Asked by: Carla Lockhart (Democratic Unionist Party - Upper Bann)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of bank closures on access to banking services by vulnerable and elderly people; how many Banking Hubs currently operate in Northern Ireland; and what her target is for the number of additional Banking Hubs to be opened in Northern Ireland before the end of this parliamentary term.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to supporting sufficient access for customers.
The Government is working closely with industry on the commitment to roll out 350 banking hubs across the UK by the end of this Parliament, which will provide individuals and businesses across the country with cash and banking services. Over 240 hubs have been announced so far, and 200 are already open. Of these, there are currently seven banking hubs operating in Northern Ireland.
The treatment of customers by UK banks is governed by the the Financial Conduct Authority, which requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.
While branch closures are commercial decisions for banks, Financial Conduct Authority guidance requires firms to conduct a robust impact analysis. Banks must show they have considered customer needs and identified potential reasonable alternatives. The FCA also expects engagement with stakeholders at least 12 weeks before closure and ensures that any replacement services, such as banking hubs, are in place before a branch closes. These measures aim to ensure closures are implemented fairly and transparently.
The Government does not have specific regional targets for banking hub opening as the locations of banking hubs are determined independently by LINK.
Asked by: Bambos Charalambous (Labour - Southgate and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of the (a) Financial Conduct Authority and (b) Financial Ombudsman Service’s recent changes to compensatory interest.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Financial Ombudsman Service (FOS) is responsible for setting the interest rate it applies to awards. Following consultation, the FOS has confirmed that it will change the interest rate that it applies to some compensation awards, moving from the current 8% to a time-weighted average of the Bank of England’s base rate plus one percentage point. The FOS will continue to apply an 8% interest rate for the period after a determination has been made, if the business does not pay redress on time, to encourage timely compliance with FOS determinations. The Chancellor welcomed the new rate in her Mansion House 2025 speech on 15 July, with the Financial Services Growth and Competitiveness Strategy noting that the new rate better reflects market conditions.
Asked by: Cameron Thomas (Liberal Democrat - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of funding British content creators through the taxation of online platforms.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
We support domestic film and TV production through the tax system and through funding.
The Audio-Visual Expenditure Credit (AVEC) provides companies with a generous tax credit worth 34 per cent of their UK production costs on a film or high-end TV programme, or 39 per cent of their production costs on an animation or children’s TV programme.
As of 1 April 2025, films with a UK lead writer or director and budgets of under £23.5 million are able to claim an enhanced 53 per cent rate of AVEC on up to £15m of core expenditure. This applies to expenditure incurred from 1 April 2024. This will support the next generation of independent films and help develop a pipeline of UK film talent.
Film and TV are priority sub-sectors for our Industrial Strategy, and the Department for Culture, Media and Sport (DCMS) have committed to a new £75 million Screen Growth Package over three years to develop independent UK screen content, support inward investment, and showcase the best of UK and international film. This includes a scaled-up £18 million per year UK Global Screen Fund (2026–2029) to develop international business capabilities, enable co-productions and distribute independent UK screen content.
The Government wants to ensure that there is a balanced film and TV sector and welcomes international investment, including from subscription video-on-demand platforms. We therefore have no plans to introduce additional taxes or levies on these services. However, DCMS will continue to engage with major streaming services, with the independent production sector and with public service broadcasters on how best to ensure mutually beneficial conditions for all parties.
Asked by: Shaun Davies (Labour - Telford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the efficacy of the Government's efforts to reduce tax evasion.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC is committed to closing the tax gap further and tackling non-compliant behaviours such as tax evasion, tax avoidance, criminal attacks, error, failure to take reasonable care, hidden economy activity, legal interpretation issues, and non-payment.
In 2024 to 2025, HMRC’s compliance work contributed to record tax revenues of £875.9 billion, collecting and protecting £48 billion of tax that would have gone unpaid if HMRC hadn’t stepped in – up from £41.8 billion the previous year.
At the Autumn Budget 2025, the government announced a package of measures that will raise a further £2.4 billion in additional tax revenues in 2029 to 2030. This builds on announcements at Autumn Budget 2024 (£6.5 billion), and Spring Statement 2025 (over £1 billion) and brings the total revenue from closing the tax gap announced this Parliament to £10 billion in 2029 to 2030.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has the Government has made of the potential impact that extending VAT Deemed Reseller rules to include UK sellers could have to closing the tax gap.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has and will continue to engage with stakeholders to understand the impact of any changes to online marketplace liability rules on both platforms and sellers. Certified analysis by the Office for Budget Responsibility (OBR) estimates the current online marketplace liability rules, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.
HMRC has an overall compliance strategy which focuses on addressing all forms of non-compliance. The most recent published VAT gap shows a continued downward trend, falling from 13.7% to 5.4% between tax years 2005/06 and 2023/24.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to publish the outcome of the review of the VAT Deemed Reseller rules announced in April 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has and will continue to engage with stakeholders to understand the impact of any changes to online marketplace liability rules on both platforms and sellers. Certified analysis by the Office for Budget Responsibility (OBR) estimates the current online marketplace liability rules, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.
HMRC has an overall compliance strategy which focuses on addressing all forms of non-compliance. The most recent published VAT gap shows a continued downward trend, falling from 13.7% to 5.4% between tax years 2005/06 and 2023/24.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the OBR has reviewed the Treasury’s 2020 forecast of the fiscal impact of extending the VAT RES to EU residents.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The OBR’s estimate is that the withdrawal of the VAT Retail Export Scheme will save the Exchequer around £540 million per year by 2025-26.
The Government has also noted recent external data, which shows that tourism numbers and spending for the UK has recovered at a similar rate following the pandemic to other European economies that offer tax-free shopping
The Government has carefully considered external analysis estimating that a new tax-free shopping scheme would generate more revenue than cost for the Exchequer, as well as supporting data from a wide range of business stakeholders across the UK. However, these do not provide sufficient evidence that a new tax-free shopping scheme would have greater benefits to the UK than costs.
The Government therefore has no plans to introduce a new tax-free shopping scheme in Great Britain.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Treasury has reviewed its 2020 forecast of the fiscal impact of extending the VAT RES to EU residents.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The OBR’s estimate is that the withdrawal of the VAT Retail Export Scheme will save the Exchequer around £540 million per year by 2025-26.
The Government has also noted recent external data, which shows that tourism numbers and spending for the UK has recovered at a similar rate following the pandemic to other European economies that offer tax-free shopping
The Government has carefully considered external analysis estimating that a new tax-free shopping scheme would generate more revenue than cost for the Exchequer, as well as supporting data from a wide range of business stakeholders across the UK. However, these do not provide sufficient evidence that a new tax-free shopping scheme would have greater benefits to the UK than costs.
The Government therefore has no plans to introduce a new tax-free shopping scheme in Great Britain.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the increase in employers' National Insurance contributions on the viability of businesses in North Yorkshire.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer National Insurance contributions announced at Autumn Budget 2024.
The Office for Budget Responsibility (OBR) set out in their November 2025 Economic and Fiscal Outlook that they expect that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions her department has had with Amazon on its proposal to support the collection of £700 million in VAT receipts from online marketplace sellers operating overseas.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.
The changes were introduced to ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.
The Government engages with a wide range of stakeholders as part of the policy making process.