Written questions by Kearns.

What assessment she has made of the adequacy of consumer protections for motorists who are unknowingly diverted from their insurers to claims management companies following road traffic accidents; and whether she has had discussions with the Financial Conduct Authority on closing regulatory gaps that allow misleading advertising and lead-generation practices in the accident management sector.

The Government expects motorists to be treated fairly when making insurance claims. FCA rules require that insurer’s communications with consumers, including during the claims process, are clear, fair and not misleading. The process by which customers are referred outside their primary insurer—such as to accident management companies—is already subject to FCA regulation.The FCA, working with other regulators, has taken coordinated action against misleading advertising and poor practices by some Claims Management Companies operating in this area. Treasury Ministers meet the FCA regularly to discuss issues across the full range of its responsibilities.

What assessment she has made of the potential impact of removing the wear and tear allowance on the viability of businesses owned by registered childminders; and what consultation her Department undertook with representatives of the childminding sector before implementing this change.

Childminders make a significant contribution to children’s development, learning, and wellbeing. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers. Only a small proportion of childminders with qualifying income over £50,000 will be mandated into Making Tax Digital (MTD) for income tax from April 2026. Childminders moving to MTD for income tax can continue to claim tax relief for household costs, wear and tear of household items and furniture, and food and drink, by deducting actual business costs. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business. HMRC engaged with stakeholders including Coram PACEY ahead of Budget 2025. The Government will monitor the impact of MTD for income tax on childminders and other home-based childcare providers in the same way as it will for all sole traders moving to MTD for income tax.

Whether the Government plans to extend the improved settlement terms announced following the McCann Review to individuals who have already settled their Loan Charge liabilities with HMRC.

The Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating a new settlement opportunity that will assist those who have not yet settled to do so.As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann.The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith.Tax avoidance deprives the Exchequer of funds needed to deliver vital public services and it is right that resources are targeted to stop this. There are no plans to apply the review’s recommendations beyond those individuals and employers with outstanding liabilities that were the focus of the review.

Whether her Department holds data on the proportion of roles employed offshore by UK-headquartered companies, broken down by sector and salary band.

HM Treasury does not hold data on the proportion of roles employed by UK-headquartered companies to this level of granularity.

How many people she expects to settle their disguised remuneration liabilities as a result of the McCann Review into Loan Charge settlement terms.

The Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating a new settlement opportunity that will assist those who have not yet settled to do so.As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann.The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith.Tax avoidance deprives the Exchequer of funds needed to deliver vital public services and it is right that resources are targeted to stop this. There are no plans to apply the review’s recommendations beyond those individuals and employers with outstanding liabilities that were the focus of the review.

Whether she has made an assessment of the potential impact on employment and job creation in the hospitality sector of extending employer National Insurance contribution relief to (a) employees aged under 25 and (b) individuals returning to work from welfare.

The government is committed to tackling the rise in youth unemployment and inactivity, which has been growing since the last Parliament. That is why we are delivering a Youth Guarantee to ensure that every young person can access the support they need to earn or learn. This includes a new Jobs Guarantee, which will provide a six-month paid work placement for every eligible 18- to 21-year-old who has been on Universal Credit and looking for work for 18 months – helping young people take that crucial first step into sustained employment. Details on the wider Youth Guarantee will be announced shortly. The government is increasing funding for employment support to more than £3.75 billion per year by 2028-29, helping people to access the skills they need to progress, tackling inactivity and ensuring more people are in better jobs. There are a wide range of factors to take into consideration when introducing a tax relief. These include how effective the relief would be at achieving the policy intent, how targeted support would be, whether it adds complexity to the tax system, and the cost.The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way.

Whether she has made an assessment of the potential impact of extending employer National Insurance contribution relief to (a) employees aged under 25 and (b) individuals returning to work from welfare on levels of (i) employment and (ii) job creation in the hospitality sector.

This government is committed to supporting young people to earn or learn. That is why the Chancellor has recently announced that we will offer a guaranteed job to young people on Universal Credit who are unemployed for over 18 months. This forms a key part of the government’s Youth Guarantee, building on existing employment support and sector-based work academies, with more details to come at Autumn Budget. We are committed to supporting all people on welfare who can work into work. At the recent Spending Review, we increased funding for employment support to over £3.5 billion by 2028-29, helping people to access the skills they need to progress, tackling inactivity and ensuring more people are in better jobs. There are a wide range of factors to take into consideration when introducing a tax relief. These include how effective the relief would be at achieving the policy intent, how targeted support would be, whether it adds complexity to the tax system, and the cost. The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way.

With reference to FOI2024/01172, if HMRC will now extend 85% discounts to individual taxpayers affected by the Loan Charge.

The Government commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.During Oral Questions on 1 July 2025, the honourable member for Mid Buckinghamshire referred to comments made by an external stakeholder that were shared under the Freedom of Information Act 2000. HMRC Officials do not recognise the allegation that HMRC agreed deals with large employers allowing them to settle disguised remuneration liabilities for less than was legally due.

Whether her Department plans to review the monthly salary sacrifice cap for existing users of the childcare voucher scheme, in the context of (a) cumulative inflation and (b) increased average childcare costs since the threshold was last set.

Childcare Vouchers are now closed to new entrants, and the Government has no plans to reopen or reform them. Existing users can continue to use them as long as they remain with their current employer, the employer continues to offer Vouchers, and their contract of employment remains the same. Tax-Free Childcare has been introduced to replace Childcare Vouchers. Tax-Free Childcare is a fairer scheme than Childcare Vouchers, as it broadens access to childcare to all families who meet the eligibility criteria, whether they are an employee or self-employed and regardless of who their employer is.

Whether (a) she and (b) her officials discussed the China audit with (i) Ministers and (ii) officials in the Foreign, Commonwealth and Development Office ahead of her visit to the People's Republic of China.

The UK Government is carrying out an audit to examine the UK's interests with respect to China to improve our ability to understand and respond to the challenges and opportunities China poses. The Chancellor of the Exchequer has discussed various topics, including the China audit, with the Secretary of State of Foreign, Commonwealth and Development Affairs. HM Treasury officials speak regularly with officials in the Foreign, Commonwealth and Development Office.

What assessment she has made of the potential merits of changing the eligibility criteria for the Orchestral Tax Relief to include standalone choirs without the accompanying orchestra.

The Government supports the creative industries, including orchestras, through funding and through the tax system. Orchestra Tax Relief (OTR) provides tax relief on productions costs and provided £33 million of support in 2022-23. To qualify for OTR, a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra also contains at least 12 instrumentalists, not including the voice, and the instrumentalists are the primary focus. These rules help ensure OTR fulfils its objective of supporting and incentivising orchestra concerts specifically. Whilst the Government has no plans to extend OTR to choirs, all taxes are kept under review. The Chancellor makes announcements on tax at fiscal events in the context of the overall public finances.

Whether she plans to reform the Sovereign Grant at the next review.

As required by the Sovereign Grant Act 2011, the next review of the Sovereign Grant will take place in 2026. The government has committed to bring forward legislation to reset the Grant to a lower level from 2027-28 once Buckingham Palace reservicing works are completed.

If she will meet representatives from the indoor play sector to discuss business rates reform.

At Autumn Budget, the Government published a Discussion Paper setting out priority areas for reform of the business rates system. This paper invites industry to help co-design a fairer system that supports investment and is fit for the 21st century. HM Treasury officials have concluded an initial phase of engagement with stakeholders who registered interest by the 15 November deadline, and the government is open to receiving further written evidence to transformingbusinessrates@hmtreasury.gov.uk until the end of March 2025.

Whether she has plans to consult the indoor play sector before future business rates reform.

HM Treasury releases a quarterly record of Minister’s meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travelAt the Autumn Budget, the government published the Transforming Business Rates Discussion Paper, which sets out priority areas for reform. This paper invited stakeholders to help co-design a fairer business rates system that supports investment and is fit for the 21st century.As set out in the Discussion Paper, the government is open to receiving written evidence to transformingbusinessrates@hmtreasury.gov.uk until 31 March 2025.

Whether she has made an assessment of the potential merits of giving a VAT exemption on admissions fees for children under 12 for the indoor play sector.

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 therefore has no plans to zero-rate VAT on admission fees for indoor play facilities. The Government keeps all taxes under review.

If she will make an assessment of the potential merits of exempting fire services from business rates at the next fiscal event.

Certain properties are exempt from business rates. Details on exemptions can be found at: https://www.gov.uk/apply-for-business-rate-relief/exempt-properties. Any decisions on future tax policy will be announced by the Chancellor at a fiscal event.

If she will take steps to exempt emergency service providers from business rates.

Certain properties are exempt from business rates. Details on exemptions can be found at: https://www.gov.uk/apply-for-business-rate-relief/exempt-properties. Any decisions on future tax policy will be announced by the Chancellor at a fiscal event.

Whether she plans to review the list of approved energy-saving technologies that receive VAT relief.

The installation of qualifying energy-saving materials in residential accommodation and buildings used solely for a relevant charitable purpose benefits from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent. Last year, a Call for Evidence (CfE) seeking views on additional technologies to potentially include within this relief was run. Following this CfE, three additional technologies were added to this relief. The Government currently has no plans to add further technologies to this VAT relief. Nevertheless, the Government keeps all taxes under review as part of the policy making process. Changes to the tax system are announced at fiscal events in the usual way.