Asked by: Stuart Andrew (Conservative - Daventry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Autumn Budget 2025, which tax reliefs for Motability and other qualifying schemes she plans to (a) withdraw and (b) amend; and what assessment her Department has made of the potential impact of those changes on scheme affordability and access to transport for disabled people, particularly in rural areas.
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 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.
Asked by: Stuart Andrew (Conservative - Daventry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential financial impact on long-distance commuters and early adopters of electric vehicles of the decision to apply standard rates of vehicle excise duty to electric vehicles from 2025, and to increase those rates further from 2028.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
From April 2025, zero emission and hybrid cars, vans and motorcycles started to pay Vehicle Excise Duty (VED) in a similar way to petrol and diesel vehicles; the standard annual rate is £195.
As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs (electric vehicles) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty.
While it is fair for EV drivers to contribute for their car usage, the government is also committed to ensuring that driving an EV is an attractive choice for consumers. Therefore, the rate of eVED for EVs will be half of the equivalent fuel duty rate paid by the average petrol/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 driver will pay around £240 per year or £20 per month.
The Government is taking a proportionate approach to ensuring electric car drivers pay an appropriate share whilst remaining firmly committed to supporting the transitions to EVs. That is why 80% of eVED revenue from the first three years is being reinvested to extend support for EVs and the auto manufacturing industry. This builds on existing generous support, including Company Car Tax incentives.
Asked by: Stuart Andrew (Conservative - Daventry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she plans to take to ensure that future changes to vehicle taxation do not discourage the take-up of electric vehicles or disproportionately impact workers who rely on long-distance commuting.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
From April 2025, zero emission and hybrid cars, vans and motorcycles started to pay Vehicle Excise Duty (VED) in a similar way to petrol and diesel vehicles; the standard annual rate is £195.
As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs (electric vehicles) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty.
While it is fair for EV drivers to contribute for their car usage, the government is also committed to ensuring that driving an EV is an attractive choice for consumers. Therefore, the rate of eVED for EVs will be half of the equivalent fuel duty rate paid by the average petrol/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 driver will pay around £240 per year or £20 per month.
The Government is taking a proportionate approach to ensuring electric car drivers pay an appropriate share whilst remaining firmly committed to supporting the transitions to EVs. That is why 80% of eVED revenue from the first three years is being reinvested to extend support for EVs and the auto manufacturing industry. This builds on existing generous support, including Company Car Tax incentives.
Asked by: Stuart Andrew (Conservative - Daventry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of financial services firms requiring mobile phone-based authentication as a condition of accessing online accounts on (a) disabled and (b) elderly consumers; and whether she has had discussions with the Financial Conduct Authority about ensuring alternatives are made available.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises the importance of ensuring people can access the financial products and services they need. The Government is committed to ensuring high standards of financial inclusion across the financial services sector.
The Payment Services Regulations 2017 require firms to apply strong customer authentication when users access their payment account online, initiate an electronic payment or carry out any action through a remote channel (e.g. via the internet) which may carry a risk of payment fraud, unless an exemption applies (e.g. for low-value purchases). Firms are able to choose which methods of authentication they apply.
The Financial Conduct Authority (FCA), which is independent of the Government, issues detailed standards for firms on strong customer authentication. The FCA expects firms to develop strong customer authentication solutions that work for all groups of consumers, including those with protected characteristics. This means it may be necessary for firms to provide different methods of authentication, for example when customers face difficulties accessing or using a mobile device.
The FCA also requires authorised financial services firms to comply with their ‘Consumer Duty’, which requires them to deliver good outcomes for retail customers. The Consumer Duty has rules and guidance covering key aspects of the firm-customer relationship. For example, it requires firms to ensure that the design of the product or service meets the needs, characteristics and objectives of their target consumer market. More detail on the Consumer Duty can be found on the FCA’s website: https://www.fca.org.uk/firms/consumer-duty
It is important that people are able to take advantage of digital innovation, and the opportunities this presents, to manage their money more effectively. This is why the issues of access to banking and digital inclusion have been considered as key areas of focus in the Government's recently published Financial Inclusion Strategy.
Asked by: Stuart Andrew (Conservative - Daventry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department is taking steps to help ensure that financial services firms offer alternatives to mobile phone authentication for customers who cannot use such technology.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises the importance of ensuring people can access the financial products and services they need. The Government is committed to ensuring high standards of financial inclusion across the financial services sector.
The Payment Services Regulations 2017 require firms to apply strong customer authentication when users access their payment account online, initiate an electronic payment or carry out any action through a remote channel (e.g. via the internet) which may carry a risk of payment fraud, unless an exemption applies (e.g. for low-value purchases). Firms are able to choose which methods of authentication they apply.
The Financial Conduct Authority (FCA), which is independent of the Government, issues detailed standards for firms on strong customer authentication. The FCA expects firms to develop strong customer authentication solutions that work for all groups of consumers, including those with protected characteristics. This means it may be necessary for firms to provide different methods of authentication, for example when customers face difficulties accessing or using a mobile device.
The FCA also requires authorised financial services firms to comply with their ‘Consumer Duty’, which requires them to deliver good outcomes for retail customers. The Consumer Duty has rules and guidance covering key aspects of the firm-customer relationship. For example, it requires firms to ensure that the design of the product or service meets the needs, characteristics and objectives of their target consumer market. More detail on the Consumer Duty can be found on the FCA’s website: https://www.fca.org.uk/firms/consumer-duty
It is important that people are able to take advantage of digital innovation, and the opportunities this presents, to manage their money more effectively. This is why the issues of access to banking and digital inclusion have been considered as key areas of focus in the Government's recently published Financial Inclusion Strategy.
Asked by: Stuart Andrew (Conservative - Daventry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate the Financial Conduct Authority has made of the number of consumers who have reported difficulty accessing financial services due to mandatory mobile phone authentication.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises the importance of ensuring people can access the financial products and services they need. The Government is committed to ensuring high standards of financial inclusion across the financial services sector.
The Payment Services Regulations 2017 require firms to apply strong customer authentication when users access their payment account online, initiate an electronic payment or carry out any action through a remote channel (e.g. via the internet) which may carry a risk of payment fraud, unless an exemption applies (e.g. for low-value purchases). Firms are able to choose which methods of authentication they apply.
The Financial Conduct Authority (FCA), which is independent of the Government, issues detailed standards for firms on strong customer authentication. The FCA expects firms to develop strong customer authentication solutions that work for all groups of consumers, including those with protected characteristics. This means it may be necessary for firms to provide different methods of authentication, for example when customers face difficulties accessing or using a mobile device.
The FCA also requires authorised financial services firms to comply with their ‘Consumer Duty’, which requires them to deliver good outcomes for retail customers. The Consumer Duty has rules and guidance covering key aspects of the firm-customer relationship. For example, it requires firms to ensure that the design of the product or service meets the needs, characteristics and objectives of their target consumer market. More detail on the Consumer Duty can be found on the FCA’s website: https://www.fca.org.uk/firms/consumer-duty
It is important that people are able to take advantage of digital innovation, and the opportunities this presents, to manage their money more effectively. This is why the issues of access to banking and digital inclusion have been considered as key areas of focus in the Government's recently published Financial Inclusion Strategy.
Asked by: Stuart Andrew (Conservative - Daventry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to maintain levels of VAT relief available on vehicles purchased by disabled people through the Motability scheme.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government keeps all taxes under review, and the Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.
Asked by: Stuart Andrew (Conservative - Daventry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many new general practice premises projects are awaiting a valuation by the district valuer; and what the average time taken is to complete such valuations.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
For context, the Valuation Office Agency’s (VOA) District Valuer Services (DVS) provide property advice to NHS bodies in England, including Current Market Rent (CMR) assessments for GP practice premises, under the NHS (General Medical Services - Premises Costs) Directions.
DVS is instructed in accordance with the Directions, to assess the financial value for money aspect of proposed new lease terms including rent for both existing premises and for third-party development schemes. DVS then provide advice to the Integrated Care Board (ICB) who will utilise our advice to consider their wider Value for Money approval including affordability. The length of time taken to complete a case varies depending on case type and complexity, and negotiations with GPs and their advisors.
Instructions of this nature vary considerably. DVS may be asked to provide advice on the CMR based on initial project proposals or alternatively may be asked to review the scheme, seek further details of the proposal and enter into discussions with the parties prior to providing an opinion of CMR. Therefore, the time taken to provide the valuation will vary. As projects progress and are subject to amendment DVS may provide a number of valuations during the instruction period and instructions may be paused at the request of the ICB, depending on wider circumstances.
Instructions are commenced within a short period from date of receipt and progressed in line with client requirements.
Asked by: Stuart Andrew (Conservative - Daventry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of new general practice premises projects have appealed the valuation by the district valuer service; and how many of those appeals were upheld.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
For context, the Valuation Office Agency’s (VOA) District Valuer Services (DVS) provide property advice to NHS bodies in England, including Current Market Rent (CMR) assessments for GP practice premises, under the NHS (General Medical Services - Premises Costs) Directions.
DVS is instructed in accordance with the Directions, to assess the financial value for money aspect of proposed new lease terms including rent for both existing premises and for third-party development schemes. DVS then provide advice to the Integrated Care Board (ICB).
The ICB is responsible for the decision on approval of the project reflecting all Value for Money considerations including the DVS advice and their own budgetary targets. The VOA are not aware of any appeals to NHS Resolution in relation to an ICB Value for Money decision relating to new premises development.
Asked by: Stuart Andrew (Conservative - Daventry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with the Secretary of State for Health and Social Care on the potential impact of district valuer assessments on the opening of new GP surgeries.
Answered by James Murray - Chief Secretary to the Treasury
The Chancellor has regular conversations with the Health Secretary on range of issues.
The Spending Review 2025 announced the largest ever health capital budget, with a £2.3 billion real terms increase in capital spending over the SR period.
The £102 million Primary Care Utilisation and Modernisation Fund announced earlier this year will upgrade more than a thousand GP surgeries across England, which will create space to deliver more appointments and improve access for patients.
With respect to the opening of new GP surgeries, this is a matter for the Department of Health and Social Care and the NHS, who may consult the district valuer when the value for money of premises development proposals is assessed.