Written questions by Sabine.

What assessment she has made of the potential merits of extending Orchestra Tax Relief to include amateur and professional choirs that produce live, acoustic concerts on a non‑commercial basis.

Orchestra Tax Relief (OTR) provides tax relief on production costs and provided around £50 million of support in 2023-24. There is currently no other country in the world which offers similar relief to orchestras, and the aim is to recognise the artistic importance and cultural value of the sector. 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 for the purposes of the relief. However, orchestra concerts with a vocal element are not excluded. Concerts featuring a choir may be eligible provided that the instrumentalists remain the primary focus. These rules help ensure OTR fulfils its objective of supporting and incentivising orchestra concerts specifically. The Government is not currently considering extending the relief to choirs.

What assessment she has made of the potential impact of irrecoverable VAT on charities, Community Interest Companies and other not‑for‑profit providers delivering statutory social care services under contract to local authorities.

Supplies of care services are exempt from VAT if they are supplied by eligible bodies, such as public bodies or charities. No VAT is charged to the consumer of the service, nor can the supplier recover VAT incurred in the course of providing the service.Community interest companies (CICs) are not charities in law and must meet the criteria of being state-regulated in order to provide VAT-exempt care services. If CICs do not qualify for the VAT exemption, they charge VAT on the services they provide at the 20% standard rate.Under Section 33 of the VAT Act 1994, certain bodies, including local authorities are able to recover VAT incurred in the course of their non-business activities. Non-business activities are broadly activities which are not undertaken to generate income, such as the provision of statutory health and social care services. Further information can be found here: https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2022-vat-business-and-non-business-activities/vat-business-and-non-business-activitiesThe objective of the Section 33 refund scheme for local authorities is to prevent these bodies from needing to use local taxation to fund their VAT costs. Extending the scheme to include charities and community interest companies would not meet this objective.

For what reason performers are required to be instrumentalists to qualify for Orchestra Tax Relief.

Orchestra Tax Relief (OTR) provides tax relief on production costs and provided around £50 million of support in 2023-24. There is currently no other country in the world which offers similar relief to orchestras, and the aim is to recognise the artistic importance and cultural value of the sector. 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 for the purposes of the relief. However, orchestra concerts with a vocal element are not excluded. Concerts featuring a choir may be eligible provided that the instrumentalists remain the primary focus. These rules help ensure OTR fulfils its objective of supporting and incentivising orchestra concerts specifically. The Government is not currently considering extending the relief to choirs.

Whether she has considered extending Section 33 VAT recovery for charities and Community Interest Companies delivering statutory social care services on behalf of local authorities.

Supplies of care services are exempt from VAT if they are supplied by eligible bodies, such as public bodies or charities. No VAT is charged to the consumer of the service, nor can the supplier recover VAT incurred in the course of providing the service.Community interest companies (CICs) are not charities in law and must meet the criteria of being state-regulated in order to provide VAT-exempt care services. If CICs do not qualify for the VAT exemption, they charge VAT on the services they provide at the 20% standard rate.Under Section 33 of the VAT Act 1994, certain bodies, including local authorities are able to recover VAT incurred in the course of their non-business activities. Non-business activities are broadly activities which are not undertaken to generate income, such as the provision of statutory health and social care services. Further information can be found here: https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2022-vat-business-and-non-business-activities/vat-business-and-non-business-activitiesThe objective of the Section 33 refund scheme for local authorities is to prevent these bodies from needing to use local taxation to fund their VAT costs. Extending the scheme to include charities and community interest companies would not meet this objective.

What estimate she has made of public funding allocated to adult social care not spent on frontline social care services annually through irrecoverable VAT when services are delivered by charities and not‑for‑profit providers.

Supplies of care services are exempt from VAT if they are supplied by eligible bodies, such as public bodies or charities. No VAT is charged to the consumer of the service, nor can the supplier recover VAT incurred in the course of providing the service.Community interest companies (CICs) are not charities in law and must meet the criteria of being state-regulated in order to provide VAT-exempt care services. If CICs do not qualify for the VAT exemption, they charge VAT on the services they provide at the 20% standard rate.Under Section 33 of the VAT Act 1994, certain bodies, including local authorities are able to recover VAT incurred in the course of their non-business activities. Non-business activities are broadly activities which are not undertaken to generate income, such as the provision of statutory health and social care services. Further information can be found here: https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2022-vat-business-and-non-business-activities/vat-business-and-non-business-activitiesThe objective of the Section 33 refund scheme for local authorities is to prevent these bodies from needing to use local taxation to fund their VAT costs. Extending the scheme to include charities and community interest companies would not meet this objective.

For what reason local authorities are able to recover VAT under Section 33 of the VAT Act 1994 when equivalent social care services are delivered in‑house but not when those services are commissioned from charitable and not‑for‑profit providers.

Supplies of care services are exempt from VAT if they are supplied by eligible bodies, such as public bodies or charities. No VAT is charged to the consumer of the service, nor can the supplier recover VAT incurred in the course of providing the service.Community interest companies (CICs) are not charities in law and must meet the criteria of being state-regulated in order to provide VAT-exempt care services. If CICs do not qualify for the VAT exemption, they charge VAT on the services they provide at the 20% standard rate.Under Section 33 of the VAT Act 1994, certain bodies, including local authorities are able to recover VAT incurred in the course of their non-business activities. Non-business activities are broadly activities which are not undertaken to generate income, such as the provision of statutory health and social care services. Further information can be found here: https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2022-vat-business-and-non-business-activities/vat-business-and-non-business-activitiesThe objective of the Section 33 refund scheme for local authorities is to prevent these bodies from needing to use local taxation to fund their VAT costs. Extending the scheme to include charities and community interest companies would not meet this objective.

What steps her Department is taking to support banking hub customers who rely on cheque payments, in the context of Lloyds Banking group no longer allowing cheque deposits through Post Offices and banking hubs.

Banking is changing, with many customers benefiting from the convenience and flexibility of managing their finances remotely. However, the Government understands the importance of face-to-face banking services to communities and is committed to supporting sufficient access for customers across the country. 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. Banking hubs provide access to everyday counter services through Post Office staff, including cash withdrawals and deposits, balance enquiries and bill payments. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out other banking services. The range of services available through Post Office counters in banking hubs, including whether cheque deposits are accepted and processed, is determined by the commercial arrangements between individual banks and the Post Office. A significant number of retail banks continue to offer cheque depositing services through Post Office counters. Where cheque depositing is not available at a hub counter for particular banks, such as Lloyds Banking Group, customers continue to have alternative options to pay in cheques. These include paying in cheques at Lloyds Banking Group branches where available, or digitally via mobile banking apps using cheque imaging technology. In addition, customers unable to travel to a bank branch, or for whom digital banking is not suitable, may submit cheques by sending them in a stamped addressed envelope via any post box or by handing them in at their local Post Office for posting. Banks may also provide postal options for customers who are unable to travel to a branch or for whom digital banking is not suitable. Lloyds Banking Group provides a freepost address service for vulnerable customers who previously used a Post Office counter to deposit cheques, as well as for customers who have only deposited cheques through a Post Office or banking hub. The Government continues to engage with the banking industry to improve the consistency and functionality of services provided through banking hubs, including through recent discussions with banks, Cash Access UK and UK Finance.

What assessment she has made of the adequacy of HMRC’s procedures for granting exemptions from Making Tax Digital for taxpayers who are digitally excluded, including older individuals who do not use computers or mobile phones.

Whilst most taxpayers are able to use Making Tax Digital (MTD), some will be digitally excluded for a range of reasons which could include age, disability, health conditions, religious beliefs, or lack of internet access. HMRC has clear processes and a dedicated team in place to ensure requests for exemption from MTD requirements are considered in a consistent and fair way. Exemption procedures for MTD for income tax broadly mirror those which have been successfully applied in MTD for VAT cases since 2019. Taxpayers can apply for an exemption by phone or in writing, and authorised agents or family members may apply on their behalf. HMRC continually monitors service performance and capacity to ensure adequate resourcing and timely decisions.

What an accurate valuation method is for the business rates of grassroots music venues.

Please see the response to UIN 22711 here: https://questions-statements.parliament.uk/written-questions/detail/2025-01-08/22711

What assessment she has made of the potential implications for her Department’s policies of cases of fraud involving the Seventy Ninth Group.

On 28 February 2025, the City of London Police announced that it was investigating allegations of fraud in relation to the 79th Group. It is understood that the 79th Group offered investment opportunities involving loan notes that were marketed as being secured against properties. The investigation remains in progress.A number of entities in the 79th Group have been placed into administration. On 14 July 2025 the joint administrators published an update on the administration, which can be viewed on the Companies House website.

If she will make an assessment of the potential merits of introducing legislation to compel private creditors to participate in debt relief.

The UK, alongside the G20 and Paris Club, expects creditors, including private creditors, to participate in international debt restructurings on comparable terms.At this stage, the government is not pursuing a legislative approach that would force private or other lenders to participate in debt restructurings.Overall, we have seen evidence of private creditors’ willingness to engage and provide debt treatments where needed – though we continue to keep this under review.The government is focused on delivering a market-based (contractual) approach to private sector participation, including taking the lead in developing Majority Voting Provisions for private group lending, to bind the minority to the terms of a restructuring. These promote more efficient restructurings and reduce the ability for creditors to hold out.

Whether she has had discussions with the home insurance industry on recent trends in the cost of home insurance for homeowners with a mortgage.

Treasury Ministers and officials have regular meetings with a wide variety of organisations, including insurers and financial regulators, on an ongoing basis. The Government has not made an assessment. Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. This is usually informed by the insurer’s claims experience and other industry-wide statistics. However, the Government is committed to ensuring that insurers treat all customers fairly and insurance companies are required to do so under the Financial Conduct Authority’s (FCA) rules.The FCA is the independent body responsible for regulating and supervising the financial services industry. The FCA requires firms to ensure their products offer fair value. The FCA monitors firms to make sure they provide products that are fair value, and, where necessary, it will take action.

Whether she has made a comparable estimate of trends in the level of home insurance paid by homeowners with (a) mortgages and (b) no mortgages.

Treasury Ministers and officials have regular meetings with a wide variety of organisations, including insurers and financial regulators, on an ongoing basis. The Government has not made an assessment. Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. This is usually informed by the insurer’s claims experience and other industry-wide statistics. However, the Government is committed to ensuring that insurers treat all customers fairly and insurance companies are required to do so under the Financial Conduct Authority’s (FCA) rules.The FCA is the independent body responsible for regulating and supervising the financial services industry. The FCA requires firms to ensure their products offer fair value. The FCA monitors firms to make sure they provide products that are fair value, and, where necessary, it will take action.

If she will take steps to ensure that online retailers act on the requests of parents of deceased children regarding online (a) accounts and (b) payments.

In recent years banks and building societies have sought to make the bereavement process easier by increasing the amount they will release without needing a grant of probate. As such the threshold varies between different firms. The nominal threshold in legislation is to require probate to be obtained for estates above £5000 in value (The Administration of Estates (Small Payments) Act 1965), although in practice many financial institutions operate a threshold of £20,000. Banks also differ on issues such as whether they are willing to release funds for funeral and other essential expenses ahead of probate being granted. These are commercial decisions. Where a bank or building society offers Direct Debits, these are covered by the Direct Debit guarantee. Under the guarantee, the account holder is entitled to an immediate refund of any unauthorised amounts collected from their account provider. Details of the guarantee can be found here: https://www.directdebit.co.uk/direct-debit-guarantee/ The Government is also supportive of previous industry efforts to improve handling of these sensitive cases, including the Financial Services Death Notification Service developed by UK Finance. UK banks and building societies are regulated by the Financial Conduct Authority (FCA). The FCA does not have specific rules or guidance regarding probate in its rules. Nonetheless, banks are bound by the FCA’s Consumer Duty which requires firms to act to deliver good outcomes and avoid causing harm to customers. The FCA also provides guidance on firms providing fair treatment for vulnerable customers, which includes those going through a bereavement. If an executor is having a dispute with a bank, then they will be able to raise a formal complaint. The FCA’s rules require firms to properly investigate all complaints, and it continues to monitor firms’ complaint handling processes.The main current account providers also publish information about the additional services they offer all consumers, including information on the bereavement services they offer. More information can be found on the FCA website: https://www.fca.org.uk/data/mandated-voluntary-information-current-account-services/providers-links#voluntary

If she will take steps to ensure that parents of deceased children can (a) access and (b) stop (i) direct debits and (ii) standing orders.

In recent years banks and building societies have sought to make the bereavement process easier by increasing the amount they will release without needing a grant of probate. As such the threshold varies between different firms. The nominal threshold in legislation is to require probate to be obtained for estates above £5000 in value (The Administration of Estates (Small Payments) Act 1965), although in practice many financial institutions operate a threshold of £20,000. Banks also differ on issues such as whether they are willing to release funds for funeral and other essential expenses ahead of probate being granted. These are commercial decisions. Where a bank or building society offers Direct Debits, these are covered by the Direct Debit guarantee. Under the guarantee, the account holder is entitled to an immediate refund of any unauthorised amounts collected from their account provider. Details of the guarantee can be found here: https://www.directdebit.co.uk/direct-debit-guarantee/ The Government is also supportive of previous industry efforts to improve handling of these sensitive cases, including the Financial Services Death Notification Service developed by UK Finance. UK banks and building societies are regulated by the Financial Conduct Authority (FCA). The FCA does not have specific rules or guidance regarding probate in its rules. Nonetheless, banks are bound by the FCA’s Consumer Duty which requires firms to act to deliver good outcomes and avoid causing harm to customers. The FCA also provides guidance on firms providing fair treatment for vulnerable customers, which includes those going through a bereavement. If an executor is having a dispute with a bank, then they will be able to raise a formal complaint. The FCA’s rules require firms to properly investigate all complaints, and it continues to monitor firms’ complaint handling processes.The main current account providers also publish information about the additional services they offer all consumers, including information on the bereavement services they offer. More information can be found on the FCA website: https://www.fca.org.uk/data/mandated-voluntary-information-current-account-services/providers-links#voluntary

If she will take steps to ensure that parents of deceased children can access bank accounts without probate.

In recent years banks and building societies have sought to make the bereavement process easier by increasing the amount they will release without needing a grant of probate. As such the threshold varies between different firms. The nominal threshold in legislation is to require probate to be obtained for estates above £5000 in value (The Administration of Estates (Small Payments) Act 1965), although in practice many financial institutions operate a threshold of £20,000. Banks also differ on issues such as whether they are willing to release funds for funeral and other essential expenses ahead of probate being granted. These are commercial decisions. Where a bank or building society offers Direct Debits, these are covered by the Direct Debit guarantee. Under the guarantee, the account holder is entitled to an immediate refund of any unauthorised amounts collected from their account provider. Details of the guarantee can be found here: https://www.directdebit.co.uk/direct-debit-guarantee/ The Government is also supportive of previous industry efforts to improve handling of these sensitive cases, including the Financial Services Death Notification Service developed by UK Finance. UK banks and building societies are regulated by the Financial Conduct Authority (FCA). The FCA does not have specific rules or guidance regarding probate in its rules. Nonetheless, banks are bound by the FCA’s Consumer Duty which requires firms to act to deliver good outcomes and avoid causing harm to customers. The FCA also provides guidance on firms providing fair treatment for vulnerable customers, which includes those going through a bereavement. If an executor is having a dispute with a bank, then they will be able to raise a formal complaint. The FCA’s rules require firms to properly investigate all complaints, and it continues to monitor firms’ complaint handling processes.The main current account providers also publish information about the additional services they offer all consumers, including information on the bereavement services they offer. More information can be found on the FCA website: https://www.fca.org.uk/data/mandated-voluntary-information-current-account-services/providers-links#voluntary

What assessment she has made of the potential impact of taxing wine according to strength on wine (a) producers and (b) vendors.

At Autumn Budget, the Chancellor confirmed that the current temporary wine easement will end as planned from 1 February 2025. By this time, the wine industry will have had over two years to adapt to the strength-based alcohol duty system. The summary of impacts from the alcohol duty reforms announced at Spring Budget 2023, including the wine easement, can be found here: Alcohol Duty Reforms - GOV.UK HMRC plans to evaluate the impact of the new rates and structures three years after the changes took effect on 1 August 2023. The Government welcomes evidence from industry on the impact of the changes so far.

If she will make an assessment of the potential merits of putting a cap on insurance costs for small businesses.

Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. This is usually informed by the insurer’s claims experience and other industry-wide statistics. The Government does not usually intervene in these decisions by insurers, as this could damage competition in the market. The Government is committed to ensuring that insurers treat all customers fairly and insurance companies are required to do so under the Financial Conduct Authority’s (FCA) rules. The FCA is the independent body responsible for regulating and supervising the financial services industry. The FCA requires firms to ensure their products offer fair value. The FCA monitors firms to make sure they provide products that are fair value, and, where necessary, it will take action.

If she will make an assessment of the potential implications for her policies of trends in the cost of insurance.

Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. This is usually informed by the insurer’s claims experience and other industry-wide statistics. The Government does not usually intervene in these decisions by insurers, as this could damage competition in the market. The Government is committed to ensuring that insurers treat all customers fairly and insurance companies are required to do so under the Financial Conduct Authority’s (FCA) rules. The FCA is the independent body responsible for regulating and supervising the financial services industry. The FCA requires firms to ensure their products offer fair value. The FCA monitors firms to make sure they provide products that are fair value, and, where necessary, it will take action.