Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the agreements from the first UK-China Financial Working Group in Beijing on UK financial services.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The agreements reached at the first UK‑China Financial Working Group in Beijing will strengthen cooperation with China in ways that support the UK’s position as an open, competitive and well‑regulated international financial centre, supporting jobs and growth in the UK.
As set out in HM Treasury’s press release and the joint readout of the first UK-China Financial Working Group meeting (FWG), the FWG provides a new formal mechanism for structured, substantive and technical dialogue between UK and Chinese financial authorities on issues including financial stability and resilience, capital markets, market development and sustainable finance.
Specific outcomes include the designation of Bank of China’s London Branch as the UK’s second renminbi (RMB) clearing bank, which will broaden the range of services available to UK businesses trading with China and strengthen London’s role as a leading international financial centre. Technical discussions were also held on long-term initiatives to support the UK’s capital markets, as well as green finance and asset management sectors. Alongside the FWG and the Prime Minister’s visit, the UK and China also agreed to pursue new cooperation on innovative financing, such as RMB-denominated sovereign biodiversity bond issuances, cementing the City's role as the global hub for green finance.
Asked by: Tom Morrison (Liberal Democrat - Cheadle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking maximise the public sharing of evidence on which assertions by the VOA are made; and how the VOA's duty to taxpayer confidentiality will be used when responding to queries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Valuation Office Agency publishes valuation information for transparency while ensuring the protection of taxpayer confidentiality in line with its duty under the Commissioners for Revenue and Customs Act 2005. The VOA published draft valuations from the 2026 Revaluation of Business Rates alongside Autumn Budget, so ratepayers can see the Rateable Values on which their bills will be based from 1 April 2026. To increase transparency, VOA also provided customers with information on comparable properties to help them understand how their rateable value has been determined.
Asked by: Tom Morrison (Liberal Democrat - Cheadle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure transparency in the work of the VOA.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Valuation Office Agency publishes valuation information for transparency while ensuring the protection of taxpayer confidentiality in line with its duty under the Commissioners for Revenue and Customs Act 2005. The VOA published draft valuations from the 2026 Revaluation of Business Rates alongside Autumn Budget, so ratepayers can see the Rateable Values on which their bills will be based from 1 April 2026. To increase transparency, VOA also provided customers with information on comparable properties to help them understand how their rateable value has been determined.
Asked by: Ashley Fox (Conservative - Bridgwater)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent progress she has made on establishing the future entity for open banking.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government committed has committed to bring forward a statutory instrument this year to support the delivery of a long-term regulatory framework for Open Banking, ensuring continued growth and innovation in the sector.
The Future Entity will be an important part of this framework and act as the standards-setting body for UK open banking. The FCA has commissioned a consultancy to assess proposals from organisations proposing to lead the establishment a body that is capable of becoming the Future Entity. The process will finish in April.
Asked by: Damian Hinds (Conservative - East Hampshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 27 January 2026 to Question 102744 on Hospitality Industry and Retail Trade: Business Rates, what estimate she has made for the total business rates liability for the current set of properties in category 159 (Local Authority Schools) in (a) 2025/6 (b) 2026/7, and (c) 2027/8.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Valuation Office Agency is responsible for assessing non-domestic properties and determining their rateable value (RV). Local authorities are responsible for calculating business rates bills using the RV, the multiplier set by parliament, and any appropriate reliefs.
The government has published guidance for estimating a property’s business rates for 2026-27: Estimate your business rates - GOV.UK.
Asked by: Olly Glover (Liberal Democrat - Didcot and Wantage)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of introducing an inflation adjustment mechanism for capital gains tax calculations.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
An indexation allowance previously existed when Capital Gains Tax (CGT) was charged at income tax rates, with a top rate of 40 per cent. The current rates of 18 and 24 per cent are significantly below the higher rates of income tax, simplifying the calculation of gains for taxpayers.
When considering changes to the tax system, the government has to take into account a wide range of factors, including the fiscal cost, administrative burdens, and complexity it would add to the tax system.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department’s press release entitled Act now: 864,000 sole traders and landlords face new tax rules in two months, published on 5 February 2026, what assessment she has made of the potential impact of the requirement to maintain digital records and submit quarterly tax updates under Making Tax Digital for Income Tax on sole traders and landlords.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government is undertaking a range of activities to ensure those needing to use Making Tax Digital (MTD) for Income Tax from April 2026 are ready and able to do so successfully.
This includes targeted media campaigns, awareness letters, developing guidance, and working with the software industry to ensure a broad range of MTD‑compatible products is available, to suit different needs and budgets. Free options will support those with the simplest affairs.
MTD will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing, with digital tools helping to reduce errors and making annual tax returns easier.
HMRC’s latest published assessment of the potential impact of MTD for Income Tax across different taxpayer groups is available at:
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department’s press release entitled Act now: 864,000 sole traders and landlords face new tax rules in two months, published on 5 February 2026, what steps HM Revenue and Customs is taking to ensure that sole traders and landlords impacted by the new Making Tax Digital for Income Tax rules are aware of their obligations.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government is undertaking a range of activities to ensure those needing to use Making Tax Digital (MTD) for Income Tax from April 2026 are ready and able to do so successfully.
This includes targeted media campaigns, awareness letters, developing guidance, and working with the software industry to ensure a broad range of MTD‑compatible products is available, to suit different needs and budgets. Free options will support those with the simplest affairs.
MTD will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing, with digital tools helping to reduce errors and making annual tax returns easier.
HMRC’s latest published assessment of the potential impact of MTD for Income Tax across different taxpayer groups is available at:
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department’s press release entitled Act now: 864,000 sole traders and landlords face new tax rules in two months, published on 5 February 2026, what assessment she has made of the adequacy of awareness of the the new Making Tax Digital for income tax rules among sole traders and landlords.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government is undertaking a range of activities to ensure those needing to use Making Tax Digital (MTD) for Income Tax from April 2026 are ready and able to do so successfully.
This includes targeted media campaigns, awareness letters, developing guidance, and working with the software industry to ensure a broad range of MTD‑compatible products is available, to suit different needs and budgets. Free options will support those with the simplest affairs.
MTD will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing, with digital tools helping to reduce errors and making annual tax returns easier.
HMRC’s latest published assessment of the potential impact of MTD for Income Tax across different taxpayer groups is available at:
Asked by: Roz Savage (Liberal Democrat - South Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has conducted a comparative assessment of the potential impact of (a) VAT rates on food and drink served in pubs compared with (b) VAT rates applied in comparable European countries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by pubs to economic growth and social life in the UK.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Reduced rates of VAT come at a significant cost to the Exchequer, reduce the revenue available for vital public services, and must represent value for money for the taxpayer.
HMRC estimates that the cost of reducing the 20 per cent standard rate of VAT on all accommodation and food and beverage services would be as follows in 2026-27: (a) to 15%: £5 billion, (b) to 12.5%: £8 billion (c) to 10%: £10.5 billion, (d) to 5%: £17 billion, (e) to 0%: £23.5 billion.
The Government is aware that some European countries apply reduced VAT rates to hospitality, reflecting different tax systems and policy choices. The Government keeps all taxes under review, with decisions on VAT rates taken by the Chancellor at fiscal events.