Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with her G7 counterparts on (a) the potential impact of the oil price cap on the level of the Russian Federation's revenues to date and (b) the potential merits of reducing the level of the oil price cap; and what estimate she has made of the potential impact of the oil price cap on the Russian Federation's fiscal revenues in each of the last three years.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The implementation of the oil price cap has achieved its joint aims of 1) reducing Russian oil revenues by capping the price at which Russian oil can be transported using G7 maritime services (such as insurance and brokering for example), while also, 2) maintaining global oil flows and limiting market in instability.
This is why the UK, alongside the EU announced our intention to lower the crude oil price cap in July 2025 with Canada, Japan and New Zealand following shortly afterwards.
At 23:01 (GMT) Saturday 31 January 2026 the crude Oil Price Cap will be lowered from $47.60 to $44.10 per barrel. The UK has chosen to mirror the EU's new price to maintain regulatory alignment in targeting Russian revenues and is part of the UK’s ongoing commitment to supporting Ukraine. Remaining aligned with the EU on this matter ensures clarity and ease for UK businesses operating in Europe.
Following the introduction of the oil price cap on crude oil in December 2022, and refined oil products in February 2023, Russian oil export revenues have been significantly reduced. Compared to 2022, the price cap contributed to an approximately 18% fall in Russian oil export revenues in 2023 and 2024, and a 30% decline in 2025. This success, coupled with significantly lower Urals prices, has weakened Putin’s ability to sustain his illegal war in Ukraine.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to retain the Vehicle Excise Duty exemption for vintage motorcycles.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2014 the Government at the time announced that it would introduce a rolling 40-year exemption from Vehicle Excise Duty (VED) for historic vehicles, including motorcycles. This means that currently vehicles constructed before 1 January 1985 are exempt from paying VED. From 1 April 2026 vehicles constructed before 1 January 1986 will become exempt from VED.
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.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of the increase in civil service remuneration approval to £174,000 on civil service salaries.
Answered by James Murray - Chief Secretary to the Treasury
Civil Servant pay is set within a pay framework which is reviewed annually by the Senior Salaries Review Body. The senior pay control process, including approvals required from HM Treasury, acts as an additional layer of scrutiny to Senior Civil Servant salaries.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to Chart 3.4 in the Office for Budget Responsibility’s Economic and Fiscal Outlook, what the annual percentage point contributions are to CPI inflation in each year by policy measure and output gap.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The contribution of each policy measure to CPI inflation in the Office for Budget Responsibility can be found in their supporting documents at the following link:
In total, the Office for Budget Responsibility forecast that Budget measures will reduce CPI inflation by 0.4pp in 2026/27, with the most significant impact coming from the reduction in energy bills.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of VAT on the cost of pilot training in the UK; and whether she has considered extending VAT exemption to all commercial pilot training regardless of provider status.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Pilot training may be exempt from VAT when provided by an eligible body which meets certain conditions (for example, when provided by a government institution or certain regulated organisations), but otherwise will be subject to the standard rate. VAT-registered businesses paying for training will be able to recover any VAT they pay.
The Government currently has no plans to remove VAT on pilot flight training courses more broadly.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to improve oversight and enforcement action against the use of unregulated informal value transfer systems.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Informal transfer value systems (IVTS) is a type of Money Service Business (MSB) activity. HM Revenue & Customs is the main supervisor of MSBs and leads inter-agency work to tackle the money laundering and illicit finance risks faced by the sector. That work includes a specific focus on IVTS.
Any entity engaging in IVTS without being registered with and supervised by HMRC (or another UK AML supervisor) is doing so illegally. HMRC supervision activity that identifies breaches of the MLR 2017 may result in warnings, civil sanctions, or criminal prosecution, depending on the severity and nature of the breaches.
HMRC works closely with partners to ensure a joined-up approach to tackling risks in the sector, including from unregistered MSBs. In the last 2 years, HMRC issued 27 financial penalties to MSBs and cancelled the registration of 12 others (meaning they can no longer lawfully engage in MSB activity). HMRC also issued 248 warning letters to MSBs which needed to improve their AML compliance.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to HMRC's guidance entitled Newsletter 173 — September 2025, updated on 11 December 2025, what her planned timetable is for publishing draft regulations and laying legislation on the treatment of scheme-specific lump sums for individuals with Enhanced Protection.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Further Pensions (Abolition of Lifetime Allowance Charge etc) Regulations will be made in Spring 2026 and will include updates to the treatment of scheme-specific lump sums for individuals with Enhanced Protection.
The majority of the regulations will have retrospective effect from 6 April 2024 when the Lifetime Allowance was abolished.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her Department has made an estimate of of the behavioural impact of the 3 percent Benefit-in-Kind rate for zero-emission company cars, including (a) the number of additional EVs purchased by fleets and (b) the fiscal implications of those behavioural effects.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government publishes annual statistics on HMRC’s taxable benefits in kind for company cars and company car fuel. These reports document the number of benefit in kind recipients, the CO2 emissions of company cars and their total taxable value. The latest statistics for the tax year 2023-24 were published in June 2025, and are accessible here: https://www.gov.uk/government/statistics/benefits-in-kind-statistics-june-2025/benefit-in-kind-statistics-commentary-june-2025
Additionally, at Budget 2024 the Government announced new Company Car Tax rates for the years 2028-29 and 2029-30, which increase for both electric vehicles (EVs) and petrol/diesel vehicles, while still maintaining generous incentives to support EV take-up. The Tax Information and Impact Note (TIIN) published alongside Budget set out the expected economic, equalities and other impacts, and highlighted that overall the measure was expected to encourage the take-up of zero emission vehicles.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Financial Conduct Authority’s proposed Motor Finance Consumer Redress Scheme on the future affordability of motor finance for consumers.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. The Government wants to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms.
The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on how firms should support vulnerable consumers, and address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way.
Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Financial Conduct Authority on the potential impact of the proposed Motor Finance Consumer Redress Scheme on future motor finance costs for consumers.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. The Government wants to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms.
The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on how firms should support vulnerable consumers, and address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way.
Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.