Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the role of publicly-backed development finance institutions in supporting access to growth capital for small and medium-sized enterprises; and what steps they are taking to encourage collaboration between those institutions and commercial lenders to support regional economic development.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government recognises the important role that Public Financial Institutions play in improving businesses’ access to growth capital.
The British Business Bank (BBB), as the UK’s economic development bank, has supported over 100,000 smaller businesses through its programmes and has a strong track record of crowding in private capital into early‑stage equity and later‑stage growth finance.
At the Spending Review the Government expanded the BBB’s total financial capacity to £25.6 billion, enabling it to support a greater volume and range of investments. As part of this uplift, the BBB’s new Industrial Strategy Growth Capital initiative will provide £4 billion of capital to the eight priority Industrial Strategy Sectors, leveraging £12 billion of further private investment.
To help the next generation of UK unicorns at the critical stage when access to scale-up capital is most challenging, the BBB will support 10 new-to-market growth-stage fundraisings over the next 10 years, increasing the number of such funds in the market by 100 per cent.
The BBB will also deploy £2.6 billion to ensure entrepreneurs across the UK — regardless of location or background—can access the finance required to grow. This support will boost smaller business growth across all nations and regions.
The UK’s export credit agency, UK Export Finance (UKEF), also supports SMEs and regional growth by ensuring no viable UK export fails through lack of finance and insurance. UKEF offers finance for SME exporters through commercial lenders. Last year, the Government increased UKEF’s capacity by £20 billion, bringing the total to £80 billion, and is legislating to increase statutory limits of UKEF support so lack of capacity does not limit support for exporters.
We continue to strengthen coordination between PuFins. The BBB’s new Strategic Plan commits to working more closely with other Public Financial Institutions to provide clearer, more joined up routes for businesses to access the right form of finance at the right stage of their growth.
The Government will continue to monitor the effectiveness of development finance interventions and ensure they complement private‑sector activity while supporting enterprise, innovation and economic growth across every region.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government when they expect to publish the conclusions of the review of VAT for public bodies under Section 41 of the Value Added Tax Act 1994.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Under Section 41 of the VAT Act 1994 Government departments, NHS Trusts and some wider public bodies can claim VAT refunds on certain outsourced services. Their remaining irrecoverable VAT is funded through Departmental Expenditure Limits. The Government is exploring reforming this system into a ‘Full Refund Model’ which would enable Section 41 bodies to recover VAT on all goods and services incurred during the course of non-business activities.
To ensure the reform is fiscally neutral, the departmental budgets of Section 41 bodies must be adjusted by an amount corresponding to the additional VAT they will be refunded for. HM Treasury is currently analysing data provided by Section 41 bodies on their irrecoverable VAT and will set out the next steps to the reforms in due course.
Asked by: Scott Arthur (Labour - Edinburgh South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of increases in Benefit-in-Kind rates for electric vehicles on consumer uptake; and whether her Department has considered the effect on adoption rates if Benefit-in-Kind rates exceed 10%.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government announced new Company Car Tax rates for the years 2028-29 and 2029-30, which increase for both electric vehicles (EVs) and petrol/diesel vehicles, while still maintaining generous incentives to support EV take-up.
The Tax Information and Impact Note (TIIN) published alongside Budget set out the expected economic, equalities and other impacts, and highlighted that overall the measure was expected to encourage the take-up of zero emission vehicles.
The Government recognises that the Company Car Tax regime and the salary sacrifice exemption for ultra-low and zero emission vehicles continues to play an important role in the EV transition. The Government needs to balance these incentives against responsible management of public finances to ensure we have sufficient revenue to fund essential public services. A company car is a valuable benefit and therefore needs to be taxed appropriately.
Asked by: Adam Dance (Liberal Democrat - Yeovil)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of replacing the business rates system on businesses in Yeovil constituency.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has already started the work of reforming our business rates system by introducing new permanently lower multipliers for eligible retail, hospitality and leisure (RHL) properties. These new multipliers are worth nearly £1 billion per year and will benefit over 750,000 properties.
The Government is also supporting small businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.
The Call for Evidence, published at Budget, built on the findings of the Transforming Business Rates: Discussion Paper and asked stakeholders for more detailed evidence on how the business rates system influences investment decisions. We are carefully considering representations we’ve received, and a Government response to the Call for Evidence will be published in due course.
Any reforms taken forward will be phased over the course of the Parliament.
Asked by: Scott Arthur (Labour - Edinburgh South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of salary sacrifice schemes in supporting the uptake of electric vehicles.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government announced new Company Car Tax rates for the years 2028-29 and 2029-30, which increase for both electric vehicles (EVs) and petrol/diesel vehicles, while still maintaining generous incentives to support EV take-up.
The Tax Information and Impact Note (TIIN) published alongside Budget set out the expected economic, equalities and other impacts, and highlighted that overall the measure was expected to encourage the take-up of zero emission vehicles.
The Government recognises that the Company Car Tax regime and the salary sacrifice exemption for ultra-low and zero emission vehicles continues to play an important role in the EV transition. The Government needs to balance these incentives against responsible management of public finances to ensure we have sufficient revenue to fund essential public services. A company car is a valuable benefit and therefore needs to be taxed appropriately.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the OBR Economic and Fiscal Outlook report of November 2025, Table A.5, what analysis her Department has done of the causes for the rise in estimated business rates receipts from £38.8 billion in 2028-29 to £41.9 billion in 2029-30.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Business rates receipts are forecast independently by the Office for Budget Responsibility (OBR). Information on changes to the Business Rates receipts can be found in the OBR’s Economic and Fiscal Outlook report (paragraphs 4.38 to 4.40).
Asked by: Scott Arthur (Labour - Edinburgh South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of engagement and consultation with blind and partially sighted people in the design and delivery of interventions set out in the Financial Inclusion Strategy.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
In November, I published the Government’s Financial Inclusion Strategy which sets out a range of ambitious measures for government and industry to improve financial inclusion for underserved groups across the UK.
As part of its focus on inclusive design, the Strategy recognises the work taken forward by The Royal National Institute of Blind People and UK Finance to introduce accessibility features for cards, so that those who are blind or partially sighted are better able to distinguish between card types and orientate them when using card readers. UK Finance is developing a Code of Practice for Accessible Cards which will ensure these features are consistent across participating firms.
The Strategy also includes a commitment for industry to work with the third sector to make it easier for individuals without standard identification documents to open a bank account, and the launch of an industry-led inclusive design working group to consider how to make products more accessible. UK Finance is currently open to submissions from consumer representative organisations about the accessibility challenges which this group should seek to address.
The Strategy was developed alongside a Committee of consumer and industry representatives, including engagement with frontline organisations and those with lived experience. The Government is committed to continuing to work collaboratively to ensure the delivery of interventions remains informed by a wide range of expertise and perspectives.
Asked by: Ruth Jones (Labour - Newport West and Islwyn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the implications for her policies of the report entitled Tenure change: turning existing dwellings and buildings in social homes, published by the Bevan Foundation and Shelter Cymru in March 2026; and, in that context, what assessment has she made of the potential impact of VAT on a) general refurbishment works and b) renovation of empty dwellings on the number of empty properties being brought back into use for social housing in Wales.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
To support the re-use of existing buildings for new homes, conversions of buildings from a commercial to residential use, the renovation of properties that have been empty for two or more years, and conversions from one residential use to another all benefit from a reduced 5% rate of VAT.
General refurbishment works are subject to the standard 20% VAT rate, which applies to most goods services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
The Government is supporting the delivery of new social housing through the VAT system by preparing to consult on a zero rate of VAT for the sale of land intended for new social housing. This is specifically intended to simplify and accelerate the construction of social housing.
Asked by: Luke Taylor (Liberal Democrat - Sutton and Cheam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how she plans to undertake loan charge settlement for those impacted prior to December 2010.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government recognised that concerns continued to be raised about the loan charge and that some felt strongly that this had not been handled appropriately. The Government therefore commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.
The settlement opportunity will only include disguised remuneration scheme use between December 2010 and April 2019 because this is the period during which the loan charge applies.
The settlement opportunity will not apply to other tax avoidance schemes that are not within scope of the loan charge. In those cases, HMRC will continue to work with taxpayers to resolve their cases in line with existing legislation and case law. HMRC is committed to working sensitively and pragmatically with taxpayers to reach settlement. This includes by offering flexible payment terms where people need more time to pay their liabilities.
Asked by: Charlie Dewhirst (Conservative - Bridlington and The Wolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his Department's policy paper entitled Budget Information Security Review, published on 9 February 2026, whether her Department has identified the (a) individual and (b) entity that accessed the Electronic Financial Statement in March 2025.
Answered by James Murray - Chief Secretary to the Treasury
As noted in Paragraph 3.6 of the Budget Information Security Review, the National Cyber Security Centre explained why it is not possible to identify to whom the IP addresses used to obtain early access in March or November 2025 belong.