Written questions by Khan.

What recent assessment she has made of the effect of fuel taxation policy on low income households.

The Chancellor considers a wide range of impacts when taking decisions on tax policy. At Budget 2025, the Government announced that the 5p cut in fuel duty would be extended until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027. The planned increase in line with inflation for 2026/27 will also not take place, with RPI uprating resuming from 2027/28 onwards.Since Autumn Budget 2024, the Government's decisions to freeze fuel duty will save the average motorist over £90 – or 11 pence per litre - compared to the plans inherited from the previous government. The Government published distributional analysis on decisions taken at Budget 2025, including fuel duty, at GOV.UK: : https://assets.publishing.service.gov.uk/media/69269c6222424e25e6bc31bb/Impact_on_households.pdf

Whether she plans to review VAT on veterinary services.

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 public services, and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations. One of the key considerations for any potential 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, meaning that cutting VAT may not be an effective way to reduce prices for consumers. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances. Since taking office the Government has taken a number of decisions on tax, welfare, and spending to fix the public finances, fund public services, and restore economic stability. This stability is critical to boosting investment and growth, and to making people across the UK better off.

Whether she has made an assessment of the potential merits of applying a (a) reduced and (b) zero rate of VAT to essential veterinary (i) treatment and (ii) medicines.

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 public services, and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations. One of the key considerations for any potential 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, meaning that cutting VAT may not be an effective way to reduce prices for consumers. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances. Since taking office the Government has taken a number of decisions on tax, welfare, and spending to fix the public finances, fund public services, and restore economic stability. This stability is critical to boosting investment and growth, and to making people across the UK better off.

What assessment she has made of the potential impact of a visitor levy on the affordability of domestic holidays for UK families; and whether she plans to mitigate additional costs for lower income families.

The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth including through support for the local visitor economy, if they so choose.At Budget, the Government published a consultation so that the public, businesses, and local government could shape the design of these powers. This consultation closed on the 18th of February and the Government will publish a response in due course.The impacts of the levy will largely be determined by local decisions. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear their concerns.

What steps HMRC is taking to investigate salons that may not be paying employer National Insurance contributions, VAT liabilities, or pension obligations through the misclassification of staff as self-employed.

HMRC’s priority is to ensure that everyone pays the tax they are legally required to pay including those in the hair and beauty sector. HMRC’s approach focuses on preventing non‑compliance from arising in the first place by providing clear guidance and tools. In the case of salon owners and workers, additional support to get their tax obligations right has been provided in collaboration with trade bodies. To help support these customers, HMRC has worked with trade bodies for this sector to develop new educational material and has published guidance on GOV.UK to better explain the employment status and tax implications of different business models. Details can be found at: https://youtu.be/5o3au6PyXG8 and https://www.gov.uk/guidance/check-employment-status-if-you-work-in-hair-and-beauty At the same time, HMRC is actively tackling disguised employment in salons and making it harder for the minority who deliberately misclassify workers to avoid paying employer National Insurance, VAT, or pension contributions. HMRC carries out targeted compliance activity to identify cases where individuals presented as self‑employed are, in reality, working as employees. HMRC is committed to tackling false self-employment and will investigate evidence that suggests businesses have misclassified individuals for tax purposes. To report a person or business you think is not paying enough tax please click Report tax fraud or avoidance to HMRC - GOV.UK for more information.

What assessment she has made of the adequacy of the Financial Conduct Authority’s supervision and regulation of Lendy Ltd prior to its collapse.

The Financial Conduct Authority (FCA) assumed responsibility for the peer to peer lending sector in 2014. In 2016, the FCA launched a post-implementation review into the peer to peer and crowdfunding sector, leading to a consultation on updated rules for the sector in 2018, with a set of strengthened rules being published in 2019. The FCA has supervisory and enforcement powers in relation to the sector, and has undertaken investigations into certain, individual firms, such as Lendy Ltd. Lendy was subject to an asset restriction and a court petition to appoint a liquidator prior to it being placed in administration. The FCA has received several complaints about its regulation of Lendy under its Complaints Scheme. We await the findings of the complaints investigation into the FCA’s actions under the Complaints Scheme. The Government takes the accountability of the FCA very seriously. The FCA’s independence from Government does not mean it can act arbitrarily; rather, it must operate within the framework of statutory duties and powers agreed by Parliament. As well as being required to operate within this framework, the FCA is fully accountable to Parliament for how it discharges its statutory functions.There are a number of ways in which the legal framework ensures direct accountability of the FCA to Parliament, such as a requirement for the FCA to produce annual reports and accounts, which are laid before Parliament by the Treasury. The FCA is also subject to scrutiny via departmental select committee hearings, including the Treasury Select Committee and the Lords Financial Services Regulation Committee.

What steps her Department is taking to ensure transparency and accountability where FCA-authorised firms fail and retail investors have losses.

The Financial Conduct Authority (FCA) assumed responsibility for the peer to peer lending sector in 2014. In 2016, the FCA launched a post-implementation review into the peer to peer and crowdfunding sector, leading to a consultation on updated rules for the sector in 2018, with a set of strengthened rules being published in 2019. The FCA has supervisory and enforcement powers in relation to the sector, and has undertaken investigations into certain, individual firms, such as Lendy Ltd. Lendy was subject to an asset restriction and a court petition to appoint a liquidator prior to it being placed in administration. The FCA has received several complaints about its regulation of Lendy under its Complaints Scheme. We await the findings of the complaints investigation into the FCA’s actions under the Complaints Scheme. The Government takes the accountability of the FCA very seriously. The FCA’s independence from Government does not mean it can act arbitrarily; rather, it must operate within the framework of statutory duties and powers agreed by Parliament. As well as being required to operate within this framework, the FCA is fully accountable to Parliament for how it discharges its statutory functions.There are a number of ways in which the legal framework ensures direct accountability of the FCA to Parliament, such as a requirement for the FCA to produce annual reports and accounts, which are laid before Parliament by the Treasury. The FCA is also subject to scrutiny via departmental select committee hearings, including the Treasury Select Committee and the Lords Financial Services Regulation Committee.

What steps her Department is considering to address regional cost of living inequalities.

There is excellence right across the country and this government is backing it: lifting living standards and putting more money in people’s pockets. The recent Budget announced that the government is taking around £150 on average off household energy bills, expanding the £150 Warm Home Discount to 6 million lower income households, freezing regulated rail fares and NHS prescription fees for one-year, and extending temporary 5p fuel duty cut until the end of August 2026.These measures will help people across the country with the cost of living.

What recent assessment her Department has made of the cost-of-living pressures facing working people in Greater Manchester.

The government is prioritising cutting the cost of living and improving living standards across the UK, including for residents in Greater Manchester. The government recognises that people are still feeling the squeeze on their finances with essential areas such as energy, food and housing remaining too high. That is why we have announced that we are taking around £150 on average off household energy bills, expanding the £150 Warm Home Discount to 6 million lower income households, freezing regulated rail fares and NHS prescription fees for one-year, and extending temporary 5p fuel duty cut until the end of August 2026.

What assessment she has made of the disparity between wage growth and increases in living costs in Greater Manchester.

Through the growth mission, the government will deliver a milestone of higher living standards in every part of the United Kingdom by the end of the Parliament. The main route to higher living standards is through good, productive jobs, stable employment, and a thriving business environment.The government is taking action to cut the cost of living and bring down inflation. At the Budget 2025, the government announced that it would deliver a set of measures to remove an average of £150 from household energy bills from April 2026 and would implement a one-year freeze on regulated train fares and prescription charges.

What estimate she has made of the (a) volume and (b) value of goods imported to the UK from Israeli settlements in the Occupied Palestinian Territories in the last 12 months.

The Government’s position is that Israeli settlements in Palestine (formerly referred to as the Occupied Palestinian Territories) are illegal under international law. For trade statistics purposes Palestine consists of the West Bank (including East Jerusalem) and the Gaza Strip. HM Revenue & Customs (HMRC) is responsible for the collection and publication of data on imports and exports of goods to and from the UK. HMRC releases this information monthly, as an accredited official statistic called the Overseas Trade in Goods Statistics (OTS), which is available via their dedicated website (https://www.uktradeinfo.com/).

Whether her Department has made an assessment of the potential impact of business rates on (a) private, (b) voluntary and (c) independent nurseries.

In April 2025, the Government removed eligibility of private schools in England for business rates charitable rate relief. Schools that satisfy the definition of a private school have lost entitlement to charitable rate relief entirely. This definition may include private schools with some nursery classes, which, despite the presence of some nursery provision will still be, by their nature, private schools.Standalone nursery schools, where they have their own business rates assessments, were excluded from the legislation and, where applicable, have retained their charitable rate relief. This approach best ensures consistency with the underlying policy intent.Analysis on the expected impact of this policy can be found online here: https://www.gov.uk/government/publications/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief

Whether she has made an assessment of the potential impact of business rates on (a) private, (b) voluntary and (c) independent nurseries.

In April 2025, the Government removed eligibility of private schools in England for business rates charitable rate relief. Schools that satisfy the definition of a private school have lost entitlement to charitable rate relief entirely. This definition may include private schools with some nursery classes, which, despite the presence of some nursery provision will still be, by their nature, private schools.Standalone nursery schools, where they have their own business rates assessments, were excluded from the legislation and, where applicable, have retained their charitable rate relief. This approach best ensures consistency with the underlying policy intent.Analysis on the expected impact of this policy can be found online here: https://www.gov.uk/government/publications/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief

If she will instruct the Financial Conduct Authority to investigate pricing in the insurance market.

Insurers make commercial decisions about the price and terms of cover they offer based on their assessment of the relevant risks. However, the Government is determined that insurers should treat customers fairly and firms are required to do so under Financial Conduct Authority (FCA) rules. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). The FCA monitors firms to ensure they provide products that offer fair value and has robust powers to act against firms that fail to comply with its rules.

Whether her Department has held recent discussions with (a) financial institutions, (b) remittance service providers and (c) other relevant stakeholders on taking steps to reform remittances.

The government recognises that improved cross-border payment services, including remittances, would have widespread benefits for citizens and economies worldwide. The government works with UK and international partners, including under the G20 Roadmap for Enhancing Cross-Border Payments, to seek to deliver faster, cheaper, more transparent and more inclusive cross-border payments and remittances. Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-giftsand-overseas-travel

What assessment her Department has made of the potential merits of classifying thermal storage heaters as energy saving materials.

The Government is committed to improving the quality and sustainability of our housing stock. Installations of qualifying energy-saving materials (ESMs) in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent. The Government assesses whether to add ESMs to this relief by evaluating them against the following principles: the primary purpose of the technology must be to improve energy efficiency and reduce carbon emissions, and relieving the technology of VAT must be cost effective and align with broader VAT principles.

Whether she will consider including funding for homelessness services as part of the Comprehensive Spending Review.

HMT will consider departmental budget requests as part of the Spending Review process and set out funding for future years at Phase 2 of the Spending Review. The government has already made steps to tackle homelessness through: funding at Autumn Budget 2024 where we announced an additional £233 million of resource funding for services in 2025/26; a commitment to the delivery of the biggest increase in social and affordable housebuilding in a generation and building 1.5 million new homes over the next parliament and through protecting renters by abolishing Section 21 ‘no fault’ evictions.

What recent assessment her Department has made of the potential impact of (a) climate change and (b) new oil and gas production on the economy.

Illustrative analysis in the OBR's 2024 Fiscal Risks and Sustainability Report suggests that UK GDP could be around 3% lower by 2074 under a below 2°C warming scenario and around 5% lower under a below 3°C warming scenario.For decades, the North Sea’s workers, businesses and communities have been at the heart of Britain’s energy future - something they will continue to do for decades to come. This Government will not revoke existing licences and will partner with businesses and workers to manage our existing fields for the entirety of their lifespansThis Government is engaging industry via the ‘Building the North Sea’s Energy Future’ consultation to develop and set out the next steps for the overarching objective for the North Sea. Scaling up industries that will shape the future of the North Sea (including offshore wind, carbon capture and storage, hydrogen, and decommissioning), will be vital for delivering the best outcomes for workers and communities, energy security, and sustainable economic growth.

What fiscal steps her Department is taking to support the growth of small and micro businesses in the hospitality sector.

Small businesses are vital to our high streets and communities. The Government is committed to supporting the hospitality sector and we recognise the significant contribution they make to the UK economy.The Government will introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27. In the meantime, the Government has prevented RHL relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier. The Government has protected the smallest businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no employer NICs at all next year. The Government has committed £250m in 25-26 for the British Business Bank’s small business loans programmes, including Start Up Loans and the Growth Guarantee Scheme. To drive further progress on our manifesto commitments, as part of the growth mission, the Government will bring forward a Small Business Strategy this year.