Written questions by Anderson.

What steps she is taking to ensure that the Office for Investment: Financial Services engages systematically with (a) devolved Administrations and (b) regional investment bodies.

The Office for Investment: Financial Services is a public-private partnership between HM Treasury, the Office for Investment, the financial services regulators, and the City of London Corporation, working together to attract the world’s best financial services businesses to the UK. It was announced as part of the Financial Services Growth and Competitiveness Strategy, published at Mansion House in July 2025. The government is committed to effective monitoring and evaluation of the Financial Services Growth and Competitiveness Strategy - including the Office for Investment: Financial Services - with clear indicators laid out in the Strategy focused on how growing the financial sector will support growth and investment across the UK. The Financial Conduct Authority and the Prudential Regulation Authority are required by legislation to coordinate on a number of matters, for example to consult each other where there are matters of common regulatory interest where the other regulator may be expected to have relevant information or relevant expertise. The financial services regulators therefore have a close working relationship which will support the operations of the Office for Investment: Financial Services. The Office for Investment: Financial Services will proactively promote all UK nations and regions as investment destinations for the world’s most innovative, fast-growing and highest quality financial institutions. To achieve this, it will work closely with the devolved administrations and regional investment bodies.

What steps her Department is taking to align the implementation of Overseas Recognition Regimes with the UK's financial services trade objectives in Asia-Pacific markets.

At Mansion House, HM Treasury published revised guidance on the UK’s approach to the unilateral recognition of overseas jurisdictions’ regulation of financial services, known as Overseas Recognition Regimes (ORRs). ORRs will replace the ‘equivalence’ regimes inherited from the EU after EU exit, which were repealed by FSMA 2023. As the government progresses its programme of work to replace the existing equivalence regimes with ORRs, it is the intention to maintain all the existing decisions, including decisions in Asia-Pacific markets.As set out in the guidance document, the government’s approach to new ORR designations will be aligned with the UK’s wider objectives. Consideration of an overseas jurisdiction for a new designation under an ORR is initiated by HM Treasury, although overseas jurisdictions are welcome to indicate an interest to HM Treasury in being assessed, and these will be considered on a case-by-case basis.

What assessment she has made of the adequacy of the regulatory co-ordination mechanisms in place between the Financial Conduct Authority and the Prudential Regulation Authority to support the operations of the Office for Investment: Financial Services.

The Office for Investment: Financial Services is a public-private partnership between HM Treasury, the Office for Investment, the financial services regulators, and the City of London Corporation, working together to attract the world’s best financial services businesses to the UK. It was announced as part of the Financial Services Growth and Competitiveness Strategy, published at Mansion House in July 2025. The government is committed to effective monitoring and evaluation of the Financial Services Growth and Competitiveness Strategy - including the Office for Investment: Financial Services - with clear indicators laid out in the Strategy focused on how growing the financial sector will support growth and investment across the UK. The Financial Conduct Authority and the Prudential Regulation Authority are required by legislation to coordinate on a number of matters, for example to consult each other where there are matters of common regulatory interest where the other regulator may be expected to have relevant information or relevant expertise. The financial services regulators therefore have a close working relationship which will support the operations of the Office for Investment: Financial Services. The Office for Investment: Financial Services will proactively promote all UK nations and regions as investment destinations for the world’s most innovative, fast-growing and highest quality financial institutions. To achieve this, it will work closely with the devolved administrations and regional investment bodies.

What recent comparative assessment her Department has made of the potential impact of VAT differentials on the competitiveness of hospitality businesses in (a) Buckingham and Bletchley constituency and (b) their European counterparts.

The Government recognises the significant contribution made by hospitality and tourism businesses to economic growth and social life in the UK. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. The UK’s VAT rate of 20 per cent is close to the OECD average of 19.3 per cent. The UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD, at £90,000. This keeps the majority of businesses out of the VAT regime altogether.

What estimate her Department has made of the number of small businesses in (a) the UK and (b) Buckingham and Bletchley constituency that operate below the VAT registration threshold.

a) The total number of businesses in 2024 is estimated at 5.6 million (see Business population estimates 2024 - GOV.UK, detailed table 2). According to HMRC statistics, there were around 1.3 million business registered for VAT with turnover above the threshold in 2023-34 (see Value Added Tax (VAT) annual statistics - GOV.UK, Table T5). Thus the number of businesses with turnover below the threshold would be approximately the remainder of the 5.6 million, or 4.3 million. It should be noted that some businesses with turnover below the threshold are voluntarily registered for VAT; there were around 0.9 million such businesses in 2023-24. b) No estimate has been made of the number of small businesses operating below the VAT registration threshold at the constituency level. Any estimate would be above cost grounds.

What plans she has to measure the effectiveness of the Listings Taskforce in increasing the number of UK and international firms listing on UK markets.

The UK’s capital markets are deep and strong, delivering for firms and investors, and supporting firms to start, scale, list and stay here. At Mansion House, the government published its Financial Services Growth and Competitiveness Strategy. This document sets out the government’s ten-year plan for the UK to be the world’s centre of choice for financial services investment now and in 2035, with capital markets as a core pillar of the strategy.

What steps her Department is taking to ensure compliance with employment and tax regulations among cash-based businesses operating on the high street.

HMRC is committed to ensuring that the tax system operates fairly and efficiently and creates a level playing field for all compliant businesses. Most businesses pay what they owe, but a minority fail to register or only declare a portion of their earnings for tax. This minority deprives our vital public services of funding, affects fair competition between businesses and places unfair burdens on everyone else. The Government’s position is that cash is a legitimate means of paying for goods and services and continues to be used by many people across the UK. However, regardless of the type of payments a business receives, it is their responsibility to ensure they meet their tax obligations, including registering for and paying the right taxes. HMRC are making it increasingly difficult for businesses to hide their income by using improved targeting with new data sources and risking technology, greater access to third party data and through focused compliance activity, working with other Government agencies and law enforcement.

What assessment she has made of the barriers faced by UK-domiciled high-growth firms seeking to transition from private to public capital markets.

The UK’s capital markets are deep and strong, delivering for firms and investors, and supporting firms to start, scale, list and stay here. At Mansion House, the government published its Financial Services Growth and Competitiveness Strategy. This document sets out the government’s ten-year plan for the UK to be the world’s centre of choice for financial services investment now and in 2035, with capital markets as a core pillar of the strategy.

What assessment she has made of the potential impact of Benchmarks Regulation reform on (a) market confidence and (b) cross-border data interoperability.

The UK’s capital markets are deep and strong, delivering for firms and investors, and supporting firms to start, scale, list and stay here. At Mansion House, the government published its Financial Services Growth and Competitiveness Strategy. This document sets out the government’s ten-year plan for the UK to be the world’s centre of choice for financial services investment now and in 2035, with capital markets as a core pillar of the strategy.

How the effectiveness of the Private Intermittent Securities and Capital Exchange System will be assessed in supporting firms to raise pre-IPO capital.

The UK’s capital markets are deep and strong, delivering for firms and investors, and supporting firms to start, scale, list and stay here. At Mansion House, the government published its Financial Services Growth and Competitiveness Strategy. This document sets out the government’s ten-year plan for the UK to be the world’s centre of choice for financial services investment now and in 2035, with capital markets as a core pillar of the strategy.

Whether her Department has made an assessment of the adequacy of VAT treatment rules in the digital advertising market for UK-based small businesses.

UK VAT is charged on the domestic and cross-border supply of digital advertising services to UK businesses. The Government keeps the application and adequacy of the UK’s VAT regime under regular review.

Whether she has considered the potential merits of mandating the Listings Taskforce to consider sector-specific listing challenges for those priority areas identified in the Industrial Strategy.

The government is taking forward an ambitious programme of reforms to reinvigorate capital markets and ensure the UK is the best place for all firms to start, scale and list. As the Chancellor announced at Mansion House on 15 July, the government will establish a Listings Taskforce to support businesses to list and grow in the UK. HM Treasury will work in partnership with the Office for Investment, and industry, to ensure the UK attracts the best and brightest businesses from around the world, and right here in the UK, to list on UK markets.

What discussions she has had with institutional investors on the barriers to scaling transition finance in priority sectors of the UK economy.

The government is prioritising the growth of the transition finance market to seize the opportunities for UK financial services firms and support decarbonisation. The Transition Finance Market Review (TFMR) identified a number of barriers to scaling transition finance, including unlocking defined contribution pension investment in the transition. Building on the TFMR, the government set out the actions it has taken to promote the growth of this market in the Financial Services Growth and Competitiveness Strategy. This included reforms to unlock institutional investment in transition assets following the Pensions Investment Review. The government also launched the National Wealth Fund with additional capital, risk appetite and resources to proactively explore blended finance solutions. The government is actively engaged with the Transition Finance Council, which the Chancellor co-launched with the City of London Corporation in November 2024. The Council brings together key stakeholders to discuss transition finance, including institutional investors. The government is also supportive of the Financial Conduct Authority’s work, in partnership with the Prudential Regulation Authority and the Green Finance Institute, to spearhead a transition finance pilot – an innovative way to engage with the market on practical matters relating to scaling transition finance.

What assessment she has made of the potential impact of the UK Sustainability Disclosure Standards on the development of international sustainability reporting frameworks.

The government was a strong supporter of the establishment and development of the International Sustainability Standards Board (ISSB) as a global standard setter for sustainability reporting at COP26 to drive international alignment. The ISSB published international standards on sustainability disclosures in 2023, known as S1 and S2. On 25th June 2025, the government published its consultation on the draft UK-endorsed standards, which will be known as UK Sustainability Reporting Standards (UK SRS) and are based on the ISSB standards. These standards aim to support long-term, sustainable decision-making by the business and investment community by providing high-quality and comparable information about the sustainability-related risks and opportunities that businesses face. Greater use of these standards internationally will reduce the costs to businesses of reporting on sustainability matters in multiple jurisdictions and maximise the consistency of information for investors, allowing them to deploy their funding to maximum effect and support economic growth.

What plans she has to evaluate the effectiveness of the Sustainable Finance Education Charter in building domestic capacity to develop transition-aligned financial products.

The Sustainable Finance Education Charter (the Charter) is a partnership between the government, the Green Finance Institute and thirteen leading global professional bodies, who consider how best to embed skill requirements for sustainability into their professional qualifications. The Charter group meet regularly and independently of government to better ensure that finance professionals are equipped to assess climate-related and wider environmental and social sustainability risks and apply their professional skills and judgements to innovate and address these. The Charter signatories respond to the needs of the industry, and this includes the increasing importance of transition finance. One of the recommendations from the Transition Finance Market Review (TFMR) called on bodies from the Charter to produce a forward-looking plan for the development of transition plan assurance skills and methodologies. The Charter’s 2024 progress report sets out the details of how they are meeting this recommendation.

What assessment she has made of the regulatory impact of integrating nature-related financial risks into mandatory financial disclosure requirements.

The government welcomes the continued progress on developing sustainability standards by the International Sustainability Standards Board (ISSB), and welcomes the ISSB’s ongoing research on biodiversity, ecosystems and ecosystem services. On 25th June 2025, the government published its consultation on the draft UK-endorsed standards, which will be known as UK Sustainability Reporting Standards (UK SRS) and are based on the ISSB standards. The UK government is supportive of companies building their capacity on nature through the UK Consultation Group of the Taskforce on Nature-related Financial Disclosures (TNFD).

What plans she has to evaluate the impact of sustainable finance policies on the distribution of capital flows across UK regions.

As outlined in the Financial Services Growth & Competitiveness Strategy, the government is taking steps to maintain the UK’s international leadership in sustainable finance. While the government has not made a specific evaluation on the impact of sustainable finance policies on the distribution of capital flows across UK regions, we expect our approach to sustainable finance to increase capital flows in the UK and maintain our position as the leading sustainable finance hub. As set out in the Clean Energies Sector Plan, the government is committed to spreading investment in clean energy in clusters across the UK's nations and regions. In October 2024, the Chancellor also launched the National Wealth Fund (NWF) with £27.8 billion of capital to catalyse and mobilise additional private investment across the UK. The NWF is uniquely positioned to support regional and local strategies with commercial and financial advisory and lending support throughout the investment cycle to deliver on local priorities, supporting them with early-stage project development.

What discussions she has had with (a) the Financial Policy Committee and (b) Prudential Regulation Committee on their roles in ensuring macro-financial stability during the transition to a nature-positive economy.

The Government is committed to integrating nature into economic and financial decision-making. The Financial Policy Committee’s latest remit, as set out by the Chancellor in November 2024, sets out that the Committee should continue to consider the materiality of nature-related financial risks in relation to its primary objective of protecting and enhancing financial stability. The remits for the Financial Policy Committee 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. The Chancellor and the Governor of the Bank of England meet regularly to discuss the outlook for UK financial stability.

What steps she is taking to align the National Wealth Fund’s investment mandate with emerging international definitions of transition finance.

The National Wealth Fund is represented on the Strategic Steering Group of the Transition Finance Council which is considering how to build the UK’s transition finance market, including guidelines for credible transition finance. In the Statement of Strategic Priorities issued to the National Wealth Fund on 19 March 2025, the Chancellor set Growth and Clean Energy as key priorities. Blended finance solutions are being explored alongside the NWF’s standard financial instruments to effectively use public capital to crowd in private investment and support the transition to a low carbon economy.

Whether her Department has set a timetable for evaluating the compatibility of digital gilt infrastructure with international bond trading platforms.

At Mansion House the government set out an update on the DIGIT pilot, outlining a range of ambitious design features the government intends to take forward and encourage as a part of the DIGIT pilot. These design features include testing on-chain settlement, supporting interoperability, delivering greater transparency, and working with the sector to encourage the future development of secondary markets and solutions to enable collateral mobility. These features reflect feedback from stakeholders, including across the financial services sector, received as part of the government’s market engagement exercise that closed in April 2025. The government is committed to ongoing work with the sector to ensure the success of the DIGIT pilot both in terms of the issuance itself and its wider impact. The priority at this stage is delivering the pilot and no decisions have been made on further issuances. As the government has set out previously, the pilot DIGIT issuance will be separate from our standard debt issuance programme.