Written questions by Stafford.

What assessment she has made of the potential impact of her policies on levels of inflation.

The independent Office for Budget Responsibility (OBR) assessed the impact of Government policies on the level of inflation. While noting they expect inflation to remain close to the 2 per cent target throughout the forecast period, the OBR forecast a temporary rise in inflation, driven by gas and electricity prices and the direct effect of policies announced in the Budget. They conclude that, on average, just under half of the higher inflation in 2025 and 2026 is due to the impact of policies in Autumn Budget 2024. In March 2025 the OBR assessed that they expected the policies in the forecast to provide a very small boost to CPI inflation, increasing the price level by less than 0.1 per cent by the end of the forecast. The Bank of England has the responsibility of controlling inflation, and the Government fully supports them as they take action to sustainably return inflation to the 2% target.

What assessment her Department has made of the effectiveness of the Tax-Free Childcare scheme in reducing childcare costs for working families.

Tax-Free Childcare (TFC) has been designed with the specific policy aim of supporting parents to return to paid work or work more. For every £8 parents pay into their childcare account, the Government adds £2 up to a maximum of £2,000 in top up per year for each child up to age 11 and up to £4,000 per disabled child until they are 16.TFC covers a wide range of parents who may not be covered by other offers, and take-up has steadily increased since its introduction in 2017. During the 2024 to 2025 financial year, the government provided top-ups to approximately 826,000 families for 1,085,000 children, an increase of almost 100,000 families from the previous year.

For what reason HMRC applies import duties to mastectomy bras.

The UK’s tariff schedule, known as the UK Global Tariff (UKGT), adheres to global classification standards. Those classify mastectomy bras under a commodity code that covers a range of other textiles.We continue to monitor the UKGT to ensure our Most Favoured Nation tariff schedule functions as effectively as possible, supports domestic priorities, and provides a stable operating environment for businesses.Businesses are welcome to request the partial or full liberalisation of the import duty applied to the products under this commodity code, including mastectomy bras, either through the online feedback form or the next business suspensions window.

If she will make an assessment of the effectiveness of historical mortgage tax relief schemes in supporting access to home ownership.

The Government must ensure the tax system supports strong public finances whilst targeting support where it is most needed. Mortgage interest relief, which was a historical feature of the UK tax system that was abolished in 2000, benefitted lower income individuals less when compared to higher income groups or not at all. It also provides little support to tenants who rent as there is no guarantee that these relieved costs are passed on. The Government is supporting home ownership through other means. This includes launching a permanent, UK-wide mortgage guarantee scheme to ensure the consistent availability of mortgages for buyers with small deposits. We know that increasing housing supply is the long-term answer to making home ownership more accessible. The Government has already introduced ambitious reforms to the planning system, judged by the Office for Budget Responsibility (OBR) to boost housebuilding to its highest level in 40 years. Through Phase 2 of the Spending Review, the Government is going further to deliver on its Plan for Change commitment of building 1.5 million homes this parliament, including by catalysing additional private investment to further boost housebuilding by confirming £4.8bn in financial transactions from 2026/27 to 2029/30.

If she will meet with (a) the hon. Member for Farnham and Bordon and (b) farmers from that constituency to discuss reforms to (i) Agricultural Property Relief and (ii) Business Property Relief.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free. As the Minister responsible for the UK tax system, I have received representations on this subject from a number of Hon Members and I have participated in several debates in this House since Autumn Budget 2024. I have also met with Hon Members and several agricultural organisations to listen to their views. The Government has been listening to the different views on this subject and continues to believe the approach we have set out is appropriate.

What steps she is taking to ensure that banks apply case-by-case assessments to banking services for (a) crypto asset businesses and (b) their customers; and whether she plans to have discussions with (i) the industry and (ii) regulators on crypto-related banking practices.

The Government recognises that access to banking services is critical for operating a business, and is a matter of concern for certain sectors in particular such as the digital asset industry. The Government continues to engage with the banking sector and affected industries, as well as the regulator, to better understand the existing and emerging issues in this area. The Government also welcomes the Financial Conduct Authority’s (FCA) work to date on the factors leading banks to reject or close bank accounts. Where the FCA has found areas where firms need to improve customer outcomes, the Government expects firms to consider the FCA’s findings and act accordingly.

Whether she has made a recent assessment of the potential merits of increasing the Income Tax threshold for pensioners.

The Personal Allowance - the amount an individual can earn before paying tax - will continue to exceed the basic and full new State Pension this tax year. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax. The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. This Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds.

What assessment her Department has made of the effectiveness of recent legislative changes at enhancing private sector participation in sovereign debt relief for low-income countries; and whether she plans to introduce further initiatives to help ensure (a) timely and (b) equitable debt restructuring.

The government is not currently pursuing legislative changes to enhance private sector participation in debt restructurings for low-income countries. The UK, alongside the G20 and Paris Club, expects private creditors to participate in debt restructurings on comparable terms and we have seen private creditors’ willingness to engage and provide debt treatments where needed, including for Zambia and Ghana. We work closely with the private sector on several aspects of their participation in debt treatments – including to help ensure timely and comparable treatments – through bilateral meetings, engagement with representative institutions, and the Paris Club’s regular discussions with the private sector. The government is focused on enhancing a market-based approach to private sector participation – including through working to strengthen the contracts underpinning debt issuance, and to increase transparency. The Chancellor recently announced the launch of the London Coalition on Sustainable Sovereign Debt, which will promote the uptake of UK-led contractual innovations – namely, Climate Resilient Debt Clauses and Majority Voting Provisions – in private lending.

What steps her Department is taking to support to the victims of the Safe Hands Funeral Plan.

I refer the honorable member to my response to UIN 39592.

What discussions she has had with UK-based private lenders on debt cancellation for lower-income countries.

Supporting developing countries to tackle unsustainable debt is a key development priority of this government. The UK government is working closely with borrowers, official and private creditors, and the IMF and World Bank, to strengthen the wider debt architecture and provide timely and coordinated restructurings for countries where needed, to support holistic debt sustainability for low-income countries. The Paris Club, and now the G20 as part of its commitment to coordinate on debt treatments under the Common Framework, are clear on our collective expectation that private creditors must participate in restructurings on terms at least as favourable as those provided by sovereign creditors. In working with the private sector, the government has focussed on enhancing a market-based approach. This includes working with private sector creditors to strengthen contracts underpinning debt issuance to ensure private sector participation in debt restructuring, building on IMF evidence that suggests this approach is working well. Recognising the importance of the private sector in debt discussions and drawing on the expertise of the City of London, we have set up the London Coalition on Sustainable Sovereign Debt, which I will co-chair and which will consider non-bonded debt issues among others. The Coalition will leverage London’s role as a financial services hub by bringing together government and private sector stakeholders to drive solutions for more sustainable sovereign debt financing in developing economies.

What discussions she has had with the Secretary of State for Health and Social Care on the use of the Transformation Fund to reform palliative and end of life care services.

The Spending Review is underway and details will be announced on 11th June. As part of the Spring Statement, Government announced a £3.25bn Transformation Fund to drive efficiencies across government and save money later in the Parliament and set out how this would be allocated over the Spending Review process. Government is determined to make sure that everyone has access to high-quality end of life care. In December 2024 we announced a £100 million boost for adult and children’s hospices to ensure they have the best physical environment for care, and £26 million revenue to support children and young people’s hospices.

Whether she plans to review the (a) subsidies and (b) tax reliefs available to (i) Rosebank, (ii) Jackdaw and (iii) other new oil and gas developments.

The OBR’s most recent forecast of tax revenues from the oil and gas sector is available at the following link: https://obr.uk/efo/economic-and-fiscal-outlook-march-2025/. Similarly, where data is available, estimates of the cost of tax reliefs applicable to the oil and gas sector are at the following link: https://www.gov.uk/government/collections/tax-relief-statistics. This publication contains non-disclosive estimates of the number of claimants for each relief. The UK does not give any subsidies to fossil fuel companies in line with the International Energy Agency’s definition of a fossil fuel subsidy. A predictable and stable fiscal regime is essential to create the right conditions for investment and to protect jobs in the North Sea. On 5 March 2025, the government published a consultation https://www.gov.uk/government/consultations/oil-and-gas-price-mechanism-consultation setting out options for the design of a new permanent oil and gas price mechanism to respond to future oil and gas price shocks, which will replace the Energy Profits Levy (EPL) when that ends in 2030 or earlier if the EPL’s price floor is triggered.

What assessment she has made of the potential impact of increases in employers National Insurance Contributions on levels of employment.

The Office for Budget Responsibility published the Economic and Fiscal Outlook (EFO) in March 2025, which sets out a detailed forecast of the economy and public finances, including their forecast on levels of employment https://obr.uk/efo/economic-and-fiscal-outlook-march-2025/#:~:text=Real%20earnings%20grow%20by%201.4,%2D26%20to%202029%2D30.

If she will make an assessment of the potential merits of allowing people who have instructed solicitors and are in the process of completing property transactions to apply previous stamp duty rates.

In September 2022, the previous government announced a change to the level at which purchasers of residential property start paying Stamp Duty Land Tax (SDLT), from £125,000 to £250,000. This change was made temporary in November 2022, and the rate will revert to £125,000 on 1 April 2025. For first-time buyers, the nil-rate band is currently £425,000 and the purchase price limit for accessing the relief is currently £625,000. On 1 April 2025, after the rates revert, first time buyers will still benefit from paying no SDLT up to £300,000 and will be able to claim relief on purchases up to £500,000. Purchasers have had notice of these tax changes, as legislated for in the Stamp Duty Land Tax (Temporary Relief) Act 2023. In order to benefit from the temporary rates, purchasers will need to have completed on their purchase by 31 March 2025. The Government keeps all taxes under review as part of the usual tax policy making process.

What steps her Department is taking to ensure that business rates reform benefit pubs and breweries in every constituency.

From 2026-27, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including pubs and breweries, with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support. This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties on 2026-27 - those with Rateable Values of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants. The Government also published the ‘Transforming Business Rates’ Discussion Paper at Autumn Budget setting out priority areas for reform. This paper invites industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. Further information regarding the Discussion Paper can be found at: https://www.gov.uk/government/publications/transforming-business-rates.

What steps she plans to take to ensure the business rates system supports the sustainability of food and drink wholesalers.

To deliver our manifesto pledge, from 2026-27, we intend to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support. This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties on 2026-27 - those with a rateable value of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants. Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025 – to take effect in the 2026-27 billing year – HM Treasury intends to publish analysis of the effects of the new multiplier arrangements. The Government published the ‘Transforming Business Rates’ Discussion Paper at Budget setting out priority areas for reform. This paper invites industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. Further information regarding the Discussion Paper can be found at: https://www.gov.uk/government/publications/transforming-business-rates.

What estimate she has made of the potential impact of the higher multiplier on properties with RV of £500,000 and above on the food and drink wholesale sector.

To deliver our manifesto pledge, from 2026-27, we intend to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support. This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties on 2026-27 - those with a rateable value of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants. Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025 – to take effect in the 2026-27 billing year – HM Treasury intends to publish analysis of the effects of the new multiplier arrangements. The Government published the ‘Transforming Business Rates’ Discussion Paper at Budget setting out priority areas for reform. This paper invites industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. Further information regarding the Discussion Paper can be found at: https://www.gov.uk/government/publications/transforming-business-rates.

What steps she is taking to ensure that online companies such as (a) Temu and (b) Shein are paying their due and import taxes for sales of products in the United Kingdom.

The Government recognises the increasing popularity of overseas retailers. VAT is due on all imports of goods into the UK at the same rate as domestic transactions, meaning that overseas retailers contribute to the Exchequer. Imports valued below £135 can be imported into the UK without paying customs duty. Imports valued above £135 must pay the relevant duty. HMRC’s compliance strategy seeks to ensure that overseas retailers pay the tax and duty they are liable for and addresses all forms of non-compliance.

Whether she has had discussions with stakeholders on the potential merits of implementing thresholds for corporation tax as per personal taxation.

Companies already pay Corporation Tax in line with their profitability. The main rate of 25 per cent – which is the lowest in the G7 – applies to profits over £250,000. The small profits rate of 19 per cent applies to profits under £50,000. Marginal relief applies to profits between £50,000 and £250,000 so that the tax rate increases gradually from 19% to 25%.

What steps she is taking to reduce the difference between the minimum wage and the State Pension.

The National Living Wage (NLW) and the National Minimum Wage (NMW) are the legal wage floors that employers must follow. The NLW rate is the minimum hourly wage for eligible workers aged 21 and over and the NMW is minimum hourly wage for eligible workers aged 18-20 years old. Each year the Low Pay Commission produces recommendations for the Government on the NLW/NMW rates that aim to protect the lowest paid earners in the economy. The State Pension is the foundation of state support for older people. To ensure financial security in later life, individuals are expected to save for their retirement. The Government is committed to ensuring that older people are able to live with the dignity and respect they deserve, which is why it committed to Triple Lock the basic and new State Pension for the duration of this parliament and provides generous pensions tax relief to enable savings. Over the course of this Parliament, the yearly amount of the full new State Pension is currently forecast to go up by around £1,900, based on the Office for Budget Responsibility’s latest forecast.