Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the restriction on tax relief for banks' compensation payments for motor finance compensation payments.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

We are monitoring the redress situation closely and want to see it resolved in an efficient way that provides certainty for consumers and firms.

In line with international norms, companies generally obtain Corporation Tax deductions for compensation payments, though the bank compensation restriction which was introduced as part of a wider bank tax regime, prevents banks from doing so.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the relative value for money of reforming the Lifetime ISA compared with introducing a new product to replace it.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

At Autumn Budget 25 the government announced that it will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.

The LISA was designed to help people save for both their first home and later life. A 2025 report by the Treasury Select Committee, however, concluded the dual purpose has made it unnecessarily complex and that ‘the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives’. In addition, the provision of an upfront bonus requires a withdrawal charge for non-compliant withdrawals.

HMRC have also conducted research into use of the Lifetime ISA which can be found here: Understanding the use of the Lifetime ISA: qualitative research - GOV.UK

The new design will include the government bonus being paid at the point the individual makes a withdrawal for a house purchase. This removes the need for a withdrawal charge and means a saver can withdraw funds, should their circumstances change, without penalty.

It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact on saving behaviour and consumer confidence of existing Lifetime ISA users arising from the introduction of a new product to replace the Lifetime ISA.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

At Autumn Budget 25 the government announced that it will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.

The LISA was designed to help people save for both their first home and later life. The Treasury Select Committee‘s 2025 LISA inquiry concluded that this dual purpose has made it unnecessarily complex and that ‘the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives’. The upfront bonus that requires a withdrawal charge for non-compliant withdrawals was highlighted as a specific concern.

The new design will include the government bonus being paid at the point the individual makes a withdrawal for a house purchase. This removes the need for a withdrawal charge and means a saver can withdraw funds, should their circumstances change, without penalty.

It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of reforming the Lifetime ISA, rather than replacing it with a new product.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

At Autumn Budget 25 the government announced that it will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.

The LISA was designed to help people save for both their first home and later life. The Treasury Select Committee‘s 2025 LISA inquiry concluded that this dual purpose has made it unnecessarily complex and that ‘the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives’. The upfront bonus that requires a withdrawal charge for non-compliant withdrawals was highlighted as a specific concern.

The new design will include the government bonus being paid at the point the individual makes a withdrawal for a house purchase. This removes the need for a withdrawal charge and means a saver can withdraw funds, should their circumstances change, without penalty.

It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of extending online marketplace VAT liability rules to domestic sellers as a way to reduce fraud and close the tax gap.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government has and will continue to engage with stakeholders to understand the impact of any changes to online marketplace liability rules on both platforms and sellers. Certified analysis by the Office for Budget Responsibility (OBR) estimates the current online marketplace liability rules, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.

HMRC has an overall compliance strategy which focuses on addressing all forms of non-compliance. The most recent published VAT gap shows a continued downward trend, falling from 13.7% to 5.4% between tax years 2005/06 and 2023/24.

Grey belt policy and the impact on villages and rural communities

Social media for under 16s

Nuclear Regulatory Review and habitats regulations

Found: Watch the meeting Members present: Dame Meg Hillier (Chair); Dame Harriett Baldwin; Chris Coghlan; Bobby Dean

Found: Treasury Committee: Dame Meg Hillier (Chair); Dame Harriett Baldwin; Chris Coghlan; Bobby Dean; Jim

Found: Goldsmith (Clerk of the House) Marianne Cwynarski (Director General (Operations)) Apologies: Bobby Dean

Found: Q153 Bobby Dean: Is that a sufficient deterrent?

Found: Watch the meeting Members present: Dame Meg Hillier (Chair); Bobby Dean; Jim Dickson; John Glen; John

Found: Q66 Bobby Dean: I will come back to that latter point in a moment.

Found: the meeting Members present: Dame Meg Hillier (Chair); Dame Harriettt Baldwin; Chris Coghlan; Bobby Dean

Found: Q493 Bobby Dean: I have a quick question about timing.