Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of how the proposed new regulatory regime for non-transferable securities and mini-bonds would have applied to the High Street Group scheme had it been in force at the time; and what conclusions she has drawn from that assessment for the position of people impacted by that scheme.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government recognises the impact of the collapse of the High Street Group (HSG) on those who invested with it. The administrators of HSG estimate that the value of investments affected is about £123 million.

As the regulator of financial services in the UK, the Financial Conduct Authority (FCA) stresses the importance of consumers getting the support they need and encourages consumers to only deal with FCA-authorised firms when making financial investments. HSG was not authorised by the FCA, and the issuing and distributing of its products was not a regulated activity. This means that investments made in HSG are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS), unless the investment was via a regulated financial adviser or SIPP operator. As an important point of principle, the Government does not step in to pay compensation in respect of firms that fall outside of the FSCS. Doing so would create the wrong set of incentives for individuals and place an unnecessary burden on the taxpayer.

As HSG was not authorised by the FCA, and the issuing and distributing of its products is not a regulated activity, the FCA did not have supervisory oversight. The FCA does not have power to investigate a firm that is unauthorised and not carrying out any regulated activities and so the FCA's ability to intervene was limited. However, the promotion and marketing of such loan notes requires approval from FCA-authorised firms, unless a relevant exemption applies. The FCA has taken action against unauthorised promoters of HSG's investment scheme where financial promotions were made in breach of their rules. This action has included unannounced visits, warning letters and the removal of non-compliant financial promotions from the internet.

Action is being taken to reduce the risk of future investment schemes operating in this manner. The FCA has banned the mass marketing of speculative mini-bonds, which means firms with similar business models to HSG can no longer market their mini-bonds to ordinary retail investors. Furthermore, the forthcoming public offers and admission to trading regime will bring the issuance of non-transferable debt securities, such as minibonds, within the scope of regulation. That new regime will come into force in January 2026.

With respect to any discussions between the Government, regulators and the banking sector, Treasury Ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial meetings with external organisations on departmental business are published on a quarterly basis and are available at the link below.

https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of changes to retail, hospitality and leisure relief announced in the Budget on small businesses.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values (i.e. the tax base) of properties remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget in November 2025, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

This support package includes capping bill increases for the smallest businesses losing some or all of their small business rates relief or rural rate relief worth over £500 million. The Government has gone further by expanding this to ratepayers losing retail, hospitality and leisure (RHL) relief to offer further support worth an additional £1.3 billion as they transition to permanently lower tax rates.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will review the adequacy of assessment criteria for establishing banking hubs.

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 championing sufficient access for customers. In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 190 are already open. Government is working closely with industry on this commitment.

The locations of banking hubs are independently determined by LINK, the industry coordinating body responsible for making access to cash assessments. LINK will carry out an assessment wherever a branch closure is announced or if they receive a community request. Any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the ability of the Valuation Office Agency's automated valuation model to carry out the work needed to the requisite level of accuracy in time for the introduction of the high value council tax surcharge.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Valuation Office Agency are developing their approach to the targeted revaluation and will set out more details in due course, following the outcome of the Government's consultation.

When valuing domestic properties, the VOA uses modern technology and industry standard techniques combined with freely available information including sales data, property attribute details and government records.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with the banking sector and the Payment Systems Regulator on improving the ability of banks to identify and flag potentially suspicious payments linked to unauthorised investment schemes such as High Street Group; and whether she will make an assessment of the case for enhanced tracing and recovery arrangements in such cases.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government recognises the impact of the collapse of the High Street Group (HSG) on those who invested with it. The administrators of HSG estimate that the value of investments affected is about £123 million.

As the regulator of financial services in the UK, the Financial Conduct Authority (FCA) stresses the importance of consumers getting the support they need and encourages consumers to only deal with FCA-authorised firms when making financial investments. HSG was not authorised by the FCA, and the issuing and distributing of its products was not a regulated activity. This means that investments made in HSG are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS), unless the investment was via a regulated financial adviser or SIPP operator. As an important point of principle, the Government does not step in to pay compensation in respect of firms that fall outside of the FSCS. Doing so would create the wrong set of incentives for individuals and place an unnecessary burden on the taxpayer.

As HSG was not authorised by the FCA, and the issuing and distributing of its products is not a regulated activity, the FCA did not have supervisory oversight. The FCA does not have power to investigate a firm that is unauthorised and not carrying out any regulated activities and so the FCA's ability to intervene was limited. However, the promotion and marketing of such loan notes requires approval from FCA-authorised firms, unless a relevant exemption applies. The FCA has taken action against unauthorised promoters of HSG's investment scheme where financial promotions were made in breach of their rules. This action has included unannounced visits, warning letters and the removal of non-compliant financial promotions from the internet.

Action is being taken to reduce the risk of future investment schemes operating in this manner. The FCA has banned the mass marketing of speculative mini-bonds, which means firms with similar business models to HSG can no longer market their mini-bonds to ordinary retail investors. Furthermore, the forthcoming public offers and admission to trading regime will bring the issuance of non-transferable debt securities, such as minibonds, within the scope of regulation. That new regime will come into force in January 2026.

With respect to any discussions between the Government, regulators and the banking sector, Treasury Ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial meetings with external organisations on departmental business are published on a quarterly basis and are available at the link below.

https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she will ask the Financial Conduct Authority and other relevant bodies to review their handling of intelligence and complaints relating to High Street Group and similar unauthorised mini-bond schemes; and to publish any lessons learned on consumer protection.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government recognises the impact of the collapse of the High Street Group (HSG) on those who invested with it. The administrators of HSG estimate that the value of investments affected is about £123 million.

As the regulator of financial services in the UK, the Financial Conduct Authority (FCA) stresses the importance of consumers getting the support they need and encourages consumers to only deal with FCA-authorised firms when making financial investments. HSG was not authorised by the FCA, and the issuing and distributing of its products was not a regulated activity. This means that investments made in HSG are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS), unless the investment was via a regulated financial adviser or SIPP operator. As an important point of principle, the Government does not step in to pay compensation in respect of firms that fall outside of the FSCS. Doing so would create the wrong set of incentives for individuals and place an unnecessary burden on the taxpayer.

As HSG was not authorised by the FCA, and the issuing and distributing of its products is not a regulated activity, the FCA did not have supervisory oversight. The FCA does not have power to investigate a firm that is unauthorised and not carrying out any regulated activities and so the FCA's ability to intervene was limited. However, the promotion and marketing of such loan notes requires approval from FCA-authorised firms, unless a relevant exemption applies. The FCA has taken action against unauthorised promoters of HSG's investment scheme where financial promotions were made in breach of their rules. This action has included unannounced visits, warning letters and the removal of non-compliant financial promotions from the internet.

Action is being taken to reduce the risk of future investment schemes operating in this manner. The FCA has banned the mass marketing of speculative mini-bonds, which means firms with similar business models to HSG can no longer market their mini-bonds to ordinary retail investors. Furthermore, the forthcoming public offers and admission to trading regime will bring the issuance of non-transferable debt securities, such as minibonds, within the scope of regulation. That new regime will come into force in January 2026.

With respect to any discussions between the Government, regulators and the banking sector, Treasury Ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial meetings with external organisations on departmental business are published on a quarterly basis and are available at the link below.

https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the redress and support mechanisms available to retail investors who have suffered losses in unauthorised mini-bond schemes that fall outside the Financial Services Compensation Scheme, including High Street Group.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government recognises the impact of the collapse of the High Street Group (HSG) on those who invested with it. The administrators of HSG estimate that the value of investments affected is about £123 million.

As the regulator of financial services in the UK, the Financial Conduct Authority (FCA) stresses the importance of consumers getting the support they need and encourages consumers to only deal with FCA-authorised firms when making financial investments. HSG was not authorised by the FCA, and the issuing and distributing of its products was not a regulated activity. This means that investments made in HSG are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS), unless the investment was via a regulated financial adviser or SIPP operator. As an important point of principle, the Government does not step in to pay compensation in respect of firms that fall outside of the FSCS. Doing so would create the wrong set of incentives for individuals and place an unnecessary burden on the taxpayer.

As HSG was not authorised by the FCA, and the issuing and distributing of its products is not a regulated activity, the FCA did not have supervisory oversight. The FCA does not have power to investigate a firm that is unauthorised and not carrying out any regulated activities and so the FCA's ability to intervene was limited. However, the promotion and marketing of such loan notes requires approval from FCA-authorised firms, unless a relevant exemption applies. The FCA has taken action against unauthorised promoters of HSG's investment scheme where financial promotions were made in breach of their rules. This action has included unannounced visits, warning letters and the removal of non-compliant financial promotions from the internet.

Action is being taken to reduce the risk of future investment schemes operating in this manner. The FCA has banned the mass marketing of speculative mini-bonds, which means firms with similar business models to HSG can no longer market their mini-bonds to ordinary retail investors. Furthermore, the forthcoming public offers and admission to trading regime will bring the issuance of non-transferable debt securities, such as minibonds, within the scope of regulation. That new regime will come into force in January 2026.

With respect to any discussions between the Government, regulators and the banking sector, Treasury Ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial meetings with external organisations on departmental business are published on a quarterly basis and are available at the link below.

https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

Question to the HM Treasury:

To ask His Majesty's Government what latest estimate they have made of the amount of money from the activities of the Crown Estate that will accrue to (1) the UK Government, (2) the Scottish Government, (3) the Welsh Government, and (4) the Northern Ireland Executive.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Crown Estate operates across England, Wales and Northern Ireland. The management of assets held by The Crown Estate was devolved to Scotland in 2016 and, as such, Crown Estate Scotland operates as a distinct entity from The Crown Estate and is governed by Scottish legislation.

In accordance with the Crown Estate Act 1961, The Crown Estate returns its net revenue profits to the UK Consolidated Fund - a combined total of more than £5 billion over the last decade. This money is used to fund vital public services across the UK in reserved areas. When the UK Consolidated Fund is spent in England, in areas which are devolved, the devolved governments also receive funding through the operation of the Barnett formula.

Details of The Crown Estate's revenues are outlined in its annual report and accounts.

Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to define 'cash-like investments' in relation to stocks and shares Individual Savings Accounts, and how charges on cash holdings in those accounts will be applied.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

At the Budget in November 2025, the government announced that from 6 April 2027, the annual Cash ISA limit will be set at £12,000 within the overall ISA limit of £20,000. This is part of our wider strategy aimed at supporting people to get into investing, including Targeted Support, which will be available from April 2026.

Rules will be introduced to avoid circumvention of the lower limit for cash ISAs where an individual is under the age of 65. The ISA industry will be consulted on the draft legislation, which will be made by amendments to the ISA Regulations, and laid before Parliament well ahead of April 2027.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to support access to finance for SMEs in the West Midlands.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government is committed to ensuring that businesses across the UK, including in the West Midlands, can access the capital they need to grow. Through the British Business Bank (BBB), we are delivering a range of targeted interventions, including loan guarantee programmes and equity investment, designed to address regional funding gaps and unlock investment opportunities.

Businesses in the West Midlands already benefit from the £400 million Midlands Engine Investment Fund II (MEIF). This fund is increasing the supply and diversity of early-stage finance for smaller businesses across the Midlands and enabling businesses that might otherwise not receive investment to access capital.

The BBB’s 2025 Impact Report estimates that their investments supported 2,200 West Midlands SMEs in 2024/25, and created 2,000 jobs. This follows the 10 June milestone of more than £100 million having been provided to West Midlands businesses as part of the Start Up Loans programme. The Bank also hosted a ‘Meet the Investor’ event in partnership with Tech UK in Birmingham in March to help connect SMEs with potential investors.

West Midlands businesses will also benefit from the recent Spending Review uplift, which increased the Bank’s total capacity to £25.6 billion. This uplift will enable the Bank to make annual investments of around £2.5 billion, supporting more high-growth and innovative UK businesses access finance across the UK.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 June 2025 to Question 61158, whether she plans to publish the statutory instrument on open banking in the first quarter of 2026.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The National Payments Vision, published in November, set out the government’s ambitious plans for the next phase of Open Banking, building on the UK’s leadership in this area. This includes steps towards delivering seamless, Open Banking enabled, account-to-account payments.

The government intends to use powers in the ‘Data (Use and Access) Act’ to put in place a long-term regulatory framework for Open Banking and is working at pace to deliver this.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment has been made of trends of junior bank account openings and levels of savings for young people since 2015.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

Ensuring that individuals have access to appropriate financial services and products is a key Government priority. This is vital for supporting financial resilience and wellbeing and enables people, including young people, to fully participate in the economy.

HM Treasury does not hold data on junior current account openings specifically. However, the Money and Pensions Service’s (MaPS) UK Strategy for Financial Wellbeing 2020–2030 reports that one in ten 16- to 17-year-olds have no bank account at all. Of those who do have accounts, 30% have never deposited money.

Through the Financial Inclusion Strategy, the Government is working with schools and the Money and Pensions Service to improve young people’s financial capability. As part of this, financial education will become compulsory in primary schools in England through a new statutory requirement to teach citizenship. In 2025–26, MaPS will also pilot its Talk, Learn, Do programme, which helps parents have money conversations with their children. The pilot will run through five family hubs and other organisations that support families in England, with the aim of achieving sustainable scale across the UK.

The Government is also supportive of industry’s efforts to develop age-appropriate products and services for young people.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Financial Conduct Authority's press release entitled FCA sets out landmark package to boost UK investment culture, published on 8 December 2025, whether she plans to provide additional support for those reforms.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government wants to see more people benefit from the higher returns and long-term financial resilience that investing can provide. That is why the Chancellor has set out a series of bold measures to get Britain investing again, including the reforms to ISAs announced at Autumn Budget.

In that context, the Government welcomes the Financial Conduct Authority’s (FCA) publication of final rules for the new Consumer Composite Investment regime. This will deliver tailored and flexible disclosure to support investors in their decision making, and will come into force from April 2026.

In addition, the Government is working closely with the FCA to launch a system of targeted support in early April 2026 to increase the support available to consumers. On 11 December, the Government confirmed it will be taking forward legislation to implement targeted support and the FCA published a policy statement setting out near-final rules for the regime.

Furthermore, the Government and FCA are working closely with the industry-led initiatives to promote the benefits of investing to the public, and to reform how firms talk about the risks and benefits of investing. Combined, these measures aim to support a thriving retail investment culture.

Question to the HM Treasury:

To ask His Majesty's Government whether they have made an assessment of the impact of the introduction of the high level council tax surcharge on the number of valuation challenges to the Valuations Office Agency.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government recognise the importance of the right to appeal, and will consult on the details of this in the new year.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has made an estimate of (a) the number of retail investors and (b) the total value of investments affected by the collapse of High Street Group mini-bonds and related schemes; and what assessment she has made of the implications of that case for the regulation of unauthorised investment products.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government recognises the impact of the collapse of the High Street Group (HSG) on those who invested with it. The administrators of HSG estimate that the value of investments affected is about £123 million.

As the regulator of financial services in the UK, the Financial Conduct Authority (FCA) stresses the importance of consumers getting the support they need and encourages consumers to only deal with FCA-authorised firms when making financial investments. HSG was not authorised by the FCA, and the issuing and distributing of its products was not a regulated activity. This means that investments made in HSG are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS), unless the investment was via a regulated financial adviser or SIPP operator. As an important point of principle, the Government does not step in to pay compensation in respect of firms that fall outside of the FSCS. Doing so would create the wrong set of incentives for individuals and place an unnecessary burden on the taxpayer.

As HSG was not authorised by the FCA, and the issuing and distributing of its products is not a regulated activity, the FCA did not have supervisory oversight. The FCA does not have power to investigate a firm that is unauthorised and not carrying out any regulated activities and so the FCA's ability to intervene was limited. However, the promotion and marketing of such loan notes requires approval from FCA-authorised firms, unless a relevant exemption applies. The FCA has taken action against unauthorised promoters of HSG's investment scheme where financial promotions were made in breach of their rules. This action has included unannounced visits, warning letters and the removal of non-compliant financial promotions from the internet.

Action is being taken to reduce the risk of future investment schemes operating in this manner. The FCA has banned the mass marketing of speculative mini-bonds, which means firms with similar business models to HSG can no longer market their mini-bonds to ordinary retail investors. Furthermore, the forthcoming public offers and admission to trading regime will bring the issuance of non-transferable debt securities, such as minibonds, within the scope of regulation. That new regime will come into force in January 2026.

With respect to any discussions between the Government, regulators and the banking sector, Treasury Ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial meetings with external organisations on departmental business are published on a quarterly basis and are available at the link below.

https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how she will notify SMEs that their bank is a designated bank under any scheme set up to ensure customers that are rejected for finance approval can be matched with alternatives who will offer support.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Bank Referral Scheme is an initiative dating back to 2014, which requires major lenders (designated banks) to refer SME customers that they reject for finance, with the SMEs’ permission, to finance platforms that can match the SME with alternative finance providers, in order to improve access to finance.

In the interests of public transparency, the Treasury is required under the law to publish a list of banks designated under the Scheme. The list of currently designated banks can be found at:

https://www.gov.uk/government/publications/designation-of-banks-and-finance-platforms-for-finance-platforms-regulations/notice-of-designation-small-and-medium-sized-business-finance-platforms-regulations-2015

Under the existing regulations, SMEs also learn about their bank’s involvement in the Scheme as the law requires the bank to ask the SME whether they agree to their information being provided to finance platforms under the Scheme, in order to try and match the SME with alternative finance.

On 27th October, the Government launched a consultation and call for evidence on the Bank Referral Scheme, inviting views on a range of issues and proposals aimed at better facilitating SME access to finance through the Scheme, including on bank designations and improving awareness of the Scheme.

The consultation sets out that, at a minimum, the Government intends to improve its own information resources on the Scheme. It also explains that the Government is considering whether it would be beneficial for more information on the Scheme to be made readily available to SMEs earlier, when they are considering external finance, regardless of whether they have already applied and been rejected. The consultation is due to close on 22 December.

The Government will set out its position on any changes to the Scheme in due course.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department is taking steps to produce guidance from the actuary department on the calculation that must be used to produce a Remedial Service Statement for people under a Pension Sharing Order in order for them to access the McCloud remedy.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

The Government Actuary’s Department has produced the guidance required by regulations to assist public service pension schemes in implementing aspects of the McCloud remedy for members subject to a Pension Sharing Order on divorce or dissolution. This guidance covers pension schemes for the civil service, teachers, NHS, armed forces, police and firefighters. The most recent guidance on this subject was issued on 5 November 2025.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she will discuss support for new mutual banks with Ministerial colleagues in the Department for Business and Trade.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The government is committed to supporting the growth of mutual financial services in line with the manifesto commitment to double the size of the mutual and co-operative sector.

HM Treasury works closely with departments across government, including the Department for Business and Trade, to deliver this commitment. We also engage regularly with the mutuals sector to understand the challenges they face and explore opportunities to help the sector grow.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department uses wellbeing metrics in the context of policy development.

Answered by James Murray - Chief Secretary to the Treasury

HM Treasury does use wellbeing metrics in policy development. HM Treasury is also responsible for the Green Book, which supports officials across government to apply wellbeing approaches to policy development.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to ensure that UK steel producers are not subject to additional decarbonisation-related charges that could impact their competitiveness relative to overseas producers.

Answered by James Murray - Chief Secretary to the Treasury

The government is committed to supporting the UK steel sector and we will publish our strategy for the sector in 2026. This will articulate what is needed to create a competitive environment and to secure UK steelmaking capability.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what place based funding allocations has the Government confirmed for each area in the UK for the current spending review period.

Answered by James Murray - Chief Secretary to the Treasury

The government is investing billions in city regions, towns and communities across the UK as a commitment to driving growth everywhere.

This includes, for example, the historic £15.6 billion investment in transport infrastructure in major city regions outside London; £410 million for a Local Innovation Partnerships Fund to support local leaders to drive innovation excellence in key sectors across the UK; at least £13 billion of funding via Integrated Settlements from 2026-27 to 2029-30 for seven Mayoral Strategic Authorities; and a Local Transport Grant providing £2.3 billion to enable local authorities to deliver transport improvements.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she is taking steps to ensure that people affected by interest rate hedging products are compensated.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government recognises the impact that the historic mis‑selling of interest rate hedging products (IRHPs) has had on many SMEs, and we acknowledge the distress this caused.

Responsibility for regulating the sale of these products, and for ensuring appropriate redress, rests with the independent Financial Conduct Authority (FCA). The FCA required the major banks to carry out a comprehensive review of past IRHP sales. This led to around 14,000 businesses receiving a total of £2.2 billion in redress.

The Government believes this industry‑wide redress scheme broadly met its objectives in delivering compensation to businesses that were mis‑sold these products. The Government has always been clear that mis‑selling of financial products is completely unacceptable. That is why we supported both the FCA’s redress scheme and its decision to commission an independent ‘lessons‑learned’ review of its supervisory interventions in relation to IRHPs. The FCA accepted the majority of the recommendations from that review, and, in light of the review’s findings, it also carefully considered whether further steps should be taken to facilitate access to redress for customers who had initially been excluded.

More generally, the Government continues to keep the financial services regulatory framework under review, working closely with the FCA to help ensure that consumers and businesses are protected and have clear, effective routes to compensation where misconduct occurs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how much insurance premium tax was collected from each type of insurance product in the latest year for which data is available.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

HMRC publishes annual statistics on IPT receipts and liabilities within the publication titled “Insurance Premium Tax (IPT) Bulletin” which can be found at the following link: https://www.gov.uk/government/statistics/insurance-premium-tax-ipt-bulletin

However HMRC does not hold the information requested as to how much insurance premium tax was collected from each type of insurance product.

This is because Insurance Premium Tax returns do not include a breakdown of the tax due on different types of products, as this may impose an excessive administrative burden on customers.

HMRC does however include the split between the standard rate and higher rate of insurance premium tax as part of our published annual statistics on IPT receipts and liabilities.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she plans to take to help ensure the UK is an attractive destination for cryptoasset capital.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The government recognises the transformative potential of digital assets and blockchain technologies to drive economic growth in the UK and increase efficiencies across financial markets.

That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets.

This will support growth in the UK by giving cryptoasset firms the regulatory certainty needed to invest here, and to help drive innovation in our financial services sector.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the forecast by the Office for Budget Responsibility that business investment may decline in 2026.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

HM Treasury does not prepare forecasts for the UK economy. These forecasts, including assessments of the impact of policy decisions, are the responsibility of the independent Office for Budget Responsibility (OBR). The OBR publishes its forecast in the Economic and Fiscal Outlook (EFO). The OBR’s latest EFO is available here: https://obr.uk/efo/economic-and-fiscal-outlook-november-2025/

Our economic strategy to deliver growth is investment across the public and private sectors, and in every part of the country. Our modern Industrial Strategy is making a difference. We have taken bold action by tearing up red tape with plans to reduce business regulatory costs, delivering the biggest planning reforms in a generation and reducing electricity bills for over 7000 businesses.

Question to the HM Treasury:

To ask His Majesty's Government whether relief for pensioners will be considered as part of the consultation on the high value council tax surcharge.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government will consult on options for support for those who may struggle to pay the High Value Council Tax Surcharge early in 2026. This will consider a range of options, to make sure any scheme is targeted and easy to access.

Question to the HM Treasury:

To ask His Majesty's Government, with regard to the report by the Office for Budget Responsibility, Economic and fiscal outlook, published on 26 November, what assessment they have made of the risks of elevated global equity valuations driven in part by AI technology stocks to the economy.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The government does not comment on individual market moves.

The Office for Budget Responsibility (OBR) is the government's official forecaster responsible for assessing the UK economic and fiscal outlook, including the macroeconomic impacts of policy and the risks to the UK outlook. In its November 2025 Economic and Fiscal Outlook, the OBR assessed the potential impacts of a shock to global equity prices. The OBR presented two scenarios with a potential peak impact on UK real GDP of 0.5%-0.6% relative to its central forecast.

HM Treasury maintains a comprehensive framework for assessing and managing risks to the economic and fiscal outlook. This includes systematic monitoring through internal risk processes and risk governance forums, and collaboration with other government departments. HM Treasury also works closely with the UK financial regulators to assess risks relating to financial markets.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure (i) people can access Disabled Person’s Trust accounts from high street banks and (ii) public bodies are using powers to ensure access for families of disabled people to those accounts.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government is committed to ensuring that everyone can access appropriate financial services and products, which is vital for financial resilience and wellbeing and ensuring that individuals are able to fully participate in the economy.

The provision of services such as trust accounts is a commercial decision for individual banks and building societies, and the Government does not intervene in these decisions.

Under the Financial Conduct Authority’s (FCA) Consumer Duty, firms must consider the impact of withdrawing a product and take steps to mitigate harm. However, the FCA cannot compel firms to offer specific products.

The FCA is currently engaging with industry and stakeholders to explore issues around the provision of trust accounts for disabled people, and the Government supports this work.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of introducing clearer regulatory and tax frameworks for cryptoasset investment on a) high-skilled job creation and b) assets under management.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The government recognises the transformative potential for digital assets and blockchain technologies to drive economic growth in the UK and increase efficiencies across financial markets.

That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets. This will support growth in the UK by giving cryptoasset firms the regulatory certainty needed to invest here, and to help drive innovation in our financial services sector.

The government also keeps the tax framework for cryptoassets under review.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of simplifying tax-compliant investment structures for cryptoassets in innovative finance ISAs to include all cryptoassets; and if she will make an assessment of the potential impact of doing so on levels of involuntary non-compliance among retail investors.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The government recognises the transformative potential for digital assets and blockchain technologies to drive economic growth in the UK and increase efficiencies across financial markets. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets. This will support growth in the UK by giving cryptoasset firms the regulatory certainty needed to invest here, and to help drive innovation in our financial services sector.

A draft consultation on legislation that enables the inclusion of cETNs in the IFISA is out now and will come int force in April 2026. While there are currently no plans to include all cryptoassets in IFISAs, any future consideration would take account of market maturity, stability, and the suitability of providing targeted tax reliefs alongside the new regulatory regime.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the time taken by UK firms to complete export documentation compared with firms in other OECD countries.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Estimates of the administrative burden of import and export declarations for trade between Great Britain and the European Union are published at the following link: Estimating the customs administrative burden of 2022 declarations - GOV.UK.

No direct comparisons are available with other OECD countries due to the limited amount of information published.

HMRC is committed to making customs processes as simple as possible while ensuring effective checks are in place at the border, and we continue to work closely with the border industry to streamline processes and support the flow of legitimate goods.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her department is taking to harmonise customs processes between the UK and EU.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to remove the VAT exemption for vehicles adapted for use by disabled people.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The government has no plans to remove the VAT relief for vehicles designed for, or substantially and permanently adapted for, wheelchair or stretcher users.

At Budget 2025 the government announced tax changes to the Motability scheme. These changes will only impact new leases, and VAT reliefs within the scheme for weekly lease costs and vehicle resale will remain in place.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what the cost to the public purse is of reducing the retail, hospitality and leisure multiplier by the maximum permitted by the Non-Domestic Rating (Multipliers and Private Schools) Act 2025.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, pubs would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, while ensuring that warehouses used by online giants will pay more. The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID.

Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to support pubs with increases in their business rates bills.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, pubs would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, while ensuring that warehouses used by online giants will pay more. The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID.

Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what proportion of (a) named day questions and (b) ordinary written questions were responded to by her Department within the required timescale in (i) May 2025, (ii) June 2025, (iii) July 2025, (iv) August 2025, (v) September 2025, (vi) October 2025 and (vii) November 2025.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government recognises the importance of the effective and timely handling of written parliamentary questions (PQs).

The relevant data based on Treasury’s own case management system reporting is as follows:

The House of Commons Procedure Committee monitors departmental PQ performance and publishes a report of the government’s consolidated PQ data following the end of each session.

Question to the HM Treasury:

To ask His Majesty's Government what estimate they have made of the impact of specifically levying (1) 10 per cent or (2) 20 per cent on unused pensions at death, instead of requiring the pension fund to be administered as part of the person's estate for inheritance tax purposes.

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 from changes that have been made to pensions tax policy over the last decade, 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.

A flat rate tax charge would be a very different policy with very different impacts. Fewer than 10% of estates annually are forecast to have an inheritance tax liability in the coming years. A flat rate tax charge on pensions would impact a different, and large, population of individuals below the current inheritance tax thresholds. This approach would not be equitable as it would require the majority of estates to pay more so that a small share of estates could pay less.

If the flat rate is set at a lower rate than the current rate of inheritance tax, this would lead to unused pension funds being taxed more lightly than other assets subject to inheritance tax at a rate of 40%. This would likely mean that pensions would continue to be used as a tax planning vehicle for the wealthiest individuals.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Loan Charge review, what steps her Department are taking to ensure consistency and fairness for individuals who have already settled their cases, compared to the concessions and reliefs now available to others who did not.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The purpose of the Independent Review of the Loan Charge was to bring the matter to a close for people who have not settled and paid their loan charge liabilities. The review identified affordability as a key barrier preventing those individuals from settling and made recommendations to remove this barrier, of which the Government has accepted all but one. To support those on the lowest incomes, the Government has gone further by providing an additional £5000 deduction for those in scope of the review, removing approximately 10,000 individuals from the charge entirely. This will come at a substantial Exchequer cost over the next five years.

The Government will legislate to give HMRC the power to administer a new settlement scheme. There is no plan to alter liabilities or refund tax paid by individuals who have settled and fully paid their liabilities under the loan charge.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what was the total in duty deferment accounts that HMRC received in the calendar year 2024 via customs duties collected as a result of trade between GB and NI affected by the Windsor Framework.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC does not hold the information in the format requested.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the combined effect of higher rateable values and reduced business rates relief on (a) the number of hospitality businesses and (b) vacancy rates on high streets over the next three years.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.

The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

Treasury Ministers and officials engaged with a wide range of stakeholders across the pub and hospitality sector ahead of the Budget to discuss business rates.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the proposed increase in the rateable values of pubs on the level of their profitability.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.

The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

Treasury Ministers and officials engaged with a wide range of stakeholders across the pub and hospitality sector ahead of the Budget to discuss business rates.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions she has had with the brewing and pub sector on business rates affordability following the November Budget.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.

The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

Treasury Ministers and officials engaged with a wide range of stakeholders across the pub and hospitality sector ahead of the Budget to discuss business rates.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the cost of VAT relief for Motability in (a) 2025 and (b) each year of the Budget forecast.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC publishes estimates of the costs of tax reliefs in its annual publication: Non-structural tax reliefs - GOV.UK. The VAT relief “Vehicles and other supplies to disabled people (vehicles only)” includes the cost of VAT reliefs for supplies of vehicles to disabled people, including but not limited to Motability. The next release of this publication will be on 22 January 2026 and will include an estimate for 2024-25 and a forecast for 2025-26.

At Budget 2025 the government announced tax changes to the Motability scheme which will save over £1 billion over the next five years. The VAT relief for top-up payments made to lease more expensive vehicles will be removed for new leases from 1 July 2026, and Insurance Premium Tax will apply at the standard rate to insurance contracts on the Scheme from 1 July 2026. The tax changes will not apply to vehicles designed, or substantially and permanently adapted, for wheelchair or stretcher users. These tax changes ensure Motability can continue to deliver for its customers, for example through the continued provision of a broad range of vehicle models available without any top-up payments.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to gambling duties on Gibraltar's economy.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Increasing gambling duties will raise over £1 billion per year to support the public finances and forms part of our ambition to create a fair, modern and sustainable tax system.

The changes affect all businesses that offer gambling services to UK customers. The government understands that Gibraltar has a gambling industry that faces the UK, and will continue to monitor all impacts of these changes.

A Tax Information and Impact Note setting out the expected impacts was published at Budget and can be found here:

Gambling duty changes - GOV.UK

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate has she made of the number of people that will reduce their working hours following the introduction of National Insurance contribution on any salary sacrifice scheme exceeding £2,000.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she plans to take to enable the Northern Ireland Executive to retain monies received from identifying benefit fraud; and whether there is any blockage to this happening.

Answered by James Murray - Chief Secretary to the Treasury

Benefit payments in Northern Ireland are a devolved matter.

To make sure support goes to those who truly need it, the UK Government will work with the Northern Ireland Executive over the coming months on ways to tackle welfare fraud and error in Northern Ireland and on different funding options, including the potential to share a portion of resulting savings with the Executive.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the salary sacrifice policy announced in the Autumn Budget 2025 on individual pension savings.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.

The Office for Budget Responsibility’s (OBR) November 2025 Economic and Fiscal Outlook (EFO) sets out that there is not expected to be a material impact on labour supply from this measure. The OBR also do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.

The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the salary sacrifice cap policy announced in the Autumn Budget 2025 on employee hours worked in (a) the private sector and (b) the public sector.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.

The Office for Budget Responsibility’s (OBR) November 2025 Economic and Fiscal Outlook (EFO) sets out that there is not expected to be a material impact on labour supply from this measure. The OBR also do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.

The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the salary sacrifice policy announced in the Autumn Budget 2025 on pensions and hours worked by (a) sex, (b) age and (c) NUTS region.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.

The Office for Budget Responsibility’s (OBR) November 2025 Economic and Fiscal Outlook (EFO) sets out that there is not expected to be a material impact on labour supply from this measure. The OBR also do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.

The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the salary sacrifice policy announced in the Autumn Budget 2025 on hours worked by people near tax cliff edges.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.

The Office for Budget Responsibility’s (OBR) November 2025 Economic and Fiscal Outlook (EFO) sets out that there is not expected to be a material impact on labour supply from this measure. The OBR also do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.

The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the salary sacrifice policy announced in the Autumn Budget 2025 on overall hours withdrawn by employees.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.

The Office for Budget Responsibility’s (OBR) November 2025 Economic and Fiscal Outlook (EFO) sets out that there is not expected to be a material impact on labour supply from this measure. The OBR also do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.

The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what criteria will guide decisions on whether an overnight stay levy is “modest” and appropriate for local areas; and will there be a cap.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The precise design and scope of the power for Mayors to introduce a visitor levy is still under development.

Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear their concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is spent. Giving this power to local leaders who best understand their region enables them to tailor it to growing their local economies

The Government has published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders. The consultation seeks views on whether there should be a cap on the rate.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether religious-based properties will be exempt from the new tax announced in the Budget on properties valued at £2 million and over.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The High Value Council Tax Surcharge (HVCTS) is a new charge on owners of residential property in England worth £2 million or more in 2026, taking effect in April 2028. Owners, not residents, will pay the surcharge. The government will consult on potential exemptions and reliefs in the spring.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the policy document entitled Motability Scheme: reforming tax reliefs’ policy, published on 26 November, if she will publish the calculations used for the conclusion that the proposed changes are not expected to have any macroeconomic impacts.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The information set out in the macroeconomic impacts section of all Tax Information and Impact Notes (TIINs) corresponds to the assessments contained in the Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook. The OBR, as the Government's official forecaster, is responsible for judging the impact of policy decisions on its forecasts, including any underlying calculations.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to review the sugar content of powdered milk based drinks and include those products within the scope of the soft drinks industry levy.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

At Autumn Budget 2024, the Chancellor announced her intention to review the Soft Drinks Industry levy (SDIL) to drive further product reformulation, whilst maintaining the fundamental design of the levy as a tax on pre-packaged soft drinks with added sugar.

Following this review, between April and July 2025 the government consulted on proposed reforms to the SDIL. The outcomes of this consultation were confirmed at Budget 2025.

As part of the consultation, the government considered responses on dissolvable powders. It also considered the significant redesign of the levy necessary to include them as beyond the remit of the SDIL review, as set out by the Chancellor at Autumn Budget 2024.

More information on the outcome of the Strengthening the Soft Drinks Industry Levy consultation can be found here:

https://www.gov.uk/government/consultations/strengthening-the-soft-drinks-industry-levy/outcome/strengthening-the-soft-drinks-industry-levy-summary-of-responses

The government will not make any further changes to the design of the SDIL.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of extending the freeze on Income Tax thresholds on working people in Surrey Heath constituency.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028.

This government is making fair and necessary choices on tax so it can deliver on the public's priorities, including by maintaining personal tax thresholds until April 2031. Everyone is being asked to contribute to support these goals, but the government is keeping the contribution as low as possible by pursuing a programme of reform to fix longstanding issues in the tax system - modernising it, and addressing unequal and unfair treatment, while ensuring the wealthiest contribute more.

The government has published a Tax Information and Impact Note (TIIN) setting out the impact of maintaining income Tax and equivalent National Insurance contributions thresholds.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate has been made of the number of people paying (a) basic rate, (b) higher rate, and (c) additional rate of Income Tax between 2020 and 2025.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The number of individuals in each of the three main Income Tax rate bands from 2020 to 2025 is published in Table 2.1 of HMRC’s Accredited official statistics. Updated forecasts are published in Table 3.19 of the OBR’s November 2025 Economic and fiscal outlook, linked below:

https://assets.publishing.service.gov.uk/media/685a6be4454906840a44d5bb/Table_2.1_Number_of_individual_Income_Tax_Payers.ods

https://obr.uk/download/november-2025-economic-and-fiscal-outlook-detailed-forecast-tables-receipts/?tmstv=1765817494

The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the projected financial impact of the new 12% premium insurance rate for Motability leases on (a) Motability users and (b) the car industry.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

At Budget 2025, the government announced tax changes to the Motability scheme, which will save over £1 billion over the next five years.

The VAT relief for top-up payments made to lease more expensive vehicles will be removed for new leases from 1 July 2026, and Insurance Premium Tax will apply at the standard rate to new insurance contracts on the Scheme from 1 July 2026. The tax changes will not apply to vehicles designed, or substantially and permanently adapted, for wheelchair or stretcher users.

These tax changes ensure Motability can continue to deliver for its customers, for example through the continued provision of a broad range of vehicle models available without any top-up payments. Further detail on the impacts of the tax changes can be found in the Tax Impact and Information Note here:

Motability Scheme: reforming tax reliefs - GOV.UK.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking with Cabinet colleagues to support entrepreneurs in Surrey Heath constituency.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The government took steps at Budget 2025 to support founders and high-growth companies across the UK, as set out in the Entrepreneurship Prospectus, including on tax incentives, the procurement regime, R&D funding and expanding the role of the British Business Bank (BBB).

This follows the BBB’s work to date supporting SMEs with its Start Up Loans programme. Between the scheme’s inception in 2012 and June 2025, 105 businesses in Surrey Heath have received loans, totaling £1,249,215 of funding.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many staff in her Department are permitted to undertake diversity-related network time during core working hours; and what proportion of overall working time are they permitted to spend on such network activity.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether Transitional Relief for pubs only applies to the portion of increase directly attributable to Rateable Value change after the effect of new multipliers.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government is introducing permanently lower business rates multipliers for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties. To sustainably fund these lower RHL multipliers, the Government is also introducing a higher rate on the top one per cent of most expensive properties.

To protect businesses from large bill increases at the 2026 revaluation the government has introduced a generous support package worth £4.3 billion over the next 3 years, including support to help ratepayers to transition to their new bill.

For properties losing their RHL relief, the caps apply to their current bill, including the 40% relief, before changes in other reliefs and local supplements.

This means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without this support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support the Government has put in place this falls to just 4%.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of expanding the Treasury bill market on refinancing risk exposure.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

Treasury bills represent a core component of the government’s stock of marketable debt, alongside gilts.

The government will be launching a consultation in January 2026 on the potential expansion and deepening of the UK Treasury bill market, including how this might be facilitated by HM Treasury and the UK Debt Management Office.

As well as reflecting feedback from the public, including market participants, and the most recent market and demand conditions, any changes following the consultation will reflect an assessment of cost and risk in accordance with the government’s debt management and cash management objectives. This includes implications for the government’s refinancing risk exposure.

Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to ensure that environmental, social and governance (ESG) ratings, including those produced as part of another financial service or activity, will be regulated consistently by the FCA, to ensure that investors receive transparent and high-quality ESG ratings.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government has introduced regulations to bring the provision of Environment, Social and Governance (ESG) ratings into the FCA’s regulatory responsibility. This will strengthen market integrity and boost investor confidence.

Recognising that ESG ratings are provided by a range of different persons, the scope of the regulated activity is designed to be proportionate to the risk of harm, and to avoid dual regulation. In line with this approach, where firms are providing ESG ratings solely as part of another activity for which they are already regulated, they are excluded from the ESG ratings regulations.

The FCA is consulting on draft rules for ESG ratings providers. As part of this process, the FCA will carefully assess whether existing frameworks for regulated products and services adequately address risks of harm where ESG ratings are provided as part of those activities. If the FCA identifies significant gaps, they will consult on changes to enhance those regimes. This approach is designed to minimise burdens on firms whilst consistently addressing risks of harm from all providers, regardless of their business model or regulatory status.

Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to ensure that environmental, social and governance (ESG) ratings are regulated consistently, regardless of the business model or regulatory status of the provider.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government has introduced regulations to bring the provision of Environment, Social and Governance (ESG) ratings into the FCA’s regulatory responsibility. This will strengthen market integrity and boost investor confidence.

Recognising that ESG ratings are provided by a range of different persons, the scope of the regulated activity is designed to be proportionate to the risk of harm, and to avoid dual regulation. In line with this approach, where firms are providing ESG ratings solely as part of another activity for which they are already regulated, they are excluded from the ESG ratings regulations.

The FCA is consulting on draft rules for ESG ratings providers. As part of this process, the FCA will carefully assess whether existing frameworks for regulated products and services adequately address risks of harm where ESG ratings are provided as part of those activities. If the FCA identifies significant gaps, they will consult on changes to enhance those regimes. This approach is designed to minimise burdens on firms whilst consistently addressing risks of harm from all providers, regardless of their business model or regulatory status.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact on working people, particularly those earning below the higher-rate threshold, of removing the National Insurance exemption on salary-sacrificed pension contributions above £2,000; and what modelling they have conducted on the distributional impacts across income deciles.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

As set out in the TIIN, of the estimated 7.7 million employees who currently use salary sacrifice to make pension contributions, 3.3 million sacrifice more than £2,000 of salary or bonuses. This means 44% would be impacted by this measure, while 56% - around 4.3 million people - are fully protected by the £2,000 threshold. Of those with salary sacrifice contributions in excess of the cap, the average additional employee NICs liability is estimated to be £84 for the tax year 2029/30.

The Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO) set out the estimated yield for this measure. Their assumption on passthrough is in line with assumptions for previous changes to employer NICs and is also reflected in the Government’s published costing note.

This change applies to all employers who use salary sacrifice for pensions, regardless of whether they are public sector or private sector. Many public sector employers are prohibited from using salary sacrifice for pensions under the rules of "Managing Public Money."

The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.

This is the fairest way to support pensions saving whilst ensuring relief is targeted at those who need it most.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the OBR’s assumption that, following the decision to apply National Insurance to salary-sacrificed pension contributions above £2,000, employers will pass 76 per cent of the additional cost to employees.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

As set out in the TIIN, of the estimated 7.7 million employees who currently use salary sacrifice to make pension contributions, 3.3 million sacrifice more than £2,000 of salary or bonuses. This means 44% would be impacted by this measure, while 56% - around 4.3 million people - are fully protected by the £2,000 threshold. Of those with salary sacrifice contributions in excess of the cap, the average additional employee NICs liability is estimated to be £84 for the tax year 2029/30.

The Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO) set out the estimated yield for this measure. Their assumption on passthrough is in line with assumptions for previous changes to employer NICs and is also reflected in the Government’s published costing note.

This change applies to all employers who use salary sacrifice for pensions, regardless of whether they are public sector or private sector. Many public sector employers are prohibited from using salary sacrifice for pensions under the rules of "Managing Public Money."

The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.

This is the fairest way to support pensions saving whilst ensuring relief is targeted at those who need it most.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact on public and private-sector pension disparities of the policy to apply National Insurance to salary-sacrificed pension contributions above £2,000.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

As set out in the TIIN, of the estimated 7.7 million employees who currently use salary sacrifice to make pension contributions, 3.3 million sacrifice more than £2,000 of salary or bonuses. This means 44% would be impacted by this measure, while 56% - around 4.3 million people - are fully protected by the £2,000 threshold. Of those with salary sacrifice contributions in excess of the cap, the average additional employee NICs liability is estimated to be £84 for the tax year 2029/30.

The Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO) set out the estimated yield for this measure. Their assumption on passthrough is in line with assumptions for previous changes to employer NICs and is also reflected in the Government’s published costing note.

This change applies to all employers who use salary sacrifice for pensions, regardless of whether they are public sector or private sector. Many public sector employers are prohibited from using salary sacrifice for pensions under the rules of "Managing Public Money."

The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.

This is the fairest way to support pensions saving whilst ensuring relief is targeted at those who need it most.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact on long-term pension adequacy of removing the NICs exemption on salary-sacrificed pension contributions above £2,000.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

As set out in the TIIN, of the estimated 7.7 million employees who currently use salary sacrifice to make pension contributions, 3.3 million sacrifice more than £2,000 of salary or bonuses. This means 44% would be impacted by this measure, while 56% - around 4.3 million people - are fully protected by the £2,000 threshold. Of those with salary sacrifice contributions in excess of the cap, the average additional employee NICs liability is estimated to be £84 for the tax year 2029/30.

The Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO) set out the estimated yield for this measure. Their assumption on passthrough is in line with assumptions for previous changes to employer NICs and is also reflected in the Government’s published costing note.

This change applies to all employers who use salary sacrifice for pensions, regardless of whether they are public sector or private sector. Many public sector employers are prohibited from using salary sacrifice for pensions under the rules of "Managing Public Money."

The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.

This is the fairest way to support pensions saving whilst ensuring relief is targeted at those who need it most.

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Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, if he will publish his Department’s business case on new private finance in the NHS.

Answered by Karin Smyth - Minister of State (Department of Health and Social Care)

The Department has no plans to publish the Neighbourhood Health Centre (NHC) Public Private Partnership (PPP) Feasibility Programme Business Case. Publication is not standard practice for business cases outside of the Government’s Major Projects Portfolio. This was a strategic outline business case, the purpose of which was to scope and identify the preferred way forward for a new potential PPP model in line with the HM Treasury five case model.

The Department and the National Infrastructure and Service Transformation Authority (NISTA) will continue to work with the market to further develop the new PPP model for NHCs, with further engagement next year. The final design and development of this new PPP model for NHCs will be led by NISTA and will be co-designed by the Department.

Question to the Ministry of Justice:

To ask the Secretary of State for Justice, how many firms have ceased being legal aid providers since 23 April 2025.

Answered by Sarah Sackman - Minister of State (Ministry of Justice)

This data breach was the result of serious criminal activity but it was enabled by the fragility of the LAA’s IT systems as a result of the long years of neglect and mismanagement of the justice system under the last Conservative Government. Upon taking office, I was shocked to see how fragile our legal aid systems were. The previous Government knew about the vulnerabilities of the Legal Aid Agency digital systems, but failed to invest. By contrast, since taking office, this Government has prioritised work to rebuild the LAA digital systems. That includes the allocation of over £20 million in extra funding this year to stabilise and transform the Legal Aid Agency digital services as we build back better in response to this attack. We are now in a position where all providers have online access to our civil legal aid services currently available via SiLAS, alongside our criminal legal aid services, which were restored in September.

This is an evolving situation but to date the total operational and digital costs of the incident are forecast to be £22 million for this financial year.

All providers have been able to access payment for work carried out whilst systems have been offline.

For some types of legal aid this meant adjusting the way in which providers submitted their claim for payment to the LAA. From 19 May, providers have been able to claim their usual payments for Legal Help, Crime Lower & Mediation work via a contingency process. Due to previous investment, the criminal legal aid systems were more modern, and internal access was restored more quickly. This enabled the LAA to resume paying Crown Court bills from early June.

It was necessary to agree a payment contingency for Civil Representation work with HM Treasury. This led to the implementation of the Average Payment Scheme on 27 May. The Average Payment Scheme enables providers to opt in to receive a temporary average payment for Civil Representation work that would otherwise be due, or where the value of their outstanding work varies from this, to apply for a specific payment to meet the cost of that work. Payments are made on a weekly basis. The weekly average payment is based on previous payments made to that provider over the 3 month period preceding the cyber incident.  Some providers have not opted in to receive payment in this way and wait for the restoration of the systems, but payments are there should they need it. We are unable to quantify the number of legal aid providers who have not opted in to receive an average payment in each of the weeks it has been available.

Providers are obligated to act in the best interests of their clients both by their own SRA regulatory requirements and by their LAA Contracts. In circumstances where a legal aid provider is unable to continue providing representation in an ongoing case, for whatever reason, they have a professional and contractual obligation toward their client to assist them in finding alternative representation.

We have not seen any evidence of legal aid providers leaving the market directly as a result of the cyber-attack. Since April 2023 there has been a net increase in the number of providers contracted to deliver legal aid services.

Question to the Ministry of Justice:

To ask the Secretary of State for Justice, if he will make an estimate of the costs incurred by Department as a result of the Legal Aid Agency data breach on 23 April 2025.

Answered by Sarah Sackman - Minister of State (Ministry of Justice)

This data breach was the result of serious criminal activity but it was enabled by the fragility of the LAA’s IT systems as a result of the long years of neglect and mismanagement of the justice system under the last Conservative Government. Upon taking office, I was shocked to see how fragile our legal aid systems were. The previous Government knew about the vulnerabilities of the Legal Aid Agency digital systems, but failed to invest. By contrast, since taking office, this Government has prioritised work to rebuild the LAA digital systems. That includes the allocation of over £20 million in extra funding this year to stabilise and transform the Legal Aid Agency digital services as we build back better in response to this attack. We are now in a position where all providers have online access to our civil legal aid services currently available via SiLAS, alongside our criminal legal aid services, which were restored in September.

This is an evolving situation but to date the total operational and digital costs of the incident are forecast to be £22 million for this financial year.

All providers have been able to access payment for work carried out whilst systems have been offline.

For some types of legal aid this meant adjusting the way in which providers submitted their claim for payment to the LAA. From 19 May, providers have been able to claim their usual payments for Legal Help, Crime Lower & Mediation work via a contingency process. Due to previous investment, the criminal legal aid systems were more modern, and internal access was restored more quickly. This enabled the LAA to resume paying Crown Court bills from early June.

It was necessary to agree a payment contingency for Civil Representation work with HM Treasury. This led to the implementation of the Average Payment Scheme on 27 May. The Average Payment Scheme enables providers to opt in to receive a temporary average payment for Civil Representation work that would otherwise be due, or where the value of their outstanding work varies from this, to apply for a specific payment to meet the cost of that work. Payments are made on a weekly basis. The weekly average payment is based on previous payments made to that provider over the 3 month period preceding the cyber incident.  Some providers have not opted in to receive payment in this way and wait for the restoration of the systems, but payments are there should they need it. We are unable to quantify the number of legal aid providers who have not opted in to receive an average payment in each of the weeks it has been available.

Providers are obligated to act in the best interests of their clients both by their own SRA regulatory requirements and by their LAA Contracts. In circumstances where a legal aid provider is unable to continue providing representation in an ongoing case, for whatever reason, they have a professional and contractual obligation toward their client to assist them in finding alternative representation.

We have not seen any evidence of legal aid providers leaving the market directly as a result of the cyber-attack. Since April 2023 there has been a net increase in the number of providers contracted to deliver legal aid services.

Question to the Ministry of Justice:

To ask the Secretary of State for Justice, how many (a) barristers, and (b) solicitors have not been paid by the Legal Aid Agency since the data breach of 23 April 2025.

Answered by Sarah Sackman - Minister of State (Ministry of Justice)

This data breach was the result of serious criminal activity but it was enabled by the fragility of the LAA’s IT systems as a result of the long years of neglect and mismanagement of the justice system under the last Conservative Government. Upon taking office, I was shocked to see how fragile our legal aid systems were. The previous Government knew about the vulnerabilities of the Legal Aid Agency digital systems, but failed to invest. By contrast, since taking office, this Government has prioritised work to rebuild the LAA digital systems. That includes the allocation of over £20 million in extra funding this year to stabilise and transform the Legal Aid Agency digital services as we build back better in response to this attack. We are now in a position where all providers have online access to our civil legal aid services currently available via SiLAS, alongside our criminal legal aid services, which were restored in September.

This is an evolving situation but to date the total operational and digital costs of the incident are forecast to be £22 million for this financial year.

All providers have been able to access payment for work carried out whilst systems have been offline.

For some types of legal aid this meant adjusting the way in which providers submitted their claim for payment to the LAA. From 19 May, providers have been able to claim their usual payments for Legal Help, Crime Lower & Mediation work via a contingency process. Due to previous investment, the criminal legal aid systems were more modern, and internal access was restored more quickly. This enabled the LAA to resume paying Crown Court bills from early June.

It was necessary to agree a payment contingency for Civil Representation work with HM Treasury. This led to the implementation of the Average Payment Scheme on 27 May. The Average Payment Scheme enables providers to opt in to receive a temporary average payment for Civil Representation work that would otherwise be due, or where the value of their outstanding work varies from this, to apply for a specific payment to meet the cost of that work. Payments are made on a weekly basis. The weekly average payment is based on previous payments made to that provider over the 3 month period preceding the cyber incident.  Some providers have not opted in to receive payment in this way and wait for the restoration of the systems, but payments are there should they need it. We are unable to quantify the number of legal aid providers who have not opted in to receive an average payment in each of the weeks it has been available.

Providers are obligated to act in the best interests of their clients both by their own SRA regulatory requirements and by their LAA Contracts. In circumstances where a legal aid provider is unable to continue providing representation in an ongoing case, for whatever reason, they have a professional and contractual obligation toward their client to assist them in finding alternative representation.

We have not seen any evidence of legal aid providers leaving the market directly as a result of the cyber-attack. Since April 2023 there has been a net increase in the number of providers contracted to deliver legal aid services.

Question to the Ministry of Justice:

To ask the Secretary of State for Justice, how many legal aid cases have been dropped since 23 April 2025.

Answered by Sarah Sackman - Minister of State (Ministry of Justice)

This data breach was the result of serious criminal activity but it was enabled by the fragility of the LAA’s IT systems as a result of the long years of neglect and mismanagement of the justice system under the last Conservative Government. Upon taking office, I was shocked to see how fragile our legal aid systems were. The previous Government knew about the vulnerabilities of the Legal Aid Agency digital systems, but failed to invest. By contrast, since taking office, this Government has prioritised work to rebuild the LAA digital systems. That includes the allocation of over £20 million in extra funding this year to stabilise and transform the Legal Aid Agency digital services as we build back better in response to this attack. We are now in a position where all providers have online access to our civil legal aid services currently available via SiLAS, alongside our criminal legal aid services, which were restored in September.

This is an evolving situation but to date the total operational and digital costs of the incident are forecast to be £22 million for this financial year.

All providers have been able to access payment for work carried out whilst systems have been offline.

For some types of legal aid this meant adjusting the way in which providers submitted their claim for payment to the LAA. From 19 May, providers have been able to claim their usual payments for Legal Help, Crime Lower & Mediation work via a contingency process. Due to previous investment, the criminal legal aid systems were more modern, and internal access was restored more quickly. This enabled the LAA to resume paying Crown Court bills from early June.

It was necessary to agree a payment contingency for Civil Representation work with HM Treasury. This led to the implementation of the Average Payment Scheme on 27 May. The Average Payment Scheme enables providers to opt in to receive a temporary average payment for Civil Representation work that would otherwise be due, or where the value of their outstanding work varies from this, to apply for a specific payment to meet the cost of that work. Payments are made on a weekly basis. The weekly average payment is based on previous payments made to that provider over the 3 month period preceding the cyber incident.  Some providers have not opted in to receive payment in this way and wait for the restoration of the systems, but payments are there should they need it. We are unable to quantify the number of legal aid providers who have not opted in to receive an average payment in each of the weeks it has been available.

Providers are obligated to act in the best interests of their clients both by their own SRA regulatory requirements and by their LAA Contracts. In circumstances where a legal aid provider is unable to continue providing representation in an ongoing case, for whatever reason, they have a professional and contractual obligation toward their client to assist them in finding alternative representation.

We have not seen any evidence of legal aid providers leaving the market directly as a result of the cyber-attack. Since April 2023 there has been a net increase in the number of providers contracted to deliver legal aid services.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what discussions he has had with the Chancellor of the Exchequer and financial regulators on implementation of the financial services chapter of the UK–Republic of Korea Free Trade Agreement.

Answered by Chris Bryant - Minister of State (Department for Business and Trade)

Engagement between the Secretary of State for Business and Trade and the Chancellor of the Exchequer has focused on key aims for the UK-Republic of Korea FTA. HM Treasury officials, who negotiated financial services provisions, have engaged regularly with UK financial regulators throughout.

The Department for Business and Trade will lead on implementing the agreement, with input from HMT officials on financial services provisions. The Financial Services chapter contains consultation provisions which provide a formal mechanism for the UK Government – including, where appropriate, representatives from its financial regulators - to discuss implementation of these commitments with the Republic of Korea.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what formal mechanisms exist for engagement with financial services firms on the operation of the UK–Republic of Korea Free Trade Agreement.

Answered by Chris Bryant - Minister of State (Department for Business and Trade)

Both DBT and HM Treasury conduct routine engagement with Financial Services firms and representative bodies. HMT’s Working Group discusses the negotiation and operation of UK trade agreements, including the UK-Republic of Korea FTA. DBT conducts engagement with Financial Services firms and representative bodies as part of its broader services engagement programme. This includes bilateral conversations and fora to collate interests in UK trade agreements, including the UK-Republic of Korea FTA, and assess business sentiment regarding their negotiation.

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what steps he is taking to ensure capital investment in NHS estate and infrastructure supports improvements in climate resilience.

Answered by Karin Smyth - Minister of State (Department of Health and Social Care)

We recognise the importance of increasing the climate resilience of the National Health Service estate and infrastructure. NHS trusts are responsible for maintaining their estate, including adapting premises to reduce the risks associated with climate change, as set out in the NHS Standard Contract.

The Department is supporting the improvement of NHS sites by investing £30 billion over the next five years in day-to-day maintenance and repair, with £5 billion allocated specifically to address the most critical building issues. NHS trusts will be able to direct some of this funding towards improving the climate resilience of their estate where this is locally appropriate. Additionally, the Department is making sure all new hospitals are fit for the future. The Department’s New Hospital Programme requires schemes to achieve a minimum rating of BREEAM ‘Excellent’ for new builds, and ‘Very Good’ for refurbishments. All NHS investments in new buildings and upgrades to existing facilities that are subject to HM Treasury business case approval process must align with the NHS Net Zero Building Standard, which includes a focus on overheating risks.

Question to the Department for Education:

To ask the Secretary of State for Education, whether she plans to raise the maximum reimbursement Student Finance England can provide for incorrect advice above £500.

Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)

Student Finance England is a service provided by the Student Loans Company (SLC).

The SLC is a non-departmental public body and therefore is issued its own delegated authority letter by the department. However, its delegated authority limits cannot exceed those delegated to the department by His Majesty’s Treasury (HMT). For consolatory payments (ex-gratia payments) to individuals, the limit is £500.

HMT are reviewing delegated authority limits for all government departments, as set out in the Office for Value for Money’s document ‘Reforming the spending control and accountability framework’, published on 26 October alongside the Budget. HMT and the department will consider any implications for the SLC’s delegations, in light of any changes which may be made to department’s delegations following this review.

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, whether his Department has recently proposed measures to ensure that fines against NHS trusts are ringfenced for spending on health matters.

Answered by Karin Smyth - Minister of State (Department of Health and Social Care)

The Care Quality Commission (CQC) has criminal enforcement powers to fine a health or social care provider where they identify a breach of regulations. The CQC can directly serve a fixed penalty notice to a provider, or a fine may be issued by the court following prosecution brought by the CQC.

Any fixed penalty paid to the CQC is not retained but must be passed on by the CQC to my Rt Hon. Friend, the Secretary of State for Health and Social Care. The CQC transfers the penalties received to the Department on a quarterly basis.

The size of the fine following prosecutions brought by the CQC is a decision made by the court and is informed by sentencing guidelines. The CQC does not have influence over this decision. The money raised by court fines is paid to HM Treasury.

The Department has not recently proposed any measures to change this.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what his timeline is for launching the proposed framework to scrutinise additional costs and levies on consumer energy bills.

Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

At the budget, the Chancellor agreed to subject any additional costs, including new levies, to enhanced scrutiny under a new framework to ensure they are affordable, represent value for money and do not impose unnecessary costs on households and businesses. The development of this new framework is underway with HM Treasury and we will provide an update in due course.

Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, with reference to page 132 of the Cabinet Office Annual report and accounts 2024-2025, published on 23 October 2025, for what reason his Department retained £90 million of dividends and returned £71 million of dividends to HM Treasury from the Crown Commercial Service.

Answered by Chris Ward - Parliamentary Secretary (Cabinet Office)

In the spending review 2021, HM Treasury agreed that dividends received from Crown Commercial Service were to be returned to HMT and would be compensated with an annual reserve claim of up to £71 million.

In the Autumn Budget 2024, HMT approved that in 2024-25, in addition to the annual reserve claim, the Cabinet Office may retain up to £196 million in income from dividends from the Crown Commercial Service.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether the Welsh Government will receive Barnett consequentials from the Warm Homes Plan.

Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

Calculating Barnett consequentials of the Government's spending commitments is the responsibility of HM Treasury.

At almost £15 billion, the Warm Homes Plan is the single biggest public investment programme in energy efficiency in UK history. The Treasury has not yet confirmed the total Barnett consequential nor the specific appointment for Wales. More details on the Warm Homes Plan will be published soon.

As issues of energy efficiency, fuel poverty and heat are largely devolved Scotland, Wales and Northern Ireland have specific Net Zero strategies. We work closely with our counterparts in the Devolved Governments to ensure our strategies align.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, when he plans to publish an Equality Impact Assessment for changes to the Motability scheme.

Answered by Stephen Timms - Minister of State (Department for Work and Pensions)

The Motability Scheme is a lifeline for many disabled people and families, supporting their independence by enabling them to lease a car, wheelchair accessible vehicle, scooter or powered wheelchair in exchange for an eligible disability benefit allowance.

The government announced a package of reforms to the Motability Scheme at Autumn Budget 2025, which will ensure the scheme delivers value for money for the taxpayer, while continuing to support disabled people.

An Equality Impact Assessment was undertaken and published by HMT as part of the Autumn Budget and can be found here: Motability Scheme: reforming tax reliefs - GOV.UK

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, pursuant to the answer of 3 December 2025 to Question 94583 on Public Bodies: Fines, how much revenue has been generated for (a) the consolidated fund and (b) enforcing bodies due to fines against NHS trusts since 2020.

Answered by Zubir Ahmed - Parliamentary Under-Secretary (Department of Health and Social Care)

The Care Quality Commission (CQC) has criminal enforcement powers to fine a health or social care provider where they identify a breach of regulations. The CQC can directly serve a fixed penalty notice to a provider, or a fine may be issued by the court following prosecution brought by the CQC.

No fines as a result of CQC enforcement activity are retained by the CQC. Any fixed penalty paid to the CQC is not retained but must be passed on by the CQC to my Rt Hon. Friend, the Secretary of State for Health and Social Care. The CQC transfers the penalties received to the Department of Health and Social Care on a quarterly basis.  The money raised by court fines is paid to HM Treasury.

The following table shows the fines served by the court following prosecution brought by the CQC against National Health Service trusts since 2020:

Note: where an NHS trust is fined more than once in a given fiscal year, the fines relate to individual cases.

Question to the Department for Transport:

To ask the Secretary of State for Transport, pursuant to the oral Answer of 20 November 2025, Official Report, Column 834, on Motorists, and further to the point of order of 25 November 2025, Official report, Column 261, on what date was she first aware of the proposal to introduce a national pay-per-mile Electric Vehicle Excise Duty scheme in the Budget 2025.

Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)

The Secretary of State has regular discussions with HM Treasury ministers about a range of topics, but final tax decisions are for the Chancellor of the Exchequer to make and are announced at the Budget.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether his Department plans to establish metrics to monitor the effectiveness of the Government’s scale-up interventions.

Answered by Blair McDougall - Parliamentary Under Secretary of State (Department for Business and Trade)

Monitoring and evaluation are an important way of identifying lessons that can be learnt to improve both the design and delivery of future interventions. Consistent with HMT guidance, we will establish metrics and proportionate monitoring and evaluation provisions for DBT’s scale-up interventions.

Found: HMRC) as approved retailers and would be required to reduce the price of a litre of fuel 2 HM Treasury

Found: 32 NHS England, Three year delivery plan for maternity and neonatal services, March 2023 33 HM Treasury

Found: Judicial Offices Act 2022, s 1, s 39, and s 77 73 Public Service Pensions Act 2013, s 18 74 HM Treasury

Found: et al, ‘Chancellor vows ‘big bang on growth’ to boost investment and savings’, 20 July 2024. 8 HM Treasury

Found: 2013, HC 1033 (PDF) March 2013 para 2.71 3 Autumn Statement, CP8747, November 2013 para 2.60; HM Treasury

Found: programme) and the everyday cost of resources such as staff. 2 AME relates to spending set by HM Treasury

Found: Industrial Strategy The Industrial Strategy, launched in June 2025 and co-led by DBT and HM Treasury,

Found: DVSA has approval from DfT and HM Treasury to implement a new booking system expected to be rolled out

Found: DVSA has approval from DfT and HM Treasury to implement a new booking system expected to be rolled out

Found: progress Scheduled: Spring 2026 Topics: Royal Household, Society and culture Departments: HM Treasury

Found: As with all departments, HM Treasury, within an overall budget, sets the MoD separate annual budgets

Found: Auditor General, their staff and/or any appointed representatives of the National Audit Office; (d) HM Treasury

Found: Auditor General, their staff and/or any appointed representatives of the National Audit Office; (d) HM Treasury

Found: employees of other central banks, financial institutions and finance ministries to undertake a work HM Treasury

Found: The Carbon Support Price is the price (expressed in £/tCO₂) as published by HM Treasury pursuant to

Found: Auditor General, their staff and/or any appointed representatives of the National Audit Office; (d) HM Treasury

Found: The budget is prepared on value for money principles in accordance with the HM Treasury guidance ‘Managing

Found: PPM, Procurement, Property and Construction, Strategy, Technical.Payroll staff CostsPlease refer to HMT

Found: The total amount accrued is adjusted annually in line with a rate set by His Majesty’s Treasury (HMT

Found: Statement of Balances 22 Notes to the Account 23 Annex – Accounts Direction given by HM Treasury

Found: Department for Business & Trade Department for Business & Trade 11/03/2025 CL - Cash CFERs paid over to HMT

Found: govuk-table__cell">11/03/2025

Found: SAURABH BHANDARI 2025-07-29 2025-07-29 PARKING AND TRAVEL TO/FROM LONDON FOR IN PERSON WORKSHOP WITH HMT

Found:

Found: class="govuk-table__cell">2025-08-19

Found: Newcastle; UK Train Standard 118.4 N/A N/A 118.4 Thomas Ridge 2025-08-18 2025-08-19 Meeting with HM Treasury

Found: /08/2025

Found: £109.80 N/A N/A £109.80 Alan Over 06/08/2025 06/08/2025 Northern Powerhouse Coordination with HM Treasury

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