Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to employer National Insurance contributions and business rates on the viability of pubs, restaurants and hospitality venues in towns such as Stockton, Thornaby and Yarm.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

I refer you to my previous answer to PQ UIN 125056.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the increase in employer National Insurance contributions on jobs in the hospitality sector.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

I refer you to my previous answer to PQ UIN 125056.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how individuals and small businesses can contribute to the Access to Banking Services Review.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

The Government is committed to ensuring that people can continue to access in-person banking services. In addition, small businesses are an important and diverse part of the UK economy and supporting their growth, including their access to suitable banking services for their needs, is a priority for the Government.

That is why, on 14 May, the Government commissioned an independent Review into Access to Banking Services, chaired by Richard Lloyd OBE.

The Review will assess the impact of changes in the provision of in-person banking services across the United Kingdom, including the scale and nature of any detriment to consumers arising from a lack of access, with a particular focus on vulnerable groups. The evidence gathered will inform decisions on whether future action is needed.

The Review will seek input from market participants and consumer representatives, and may also consult Government and regulators.

Further details regarding how individuals and firms can contribute their evidence to the Review will follow in due course.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether HMRC has provided (a) advice and (b) guidance on whether the payment of non-monetary donations crystallises capital gains tax liability for donors.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Capital gains tax is charged for a tax year on chargeable gains accruing in the year to a person on the disposal of assets.

Donating an asset is classed as being a disposal of it and a gain may accrue at that time.

Whether a capital gains tax liability arises depends on various factors, such as whether the donation is made to a spouse or civil partner, or to a charity; and whether losses in the tax year can be set against any chargeable gains.

Further information can be found at: www.gov.uk/capital-gains-tax/gifts and within HMRC’s Capital Gains Manual at: www.gov.uk/hmrc-internal-manuals/capital-gains-manual starting at page CG66450.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she will examine the potential merits of extending tax relief for orchestras to include choirs.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government recognises the importance of the creative industries, including orchestras, and supports them through funding and through the tax system. Orchestra Tax Relief (OTR) provides tax relief on production costs and provided around £50 million of support in 2023-24. There is currently no other country in the world which offers such a tax relief for orchestras.

In considering any changes to existing tax reliefs or introducing new ones, Government has to consider a wide range of factors, including the specific aims of the relief, the costs and complexity of designing and administering new provisions, and fairness. Decisions on tax are taken by the Chancellor at fiscal events, in the context of overall public finances.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the impact of the current 20% VAT rate on independent hot food retailers; and if she will consider aligning the VAT treatment of hot takeaway food with that of cold takeaway food.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK's second largest tax, forecast to raise £180 billion in 2025/26.

Hot takeaway food is subject to the 20 per cent standard rate of VAT. This ensures parity of treatment with food sold in restaurants, which is also subject to the standard rate. A tax relief for hot takeaway food would come at a cost to the Exchequer, reducing the revenue available for vital public services, and would have to represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many consignments moving from Great Britain to Northern Ireland are declared as at risk of onward movement to the EU; and what estimate she has made of the proportion of those consignments that subsequently move into the Republic of Ireland.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent estimate she has made of the total annual VAT payments by further education colleges in England.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Education services supplied by an “eligible body” are exempt from VAT. For VAT purposes, an “eligible body” broadly refers to most regulated, publicly funded, or not-for-profit education providers. This means no VAT is charged on supplies of education made by further education colleges, nor are further education colleges able to recover the VAT they have incurred on their expenditure.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what consideration she has given to the potential merits of extending the exemption of assets liable for inheritance tax payable in yearly instalments to investments in companies in administration or liquidation.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Inheritance tax on shares in companies in administration or the process of liquidation at the time of a transfer, such as a death, may qualify for payment in annual instalments if they meet the criteria in s228 of Inheritance Tax Act 1984.

When paying in annual instalments, the outstanding balance of tax only becomes payable in full immediately if an interest or part of an interest in a business is sold. A distribution in cash made to shareholders on a liquidation is the winding up of a company, rather than a sale, and so the facility to pay in instalments is not lost in those circumstances.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what consideration her Department has given to the recommendations of the House of Lords Economic Affairs Committee regarding inheritance tax.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government’s response to the Economic Affairs Finance Bill Sub-Committee was published on 30 March 2026 and it is available at https://committees.parliament.uk/publications/52446/documents/291079/default/.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Answer of 31 March 2026 to Question 123235, whether her Department held discussions with garage owners or representative bodies on the practicality and administrative feasibility of conducting annual electric vehicle mileage checks prior to the announcement of Electric Vehicle Excise Duty at Budget 2025.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, to create a fair tax system whilst also taking steps to ensure that driving an electric vehicle (EV) remains an attractive choice for consumers.

The Government published a consultation which set out further detail on how eVED will work and sought views on its design and implementation. This included a commitment to engage with garages on the costs of mileage checks and MOT fees.

As part of the consultation process, the Government has undertaken a programme of engagement involving a range of stakeholders, including garages, and is committed to continuing to engage closely on the implementation of eVED in the lead up to April 2028. The consultation closed on 18 March 2026. The Government is considering responses and will publish a response in due course.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the impact of the (a) administrative burden and (b) associated costs of the “at risk” criteria on small and medium-sized enterprises moving goods from Great Britain to Northern Ireland.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government remains committed to the smooth flow of goods from Great Britain to Northern Ireland.

The Government has set out the Internal Market Guarantee that 80% of the value of freight will move under the UK internal market system. On 5 November, the Independent Monitoring Panel reported that the Internal Market Guarantee had been exceeded for its first monitoring period, with 96% of the value moved under the UK internal market system.

HMRC provides substantial support with guidance, engagement and other education for businesses of all sizes which do move goods at risk. The Trader Support Service is free for all businesses to use and can facilitate all goods movements between Great Britain and Northern Ireland.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reducing VED for vehicles ages 20-39 years old by 50%.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

At Budget 2014 the Government announced that it would introduce a rolling 40-year exemption from Vehicle Excise Duty (VED) for classic cars. This means that currently vehicles constructed before 1 January 1986 are exempt from paying VED.

The law does not specifically define a vehicle as historic or classic for registration purposes, and it is widely recognised that there are many factors other than age which influence whether a car is considered classic. The Government at the time therefore set 40 years as being a fair cut-off date to distinguish classic cars from older cars.

There are no current plans to reduce VED for cars aged 20 to 39 years. As with all taxes, VED is kept under review and any changes will be considered by the Chancellor in the context of the public finances.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, when she plans to respond to correspondence from the hon. Member for Wokingham transferred to her Department on 24 November 2025, reference MC2025/24514.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

A response has been sent to the hon. Member for Wokingham.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking with the Financial Conduct Authority to regulate the online (a) wealth creation and (b) property investment industries.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

The UK’s financial promotions regime is designed to ensure that consumers are provided with clear and accurate information that enables them to make appropriate decisions for their individual circumstances. As a technology-neutral framework, the regime holds financial promotions shared online to the same standards as those shared offline. The Financial Conduct Authority (FCA) is responsible for enforcing the regime and can take action against any financial promotions that are illegal or which do not comply with its rules. This includes the promotion of wealth creation services or products shared online by unauthorised financial influencers.

The FCA has taken action to address influencers sharing unlawful financial promotions. Last month, the FCA led a week of action against illegal financial influencers, which resulted in one guilty plea, 4 targeted warning letters, 34 warning alerts, and 120 takedown requests to social media platforms. This follows a previous international week of action in June 2025.

The sale and promotion of physical property is not generally in scope of financial services regulation, as the provision of physical property is not a financial service. However, the financial promotions regime does apply where investment in property is offered by way of a financial services product. The FCA has issued a warning to consumers about the risks of investing in unlisted loan notes to finance property development.

The Government and Parliament are responsible for establishing the regulatory framework for financial services and the Government engages regularly with the FCA on issues relating to its regulatory perimeter and remit.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of using defence bonds as a way to finance capital-intensive commitments in the Strategic Defence Review.

Answered by Lucy Rigby - Chief Secretary to the Treasury

There are no plans to relax these fiscal rules, increase taxation or introduce defence bonds to support further defence spending.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, when she plans to respond to the correspondence from the hon. Member for Angus and Perthshire Glens with reference DD22592.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The correspondence from the hon. Member for Angus and Perthshire Glens with reference DD22592 was sent to HMRC. HMRC will respond in due course.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment she has made of the (a) effectiveness of HMRC’s administrative and data handling processes and (b) adequacy of the average time taken by HMRC to respond to correspondence and resolve ongoing cases; and what targets are in place to improve response times.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government has set out its approach to improving the effectiveness of HMRC’s administrative and data‑handling processes in the HMRC Transformation Roadmap, which outlines HMRC’s digital-first approach. HMRC is modernising systems, making better use of data and technology, and increasing automation and self-serve digital options to support customers and staff.

Improving day‑to‑day performance is a key priority for HMRC. HMRC has a service standard for handling customer correspondence, with the aim of processing 80% of priority post within 15 working days, and 95% within 40 working days.

Regular performance updates are published on GOV.UK - https://www.gov.uk/government/collections/hmrc-quarterly-performance-updates

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the impact of changes to tax treatment affecting the Motability Scheme from 1 July 2026 on the affordability of new leases for disabled people.

Answered by Dan Tomlinson - Exchequer 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 July 2026, and Insurance Premium Tax will apply at the standard rate to insurance contracts on the Scheme. The VAT reliefs on weekly lease costs and vehicle resale will remain in place, and 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 tax changes can be found in the Tax Impact and Information Note on GOV.UK Motability Scheme: reforming tax reliefs - GOV.UK.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what timetable she has set for completing, and publishing the outcome of, the assessment of options for targeted reductions to agri-food import tariffs intended to reduce food prices for consumers, announced on 24 March 2026.

Answered by Lucy Rigby - Chief Secretary to the Treasury

The Chancellor announced on 30th April the suspension of tariffs on over £2 billion worth of imports with a detailed list of products covered by this published on 20th May. These will come into effect from June 21st.

On 27th May the government launched a call for input on suspending tariffs on a further 125 food products in order to give businesses and other stakeholders a chance to express their views. This call for input is due to close on 24th June

These tariff suspensions have been targeted to reduce the price of food for consumers, supporting those who need it most, while balancing this against the implications for domestic producers and food security.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many freight forwarders and customs agents have received demands from HMRC for unpaid import VAT or customs duty in respect of declarations submitted on behalf of importers who were subsequently found to be (a) not genuinely established in the United Kingdom, (b) registered for VAT using a fraudulent or virtual address, or (c) dissolved or struck off at the time of the relevant declaration.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC systems do not record, in a readily extractable format, the number of freight forwarders or customs agents issued demands for unpaid import VAT or duty linked to importers who are not UK established, use fraudulent or virtual VAT registrations, or are dissolved/struck off.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, If she will list the names of the organisations that have (a) had departmental Civil Servants seconded to them since July 2024 and (b) seconded organisational staff to her Department.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

Secondments support the effective delivery of government priorities by enabling the exchange of skills and expertise between the Civil Service and external organisations, strengthening capability in the national interest. All individuals on secondment to the UK Government are required to adhere to the Civil Service Code and its principles of integrity, honesty, objectivity and impartiality.

The organisations that the department has seconded staff to are:

• Asian Infrastructure Investment Bank
• Australian Treasury
• Bank of England
• BEAMA
• British Business Bank
• European Bank of Reconstruction & Development
• Flood Re
• Foreign, Commonwealth & Development Office (agency of)
• Genomics England Ltd
• German Finance Ministry
• Institute for Fiscal Studies
• Ministry of Defence (agency of)
• National Wealth Fund
• NHS
• Organisation of Economic Cooperation and Development
• French Government
• The Government of the Republic of South Africa
• UK Government Investments
• UK Mission to the European Union
• US Treasury, Washington

The organisations that the department has seconded staff from are:

• Aviva
• Bank of England
• Better Society Capital
• Financial Conduct Authority
• French Government
• German Finance Ministry
• Lloyds
• London School of Economics and Political Science
• Ministry of Defence (agency of)
• National Audit Office
• National Highways Agency
• Oliver Wyman
• PriceWaterhouseCoopers
• Sellafield Ltd
• TheCityUK
• UK Government Investments
• US Treasury, Washington

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many a) letters, b) emails and c) written communications were received by her Department from Newcastle-under-Lyme District Borough Council between i) December 2019 and July 2024 and ii) July 2024 and May 2026.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

HM Treasury does not hold centrally collated information on correspondence by specific external organisations across the department.

However, records held by the central correspondence team show that no correspondence was received from Newcastle-under-Lyme Borough Council between December 2019 and July 2024, and three items of correspondence were received between July 2024 and May 2026 via the Public Enquiries inbox.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the proportion of (a) fuel duty, (b) VAT on fuel, and (c) other motoring taxes that is attributable (i) directly and (ii) indirectly to net zero-related policies.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Motoring taxes and VAT are primarily intended to raise revenue, which helps to fund vital public services and infrastructure, including investment in roads and transport.

However, some fuel and motoring taxes have secondary objectives or environmental effects, such Vehicle Excise Duty (VED), where different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions. The government considers the environmental impacts, including emissions, when making changes motoring taxes. More broadly, the government keeps motoring taxes under review as part of its approach to supporting the transition to net zero while maintaining a stable tax base and annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what consideration has been given to adding (a) a company registration number field to the HMRC VAT number checker service and (b) a VAT registration number field to the Companies House public register, so that the two identifiers can be cross-referenced by members of the public, online marketplaces, and customs agents.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HM Revenue and Customs (HMRC) and Companies House (CH) are committed to preventing fraud and tax evasion by identifying and holding accountable corporate entities that attempt to evade their responsibilities and tax liabilities. The departments have strong relations, further strengthened by the Economic Crime and Corporate Transparency Act (2023) and have developed a collective Programme of activities to facilitate closer cooperation on company registrations and de-registrations, accounting and filing, and sharing risk intelligence and data.

There are no plans in place to add a Company Number field to the UK VAT Registration checker service, or a VAT Registration Number field to the Companies House online register. However, HMRC and CH will continue to work together to develop and implement further improvements to the way that businesses register as a company and register for corporation tax and VAT to reduce tax evasion and corporate fraud.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential economic impact on households of extending the 0% VAT rating on energy efficiency measures and domestic renewables beyond March 2027.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

This Government is committed to improving the quality and sustainability of our housing stock, through improvements such as low carbon heating, insulation, solar panels and batteries. This will be vital to making the UK more energy resilient and meeting our 2050 Net Zero commitment.

Installations of qualifying energy-saving materials (ESMs) in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent.

As with all tax policy, the government keeps VAT under review and decisions on tax changes are made by the Chancellor in the context of the public finances.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Answer of 23 April 2026 to Question 127591 on Electric Vehicles: Costs, whether the Treasury has made projections of when the proposed electric Vehicle Excise Duty pay-per-mile rates will reach parity with the equivalent per-mile rates of fuel duty for petrol and diesel vehicles.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government is committed to ensuring that driving an electric vehicle (EV) is an attractive choice for consumers. The electric vehicle Excise Duty (eVED) rate paid by electric car drivers will therefore be half the equivalent fuel duty paid by the average petrol or diesel driver, ensuring that it will still be cheaper to own and run an EV for the majority of EV drivers.

When eVED takes effect in April 2028, an average EV driving 8,000 miles per year will pay £240, or £20 a month, while an average petrol or diesel car driving the same distance will pay around £480 in fuel duty. eVED rates will increase in line with inflation each year, to ensure that the tax maintains its real-terms value.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the answer of 11 March 2026 to Question 117539, on Revenue and Customs: Social Media, who was the specialist agency used to hire the social media influencers for HMRC; and how much was spent on influencers.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC is working with Pablo/ Unlimited Group as its specialist agency to support engagement with social media influencers. Between July 2024 and 31 March 2026, HMRC spent £436,700 on influencer activity, exclusive of agency fees. On average, HMRC’s influencer activities achieve two times investment in earned media value, with up to 400 per cent return on investment across campaigns.

All paid marketing campaigns are assessed by the Government Communication Service (GCS) to ensure they deliver value for money and support efficient public service delivery.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Chief Executive of HMRC is informed of the outcome of investigations into the tax affairs of politically exposed persons.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Chief Executive of HMRC will be informed of investigation outcomes when it is appropriate to do so, for example, if there are areas of particular complexity.

HMRC also publishes their Code of Governance for Resolving Tax Disputes. This covers the role of HMRC Commissioners, which includes the Chief Executive of HMRC. This can be found here - Code of Governance for Resolving Tax Disputes - GOV.UK.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what is the expected annual cost to the public purse of commitments to the European Commission further to new agreements negotiated since July 2024 for each of the next five years.

Answered by Lucy Rigby - Chief Secretary to the Treasury

The total estimated cost of agreements concluded with the EU since 2024 over the next five years is around £570m, the overwhelming majority of which represents Erasmus+ association costs which will be paid in 2027. UK participation in Erasmus+ beyond 2027 will be subject to further negotiations.

Negotiations with the European Commission are ongoing in other areas. Following the conclusion of negotiations, the associated costs will be reported to Parliament in the usual way.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the oral response of the Exchequer Secretary to the Treasury during the debate on Draft Vaping Duty Stamps (Requirements, Reviews and Appeals) Regulations 2026, on 27 April 2026, Official Report, column 6, for what reasons SICPA is not listed as a supplier in the HMRC Vaping Duty Stamps Scheme contract published on 10 February 2026.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HM Revenue and Customs (HMRC) awarded the contract for the Vaping Duty Stamps (VDS) Scheme following a competitive procurement process conducted in line with the Procurement Act 2023 and wider government procurement rules.

As a result of this process, the contract was awarded to Cartor Security Printers as the lead bidder of a consortium, which also included SICPA. SICPA is accordingly named in the contract as a key subcontractor rather than as the supplier.

All bids were subject to a robust evaluation and assurance process to ensure compliance with these rules and to secure value for money for taxpayers.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the level of equitability of applying the Expensive Car Supplement to second-hand vehicles purchased below the £50,000 threshold but originally registered above that threshold.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Expensive Car Supplement (ECS) is an additional charge payable on top of Vehicle Excise Duty (VED) for cars with an original list price above £40,000, or £50,000 for zero emission vehicles. The supplement is charged at a flat rate of £440 per year and applies for five years, from the second to the sixth year following a car’s first registration.

The ECS is based on a vehicle’s list price as published by the manufacturer, rather than the price paid by any subsequent owners. This approach ensures the system is clear and objective, and that vehicles which were higher value at the point of registration are treated consistently over their initial lifecycle.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what HMRC's policy is on commenting on the outcome of tax investigations where a member of the public has publicly referred to the findings.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC cannot comment on the tax affairs of individuals or businesses. This includes confirming or denying whether investigations are taking place or providing details of their outcome. It also includes circumstances where the tax affairs of an individual or business are being commented on in the public domain.

HMRC is a statutory body with statutory functions and a statutory duty of confidentiality which are set out in legislation in the Commissioners for Revenue and Customs Act, (CRCA) 2005. Section 18 of CRCA makes clear that HMRC must not disclose information to anyone, unless they have lawful authority to do so.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the Plastic Packaging Tax on small and medium sized businesses.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Plastic Packaging Tax was introduced in April 2022 under the previous government and provides an incentive for businesses to use recycled plastic in packaging, thereby supporting increased recycling and reducing plastic waste.

The tax applies to businesses that manufacture or import 10 tonnes or more of plastic packaging within a 12-month period, meaning only businesses above this threshold are within scope.

HMRC are currently undertaking an evaluation of the tax which aims to assess the tax’s effectiveness, including impacts on businesses, and is set to conclude in 2026. The government keeps all taxes under review as part of the policy making process.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, in what circumstances does HMRC suspend a penalty for carelessly paying second homes stamp duty.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC’s approach to charging and suspending penalties is set out in its compliance handbook at the links below:

Compliance Handbook “Charging Penalties”

https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch400000

Compliance Handbook “Charging Penalties: suspending penalties”

https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch405000

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the answer of 3 March 2026 to Question 114892 on Public Houses: Rural Areas, whether lower drink driving thresholds would constitute a material change of circumstances in relation to the valuation of pubs and restaurants.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Drink driving thresholds would not constitute a material change of circumstances (MCC) in relation to the valuation of pubs and restaurants, because such a change in legislation would not meet the requirements set out in the Local Government Finance Act 1988 Schedule 6 para 2 (7) of an MCC.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many addresses in the United Kingdom are currently registered as the VAT address of 100 or more businesses; and what processes HMRC has in place to verify that such addresses represent legitimate serviced office arrangements rather than address fraud.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

As of Tuesday 19 May 2026, there are 165 UK addresses that are currently registered as the VAT address of 100 or more businesses.

HMRC undertakes a range of checks to ensure that business addresses provided for VAT registration purposes are appropriate. As part of the registration process, HMRC assesses the information supplied by the applicant, including the declared address, against the nature of the business and established risk indicators.

Where necessary, HMRC requests further information or supporting evidence before deciding whether to approve a registration.

HMRC also undertakes ongoing, risk‑based compliance activity after registration. Where an address is identified as higher risk, including those associated with large numbers of registrations, further checks may be carried out to ensure it is being used legitimately, including in cases involving serviced office arrangements.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what is the average amount of time for HMRC to consider whether to levy a penalty charge against an individual taxpayer for incorrect payment of residential stamp duty.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Where HMRC identifies an inaccuracy during a compliance check into a Stamp Duty Land Tax (SDLT) return or claim, it is standard practice to also consider whether a penalty is due.

In the vast majority of cases any penalty will be issued at the conclusion of the compliance check, at the same time as when the tax position is decided.

The length of a compliance check depends on multiple factors such as the technical complexity of the issue and whether a customer appeals a decision. HMRC does not record separately the amount of time within compliance checks spent considering whether penalties are due.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the (a) Gardener’s Lodge, (b) Royal Lodge, (c) Chief Clerks Apartment, (d) Surgery Flat, (e) Crown Equerry’s House, (f) The Royal Guard Room and (g) Royal Residence in Buckingham Palace will be liable to pay the council tax surcharge.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The High Value Council Tax surcharge (HVCTS) will be paid on residential dwellings within Crown properties worth more than £2 million consistent with the general approach to domestic dwellings. The Government launched a consultation of HVCTS on 19 May 2026, and its detailed design will be confirmed once the consultation has concluded and policy decisions are finalised.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, since January 2021, how many applications for UK VAT registration from companies incorporated in the UK within the previous 24 months have been (a) accepted without a compliance check, (b) accepted following a compliance check, (c) refused, and (d) subsequently cancelled within 12 months of registration.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC introduced a new VAT Registration Service in August 2022. The previous registration service did not include incorporation date data, so figures are only available from August 2022 to 1 January 2026.

The figures below relate to UK VAT registration applications from companies incorporated in the UK within the previous 24 months.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of extending Orchestra Tax Relief to include amateur and professional choirs that produce live, acoustic concerts on a non‑commercial basis.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Orchestra Tax Relief (OTR) provides tax relief on production costs and provided around £50 million of support in 2023-24. There is currently no other country in the world which offers similar relief to orchestras, and the aim is to recognise the artistic importance and cultural value of the sector.

To qualify for OTR, a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument for the purposes of the relief. However, orchestra concerts with a vocal element are not excluded. Concerts featuring a choir may be eligible provided that the instrumentalists remain the primary focus. These rules help ensure OTR fulfils its objective of supporting and incentivising orchestra concerts specifically. The Government is not currently considering extending the relief to choirs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she plans to have with the debt advice sector on the 5-year statutory review of the scheme.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

The Debt Respite Scheme (‘the Breathing Space scheme’) was launched in May 2021 to give those in problem debt the space to engage with professional debt advice by providing a temporary relief from creditor enforcement action. Given the link between mental health and problem debt, the scheme also offers a separate entry route for eligible individuals receiving treatment for a mental health crisis.

As is standard for schemes of this nature, HM Treasury will carry out a five-year post implementation review of the scheme to consider its objectives and impact. As part of this, HM Treasury is engaging closely with a range of stakeholders, including debt advice providers.

The Government continues to monitor the Breathing Space scheme to ensure it remains an effective tool for individuals and has regular engagement with organisations closely involved in its operation.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions she has had with Cabinet colleagues on the potential use of frozen Russian sovereign assets and funds from the sale of Chelsea Football Club to support Ukraine.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

While I am unable to comment on private Cabinet or committee discussions, I can assure you that the Government is doing everything within its powers to ensure that the full proceeds from the sale of Chelsea Football Club are used for humanitarian purposes in Ukraine. As the Prime Minister, the Foreign Secretary, and the Chancellor have each made clear, we are committed to these funds reaching the people of Ukraine, who continue to face profound humanitarian need as a result of Russia’s ongoing aggression.

Separately, the government continues to consider ways in which Russia’s immobilised sovereign assets can be used to support Ukraine. The G7 has continued to commit to these assets remaining immobilised until Russia ends its war of aggression and pays reparations.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, for what reason performers are required to be instrumentalists to qualify for Orchestra Tax Relief.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Orchestra Tax Relief (OTR) provides tax relief on production costs and provided around £50 million of support in 2023-24. There is currently no other country in the world which offers similar relief to orchestras, and the aim is to recognise the artistic importance and cultural value of the sector.

To qualify for OTR, a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument for the purposes of the relief. However, orchestra concerts with a vocal element are not excluded. Concerts featuring a choir may be eligible provided that the instrumentalists remain the primary focus. These rules help ensure OTR fulfils its objective of supporting and incentivising orchestra concerts specifically. The Government is not currently considering extending the relief to choirs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has considered the merits of introducing a stamp duty relief on second home purchases by leaseholders impacted by cladding issues and remediation delays who are unable to sell their property.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

A refund of the higher rate of Stamp Duty Land Tax (SDLT) paid when purchasing additional property can be claimed if an old main residence is sold within three years of the purchase of the new main residence. For most people, three years is enough time to sell a previous main residence.

However, the Government recognises that there will sometimes be exceptional circumstances, for example, where issues with cladding have delayed a sale, which are not within the control of the seller and mean that a previous main residence cannot be sold within three years, and where a refund outside of the three year period may be given. Further guidance from HMRC is available here: https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

The Remediation Bill announced at the King’s Speech will speed up remediation for people living in homes with unsafe cladding.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to her Department's policy paper entitled Tax avoidance loan schemes and the loan charge, published on 26 November 2025, if she will publish a breakdown of the sources of the £3.2 billion figure.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

This Government recognised that concerns continued to be raised about the loan charge and that some felt strongly that it had not been handled appropriately. The Government therefore commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.

The full breakdown of the £3.2bn figure referenced in the November 2025 policy paper, was published on 23 April 2020 and can be found on GOV.UK: Section 4 - Policy Costing - GOV.UK

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment has been made of the potential impact on job losses in the independent school sector over the next five years following the removal of eligibility for business rates charitable relief for private schools.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The impact note on the removal of eligibility for business rates charitable relief for private schools can be found online here: https://www.gov.uk/government/publications/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions her Department has had with the Financial Conduct Authority on the adequacy of online identity verification checks used by motor insurance providers to prevent fraudulent policies being issued using stolen personal information.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

The government takes the issue of fraud extremely seriously.

The FCA is an independent body responsible for regulating and supervising the financial services industry. The FCA expects firms to have robust systems and controls to detect and prevent financial crime. The FCA monitors firms and has robust powers to act against firms that fail to comply with its rules.

As set out in the final report of the cross-Government Motor Insurance Taskforce, published in December 2025, the Government, regulators and industry are taking a range of actions to combat fraud related to motor insurance. This includes the FCA’s work to identify and remove fraudulent advertising; the Insurance Fraud Bureau and Insurance Fraud Enforcement Department’s work to detect, investigate and deter motor insurance fraud; and collective efforts to deliver on the commitments in the Home Office’s Insurance Fraud Charter.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the level of money laundering through high street cash-intensive businesses.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if her Department will conduct a review of the level of in-person banking provision.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

The Government is committed to ensuring that people can continue to access in-person banking services. That is why, on 14 May, the Government commissioned an independent Review into Access to Banking Services, chaired by Richard Lloyd OBE.

The Review will assess the impact of changes in the provision of in-person banking services across the United Kingdom, including the scale and nature of any detriment to consumers arising from a lack of access, with a particular focus on vulnerable groups. The evidence gathered will inform decisions on whether future action is needed.

The Review will seek input from market participants and consumer representatives, and may also consult Government and regulators.

The Government will consider the Review’s findings carefully and will update the House in due course. Alongside this, the Government intends to include a power in forthcoming financial services legislation to enable it to act, if necessary, to protect access to banking services.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with the Prime Minister on the remit of the Special Reviewer on Global Finance and Cooperation.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

The Prime Minister’s Special Reviewer on Global Finance and Cooperation will advise on how global finance cooperation can build a stronger Britain, boosting the country’s security and resilience.

The Chancellor has a range of positive discussions with the Prime Minister and colleagues on such issues.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment has she made of the potential merits of standardising cash and banking services in the next iteration of the Banking Framework between Post Office and the banking industry.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

The Government is committed to ensuring that people who need in-person banking and access to cash, including vulnerable customers and those with specific needs, can continue to access essential services. That is why, as announced on the 14 May, the Government is commissioning an independent Review into Access to Banking Services.

The Review will identify who is affected by declining access to in-person banking services and how many people are affected. It will also look at what kinds of banking services are important for people to be able to access. The Review is designed to inform future decisions by the Government and regulators as to whether further action is needed and what this might look like, and the Government intends to take a power in the upcoming Financial Services and Markets Bill to take action should this be necessary.

The Government remains committed to supporting the financial services industry’s roll-out of 350 banking hubs by the end of this Parliament. Importantly, this number is a floor, not a ceiling, and Cash Access UK will deliver a banking hub wherever LINK has recommended one.

The Post Office plays a key role in supporting access to banking services. Under the Banking Framework, a commercial agreement between the Post Office and 30 banking firms, most personal and business customers can withdraw and deposit cash, check their balance, pay bills and cash cheques at over 10,500 Post Office branches across the UK, subject to banks’ commercial agreements on services provided. The Government protects the Post Office network by setting minimum access criteria. These include ensuring that 99% of the UK population lives within three miles of a Post Office and 90% of the population within one mile.

On 21 January, the Government held joint discussions between the Post Office and the banking sector to explore where continued collaboration, on a commercial and voluntary basis, would allow all parties to better meet the needs of individuals and businesses.

The specific services provided under the Framework are subject to commercial negotiations between individual banks and the Post Office, and the Government has no formal role in deciding what these arrangements are.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of (a) the roll-out of banking hubs and (b) post offices to meet in-person banking needs beyond cash.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

The Government is committed to ensuring that people who need in-person banking and access to cash, including vulnerable customers and those with specific needs, can continue to access essential services. That is why, as announced on the 14 May, the Government is commissioning an independent Review into Access to Banking Services.

The Review will identify who is affected by declining access to in-person banking services and how many people are affected. It will also look at what kinds of banking services are important for people to be able to access. The Review is designed to inform future decisions by the Government and regulators as to whether further action is needed and what this might look like, and the Government intends to take a power in the upcoming Financial Services and Markets Bill to take action should this be necessary.

The Government remains committed to supporting the financial services industry’s roll-out of 350 banking hubs by the end of this Parliament. Importantly, this number is a floor, not a ceiling, and Cash Access UK will deliver a banking hub wherever LINK has recommended one.

The Post Office plays a key role in supporting access to banking services. Under the Banking Framework, a commercial agreement between the Post Office and 30 banking firms, most personal and business customers can withdraw and deposit cash, check their balance, pay bills and cash cheques at over 10,500 Post Office branches across the UK, subject to banks’ commercial agreements on services provided. The Government protects the Post Office network by setting minimum access criteria. These include ensuring that 99% of the UK population lives within three miles of a Post Office and 90% of the population within one mile.

On 21 January, the Government held joint discussions between the Post Office and the banking sector to explore where continued collaboration, on a commercial and voluntary basis, would allow all parties to better meet the needs of individuals and businesses.

The specific services provided under the Framework are subject to commercial negotiations between individual banks and the Post Office, and the Government has no formal role in deciding what these arrangements are.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the Lifetime ISA property cap threshold for (a) England and (b) St Albans constituency.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

Data from the latest UK House Price Index shows that while the average price paid by first-time buyers has increased, it is still below the LISA property price cap in all regions of the UK except for London, where the average price paid is affected by boroughs with very high property values.

At Autumn Budget 2025, the Government announced that it will consult on introducing a new, first-time buyer only savings product that will provide the bonus when a person uses it to buy a house, giving savers flexibility in case their circumstances change. Details of the new scheme will be set out as part of the consultation in due course.

The Government keeps all aspects of savings tax policy under review.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department is taking steps to support owners of thatched homes facing increased insurance premiums in West Dorset constituency.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

The government has not made a specific assessment regarding the availability of home insurance for thatched buildings.

Insurers make commercial decisions about pricing and the terms of cover they offer based on their assessment of the relevant risks. The UK’s home insurance market is competitive, with many providers offering a variety of insurance products. The Financial Conduct Authority (FCA), the independent regulator of financial services, has a statutory objective to promote competition in the interests of consumers.

The government would always recommend that consumers shop around to find the most suitable cover at the best price. For more specialised risks, such as thatched roofing, it may be helpful for consumers to consult an insurance broker, who will be able to help search the market for specialist providers.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of changes in the level of insurance costs for thatched properties in West Dorset constituency in the last five years.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

The government has not made a specific assessment regarding the availability of home insurance for thatched buildings.

Insurers make commercial decisions about pricing and the terms of cover they offer based on their assessment of the relevant risks. The UK’s home insurance market is competitive, with many providers offering a variety of insurance products. The Financial Conduct Authority (FCA), the independent regulator of financial services, has a statutory objective to promote competition in the interests of consumers.

The government would always recommend that consumers shop around to find the most suitable cover at the best price. For more specialised risks, such as thatched roofing, it may be helpful for consumers to consult an insurance broker, who will be able to help search the market for specialist providers.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has held discussions with relevant stakeholders on insurance premium increases for thatched properties.

Answered by Rachel Blake - Economic Secretary (HM Treasury)

The government has not made a specific assessment regarding the availability of home insurance for thatched buildings.

Insurers make commercial decisions about pricing and the terms of cover they offer based on their assessment of the relevant risks. The UK’s home insurance market is competitive, with many providers offering a variety of insurance products. The Financial Conduct Authority (FCA), the independent regulator of financial services, has a statutory objective to promote competition in the interests of consumers.

The government would always recommend that consumers shop around to find the most suitable cover at the best price. For more specialised risks, such as thatched roofing, it may be helpful for consumers to consult an insurance broker, who will be able to help search the market for specialist providers.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, on which day will the Valuation Office Agency will publish its final ratings list.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The 2026 Rating List went live on 1 April 2026.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make it her policy to leave Motability VAT at nil / exempt for those accessing the scheme through the Armed Forces Independent Payment.

Answered by Dan Tomlinson - Exchequer 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 July 2026, and Insurance Premium Tax will apply at the standard rate to insurance contracts on the Scheme. The VAT reliefs on weekly lease costs and vehicle resale will remain in place, and the tax changes will not apply to vehicles designed, or substantially and permanently adapted, for wheelchair or stretcher users.

The tax framework for Motability, and other qualifying schemes, treats all eligible welfare benefits equally, and the Government has no plans to change this. Recent tax changes were designed to ensure Motability can continue to deliver affordability 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, for what reason local authorities are able to recover VAT under Section 33 of the VAT Act 1994 when equivalent social care services are delivered in‑house but not when those services are commissioned from charitable and not‑for‑profit providers.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Supplies of care services are exempt from VAT if they are supplied by eligible bodies, such as public bodies or charities. No VAT is charged to the consumer of the service, nor can the supplier recover VAT incurred in the course of providing the service.

Community interest companies (CICs) are not charities in law and must meet the criteria of being state-regulated in order to provide VAT-exempt care services. If CICs do not qualify for the VAT exemption, they charge VAT on the services they provide at the 20% standard rate.

Under Section 33 of the VAT Act 1994, certain bodies, including local authorities are able to recover VAT incurred in the course of their non-business activities. Non-business activities are broadly activities which are not undertaken to generate income, such as the provision of statutory health and social care services. Further information can be found here: https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2022-vat-business-and-non-business-activities/vat-business-and-non-business-activities

The objective of the Section 33 refund scheme for local authorities is to prevent these bodies from needing to use local taxation to fund their VAT costs. Extending the scheme to include charities and community interest companies would not meet this objective.

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