Written questions by Gelderd.

What recent discussions she has had with the Governor of the Bank of England on the potential impact of climate and nature-related risks on (a) the economy and (b) financial stability; and what steps her Department is taking to coordinate with the Bank of England in response to those risks.

HM Treasury has a comprehensive framework for assessing and managing risks to the economic outlook and to financial stability. This includes systematic monitoring through internal risk monitors, risk governance forums, and collaboration with other government departments such as the Department for Environment, Food & Rural Affairs and the Department for Energy Security and Net Zero in relation to the impacts of climate change and nature related risks. The Chancellor’s latest remit and recommendations letter to the Financial Policy Committee (FPC) asks the Committee to consider how climate-related risks could affect financial stability over the near and long term, and to continue to assess the materiality of nature-related risks to its primary objective. The remits for the FPC and Prudential Regulation Committee also make clear that they should support the Government’s approach to accelerate the transition to a climate-resilient, nature-positive and net zero economy. HMT and the Bank of England meet regularly to discuss the financial stability outlook.

What steps she is taking to improve access to everyday banking services for residents and small businesses in rural and coastal communities in the context of high street bank branch closures.

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 in rural areas, coastal communities and across the country. Through the Financial Services and Markets Act 2023, the Government gave the Financial Conduct Authority regulatory responsibility for access to cash. Its rules ensure cash continues to be a viable method of payment for the millions of people who depend on it by providing reasonable access to cash withdrawal and deposit facilities for individuals and businesses, including free services for personal accounts. 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 270 hubs have been announced so far, and more than 210 are already open. Government is working closely with industry on this commitment, including through regular ministerial engagement. For example, on 8 January, I chaired a roundtable with banks, Cash Access UK and UK Finance to discuss banking hubs. Banking hubs are allocated based on independent assessments by LINK, which consider factors such as branch closures, cash reliance and community vulnerability. The criteria also differentiate between rural and urban areas. For example, LINK applies a wider three-mile catchment area in rural locations to recognise that villages often rely on nearby market towns. Customers can also access everyday banking services at a nearby Post Office. The Post Office Banking Framework allows personal and business customers of participating banks to withdraw and deposit cash, check their balance, pay bills and cash cheques at over 10,000 Post Office branches across the UK.  The Government protects the Post Office network by setting minimum access criteria. These include ensuring that 99% of the UK population lives within three miles of a Post Office and 90% of the population within one mile. Beyond bank branches, banking hubs and Post Office banking services, some banks also provide points of access through initiatives such as pop-up services in libraries and community centres, or mobile banking vans serving remote areas.  The Government supports initiatives which give customers access to in-person banking, as well as digital access.

Whether her Department plans to provide additional funding for skills and connectivity in Cornwall in the Autumn Budget 2025.

The skills system is central to achieving economic growth and breaking down barriers to opportunity. This government is investing skills including for key sectors such as construction, and for young people. Autumn Budget 2025 included £820 million for the Youth Guarantee, featuring a new Jobs Guarantee for eligible 18- to 21-year-olds, and £725 million for the Growth and Skills Levy to help support apprenticeships for young people and fully fund SME apprenticeships for eligible people under-25.Autumn Budget 2025 also invested £30m in a new Kernow Industrial Growth Fund to allow Cornwall council to support high-potential sectors such as critical minerals. This is in addition to existing support for the Cornish economy.

What assessment she has made of the potential impact of inflation on the Small Business Rate Relief threshold; and whether she plans to bring forward proposals to uprate the threshold in line with inflation.

Business rates raised a reported £26.4bn billion in 2024/25 and make up a quarter of Local Authority core spending power. They support critical local services, including child and adult social care. Over a third of properties (more than 700,000) with rateable values (RVs) under £12,000 pay no business rates as they receive 100 per cent Small Business Rate Relief (SBRR). An additional c.60,000 properties, with RVs between £12,000 and £15,000, benefit from reduced bills as SBRR tapers. At the 2024 Autumn Budget, the Government decided to freeze the small business multiplier (paid by properties with RVs under £51,000) for 2025/26. Together with SBRR, this has protected over a million ratepayers from a 1.6 per cent inflationary bill Increase. In the Transforming Business Rates: Interim Report, published on 11 September, the Government committed to exploring enhancing SBRR to support business growth and investment.

What assessment she has made of the potential impact of providing additional funding for the Tropical Forests Forever Facility on economic growth.

The Government recognises the importance of protecting tropical forests and welcomes Brazil’s leadership in developing the Tropical Forests Forever Facility (TFFF) ahead of COP30. The UK has supported the development of the TFFF through technical assistance but has not provided a direct financial contribution to the Facility.

What fiscal steps she plans to take to support the (a) stability and (b) off-season resilience of the hospitality workforce.

The Government is committed to supporting the hospitality sector. The Government is committed to ending one-sided flexibility ensuring that all jobs provide a baseline of security and predictability, which includes ending exploitative zero hours contracts. We will deliver this commitment through two measures: a right to guaranteed hours, where the number of hours offered reflects the hours worked by the worker during a reference period and new rights to reasonable notice of shift, with proportionate payment for shifts cancelled, moved or curtailed at short notice. These additional rights and protections will support stability and off-season resilience for hospitality workers. In addition, as part of Get Britain Working, and in partnership with UKHospitality, the Government is expanding a Hospitality Sector Work-based Academy Programme pilot to 26 areas, which will help fill vacancies in the hospitality industry. The Government has been clear that the best way to support workers is to stimulate growth, and we are implementing a number of initiatives to achieve this. For example, we established the Licensing Taskforce and will soon issue call for evidence on a National Licensing Policy Framework which will set out national direction for licensing authorities to consider economic growth and cultural value. The English Devolution Bill will protect businesses from upward only rent clauses, and we are introducing a strong new ‘Community Right to Buy’ to help communities safeguard valued community assets. Recognising the important role the hospitality sector plays in the visitor economy, the Government has set an ambitious goal to grow inbound tourism to 50 million visitors annually by 2030. To help achieve this, the Department for Culture, Media and Sport has established a new Visitor Economy Advisory Council, which is currently helping to co-create a Visitor Economy Growth Strategy, due to be published in the autumn.

What steps she is taking to reduce the time taken for council tax re-bandings by the Valuations Board.

The VOA is working as quickly as possible to clear cases, and moving staff to where there is the greatest customer demand. The VOA is focusing on the oldest cases first, and where customers are facing financial hardship. The VOA is replacing IT systems with modern cloud-based platforms that will deliver significant efficiencies. It is also upskilling its workforce to ensure there is flexibility in managing a wide range of cases and improving its digital services to make it easier for customers to self-serve.

If she will make an assessment of the potential merits of introducing vehicle tax reductions for people in receipt of attendance allowance.

Vehicle Excise Duty (VED) applies to vehicles used or kept on public roads. Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions. For individuals who develop a disability after the State Pension age, Attendance Allowance (AA) is a non means-tested benefit which provides targeted help with the extra costs of disability and helps them maintain their independence. While the intention is for AA to cover the need for care or supervision an individual requires as a result of their disability, individuals may choose to use their AA to fund mobility aids.However, AA does not have a specific mobility component, and therefore does not include an exemption from or reduction in VED. The government has no current plans to review or amend this longstanding policy.

Whether her Department has made an assessment of the potential impact of banking hubs on women at risk of domestic abuse.

The Government recognises that the ability to access cash and in-person banking support remains essential for many, which is why we have secured the industry’s commitment to roll out 350 banking hubs by the end of this Parliament, ensuring that access to face-to-face banking is protected. Over 230 hubs have been announced so far, and over 170 are already open. Banking hubs offer everyday counter services, allowing people and businesses to withdraw and deposit cash, 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 is committed to tackling domestic abuse through our mission to halve Violence Against Women and Girls within a decade. Addressing economic abuse is an integral part of this and is also being considered within the Government’s Financial Inclusion Strategy, which will examine where industry and Government can go further to support financially excluded people, including victim-survivors of economic abuse.

Whether her Department has made an assessment of the potential merits of funding pilot schemes in banking hubs to provide targeted financial education sessions for (a) women and (b) women at risk of economic abuse.

Banking hubs are a voluntary service which were developed by the financial services sector in the context of legislation to protect access to cash under the Financial Services and Markets Act 2023. These hubs offer everyday counter services, allowing people and businesses to withdraw and deposit cash, 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. While banking hubs do not focus on providing financial education sessions, they do offer the opportunity for customers to disclose additional needs and discuss support in a private space with the community banker. This may include signposting to relevant money guidance or advice services. The Government is committed to ensuring that people build financial capability and recognises that certain groups – including women and those at risk of economic abuse – may face specific barriers. To support those facing such challenges, the Government is developing a Financial Inclusion Strategy, which will have a key focus on financial education and capability. Economic abuse is a cross-cutting theme of this strategy to ensure the needs of victim-survivors are considered across wider relevant interventions to support financially excluded people.

Whether she has considered reforming Schedule 8 of the Value Added Tax Act 1994 to help increase levels of support for small businesses selling disability and assistive technology products online.

The Government recognises the vital role that disability and assistive technology products play in improving people’s lives and supporting independent living. Under the UK’s VAT regime, the zero-rate of VAT applies to certain goods supplied to disabled people for their domestic or personal use. The application of the zero-rate balances support for businesses and consumers with the need to protect the public finances.

If she will take steps to require e-commerce platforms and payment-service providers operating in the UK to comply with UK VAT law.

All e-commerce platforms and payment-service providers operating in the UK have a legal obligation to comply with UK VAT law. HMRC uses a risk based approach and range of measures to tackle non-compliance and continues to work with businesses as part of its ongoing compliance strategy.

What steps her Department is taking to support the use of banking hubs as venues for financial education aimed at improving women’s (a) financial literacy and (b) independence.

Banking hubs are a voluntary service which were developed by the financial services sector in the context of legislation to protect access to cash under the Financial Services and Markets Act 2023. Their rollout is overseen by Cash Access UK (CAUK), a not-for-profit company set up and funded by the banks for the purpose of coordinating banking hub delivery.The Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 230 hubs have been announced so far, and over 160 are already open.Where a branch closure is announced or a community has submitted a cash access assessment request, LINK, the independent industry coordinating body responsible for making access to cash assessments, assesses a community’s access to cash needs. LINK will recommend appropriate solutions where it considers that a community requires additional cash services, such as a banking hub or deposit service.   The Financial Conduct Authority (FCA) rules require LINK to consider a range of factors in their assessments, such as population demographics and levels of vulnerability within the community.The Government is committed to ensuring that all individuals have the financial capability to manage their money well and recognises that certain groups – such as women – may face specific barriers to financial literacy and inclusion. The Money and Pensions Service (MaPS) is supported by the Government to provide a wide range of tools and guidance to help people manage money confidently at every stage of life. Furthermore, by making Financial Education and Capability a focus within the Financial Inclusion Strategy, the Government aims to address these barriers and ensure that women, as well as other groups who face barriers, are better equipped to access affordable and appropriate financial products and services.

What steps her Department is taking to simplify the tax-free childcare eligibility process for self-employed parents in line with the system in place for employed claimants.

The Government is committed to ensuring eligible parents, whether they are employed or self-employed, can access Tax-Free Childcare as efficiently as possible. To be eligible for Tax-Free Childcare, a parent and their partner (if they have one) must expect to earn at least the National Minimum or National Living wage for 16 hours a week on average and earn no more than £100,000 per year. The process to access Tax-Free Childcare for self-employed and employed parents is the same. Both are required to apply and reconfirm each quarter that they meet the same eligibility criteria. In instances where stated expectations differ from the information HMRC holds through PAYE or Self-Assessment Records, at times HMRC may need information from customers to confirm their eligibility. The Government recognises that evidencing income can be more complex for self-employed individuals, particularly for those with variable or seasonal earnings. That is why self-employed parents are only expected to meet the minimum income requirement over the entire tax-year (and not quarterly as is the case for employees). In addition, parents who have started new self-employment are also exempted from meeting the minimum income requirement in their first 12 months in Tax-Free Childcare.

If she will make an assessment with the Secretary of State for Culture, Media and Sport of the potential merits of amending legislation on Orchestra Tax Relief (a) to include voice as an eligible acoustic instrument and (b) to extend eligibility to (i) professional and (ii) amateur choirs consisting of 12 or more performers.

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.

What assessment her Department has made of the potential impact of trends in the level of NEET rates on (a) household poverty, (b) tax revenue, (c) benefit expenditure, (d) mental health and (e) productivity.

The government is committed to supporting young people who are not in education, employment, or training (NEET), as set out in the Get Britain Working White Paper, published on 26 November 2024. That is why it has announced a Youth Guarantee, so that every young person aged 18-21 in England has access to further learning, help to get a job or an apprenticeship. In addition to this, the government is taking steps to transform the Apprenticeship Levy into a more flexible Growth and Skills Levy by investing £40 million which will help to deliver new foundation and shorter apprenticeships in key sectors, giving young people a route to careers in critical sectors. The Autumn Budget also provided an additional £300 million for further education to ensure young people are developing the skills this country needs. To support young people with poor mental health who may be at risk of becoming NEET, the government will provide access to a specialist mental health professional in every school in England.

What estimate she has made of the tax gap associated with pension fraud linked to QROPS; and what steps she has taken to prevent further losses.

A qualifying recognised overseas pension scheme (QROPS) is the name for any pension scheme located outside the UK which meets the criteria to receive transfers of UK tax relieved pension savings. Where the overseas pension scheme has broadly similar tax characteristics to a UK registered pension scheme. QROPS are pension schemes, not products. Although QROPS can receive UK tax relieved pension savings, this does not mean that the UK has a right to regulate pension schemes in other countries. However, those overseas schemes are required to be regulated by a pensions regulator in the overseas country where they are established in order for them to receive UK tax relieved pensions. HMRC does not impose restrictions on assets a QROPS can invest in that is for the overseas regulator. There are no plans to make HMRC, or the Pensions Regulator (TPR), or the Financial Conduct Authority (FCA), regulate QROPS. That would not be appropriate because the UK does not have jurisdiction over overseas pension schemes. HMRC’s primary role is to protect UK tax relief that have been given. HMRC can remove the QROPS status from pension schemes when it is not appropriate for the scheme to continue to be able to receive UK tax relieved pension savings. There are also no plans to introduce an investigation unit into QROPS or review the regulatory framework. In the UK individuals are free to transfer their pension savings but must get financial advice for larger amounts. The QROPS rules allow individuals to move abroad to live or work to take their pension savings with them. HMRC makes clear that individuals should seek suitable professional advice, including from a regulated financial adviser, when transferring pension savings to a QROPS. A transfer to a QROPS is covered by the requirement to take regulated financial advice if transferring more than £30,000 from a Defined Benefit scheme. Additionally, pension scheme administrators are responsible for carrying out due diligence on transfers to other pension schemes. They are also responsible for complying with the requirements of TPR and the FCA. HMRC, TPR and the FCA are part of the Pension Scams Action Group (PSAG) - a multi-agency taskforce of law enforcement, Government and industry working together to tackle pension fraud.

Whether her Department has plans to review the regulatory framework for the qualifying recognised overseas pension scheme including the role of the Financial Conduct Authority.

A qualifying recognised overseas pension scheme (QROPS) is the name for any pension scheme located outside the UK which meets the criteria to receive transfers of UK tax relieved pension savings. Where the overseas pension scheme has broadly similar tax characteristics to a UK registered pension scheme. QROPS are pension schemes, not products. Although QROPS can receive UK tax relieved pension savings, this does not mean that the UK has a right to regulate pension schemes in other countries. However, those overseas schemes are required to be regulated by a pensions regulator in the overseas country where they are established in order for them to receive UK tax relieved pensions. HMRC does not impose restrictions on assets a QROPS can invest in that is for the overseas regulator. There are no plans to make HMRC, or the Pensions Regulator (TPR), or the Financial Conduct Authority (FCA), regulate QROPS. That would not be appropriate because the UK does not have jurisdiction over overseas pension schemes. HMRC’s primary role is to protect UK tax relief that have been given. HMRC can remove the QROPS status from pension schemes when it is not appropriate for the scheme to continue to be able to receive UK tax relieved pension savings. There are also no plans to introduce an investigation unit into QROPS or review the regulatory framework. In the UK individuals are free to transfer their pension savings but must get financial advice for larger amounts. The QROPS rules allow individuals to move abroad to live or work to take their pension savings with them. HMRC makes clear that individuals should seek suitable professional advice, including from a regulated financial adviser, when transferring pension savings to a QROPS. A transfer to a QROPS is covered by the requirement to take regulated financial advice if transferring more than £30,000 from a Defined Benefit scheme. Additionally, pension scheme administrators are responsible for carrying out due diligence on transfers to other pension schemes. They are also responsible for complying with the requirements of TPR and the FCA. HMRC, TPR and the FCA are part of the Pension Scams Action Group (PSAG) - a multi-agency taskforce of law enforcement, Government and industry working together to tackle pension fraud.

What discussions her Department has had with HMRC on the regulation and oversight of QROPS to ensure consumer protection.

A qualifying recognised overseas pension scheme (QROPS) is the name for any pension scheme located outside the UK which meets the criteria to receive transfers of UK tax relieved pension savings. Where the overseas pension scheme has broadly similar tax characteristics to a UK registered pension scheme. QROPS are pension schemes, not products. Although QROPS can receive UK tax relieved pension savings, this does not mean that the UK has a right to regulate pension schemes in other countries. However, those overseas schemes are required to be regulated by a pensions regulator in the overseas country where they are established in order for them to receive UK tax relieved pensions. HMRC does not impose restrictions on assets a QROPS can invest in that is for the overseas regulator. There are no plans to make HMRC, or the Pensions Regulator (TPR), or the Financial Conduct Authority (FCA), regulate QROPS. That would not be appropriate because the UK does not have jurisdiction over overseas pension schemes. HMRC’s primary role is to protect UK tax relief that have been given. HMRC can remove the QROPS status from pension schemes when it is not appropriate for the scheme to continue to be able to receive UK tax relieved pension savings. There are also no plans to introduce an investigation unit into QROPS or review the regulatory framework. In the UK individuals are free to transfer their pension savings but must get financial advice for larger amounts. The QROPS rules allow individuals to move abroad to live or work to take their pension savings with them. HMRC makes clear that individuals should seek suitable professional advice, including from a regulated financial adviser, when transferring pension savings to a QROPS. A transfer to a QROPS is covered by the requirement to take regulated financial advice if transferring more than £30,000 from a Defined Benefit scheme. Additionally, pension scheme administrators are responsible for carrying out due diligence on transfers to other pension schemes. They are also responsible for complying with the requirements of TPR and the FCA. HMRC, TPR and the FCA are part of the Pension Scams Action Group (PSAG) - a multi-agency taskforce of law enforcement, Government and industry working together to tackle pension fraud.

If she will establish a QROPS investigation unit to examine cases of pension fraud and regulatory failings.

A qualifying recognised overseas pension scheme (QROPS) is the name for any pension scheme located outside the UK which meets the criteria to receive transfers of UK tax relieved pension savings. Where the overseas pension scheme has broadly similar tax characteristics to a UK registered pension scheme. QROPS are pension schemes, not products. Although QROPS can receive UK tax relieved pension savings, this does not mean that the UK has a right to regulate pension schemes in other countries. However, those overseas schemes are required to be regulated by a pensions regulator in the overseas country where they are established in order for them to receive UK tax relieved pensions. HMRC does not impose restrictions on assets a QROPS can invest in that is for the overseas regulator. There are no plans to make HMRC, or the Pensions Regulator (TPR), or the Financial Conduct Authority (FCA), regulate QROPS. That would not be appropriate because the UK does not have jurisdiction over overseas pension schemes. HMRC’s primary role is to protect UK tax relief that have been given. HMRC can remove the QROPS status from pension schemes when it is not appropriate for the scheme to continue to be able to receive UK tax relieved pension savings. There are also no plans to introduce an investigation unit into QROPS or review the regulatory framework. In the UK individuals are free to transfer their pension savings but must get financial advice for larger amounts. The QROPS rules allow individuals to move abroad to live or work to take their pension savings with them. HMRC makes clear that individuals should seek suitable professional advice, including from a regulated financial adviser, when transferring pension savings to a QROPS. A transfer to a QROPS is covered by the requirement to take regulated financial advice if transferring more than £30,000 from a Defined Benefit scheme. Additionally, pension scheme administrators are responsible for carrying out due diligence on transfers to other pension schemes. They are also responsible for complying with the requirements of TPR and the FCA. HMRC, TPR and the FCA are part of the Pension Scams Action Group (PSAG) - a multi-agency taskforce of law enforcement, Government and industry working together to tackle pension fraud.