Written questions by Morgan.

What steps she is taking to ensure insurers (a) settle claims and (b) proceed litigation as (i) quickly and (ii) cheaply as possible.

The Financial Conduct Authority (FCA) is the independent body responsible for regulating and supervising the financial services industry, and sets the conduct standards required of insurance firms. Under FCA rules, insurers must handle claims fairly and promptly.

What assessment she has made of the adequacy of the progress of (a) NFU Mutual and (b) other insurance providers in implementing the recommendations of the Financial Conduct Authority outlined in its Dear CEOs letter dated 22 January 2021.

The Supreme Court published its final judgment in the Financial Conduct Authority’s (FCA) Business Interruption Insurance test case on 15 January 2021. At the time of the judgment, the FCA set out its expectation that insurers should communicate to all impacted policyholders what the judgment meant for their claim and should move quickly to resolve claims as determined by the judgment.It is important to note that the FCA court case did not cover all potential issues with business interruption policies but aimed to provide certainty to as many policyholders as possible.Under FCA rules, insurers must treat customers fairly. For example, the FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. The FCA has robust powers to take action against firms that do not comply with its rules.

Whether she plans to amend reforms to (a) agricultural property relief and (b) business property relief announced at the Autumn Budget 2024.

The Government believes that the 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.

Pursuant to the Answer of 12 June 2025 to Question 58290 on Banking Hubs: Market Towns, if her Department will commission an independent review of LINK’s access to cash assessment frameworks adequacy to serve rural areas.

The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups or face challenges using alternative payment methods. The Government also understands the importance of face-to-face banking to communities and high streets across the UK, including those in rural communities, and is committed to championing sufficient access for all as a priority. In September 2024, The Financial Conduct Authority (FCA), which is independent of Government, introduced regulatory rules for access to cash. The FCA’s rules require LINK to consider a range of factors in their assessments which will account for challenges in cash access faced by market towns. This includes travel times to nearby cash facilities and local population demographics, including the levels of vulnerability and the number of elderly people within the community. However, it is important to note that the FCA’s rules, and the LINK assessment criteria which it oversees, pertain only to access to cash, and the FCA has no power to require LINK to consider a community's access to banking needs. Any decision to change LINK’s independent assessment criteria to consider access to banking is a matter for LINK and the financial services sector.

Pursuant to the Answer of 12 June 2025 to Question 58290 on Banking Hubs: Market Towns, whether her Department plans to review LINK’s public transport travel time and cost criteria to account for the availability of public transport in rural areas.

The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups or face challenges using alternative payment methods. The Government also understands the importance of face-to-face banking to communities and high streets across the UK, including those in rural communities, and is committed to championing sufficient access for all as a priority. In September 2024, The Financial Conduct Authority (FCA), which is independent of Government, introduced regulatory rules for access to cash. The FCA’s rules require LINK to consider a range of factors in their assessments which will account for challenges in cash access faced by market towns. This includes travel times to nearby cash facilities and local population demographics, including the levels of vulnerability and the number of elderly people within the community. However, it is important to note that the FCA’s rules, and the LINK assessment criteria which it oversees, pertain only to access to cash, and the FCA has no power to require LINK to consider a community's access to banking needs. Any decision to change LINK’s independent assessment criteria to consider access to banking is a matter for LINK and the financial services sector.

Pursuant to the Answer of 12 June 2025 to Question 58290 on Banking Hubs: Market Towns, what steps is her Department taking to ensure LINK’s criteria sufficiently reflect the banking needs of (a) digitally excluded, (b) elderly and (c) disabled residents in rural areas.

The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups or face challenges using alternative payment methods. The Government also understands the importance of face-to-face banking to communities and high streets across the UK, including those in rural communities, and is committed to championing sufficient access for all as a priority. In September 2024, The Financial Conduct Authority (FCA), which is independent of Government, introduced regulatory rules for access to cash. The FCA’s rules require LINK to consider a range of factors in their assessments which will account for challenges in cash access faced by market towns. This includes travel times to nearby cash facilities and local population demographics, including the levels of vulnerability and the number of elderly people within the community. However, it is important to note that the FCA’s rules, and the LINK assessment criteria which it oversees, pertain only to access to cash, and the FCA has no power to require LINK to consider a community's access to banking needs. Any decision to change LINK’s independent assessment criteria to consider access to banking is a matter for LINK and the financial services sector.

Whether she has had discussions with the Secretary of State for Business and Trade on the impact of increased business rates on the viability of high street businesses in market towns.

We are creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century. 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, from 2026-27, we intend to introduce a higher rate on the most valuable properties – 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. Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier. When the new, permanently lower tax rates are set at Autumn Budget 2025, the Treasury intends to publish analysis of the effects of the new multiplier arrangements.

Pursuant to Answer of 4 March 2025 to Question 33135 on Agriculture and Business: Inheritance Tax, what the evidential basis is that the alternative clawback mechanism to the proposed changes to agricultural property relief and business property relief would raise much less revenue.

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. A “clawback” would mean inheritance tax would only be due if the relevant assets are sold within a specified time period after a death. Introducing this mechanism, as some have suggested, could mean some of the wealthiest estates pay less inheritance tax compared to the proposed reforms. The Government disagrees with suggestions that a clawback would raise the same revenue as the reforms being introduced from 6 April 2026; it would raise much less, which would mean raising taxes elsewhere or lowering public spending. It would also add complexity to the tax system and continue to attract the very wealthiest to tax plan since beneficiaries could hold onto the assets over the specified clawback period just to escape the tax. In accordance with standard practice, the Government does not publish internal modelling of alternative tax proposals that are not Government policy.

What assessment she has made of the adequacy of LINK’s banking hub criteria for market towns.

The Government understands the importance of face-to-face banking to communities and high streets in market towns and across the UK, and is committed to championing sufficient access for all as a priority. This is why 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 which will account for challenges in cash access faced by market towns. For example, firms are required to consider the actual travel times and costs to reach cash access facilities and identify gaps in provision where these are unreasonable, which may be particularly the case in rural areas. LINK also takes into account local population demographics and levels of vulnerability within the community. The criteria also assess whether there is likely to be seasonal demand for cash, which may be the case in certain market towns. These considerations help to ensure the specific needs of a community are assessed.Any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector. Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK.

What steps she is taking to reduce business rates for the owners and tenants of buildings containing market stalls.

Business rates are paid by the occupiers of commercial properties. In the event a property is unoccupied, the property owner is liable for the property’s business rates bill. To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for qualifying retail, hospitality, and leisure (RHL) properties, including those on the high street, from 2026-27. Eligibility for these new RHL multipliers will broadly mirror the scope of the existing RHL relief scheme. During the interim period, for 2025-26, RHL businesses will receive a 40 per cent relief on their business rates up to a cash cap of £110,000 per business.

Pursuant to Answer of 11 March 2025 to Question 35636 on Agriculture and Business: Inheritance Tax, if her Department will publish its modelling for an alternative clawback mechanism for agricultural property relief and business property relief.

The Office for Budget Responsibility only certifies costings for the Exchequer impact of the Government’s tax policies. In accordance with standard practice, the Government does not publish modelling of alternative tax proposals that are not Government policy.

Whether she plans to increase VAT to 20% for private hire passenger fares outside of London.

Private hire vehicle services provided by VAT-registered businesses are, and always have been, subject to the standard rate of VAT (20%). The Government is carefully considering the wide range of views shared through last year's consultation on the VAT Treatment of Private Hire Vehicles.