Written questions by Hayes.

If her Department will take (a) fiscal and (b) legislative steps to help prevent repeat offenders in the illicit tobacco market operating through high street retailers.

HMRC has a robust strategy to tackle the illicit tobacco trade. In July 2023, HMRC introduced a strengthened sanctions regime for breaches of the UK Tobacco Track and Trace System to combat illicit tobacco sales, particularly targeting repeat offenders operating through high street retailers. Powers introduced under the Finance Act 2022 enable HMRC to apply an escalating sanctions model based on both the frequency and severity of offences. Penalties include fines of up to £10,000, seizure of illicit products, and exclusion from the UK Tobacco Track and Trace system. New powers were also given to Trading Standards to make referrals to HMRC where they find evidence of high street retailers selling tobacco products that do not comply with the UK Tobacco Track and Trace System. HMRC is then able to apply the sanctions model as appropriate to tackle the non-compliance.

What assessment she has made of the potential impact of tobacco excise duty policy on the size of the illicit tobacco market.

Tobacco duty aims to both raise revenue and reduce harm to public health by discouraging smoking. In 2024/25 tobacco duty raised almost £8 billion. High duty rates, making tobacco less affordable, have helped reduce smoking prevalence with the percentage of adult smokers in the UK decreasing from 26% in 2000 to 11.9% in 2024. Strong enforcement is essential in tackling the illicit tobacco market. HM Revenue and Customs and Border Force have had illicit tobacco strategies in place since 2000. Whilst tobacco duty has been progressively increased over time, successive illicit tobacco strategies have proven effective in tackling the size of the illicit tobacco market, reducing the tobacco duty tax gap from 21.7% in 2005/6 to 13.8% in 2023/24.

How much the Government Internal Audit Agency has spent on equipment to enable staff to work from home in each of the last three years.

Government Internal Audit Agency (GIAA) staff are provided with IT equipment to enable them to work across multiple locations. This is a managed service provided by HM Treasury, who manage this contract on behalf of GIAA. GIAA staff can request “Work from home IT kits” (e.g., screens, headsets, keyboards, and mice) through HM Treasury. GIAA does not hold information on the expenditure for these requests, and HM Treasury does not disaggregate their information on total IT spend to identify spend on GIAA staff requests. The total spend for HM Treasury Group on these work from home IT kits is noted in HM Treasury’s response to PQ 63519 GIAA provides additional IT equipment outside the managed service to support hybrid or home working, such as to support reasonable adjustments. Details of GIAA’s recorded IT expenditure for this purpose are listed below 2022-23: £10,105 2023-24: £2,474 2024-25: £1,779

How much the UK Debt Management Office has spent on equipment to enable staff to work from home in each of the last three years.

The Debt Management Office (DMO) is an office-based organisation with a solely UK presence. In line with Cabinet Office policy, the DMO expects a 60% minimum office attendance for most staff which continues to be the best balance of working for the Civil Service. The table below shows the DMO’s spending on home working equipment for each of the three previous financial years. The higher spend in 2022-23 and 2024-25 was for updated equipment to enable essential software upgrades (87% and 97% respectively of the total spend). YearSpend2022-23£25,0002023-24£4,0002024-25£49,000

How much the Government Actuary’s Department has spent on equipment to enable staff to work from home in each of the last three years.

The Government Actuary’s Department (GAD) is an office (or workplace) based organisation with a solely UK presence. In line with Cabinet Office policy, GAD expects a 60% minimum office attendance for all staff. To enable hybrid working and to meet requirements for workplace adjustments (DSE), GAD has spent: 2021/222022/232023/24Hybrid working Equipment£6,748.90£5,093.56£7,148.37DSE Equipment£0.00£30.05£677.81Total spend£6,748.90£5,123.61£7,826.18 GAD has no home working contracts in place.

How much the National Infrastructure Commission has spent on equipment to enable staff to work from home in each of the last three years.

As equipment costs to enable working from home were processed as expenses, and are approved on an individual basis, the information is not readily available and providing it would incur a disproportionate cost to the organization.

How much her Department spent on equipment for civil servants to work from home in each of the last three years.

HMT only has the ability to track and report the following totals for each of the last 3 financial years on WFH IT kits (screens, headsets, keyboard and mouse); (i) 2024/25 - £ 218,486(ii) 2023/24 - £ 87,024(iii) 2022/23 - £ 36,222 The 24/25 WFH kits shown above were a value for money expenditure where kits were bought in bulk to reduce expenditure in future years. No further purchases have been made in the current financial year.

What recent assessment has she made of the potential merits of increasing the level of taxation on social media firms.

The UK is already levying the Digital Services Tax (DST), a 2 per cent tax to ensure that providers of search engines, social media platforms, and online marketplaces pay UK tax on digital services that reflects the value they derive from UK users. The DST is an interim solution to widely held concerns with international corporate tax, and the UK remains committed to remove it once a global solution on the taxation of the digital economy through Pillar 1 of the G20-OECD Inclusive Framework project is in place.

If she will meet with private sector cash machine operator Link to discuss additional face to face banking services for rural areas.

Banking has changed significantly in recent years with many customers benefitting from the ease and convenience of digital banking. The Government understands the importance of face-to-face banking to communities and high streets 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 220 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, and 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 designated firms to consider a range of factors in their assessments which will account for challenges in cash access faced in rural areas. 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.Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector. The Government works closely with the FCA, the independent regulator of the UK’s financial services sector, to ensure that all customers get the right support with their financial products and services. The FCA requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers, including the elderly and disabled customers. Furthermore, under the Equality Act 2010, banks must make reasonable adjustments to ensure their services are accessible to all. 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 ensure that partially sighted people in rural areas have access to face to face banking services.

Banking has changed significantly in recent years with many customers benefitting from the ease and convenience of digital banking. The Government understands the importance of face-to-face banking to communities and high streets 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 220 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, and 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 designated firms to consider a range of factors in their assessments which will account for challenges in cash access faced in rural areas. 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.Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector. The Government works closely with the FCA, the independent regulator of the UK’s financial services sector, to ensure that all customers get the right support with their financial products and services. The FCA requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers, including the elderly and disabled customers. Furthermore, under the Equality Act 2010, banks must make reasonable adjustments to ensure their services are accessible to all. 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 fiscal steps her Department is taking to support pensioners with the cost of living in South Holland and the Deepings constituency.

This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement. On 9 June the Government announced that, from this winter 2025-26, Winter Fuel Payment eligibility will be expanded in England and Wales. Pensioners with incomes below or equal to £35,000 will benefit from a Winter Fuel Payment. This will mean that the vast majority of pensioners over three quarters, or 9 million—will benefit from a Winter Fuel Payment. This change ensures that the means-testing of winter fuel payments has no effect on pensioner poverty. Through our commitment to protect the Triple Lock around 26,000 pensioners in South Holland and the Deepings constituency benefitted from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast. Support available beyond the State Pension includes: free eye tests; NHS prescriptions; and free bus passes. Some pensioners may also qualify for means tested benefits including Pension Credit and Housing Benefit.

How the Infrastructure Strategy will support infrastructure enhancements in Lincolnshire.

The 10 Year Infrastructure Strategy will reduce uncertainty by bringing together a long-term plan for the social, economic and housing infrastructure across the UKAlongside considering the UK’s economic and social infrastructure needs, the strategy will set out how we are reforming institutions and changing the way we make decisions and deliver infrastructure, maximising the benefits of our strong fiscal and spending frameworks, breaking down regulatory and planning barriers, and resetting our relationship with the private sector.

If she will take steps to delay the implementation of changes to Inheritance Tax for farmers by 12 months.

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.These reforms were announced in October 2024 and will take effect in April 2026.

What steps she is taking to increase the number of apprenticeship starts in her Department.

As of January 2025, 6.9% of staff in the department are currently on an apprenticeship, which is above our target of 5%. To maintain and build on this, we continue to take the following steps: All Administrative Officer (AO) and Executive Officer (EO) recruitment is considered for a Level 4 Business Administration apprenticeship, ensuring that new entrants have the opportunity to develop their skills through apprenticeship routes.We participate annually in the Government Economic Service Degree Apprenticeship Programme (GESDAP) and actively advertise this opportunity across the department to encourage uptake.We continue to offer a wide variety of apprenticeships in areas such as finance, management, and data science, ensuring a broad range of opportunities for staff to develop their skills and progress their careers.Subject to a new approach to Apprenticeships which we anticipate from Skills England, we plan to review our current offering to focus on how we use a range of Apprenticeships to attract candidates and develop the skills of the future. Through these measures, the department remains committed to supporting staff development and increasing apprenticeship opportunities.

What estimate she has made of the potential saving to the Exchequer of moving to a two-tier system for reserve renumeration.

The Chancellor regularly meets with the Governor of the Bank of England to discuss matters relating to economy and the Bank’s progress towards meeting its price stability targets. The government continues to support the Bank’s independence to carry out its statutory responsibilities for monetary policy and financial stability, and there are no plans to change the way reserves are remunerated at the Bank of England. The government is providing the stability required for the MPC to bring interest rates down, by managing the public finances responsibly.

Whether she has had recent discussions with the Governor of the Bank of England on moving to a two-tier system for reserve remuneration.

The Chancellor regularly meets with the Governor of the Bank of England to discuss matters relating to economy and the Bank’s progress towards meeting its price stability targets. The government continues to support the Bank’s independence to carry out its statutory responsibilities for monetary policy and financial stability, and there are no plans to change the way reserves are remunerated at the Bank of England. The government is providing the stability required for the MPC to bring interest rates down, by managing the public finances responsibly.

If she will make an assessment of the potential merits of establishing an illicit tobacco taskforce.

In the illicit tobacco strategy titled ‘Stubbing out the problem’, the Government committed to establishing a multi-agency illicit tobacco taskforce to co-ordinate enforcement activity, involving staff from HMRC, Border Force and Trading Standards and working closely with other law enforcement and intelligence partners.This team is now in place and contributing to efforts to tackle illicit tobacco across all relevant departments.

What estimate her Department has made of the number of people who will be exempt from National Insurance contributions under the UK-India trade agreement.

The OBR will certify the impact of the trade deal including the Double Contributions Convention in the usual way at a fiscal event, once the deal is finalised and ratified. The agreement to negotiate a Double Contributions Convention was made in the context of the wider deal, which will bring billions into the economy.

What estimate her Department has made of the cost to the public purse of providing an exemption from National Insurance contributions for Indian nationals through the UK-India trade agreement.

The OBR will certify the impact of the trade deal including the Double Contributions Convention in the usual way at a fiscal event, once the deal is finalised and ratified. The agreement to negotiate a Double Contributions Convention was made in the context of the wider deal, which will bring billions into the economy.

With reference to the Supreme Court judgement in the case of For Women Scotland v The Scottish Ministers of 16 April 2025, whether her Department plans to amend its policy on the use of women-only spaces in its buildings by transgender women.

HM Treasury is working with Government People Group in the Cabinet Office to understand the revised model policies and will implement required changes accordingly.