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 Reeves to use Parliament to drive through power plants and infrastructure, published on 20 May 2026, what steps she is taking with Cabinet colleagues to maximise the use of domestic suppliers and manufacturers in nationally significant infrastructure and energy projects accelerated under the proposed reforms.
Answered by Lucy Rigby - Chief Secretary to the Treasury
On 20 May, the Chancellor announced a package of infrastructure planning reforms to accelerate delivery of the most important clean energy projects, strengthen the UK’s energy security and support economic growth.
By reducing delays and making the judicial review process faster, more predictable and more focused on genuine legal concerns, these reforms are expected to give investors greater confidence and support continued investment in infrastructure projects.
More broadly, this Government believes that it matters where things are made and who makes them and is reforming public procurement so that more of what the public sector buys supports UK-based businesses, including in critical industries.
HM Treasury is working closely with relevant departments on the detailed policy and legislative framework for these infrastructure planning reforms. Further detail will be set out in due course.
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 Reeves to use Parliament to drive through power plants and infrastructure, published on 20 May 2026, what safeguards will remain in place for local communities affected by projects designated as being of Critical National Importance.
Answered by Lucy Rigby - Chief Secretary to the Treasury
On 20 May, the Chancellor announced a package of infrastructure planning reforms to accelerate delivery of the most important clean energy projects, strengthen the UK’s energy security and support economic growth.
Under these reforms, projects designated as being of Critical National Importance would still be required to proceed through the normal Development Consent Order process, and existing arrangements for considering impacts and hearing from affected communities would remain in place. This route would apply only to energy projects that the Energy Secretary designates as of Critical National Importance, and any such designation would also require explicit parliamentary approval
HM Treasury is working closely with relevant departments on the detailed policy and legislative framework for these reforms. Further detail will be set out in due course.
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 Reeves to use Parliament to drive through power plants and infrastructure, published on 20 May 2026, if she will set out what role hon. Members will have in approving or scrutinising projects designated as being of Critical National Importance under the proposals.
Answered by Lucy Rigby - Chief Secretary to the Treasury
On 20 May, the Chancellor announced a package of infrastructure planning reforms to accelerate delivery of the most important clean energy projects, strengthen the UK’s energy security and support economic growth.
These proposals include a new route for Parliament to approve projects designated as Critical National Importance, providing greater certainty where the national interest is clearest. The route would apply only to energy projects identified by the Energy Secretary as Critical National Importance, and any such designation would require explicit parliamentary approval.
HM Treasury is working closely with relevant departments on the detailed policy and legislative framework for these reforms. Further detail will be set out in due course.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential benefit to the UK of joining the proposed Defence, Security and Resilience Bank.
Answered by Lucy Rigby - Chief Secretary to the Treasury
The UK announced that it is exploring setting up the Multilateral Defence Mechanism with Finland, the Netherlands and other partners by 2027. This will be designed to improve value for money and increase standardisation in the defence sector through joint procurement. It will enhance collaboration among allies and improve interoperability. It will aim to increase the availability of munitions and other critical capabilities when we need them most and aim to support a more resilient and efficient defence industrial sector, underpinned by more certainty of orders from aggregated demand through joint procurement from its members.
The Chancellor regularly discusses with NATO allies the need to meet the challenge jointly of increasing expenditure on our defence and resilience.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussion has she has had with NATO-Partner countries on membership of the proposed Defence, Security and Resilience Bank.
Answered by Lucy Rigby - Chief Secretary to the Treasury
The UK announced that it is exploring setting up the Multilateral Defence Mechanism with Finland, the Netherlands and other partners by 2027. This will be designed to improve value for money and increase standardisation in the defence sector through joint procurement. It will enhance collaboration among allies and improve interoperability. It will aim to increase the availability of munitions and other critical capabilities when we need them most and aim to support a more resilient and efficient defence industrial sector, underpinned by more certainty of orders from aggregated demand through joint procurement from its members.
The Chancellor regularly discusses with NATO allies the need to meet the challenge jointly of increasing expenditure on our defence and resilience.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of an increase in the SCAPE discount rate on police officers in the 1987 Police Pension Scheme.
Answered by Lucy Rigby - Chief Secretary to the Treasury
In line with the existing methodology, the Government announced on 19 May 2026 that the SCAPE discount rate is 2%+CPI.
HM Treasury is not the responsible authority for individual Public Service Pension Schemes. Regulation B7 of the Police Pension Scheme Regulations 1987 provides for commutation of pension to purchase lump sum and specifies that the rate is that set out by the Scheme Actuary. The factors were updated on 21 May 2026 to reflect the change to the SCAPE discount rate.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she made of the potential merits of an immediate implementation of the SCAPE discount rate.
Answered by Lucy Rigby - Chief Secretary to the Treasury
The Government remains committed to reviewing the SCAPE discount rate at every valuation cycle. The SCAPE discount rate was announced in Parliament on 19 May 2026. This is in line with established precedent for reviews of the SCAPE discount rate. Where the SCAPE discount rate changes, the factors used in the schemes (for example to calculate the commuted lump sum provided in exchange for a member giving up part of their pension) are reviewed in line with best practice and the law.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the risk that people who should qualify for exemption will incur penalties under the Making Tax Digital regime; and what steps she is taking to mitigate that risk.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC is taking to ensure that digitally excluded people are aware of their right to apply for an exemption.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC will publish regular statistics on exemption applications, outcomes and processing times under Making Tax Digital.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has been accepting applications for exemption from Making Tax Digital (MTD) for Income Tax since September 2025.
Around 6,500 applications for exemption have been received to date. Decisions have been reached on around 60% of these cases, with approximately 75% of the determined applications granted exemptions based on the specific circumstances of each taxpayer.
Taxpayers may request a review or appeal decisions using established processes, with a very small number proceeding to appeal.
Eligibility is assessed on a case-by-case basis, including factors such as age, disability, health conditions, religious beliefs or lack of internet access; HMRC does not produce a single estimate of the number of those who may qualify.
In January 2026 HMRC had 15 FTE focused on exemptions. This increased to 42 in June 2026.
HMRC provides guidance and communications directly to taxpayers and works with agents, charities and representative bodies to help raise awareness of exemptions. Taxpayers who cannot use digital services can meet their obligations through alternative channels, mitigating the risk of inappropriate penalties.
The Government keeps the operation of MTD under review, including exemptions. Decisions on publishing further statistics in relation to MTD will be considered alongside wider transparency arrangements.