Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of the quarterly instalment payment regime on companies that realise large but infrequent capital gains, particularly in cases where tax liabilities cannot be known at the point quarterly payments fall due.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
If a company or a group's annual profits exceed £1.5 million, they will be classed as ‘large’ and will be required to pay their Corporation Tax in quarterly instalments. This long-standing regime ensures that larger companies pay their Corporation Tax bill closer to the point at which they make a profit, which is in line with other G7 countries.
Companies must self-assess whether they are in the regime and pay accordingly. Where liabilities may be difficult to predict, including from capital gains, companies should make their best estimate of instalment payments based on the information available at the time. Payments can be adjusted up or down as the final liability becomes clearer, and if they prove to be excessive a repayment can be claimed.
As always for late paid tax, interest is charged to reflect the time value of money. Recognising the estimated nature of the instalments, special rates of interest apply which charge less for late payment, and pay more for overpayment, than the normal rates.
The Government keeps the impact of the quarterly instalment payment regime, including associated interest rules, under review.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of interest charges on companies that are unable to estimate quarterly instalment payments accurately due to the unpredictable timing and size of capital gains.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
If a company or a group's annual profits exceed £1.5 million, they will be classed as ‘large’ and will be required to pay their Corporation Tax in quarterly instalments. This long-standing regime ensures that larger companies pay their Corporation Tax bill closer to the point at which they make a profit, which is in line with other G7 countries.
Companies must self-assess whether they are in the regime and pay accordingly. Where liabilities may be difficult to predict, including from capital gains, companies should make their best estimate of instalment payments based on the information available at the time. Payments can be adjusted up or down as the final liability becomes clearer, and if they prove to be excessive a repayment can be claimed.
As always for late paid tax, interest is charged to reflect the time value of money. Recognising the estimated nature of the instalments, special rates of interest apply which charge less for late payment, and pay more for overpayment, than the normal rates.
The Government keeps the impact of the quarterly instalment payment regime, including associated interest rules, under review.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions her Department has had with small and medium-sized enterprises on (a) the employer National Insurance Contributions increase and (b) business rates since the Autumn Budget 2026.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Chancellor of the Exchequer, Junior Ministers and HM Treasury officials regularly meet with a wide range of businesses and business representation organisations, including with small and medium-sized enterprises. These meetings include discussions on a wide range of policies.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to update the Cash Access Policy Statement issued on 18 August 2023, in the context of the role of Banking Hubs and the provision of in-person services linked to current accounts.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to supporting sufficient access for customers.
The Financial Services and Markets Act 2023 provides the Financial Conduct Authority (FCA) with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities, including free facilities for personal current accounts. It also requires HMT to produce a Cash Access Policy Statement concerning cash deposit and withdrawal services, which the FCA must have regard to when designing its rules for access to cash. In line with its legal obligation to do so, HMT keeps the Cash Access policy statement under review.
Under the FCA’s rules, an assessment is triggered upon the closure or material alteration of a cash access facility or upon a community request. When carrying out a cash access assessment, LINK, the operator of the UK’s largest ATM network and designated operator of cash access co-ordination arrangements, takes into consideration a wide range of criteria, including those unique to each location. These include whether a bank branch remains, existing cash access points, population size and vulnerability, the number of shops in the area, and the practicality of travelling to nearby facilities, including public transport links, travel times, and local demographics. Where LINK determines that a community requires additional cash services, Cash Access UK (CAUK) will provide the appropriate shared solution, such as a deposit service or a banking hub, for cash users in that community.
In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 200 are already open. Government is working closely with industry on this commitment, including through regular ministerial engagement.
Banking hubs offer everyday counter services provided by Post Office staff, enabling people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.
The Government continues to work with the banking industry to improve the breadth and availability of services available in banking hubs and I recently chaired a roundtable with banks, CAUK and UK Finance to discuss services provided in banking hubs. CAUK member banks have already made significant progress in bringing the services offered by community bankers in hubs closer to those available in a traditional bank branch. For example, over the past year, all original CAUK member banks have ensured that customers can use hub services even if they do not have access to a personal digital device, such as a mobile phone or tablet. A full list of services provided by each bank for both personal and business customers is publicly available to view via CAUK’s website.
The Government keeps the effectiveness of these arrangements under review through regular engagement with industry, LINK and the FCA to ensure they meet the needs of local communities.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of services provided within Banking Hubs; and what steps she is taking to develop minimum standards for those Hubs.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to supporting sufficient access for customers.
The Financial Services and Markets Act 2023 provides the Financial Conduct Authority (FCA) with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities, including free facilities for personal current accounts. It also requires HMT to produce a Cash Access Policy Statement concerning cash deposit and withdrawal services, which the FCA must have regard to when designing its rules for access to cash. In line with its legal obligation to do so, HMT keeps the Cash Access policy statement under review.
Under the FCA’s rules, an assessment is triggered upon the closure or material alteration of a cash access facility or upon a community request. When carrying out a cash access assessment, LINK, the operator of the UK’s largest ATM network and designated operator of cash access co-ordination arrangements, takes into consideration a wide range of criteria, including those unique to each location. These include whether a bank branch remains, existing cash access points, population size and vulnerability, the number of shops in the area, and the practicality of travelling to nearby facilities, including public transport links, travel times, and local demographics. Where LINK determines that a community requires additional cash services, Cash Access UK (CAUK) will provide the appropriate shared solution, such as a deposit service or a banking hub, for cash users in that community.
In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 200 are already open. Government is working closely with industry on this commitment, including through regular ministerial engagement.
Banking hubs offer everyday counter services provided by Post Office staff, enabling people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.
The Government continues to work with the banking industry to improve the breadth and availability of services available in banking hubs and I recently chaired a roundtable with banks, CAUK and UK Finance to discuss services provided in banking hubs. CAUK member banks have already made significant progress in bringing the services offered by community bankers in hubs closer to those available in a traditional bank branch. For example, over the past year, all original CAUK member banks have ensured that customers can use hub services even if they do not have access to a personal digital device, such as a mobile phone or tablet. A full list of services provided by each bank for both personal and business customers is publicly available to view via CAUK’s website.
The Government keeps the effectiveness of these arrangements under review through regular engagement with industry, LINK and the FCA to ensure they meet the needs of local communities.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the criteria applied by LINK when recommending Banking Hub locations on towns where a single provider remains; and whether she has made an assessment of the adequacy of those criteria for community need, business cash usage and consumer choice.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to supporting sufficient access for customers.
The Financial Services and Markets Act 2023 provides the Financial Conduct Authority (FCA) with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities, including free facilities for personal current accounts. It also requires HMT to produce a Cash Access Policy Statement concerning cash deposit and withdrawal services, which the FCA must have regard to when designing its rules for access to cash. In line with its legal obligation to do so, HMT keeps the Cash Access policy statement under review.
Under the FCA’s rules, an assessment is triggered upon the closure or material alteration of a cash access facility or upon a community request. When carrying out a cash access assessment, LINK, the operator of the UK’s largest ATM network and designated operator of cash access co-ordination arrangements, takes into consideration a wide range of criteria, including those unique to each location. These include whether a bank branch remains, existing cash access points, population size and vulnerability, the number of shops in the area, and the practicality of travelling to nearby facilities, including public transport links, travel times, and local demographics. Where LINK determines that a community requires additional cash services, Cash Access UK (CAUK) will provide the appropriate shared solution, such as a deposit service or a banking hub, for cash users in that community.
In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 200 are already open. Government is working closely with industry on this commitment, including through regular ministerial engagement.
Banking hubs offer everyday counter services provided by Post Office staff, enabling people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.
The Government continues to work with the banking industry to improve the breadth and availability of services available in banking hubs and I recently chaired a roundtable with banks, CAUK and UK Finance to discuss services provided in banking hubs. CAUK member banks have already made significant progress in bringing the services offered by community bankers in hubs closer to those available in a traditional bank branch. For example, over the past year, all original CAUK member banks have ensured that customers can use hub services even if they do not have access to a personal digital device, such as a mobile phone or tablet. A full list of services provided by each bank for both personal and business customers is publicly available to view via CAUK’s website.
The Government keeps the effectiveness of these arrangements under review through regular engagement with industry, LINK and the FCA to ensure they meet the needs of local communities.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the (a) revaluation of pubs’ rateable values and (b) ending of the 40% business rates relief on (i) the financial viability of pubs and breweries and (iii) the wider economic and social contribution of those businesses; and if she will make an assessment of the potential merits of introducing a targeted, pub-specific relief.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down next year. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without this support, pubs would have faced a 45% increase in the total bills they pay next year. However, because of the support the Government has put in place, this has fallen to just 4%.
More broadly, 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. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
The Government is paying for this tax cut through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
The Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has had discussions with the Valuation Office Agency on mitigating business rates increases for pubs and breweries; and what steps she is taking to prevent sudden increases in bills for those businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down next year. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without this support, pubs would have faced a 45% increase in the total bills they pay next year. However, because of the support the Government has put in place, this has fallen to just 4%.
More broadly, 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. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
The Government is paying for this tax cut through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
The Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to encourage UK pension funds to invest in domestic scale-up companies.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
In May 2025, 17 of the largest workplace pension providers signed the Mansion House Accord and voluntarily committed to invest at least 10 per cent of their defined contribution default funds in private markets by 2030, with at least half of that invested in the UK. This is expected to unlock £25 billion of pension fund investment in the UK, including into high growth companies.
The British Business Bank has a key role in helping smaller businesses get the finance they need to start, scale and stay in the UK. The government has given the British Business Bank a new objective to mobilise institutional capital, including domestic pension capital. The BBB has already created one entry point through the British Growth Partnership. This is an investment vehicle designed specifically to encourage more UK pension fund and other institutional investment into the UK’s fastest growing, most innovative companies.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Financial Conduct Authority is taking to (a) enhance its oversight of Self-Invested Personal Pension operators and (b) review the capital adequacy requirements for those holding portfolios containing high volumes of non-standard or illiquid assets.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Self-Invested Personal Pensions (SIPPs) are a type of personal pension regulated by the Financial Conduct Authority (FCA) that give savers more choice over how they invest their retirement savings.
In December 2024, the FCA published their discussion paper “Pensions: Adapting our requirements for a changing market”. This paper invited feedback about due diligence and client asset requirements in the SIPP market.
The discussion paper has now closed and the FCA expects to consult on new proposals in Q1 2026.
The FCA continues to monitor developments and remains committed to making sure that its requirements are proportionate and effective.