Asked by: Tristan Osborne (Labour - Chatham and Aylesford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she plans to take to help ensure the UK is an attractive destination for cryptoasset capital.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government recognises the transformative potential of digital assets and blockchain technologies to drive economic growth in the UK and increase efficiencies across financial markets.
That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets.
This will support growth in the UK by giving cryptoasset firms the regulatory certainty needed to invest here, and to help drive innovation in our financial services sector.
Asked by: Tristan Osborne (Labour - Chatham and Aylesford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of introducing clearer regulatory and tax frameworks for cryptoasset investment on a) high-skilled job creation and b) assets under management.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government recognises the transformative potential for digital assets and blockchain technologies to drive economic growth in the UK and increase efficiencies across financial markets.
That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets. This will support growth in the UK by giving cryptoasset firms the regulatory certainty needed to invest here, and to help drive innovation in our financial services sector.
The government also keeps the tax framework for cryptoassets under review.
Asked by: Tristan Osborne (Labour - Chatham and Aylesford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of simplifying tax-compliant investment structures for cryptoassets in innovative finance ISAs to include all cryptoassets; and if she will make an assessment of the potential impact of doing so on levels of involuntary non-compliance among retail investors.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government recognises the transformative potential for digital assets and blockchain technologies to drive economic growth in the UK and increase efficiencies across financial markets. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets. This will support growth in the UK by giving cryptoasset firms the regulatory certainty needed to invest here, and to help drive innovation in our financial services sector.
A draft consultation on legislation that enables the inclusion of cETNs in the IFISA is out now and will come int force in April 2026. While there are currently no plans to include all cryptoassets in IFISAs, any future consideration would take account of market maturity, stability, and the suitability of providing targeted tax reliefs alongside the new regulatory regime.
Asked by: Tristan Osborne (Labour - Chatham and Aylesford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of trends in the value of the pound since the UK left the EU on the UK economy.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government does not comment on specific financial market movements. The value of sterling is determined by a wide range of international and domestic factors. The Bank of England assesses the impact of financial market movements on the economy in its quarterly Monetary Policy Report - the latest can be found here.
Asked by: Tristan Osborne (Labour - Chatham and Aylesford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has undertaken research into the potential impact of VAT reductions on (a) the re-use of goods, (b) minimum warranty periods and (c) other circular economic practices in industry.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates.
The Government keeps all taxes under review.
Asked by: Tristan Osborne (Labour - Chatham and Aylesford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans her Department has to introduce (a) semi-transparent and (b) non-transparent Exchange Traded Funds.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government is committed to supporting the UK’s world-leading asset management sector.
Exchange Traded Funds (ETFs) are often domiciled outside of the UK to benefit from increased marketing access, and existing pockets of administrative expertise. However, many of these funds are still managed here - 49% of all assets managed in the UK are managed on behalf of overseas clients.
Semi-transparent and non-transparent ETFs which are domiciled in Europe can list in the UK and market to retail investors, following the UK’s recognition of certain retail funds from the EEA states, under the Overseas Funds Regime.
At present no non-transparent or semi-transparent ETFs have sought to be established in the UK. The Financial Conduct Authority, as the relevant regulator, would deal with any such applications on a case-by-case basis.
Asked by: Tristan Osborne (Labour - Chatham and Aylesford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she is considering steps to incentivise domicile Exchange Traded Funds in the UK if they have a significant corporate footprint in country.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The UK is home to the world’s second largest investment management sector, with over £10.9 trillion of assets under management (11% of global assets). The UK has historic expertise in portfolio management, a crucial part of the Financial Services ecosystem. The UK Government is committed to supporting this important sector and in the recently published Financial Services Growth and Competitiveness Strategy committed to be one of the most competitive places globally to manage investments.
Exchange Traded Funds (ETFs) are often domiciled outside of the UK for a range of reasons including marketing access, and existing pockets of administrative expertise. However, many of these funds are still managed here - 49% of all assets managed in the UK are managed on behalf of overseas clients.
The Government has undertaken a wealth of work to enhance the UK’s fund domicile offering, including as part of the recent review of the UK funds regime. This has led to the introduction of new UK fund structures focused on enhancing real-economy investment including the Reserved Investor Fund, the Long-Term Asset Fund and Qualifying Asset Holding Companies.
Asked by: Tristan Osborne (Labour - Chatham and Aylesford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she is taking steps to establish an Exchange Traded Fund.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The UK is home to the world’s second largest investment management sector, with over £10.9 trillion of assets under management (11% of global assets). The UK has historic expertise in portfolio management, a crucial part of the Financial Services ecosystem. The UK Government is committed to supporting this important sector and in the recently published Financial Services Growth and Competitiveness Strategy committed to be one of the most competitive places globally to manage investments.
Exchange Traded Funds (ETFs) are often domiciled outside of the UK for a range of reasons including marketing access, and existing pockets of administrative expertise. However, many of these funds are still managed here - 49% of all assets managed in the UK are managed on behalf of overseas clients.
The Government has undertaken a wealth of work to enhance the UK’s fund domicile offering, including as part of the recent review of the UK funds regime. This has led to the introduction of new UK fund structures focused on enhancing real-economy investment including the Reserved Investor Fund, the Long-Term Asset Fund and Qualifying Asset Holding Companies.
Asked by: Tristan Osborne (Labour - Chatham and Aylesford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to review the definition of recycled in Section 49 of the Finance Act 2021 to recognize organic recycling through food waste schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Plastic Packaging Tax provides a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging, thereby stimulating the collection and recycling of plastic waste and diverting it away from landfill or incineration. The government has no plans to review the definition of recycled plastic that is used for the tax.
Asked by: Tristan Osborne (Labour - Chatham and Aylesford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to review the level of the Video Games Expenditure Credit for projects with a budget of £10m or less.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the importance of the UK’s video games sector and the key role it plays in driving economic growth. As part of our modern Industrial Strategy, we are developing a creative industries sector plan with business, local leaders, and sector experts.
The Government supports the video games sector through the tax system and through funding. Video games companies already benefit from the Video Games Expenditure Credit (VGEC), which provides a generous tax credit of 34 per cent on UK video games development costs.
In addition, companies may benefit from the £5.5 million UK Games Fund for 2025/26, which helps high-potential start-ups scale-up.
When considering new tax reliefs, the Government has to balance a wide range of factors, including the fiscal position and complexity of the tax system.