Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of business rates on (a) private, (b) voluntary and (c) independent nurseries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In April 2025, the Government removed eligibility of private schools in England for business rates charitable rate relief. Schools that satisfy the definition of a private school have lost entitlement to charitable rate relief entirely. This definition may include private schools with some nursery classes, which, despite the presence of some nursery provision will still be, by their nature, private schools.
Standalone nursery schools, where they have their own business rates assessments, were excluded from the legislation and, where applicable, have retained their charitable rate relief. This approach best ensures consistency with the underlying policy intent.
Analysis on the expected impact of this policy can be found online here: https://www.gov.uk/government/publications/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of business rates on (a) private, (b) voluntary and (c) independent nurseries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In April 2025, the Government removed eligibility of private schools in England for business rates charitable rate relief. Schools that satisfy the definition of a private school have lost entitlement to charitable rate relief entirely. This definition may include private schools with some nursery classes, which, despite the presence of some nursery provision will still be, by their nature, private schools.
Standalone nursery schools, where they have their own business rates assessments, were excluded from the legislation and, where applicable, have retained their charitable rate relief. This approach best ensures consistency with the underlying policy intent.
Analysis on the expected impact of this policy can be found online here: https://www.gov.uk/government/publications/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will instruct the Financial Conduct Authority to investigate pricing in the insurance market.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
Insurers make commercial decisions about the price and terms of cover they offer based on their assessment of the relevant risks.
However, the Government is determined that insurers should treat customers fairly and firms are required to do so under Financial Conduct Authority (FCA) rules. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive).
The FCA monitors firms to ensure they provide products that offer fair value and has robust powers to act against firms that fail to comply with its rules.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of classifying thermal storage heaters as energy saving materials.
Answered by James Murray - Chief Secretary to the Treasury
The Government is committed to improving the quality and sustainability of our housing stock. 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.
The Government assesses whether to add ESMs to this relief by evaluating them against the following principles: the primary purpose of the technology must be to improve energy efficiency and reduce carbon emissions, and relieving the technology of VAT must be cost effective and align with broader VAT principles.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has held recent discussions with (a) financial institutions, (b) remittance service providers and (c) other relevant stakeholders on taking steps to reform remittances.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The government recognises that improved cross-border payment services, including remittances, would have widespread benefits for citizens and economies worldwide. The government works with UK and international partners, including under the G20 Roadmap for Enhancing Cross-Border Payments, to seek to deliver faster, cheaper, more transparent and more inclusive cross-border payments and remittances.
Treasury Ministers and officials 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 and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the potential impact of (a) climate change and (b) new oil and gas production on the economy.
Answered by James Murray - Chief Secretary to the Treasury
Illustrative analysis in the OBR's 2024 Fiscal Risks and Sustainability Report suggests that UK GDP could be around 3% lower by 2074 under a below 2°C warming scenario and around 5% lower under a below 3°C warming scenario.
For decades, the North Sea’s workers, businesses and communities have been at the heart of Britain’s energy future - something they will continue to do for decades to come. This Government will not revoke existing licences and will partner with businesses and workers to manage our existing fields for the entirety of their lifespans
This Government is engaging industry via the ‘Building the North Sea’s Energy Future’ consultation to develop and set out the next steps for the overarching objective for the North Sea. Scaling up industries that will shape the future of the North Sea (including offshore wind, carbon capture and storage, hydrogen, and decommissioning), will be vital for delivering the best outcomes for workers and communities, energy security, and sustainable economic growth.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she will consider including funding for homelessness services as part of the Comprehensive Spending Review.
Answered by Darren Jones - Minister for Intergovernmental Relations
HMT will consider departmental budget requests as part of the Spending Review process and set out funding for future years at Phase 2 of the Spending Review. The government has already made steps to tackle homelessness through: funding at Autumn Budget 2024 where we announced an additional £233 million of resource funding for services in 2025/26; a commitment to the delivery of the biggest increase in social and affordable housebuilding in a generation and building 1.5 million new homes over the next parliament and through protecting renters by abolishing Section 21 ‘no fault’ evictions.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps her Department is taking to support the growth of small and micro businesses in the hospitality sector.
Answered by James Murray - Chief Secretary to the Treasury
Small businesses are vital to our high streets and communities. The Government is committed to supporting the hospitality sector and we recognise the significant contribution they make to the UK economy.
The Government will introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27. In the meantime, the Government has prevented RHL relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
The Government has protected the smallest businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no employer NICs at all next year.
The Government has committed £250m in 25-26 for the British Business Bank’s small business loans programmes, including Start Up Loans and the Growth Guarantee Scheme.
To drive further progress on our manifesto commitments, as part of the growth mission, the Government will bring forward a Small Business Strategy this year.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of bringing the tax regulations for Sharia-compliant mortgages in line with conventional mortgages.
Answered by James Murray - Chief Secretary to the Treasury
The Government is committed to the continued strength of the UK Islamic Finance sector, both as an important part of the UK’s overall financial ecosystem and as an instrument of financial inclusion.
The alternative finance tax rules aim to provide a level playing field for tax purposes across alternative and conventional financing arrangements.
On 16 January 2024, HM Treasury published a consultation proposing changes to the Capital Gains Tax (CGT) rules that apply to alternative finance arrangements. The proposed changes seek to amend those rules so that where property is used as collateral for the purposes of raising finance, the CGT outcome is the same whether alternative finance or conventional finance is used. The consultation also asked whether there are any implications for capital allowances. The consultation closed on 9 April 2024 and the Government is considering responses. Next steps will be set out in due course.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to respond to the consultation entitled Tax Simplification for Alternative Finance, which closed 9 April 2024.
Answered by James Murray - Chief Secretary to the Treasury
The Government is committed to the continued strength of the UK Islamic Finance sector, both as an important part of the UK’s overall financial ecosystem and as an instrument of financial inclusion.
The alternative finance tax rules aim to provide a level playing field for tax purposes across alternative and conventional financing arrangements.
On 16 January 2024, HM Treasury published a consultation proposing changes to the Capital Gains Tax (CGT) rules that apply to alternative finance arrangements. The proposed changes seek to amend those rules so that where property is used as collateral for the purposes of raising finance, the CGT outcome is the same whether alternative finance or conventional finance is used. The consultation also asked whether there are any implications for capital allowances. The consultation closed on 9 April 2024 and the Government is considering responses. Next steps will be set out in due course.