Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions the Financial Conduct Authority has had with representative bodies, including UKHospitality, on unresolved Covid Business Interruption claims.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA), as the independent regulator for financial services, sets the conduct standards required of insurance firms. This includes rules requiring insurers to handle claims fairly and promptly. The FCA meets with a wide variety of organisations in the course of delivering its statutory objectives. Queries about such engagements can be addressed directly to the FCA.
The Supreme Court published its final judgment in the FCA’s Business Interruption Insurance test case in 2021. At the time of the judgment, the FCA set out its expectation that insurers should communicate to all impacted policyholders what the judgment meant for their claim and should move quickly to resolve claims as determined by the judgment.
The FCA court case did not cover all potential issues with business interruption policies. The FCA has been clear that, in the event of further court rulings, insurers will need to consider carefully how the rulings impact claims they have already decided.
The FCA is continuing to supervise firms to ensure they are meeting their expectations and has robust powers to take action where necessary.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to extend the current period of six months after the death of the individual within which inheritance tax must be paid and after which interest starts to accrue.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions 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.
Inheritance tax should be paid within 6 months from the end of the month after the date of death, or late payment interest will begin to accrue on the outstanding tax. This is a longstanding requirement that ensures the tax is collected quickly and efficiently. However, the Government recognises the difficulties personal representatives may face in paying the inheritance tax due and offers several payment options to help. This includes the direct payment scheme, which allows personal representatives to instruct banks and building societies to transfer funds from the deceased’s bank or building accounts before probate is granted.
The Government also announced changes at the Budget in November 2025 which mitigate the risks to personal representatives by providing them with the ability to direct pension scheme administrators to withhold taxable benefits for up to 15 months from the date of death and to direct them to make payments of inheritance tax directly to HMRC. The changes also protect personal representatives from risk that lost pension pots emerge later by discharging them from liability where they have received clearance from HMRC. Furthermore, to ensure that the process of calculating, reporting and paying inheritance tax does not take longer than necessary, the Government will introduce regulations setting out deadlines for the parties involved to exchange information.
These changes are consistent with the process which already exists for administering estates and paying any inheritance tax due. Personal representatives are already responsible for administering the rest of the estate, including non-discretionary pension schemes which are already in scope of inheritance tax. The Government will publish further guidance and tools to support personal representatives in readiness for these changes being implemented in 2027.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to ease the administrative burden on personal representatives responsible for assessing and paying inheritance tax on unused pensions due within six months of death.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions 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.
Inheritance tax should be paid within 6 months from the end of the month after the date of death, or late payment interest will begin to accrue on the outstanding tax. This is a longstanding requirement that ensures the tax is collected quickly and efficiently. However, the Government recognises the difficulties personal representatives may face in paying the inheritance tax due and offers several payment options to help. This includes the direct payment scheme, which allows personal representatives to instruct banks and building societies to transfer funds from the deceased’s bank or building accounts before probate is granted.
The Government also announced changes at the Budget in November 2025 which mitigate the risks to personal representatives by providing them with the ability to direct pension scheme administrators to withhold taxable benefits for up to 15 months from the date of death and to direct them to make payments of inheritance tax directly to HMRC. The changes also protect personal representatives from risk that lost pension pots emerge later by discharging them from liability where they have received clearance from HMRC. Furthermore, to ensure that the process of calculating, reporting and paying inheritance tax does not take longer than necessary, the Government will introduce regulations setting out deadlines for the parties involved to exchange information.
These changes are consistent with the process which already exists for administering estates and paying any inheritance tax due. Personal representatives are already responsible for administering the rest of the estate, including non-discretionary pension schemes which are already in scope of inheritance tax. The Government will publish further guidance and tools to support personal representatives in readiness for these changes being implemented in 2027.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the increasing number of Long Term Asset Funds and the risks they pose to investors, including forced sales or the inability to redeem investments, due to their holdings of illiquid investments.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government wants to make sure that those who have the ability to put away money for the long-term can do so. The Long-Term Asset Fund (LTAF) provides investors with the opportunity to invest in long-term alternative assets, such as venture capital, private equity, real estate and infrastructure, that can offer higher returns in exchange for limited liquidity.
The Financial Conduct Authority have designed robust governance requirements for the LTAF, so investors who understand the risks of investing in long‑term less liquid assets are able to invest with confidence. Where a firm markets an LTAF to a retail investor, the firm must provide appropriate risk warnings and conduct an appropriateness assessment.
Asked by: Roz Savage (Liberal Democrat - South Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to reform beer duty by reducing duty on beer sold in barrels while increasing duty on bottled beer; and what assessment she has made of the potential impact of such an approach on (a) supporting pubs and local breweries, (b) reducing packaging and recycling waste and (c) encouraging alcohol consumption in supervised settings.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A new duty structure for alcohol products was introduced in August 2023. This included the introduction of Draught Relief, which enables products served on draught below 8.5% alcohol by volume (ABV) to pay less duty. This relief provides vital support to pubs and other venues, whilst also helping breweries that supply eligible products.
This Government is proud to have been able to expand the generosity of Draught Relief this parliament. The Chancellor’s draught rate cut announced at Autumn Budget 2024 applied to approximately 60% of the alcoholic drinks sold in pubs, with draught beer and cider now paying 13.9% less in duty than their packaged equivalents.
The Chancellor makes decisions on future tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process.
This Government is also committed to moving towards a circular economy that delivers sustainable growth, and produces less waste, rubbish and litter. Implementing the Government’s Collection and Packaging Reforms, including Packaging Extended Producer Responsibility (pEPR) and the Deposit Return Scheme, is a critical step in this transition that will create a substantial incentive for investment in new and improved recycling services in the UK.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether they will require their department and agencies to offer payroll deductions to all employees to enable them to join a credit union.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
There are currently no plans to introduce a requirement for HM Treasury and its agencies to offer payroll deductions to enable staff to join a credit union.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the answer of 20 January 2026 to Question 105303 on Business Rates: Valuation, on what dates were the summaries of the effect of the 2026 revaluation provided by the VOA to her Department.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The VOA is responsible for valuing non-domestic property for business rates purposes. They are required by law to compile and maintain up-to-date rating lists for non-domestic properties in England and Wales, impartially and independent of central government.
On 1 April 2024, the VOA began the process of revaluing over 2.1 million non-domestic properties for the 2026 Revaluation. HM Treasury does not receive the full ratings list owing to taxpayer confidentiality.
The Treasury worked closely with the Ministry for Housing, Communities and Local Government before Budget once the VOA shared the results of the changes in rateable values. That is why the Government introduced a support package at Budget worth £4.3 billion, to protect ratepayers seeing large bill increases. The VOA published its draft 2026 rateable values on gov.uk on 26 November 2025.
Asked by: Lisa Smart (Liberal Democrat - Hazel Grove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the reasons for differences in the speed of implementation of the McCloud remedy across public service pension schemes; and what steps are being taken to ensure consistent and timely implementation for all affected members.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Scheme managers of the individual public service pension schemes are responsible for ensuring the effective delivery of the McCloud delivery to affected members. This is a complex and wide-ranging exercise. The amount of progress that has been made varies across schemes due to factors including the complexity of cases. I have written to scheme managers to remind them of their responsibilities to implement the remedy as quickly as possible and ensure that scheme members and the Pensions Regulator are kept informed of progress.
Asked by: Roz Savage (Liberal Democrat - South Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of business rates revaluations on indoor leisure and soft play businesses operating from large premises.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer you to my previous answer to PQ 111499.
Asked by: Roz Savage (Liberal Democrat - South Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of introducing sector-specific business rates relief and reform for indoor leisure and soft play facilities.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer you to my previous answer to PQ 111499.