Written questions by Snowden.

Pursuant to the Answer of 19 November 2025 to Question 89705 on Child Benefit, how many of the 23,500 enquiries excluded from the PAYE check were found to be eligible for reinstatement after the checks were completed on 14 November 2025.

HMRC’s Chief Executive wrote to the Treasury Select Committee on 14 November 2025 about this matter including the corrective action that HMRC is taking. This letter was subsequently published by the Committee on 18 November 2025. There are no plans to publish a report.In the response to the Treasury Select Committee, HMRC provided figures for those customers subsequently confirmed as eligible through a PAYE check or customer contact up to and including 31 October 2025. This time period reflects that figures are only validated after the month end. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated. By the end of November 2025, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks in which to make contact. HMRC holds information by postal address although HMRC would be unable to release to such a granular level due to the risk of breaching taxpayer confidentiality. HMRC’s pilot last year using international travel data prevented around £17m in incorrect payments. This led to a wider rollout and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, which is expected to save around £350 million over the next five years.

Pursuant to the Answer of 19 November 2025 to Question 89705 on Child Benefit, what steps HMRC will take to ensure that customers affected by the suspension of Child Benefit payments are formally notified of the apology issued and compensated for any financial hardship caused.

HMRC’s Chief Executive wrote to the Treasury Select Committee on 14 November 2025 about this matter including the corrective action that HMRC is taking. This letter was subsequently published by the Committee on 18 November 2025. There are no plans to publish a report.In the response to the Treasury Select Committee, HMRC provided figures for those customers subsequently confirmed as eligible through a PAYE check or customer contact up to and including 31 October 2025. This time period reflects that figures are only validated after the month end. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated. By the end of November 2025, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks in which to make contact. HMRC holds information by postal address although HMRC would be unable to release to such a granular level due to the risk of breaching taxpayer confidentiality. HMRC’s pilot last year using international travel data prevented around £17m in incorrect payments. This led to a wider rollout and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, which is expected to save around £350 million over the next five years.

What assessment her Department has made of the potential risks cryptocurrency market volatility poses to financial stability.

The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying and monitoring risks to UK financial stability. The FPC’s latest Record (October 2025) sets out its views on the financial stability outlook, including its assessment of market related risks. The government intends to bring forward legislation this year to create a comprehensive financial services regulatory regime for cryptoassets in the UK. The UK also continues to play an active role internationally on work to respond to the global challenges and opportunities posed by digital asset innovation, including potential risks to financial stability, through fora such as the Financial Stability Board.

Whether the her Department will review the tax treatment of capital gains on cryptocurrency transactions to ensure clarity and compliance.

The government recognises the significant potential for cryptoassets and blockchain technologies to drive economic growth in the UK and increase efficiencies across financial markets. We are committed to making the UK a world leading destination for cryptoassets. Noting the novel and evolving nature of cryptoassets, it is right that the government keeps their tax treatment under review.

If she has make an assessment of the potential impact of reforming business rates on small pubs and breweries.

In April 2026, the Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000. This permanent tax cut will ensure that eligible properties, including pubs, benefit from much-needed certainty and support. Breweries that are wholly or mainly open to visiting members of the public (for instance, mainly used as a bar or for providing tours to the public) will also benefit from the lower multipliers. The final design, including the rates, for the new business rates multipliers will be announced at Budget 2025, so that the Government can factor the revaluation outcomes, as well as the broader economic and fiscal context, into decision-making. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements. Ahead of the new multipliers being introduced, the Government prevented RHL business rates relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business. Under the previous Government, RHL relief was due to end entirely in April 2025, and so by extending it, the Government has saved the average pub, with a ratable value of £16,800, over £3,300.

When she expects HMRC to complete its review of suspended child benefit claims.

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years. In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry. We have apologised for this. Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims. HMRC reviewed all compliance cases already opened and conducted a PAYE check. These checks were completed for all customers on 14 November. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated. By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact. HMRC will also be responding to the Treasury Select Committee to outline the steps it has taken in relation to this issue.

How many child benefit claims have been suspended from claimants as a result of data-sharing between HMRC and the Home Office in Fylde constituency since September 2025.

It is not possible to provide the information requested for the Fylde constituency since September 2025. This is because HMRC do not hold the information at a constituency level.

What assessment she has made of the potential impact of the US government shutdown on UK-based financial institutions with exposure to US government (a) securities and (b) agencies.

The US Government shutdown ended on 12 November 2025. HM Treasury works closely with the Bank of England’s Financial Policy Committee (FPC) and UK financial regulators to assess any risks to the financial sector, including those relating to the global outlook.

What assessment she has made of the effectiveness of data-sharing protocols between Departments following the suspension of child benefit payments by HMRC.

HMRC uses Home Office international travel data as a starting point for identifying potential unreported absences from the UK. Undetected changes to an individual’s residency status are a leading cause of Child Benefit error and fraud. The legal basis for disclosing information between HMRC and Home Office for the purpose of tackling fraud is Chapter 4 of the Digital Economy Act (“DEA”) 2017. The exchange of data between HMRC and the Home Office continues to work as expected and agreed.

Whether HMRC plans to publish the findings of its review into suspended child benefit payments.

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years. In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry. We have apologised for this. Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims. HMRC reviewed all compliance cases already opened and conducted a PAYE check. These checks were completed for all customers on 14 November. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated. By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact. HMRC will also be responding to the Treasury Select Committee to outline the steps it has taken in relation to this issue.

If she will review VAT rules to ensure that (a) the purchase of wreaths and (b) other purchases made in support of charitable remembrance activities are not subject to VAT.

The Government recognises the importance of Remembrance events and the role they play in honouring those who have served. Where a charity chooses to offer its goods or services for free and invite voluntary donations, no VAT is charged. Charities also rightly enjoy generous tax reliefs, worth over £6 billion in 2024, including Gift Aid, exemptions from corporation tax and a number of VAT reliefs to support fund-raising activities. However, where charities sell goods and services, for example charging a set price, and the charity is VAT registered, it must charge VAT unless a VAT relief is available. HMRC does not hold information on VAT charged on specific products or services. This is because businesses are not required to provide figures at a product level within their VAT returns, as this would impose an excessive administrative burden.

If she will make representations to HM Treasury on the potential impact of VAT on the affordability of (a) Remembrance wreaths and (b) other commemorative items provided by charities.

The Government recognises the importance of Remembrance events and the role they play in honouring those who have served. Where a charity chooses to offer its goods or services for free and invite voluntary donations, no VAT is charged. Charities also rightly enjoy generous tax reliefs, worth over £6 billion in 2024, including Gift Aid, exemptions from corporation tax and a number of VAT reliefs to support fund-raising activities. However, where charities sell goods and services, for example charging a set price, and the charity is VAT registered, it must charge VAT unless a VAT relief is available. HMRC does not hold information on VAT charged on specific products or services. This is because businesses are not required to provide figures at a product level within their VAT returns, as this would impose an excessive administrative burden.

What steps her Department is taking to ensure that VAT policy does not discourage participation in Remembrance events organised by (a) charities and (b) local authorities.

The Government recognises the importance of Remembrance events and the role they play in honouring those who have served. Where a charity chooses to offer its goods or services for free and invite voluntary donations, no VAT is charged. Charities also rightly enjoy generous tax reliefs, worth over £6 billion in 2024, including Gift Aid, exemptions from corporation tax and a number of VAT reliefs to support fund-raising activities. However, where charities sell goods and services, for example charging a set price, and the charity is VAT registered, it must charge VAT unless a VAT relief is available. HMRC does not hold information on VAT charged on specific products or services. This is because businesses are not required to provide figures at a product level within their VAT returns, as this would impose an excessive administrative burden.

What estimate she has made of the annual revenue raised through VAT charged on Remembrance wreaths purchased by (a) local authorities, (b) schools and (c) community organisations.

The Government recognises the importance of Remembrance events and the role they play in honouring those who have served. Where a charity chooses to offer its goods or services for free and invite voluntary donations, no VAT is charged. Charities also rightly enjoy generous tax reliefs, worth over £6 billion in 2024, including Gift Aid, exemptions from corporation tax and a number of VAT reliefs to support fund-raising activities. However, where charities sell goods and services, for example charging a set price, and the charity is VAT registered, it must charge VAT unless a VAT relief is available. HMRC does not hold information on VAT charged on specific products or services. This is because businesses are not required to provide figures at a product level within their VAT returns, as this would impose an excessive administrative burden.

What assessment she has made of the potential impact of the increased landfill tax on housebuilding in the Fylde constituency.

The government consulted on proposals for reform of Landfill Tax on 28 April following a call for evidence in 2021 under the previous government, to ensure the regime remains effective in encouraging waste diversion from landfill and to support our environmental goals. The consultation closed on 28 July and the government is considering responses and will set out next steps, including a summary of responses, in due course. As part of the consultation, the Government has received a wide range of views from stakeholders, including representatives from the construction sector. HM Treasury is working across government to assess potential impacts on housing delivery. This government is committed to delivering 1.5 million homes over 5 years as set out in the Plan for Change. Any final proposals will be designed to maintain the environmental effectiveness of the tax while supporting these plans.

With reference to her speech at the Regional Investment Summit on 21 October 2025, what metrics her Department used to calculate the forecast annual £6 billion in savings for businesses arising from regulatory changes.

A baseline for the administrative burden of regulation on businesses has been established at £22.4bn a year. Further to the Prime Minister’s commitment to cutting the administrative costs of regulation by 25% by the end of the Parliament, the Government’s target is to reduce the annual burden by £5.6bn. Our methodology for calculating administrative burdens, and the distribution of the savings we have identified so far, is publicly available on GOV.UK.

If she will publish a breakdown of the £1.5 billion in savings identified to date under the Regulation Action Plan, including (a) sectoral distribution and (b) methodology used for calculating those savings.

A baseline for the administrative burden of regulation on businesses has been established at £22.4bn a year. Further to the Prime Minister’s commitment to cutting the administrative costs of regulation by 25% by the end of the Parliament, the Government’s target is to reduce the annual burden by £5.6bn. Our methodology for calculating administrative burdens, and the distribution of the savings we have identified so far, is publicly available on GOV.UK.

Whether she has had discussions with the Secretary of State for Energy Security and Net Zero on introducing a Tailored Energy Discount for manufacturers transitioning to electrification.

The Chancellor has regular discussions with the Secretary of State for Energy Security and Net Zero on a range of topicsThe Chancellor recognises the importance of electrification for manufacturers and bringing down the cost of electricity is a key element of this government's mission to increase growth.

What estimate her Department has made of the total value of landfill tax reclaimed by private landfill operators for (a) cover and (b) fluff material since 2000.

Landfill Tax was introduced in 1996 as a behavioural tax encouraging the diversion of material away from landfill to reuse and recycling. It has been a key driver behind local authority waste to landfill in England falling by 90% since 2000. HMRC refunded landfill tax reclaimed by private landfill operators following the Waste Recycling Group Limited case in 2008. £147m related to daily cover and haul roads and £133m related to base and side fluff. Refunds ceased in 2013 and since then repayment claims totaling £3.9bn have been prevented as a result of successful litigation.

If she will make an assessment of the potential merits of abolishing business rates for retail, hospitality and leisure businesses in (a) Fylde constituency and (b) Lancashire.

Business rates are a vital source of revenue for Local Government. The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century. As announced at Autumn Budget 2024, the Government will introduce permanently lower multipliers for retail, hospitality, and leisure properties with ratable values below £500,000 from 2026-27. This permanent tax cut will ensure they benefit from much-needed certainty and support.