legislation, at paragraphs 2.18 to 2.23. The Committee stresses the importance of compliance with the 21-day rule, which is designed to protect those affected by changes in the law made by subordinate legislation from being subject to the effect of the changes before they have had a reasonable opportunity to understand the effects and what they must do to satisfy any requirements. The Committee accordingly reports these Regulations for failure to comply with proper legislative practice, acknowledged by the Department.
Instruments not reported
The Committee has considered the instruments set out in the Annex to this Report, none of which were required to be reported.
Annex
Draft instruments requiring affirmative approval
|
S.I. Number |
S.I. Title |
|
Draft |
The Finance Act 2021 (Increase in Schedule 26 Penalty Percentages) Regulations 2025 |
|
Draft |
The Scotland Act 1998 (Increase of Borrowing Limits) Order 2025 |
Instruments subject to annulment
|
S.I. Number |
S.I. Title |
|
S.I.2025/200 |
|
|
S.I.2025/212 |
The Income Tax (Exemption of Scottish Adult Disability Living Allowance) Regulations 2025 |
|
S.I.2025/228 |
|
|
S.I.2025/252 |
|
|
S.I.2025/270 |
|
|
S.I.2025/294 |
The Income Tax (Pay As You Earn) (Amendment) Regulations 2025 |
|
S.I.2025/326 |
The Statutory Neonatal Care Pay (Miscellaneous Amendments) Regulations 2025 |
|
S.I.2025/327 |
|
|
S.I.2025/383 |
|
|
S.I.2025/406 |
|
|
S.I.2025/434 |
The Horizon Shortfall Scheme Appeals (Tax Exemptions and Relief) Regulations 2025 |
Appendix: Memorandum from His Majesty’s Revenue and Customs
S.I. 2025/386
The Taxes and Duties, Etc (Interest Rate) (Amendment) Regulations 2025
1. The Committee has asked His Majesty’s Treasury for a memorandum on the following point:
Does the Department have anything to add to its explanation in paragraph 11.1 of the Explanatory Memorandum as to why this instrument breached the 21-day rule?
2. This memorandum has been prepared by His Majesty’s Revenue and Customs on behalf of HM Treasury.
3. The Department regrets that this instrument did not comply with the 21-day rule and apologises for the breach. The Department recognises the value of upholding the conventions of the rule wherever possible.
4. The instrument came into force eleven days after being laid. Although it does not compensate for the breach of the 21-day rule, we note the policy’s announcement at Autumn Budget on 30 October 2024 and subsequent media coverage. The Department recognises that, while this does not rectify the breach, the prior notice of the measure may have gone some way to mitigate its practical impact.
5. A range of other measures on tax debt were introduced at Spring Statement including a related measure on late payment penalties. The government considered it would be most appropriate to confirm the position of this measure alongside these other announcements.
6. As a result of requiring confirmation of this measure alongside the Spring Statement process, it was deemed necessary to delay laying the statutory instrument.
His Majesty’s Revenue and Customs
15 April 2025
Formal Minutes
Wednesday 30 April 2025
Members present
Sir Bernard Jenkin, in the Chair
Lewis Atkinson
David Pinto-Duschinsky
Report consideration
Draft Report (Seventh Report), proposed by the Chair, brought up and read.
Ordered, That the draft Report be read a second time, paragraph by paragraph.
Paragraphs 1.1 to 1.3 read and agreed to.
Annex agreed to.
A Paper was appended to the Report as an Appendix.
Resolved, That the Report be the Seventh Report of the Committee to the House.
Ordered, That the Chair make the Report to the House.
Adjournment
Adjourned to a day and time to be fixed by the Chair.
List of Reports from the Committee during the current Parliament
All publications from the Committee are available on the publications page of the Committee’s website.
Session 2024–25
|
Number |
Title |
Reference |
|
6th |
Sixth Report of Session 2024–25 - No Statutory Instruments Reported |
HC 294-vi |
|
5th |
Fifth Report of Session 2024–25 - No Statutory Instruments Reported |
HC 294-v |
|
4th |
Fourth Report of Session 2024–25 - 1 Statutory Instrument Reported |
HC 294-iv |
|
3rd |
Third Report of Session 2024–25 - No Statutory Instruments Reported |
HC 294-iii |
|
2nd |
Second Report of Session 2024–25 - No Statutory Instruments Reported |
HC 294-ii |
|
1st |
First Report of Session 2024–25 - 1 Statutory Instrument Reported |
HC 294-i |