Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the benefits of introducing additional taxation on large SUVs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Vehicles used or kept on public roads pay Vehicle Excise Duty (VED). Cars registered on or after 1 April 2017 pay a variable first year VED rate according to the emissions of the vehicle, before moving to a standard annual rate after the first year.
For certain vehicle classifications, such as heavy goods vehicles (HGVs), VED liability is calculated in accordance with the vehicle's weight in order to reflect in part the road damage caused by heavier vehicles. However, this is not the case for cars, due in part to their relatively lower impact on road damage compared to heavier vehicles.
When making changes to the tax system, the Government considers a range of trade-offs, such as complexity in the tax system and administrative burdens.
The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of establishing a taskforce on improving access to travel insurance for people with cancer.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government does not intend to establish a taskforce on travel insurance for people with cancer at this time. However, the government recognises the important role of insurance products, including travel insurance, in building the financial resilience of consumers and protecting them when things go wrong. The government’s Financial Inclusion Strategy seeks to close gaps in protection and ensure that the insurance sector is well-placed to support the financial wellbeing of households and vulnerable customers.
In addition, the Financial Conduct Authority (FCA), the independent body responsible for regulating and supervising the financial services industry, requires firms to treat customers fairly. Since 2021, the FCA also requires firms providing travel insurance to signpost consumers to a directory of specialist providers if they are declined cover, offered cover with an exclusion, or charged a significantly higher premium based on a pre-existing medical condition. The FCA has robust powers to act against firms that fail to comply with its rules.
Different insurers may take a different view of the relevant factors in determining the price of insurance based on their differing claims experience. The government would always encourage consumers to shop around for the most suitable cover at the best price. The British Insurance Brokers’ Association (BIBA) can offer guidance on how to look across the insurance market for suitable products and may be able to provide names of specialist brokers. BIBA can be contacted at: www.biba.org.uk/find-insurance/.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the proposed higher business rates multiplier for properties above £500,000 on cultural venues.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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, including cultural venues with rateable values below £500,000. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
These new tax rates must be sustainably funded and so the Government is also introducing a higher rate on properties with rateable values of £500,000 and above. This represents around only 1 per cent of properties.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changing from a motive or purpose test to an outcome test as outlined in the draft Finance Bill 2025–26 on the volume of charity donations.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Charities rightly enjoy generous tax reliefs. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way.
The new charity rules in the Finance Bill 2025-26 for legacy giving will ensure a charity uses tax relieved income for its charitable purposes. They will not require charities to spend gifts from wills within a set timeframe.
The new rules will replace the current purpose test with an outcome test. This will better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation.
Updated guidance will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the proposal to require charities to spend gifts from wills within a set timeframe in the draft Finance Bill 2025-26 on legacy giving.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Charities rightly enjoy generous tax reliefs. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way.
The new charity rules in the Finance Bill 2025-26 for legacy giving will ensure a charity uses tax relieved income for its charitable purposes. They will not require charities to spend gifts from wills within a set timeframe.
The new rules will replace the current purpose test with an outcome test. This will better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation.
Updated guidance will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Loan Charge on the mental health of those affected; and if she will take steps to prevent such harm.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The independent review was led by Ray McCann whose name was suggested by one of the Loan Charge campaigners. The terms of reference made it clear that he would be supported by a team of officials based outside of HM Treasury and HMRC, none of whom had previously worked on this policy area. Mr McCann was responsible for deciding how to conduct the review and will also have the final say on what is included in his report.
HMRC has guidance and training in place for customer advisors on identifying people who need extra support and providing reasonable adjustments to meet their needs. HMRC can offer support to individuals with disguised remuneration liabilities through manageable payment plans and its well-established Extra Support Service.
Where appropriate, HMRC will signpost people to relevant voluntary and community organisations and where needed, to a dedicated Samaritans helpline for specialist emotional support where people can talk though any concerns or worries.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that the review of the Loan Charge is (a) independent, (b) transparent, (c) robust and (d) free from interference.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The independent review was led by Ray McCann whose name was suggested by one of the Loan Charge campaigners. The terms of reference made it clear that he would be supported by a team of officials based outside of HM Treasury and HMRC, none of whom had previously worked on this policy area. Mr McCann was responsible for deciding how to conduct the review and will also have the final say on what is included in his report.
HMRC has guidance and training in place for customer advisors on identifying people who need extra support and providing reasonable adjustments to meet their needs. HMRC can offer support to individuals with disguised remuneration liabilities through manageable payment plans and its well-established Extra Support Service.
Where appropriate, HMRC will signpost people to relevant voluntary and community organisations and where needed, to a dedicated Samaritans helpline for specialist emotional support where people can talk though any concerns or worries.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of reducing the annual Cash ISA allowance on older savers.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
ISAs incentivise saving and investment for future goals by providing tax advantages to individual taxpayers. The Government recognises the important role that cash savings play in helping households build a financial buffer for a rainy day. The Government continues to consider reforms to ISAs and savings to achieve the right balance between cash savings and investment and ensure better outcomes for both savers and the UK economy.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether it is her policy to retain the fair and reasonable remit of the Financial Ombudsman Service, in the context of fraud complaints.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Financial Ombudsman Service (FOS) plays an important role in providing consumers with a cost-free and quick route to resolve disputes with financial services firms.
My recent review of the FOS concluded that the framework in which it operates has resulted in it acting as a quasi-regulator in a small but significant minority of cases. That is why, as part of the Leeds Reforms, the Chancellor announced the most significant package of reforms to the FOS since its inception.
The review concluded that the ‘fair and reasonable’ test should be retained and adapted, to align it with the overall regulatory approach for financial services and provide greater predictability and consistency to consumers and firms. The government is currently consulting on proposed legislation to adapt the ‘fair and reasonable’ test to make clear that, where conduct complained of is in scope of FCA rules, compliance with those rules will mean that a firm has acted fairly and reasonably. It also proposes a mechanism for the FOS to refer a case to the FCA where there is ambiguity about FCA rules, to request a view on how its rules are intended to be applied, to ensure consistent application of regulatory standards by the FOS.
Regarding fraud, victims of fraud who wish to make a complaint about their financial services provider will continue to be able to bring complaints to the FOS, and the proposed changes to the legislative framework under which the FOS operates will not affect the FOS’s role in handling these complaints.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the transparency of business bank account fees.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government recognises the importance of transparency in business bank account fees, enabling businesses to make informed choices when selecting banking services. It is important that businesses shop around for their banking needs as this drives competition, improves choice and helps keep prices competitive.
There are a number of policies that help facilitate this: small businesses with fewer than 50 employees and an annual turnover of less than £6.5m are able to use the current account switch service – designed to make it easier to shop around for their business current account.
The Financial Conduct Authority, as the independent regulator, sets requirements for banks to ensure that fees and charges are communicated clearly and fairly to customers, where such activity falls within its regulatory remit.