Written questions by McDonnell.

Whether HMRC may discontinue the use of the Managed Service Provider model beyond the initial proof of value trial.

HMRC is using Managed Service Providers (MSP) as part of a balanced approach to help it manage peaks and troughs more effectively, drawing on practices already used across other Government Departments (OGDs). This will allow its permanent colleagues to focus their expertise where it’s most needed. HMRC know customers still need timely support while services continue to digitise, and the current 18‑month Proof of Value phase is providing HMRC with opportunities to learn from this approach, giving it more flexibility to improve the service it gives customers, and at good value for the taxpayer. HMRC is working jointly with the PCS trade union on an evaluation of the MSP service. The evaluation considers service quality, customer outcomes, productivity and value for money, and will inform future decisions. No outcome is pre‑determined while the evaluation is ongoing. HMRC’s evaluation will help them determine how they use MSPs to better serve customers. Any decision will be taken through normal business planning and Spending Review processes, taking account of evaluation findings, affordability and operational need. This is not about replacing HMRC colleagues – no one will be made redundant as a result of this initiative and HMRC headcount is forecast to increase by the end of the Spending Review 2025 period. The current staff provided by MSPs represent additional capacity for 2025/26 and into 2026/27. HMRC faces highly variable demand throughout the year - this is about giving HMRC more flexibility to improve the service it gives customers. This complements its permanent workforce and enables it to scale capacity up and down as needed. Due to the design of the contract, costs can only be confirmed retrospectively. Comparisons with permanent recruitment and surge staffing currently indicate MSP costs are comparable or better, based on expected outcomes. Overall the projected cost for 12 months was approximately £23m of resourcing spend.

If she will set out the range of possible outcomes of HMRC’s joint evaluation with PCS of the pilot of the Managed Service Provider within the Customer Services Group.

HMRC is using Managed Service Providers (MSP) as part of a balanced approach to help it manage peaks and troughs more effectively, drawing on practices already used across other Government Departments (OGDs). This will allow its permanent colleagues to focus their expertise where it’s most needed. HMRC know customers still need timely support while services continue to digitise, and the current 18‑month Proof of Value phase is providing HMRC with opportunities to learn from this approach, giving it more flexibility to improve the service it gives customers, and at good value for the taxpayer. HMRC is working jointly with the PCS trade union on an evaluation of the MSP service. The evaluation considers service quality, customer outcomes, productivity and value for money, and will inform future decisions. No outcome is pre‑determined while the evaluation is ongoing. HMRC’s evaluation will help them determine how they use MSPs to better serve customers. Any decision will be taken through normal business planning and Spending Review processes, taking account of evaluation findings, affordability and operational need. This is not about replacing HMRC colleagues – no one will be made redundant as a result of this initiative and HMRC headcount is forecast to increase by the end of the Spending Review 2025 period. The current staff provided by MSPs represent additional capacity for 2025/26 and into 2026/27. HMRC faces highly variable demand throughout the year - this is about giving HMRC more flexibility to improve the service it gives customers. This complements its permanent workforce and enables it to scale capacity up and down as needed. Due to the design of the contract, costs can only be confirmed retrospectively. Comparisons with permanent recruitment and surge staffing currently indicate MSP costs are comparable or better, based on expected outcomes. Overall the projected cost for 12 months was approximately £23m of resourcing spend.

Whether HMRC has made a comparative assessment of the cost of alternative models based on permanent civil service staffing with external Managed Service Provider provision.

HMRC is using Managed Service Providers (MSP) as part of a balanced approach to help it manage peaks and troughs more effectively, drawing on practices already used across other Government Departments (OGDs). This will allow its permanent colleagues to focus their expertise where it’s most needed. HMRC know customers still need timely support while services continue to digitise, and the current 18‑month Proof of Value phase is providing HMRC with opportunities to learn from this approach, giving it more flexibility to improve the service it gives customers, and at good value for the taxpayer. HMRC is working jointly with the PCS trade union on an evaluation of the MSP service. The evaluation considers service quality, customer outcomes, productivity and value for money, and will inform future decisions. No outcome is pre‑determined while the evaluation is ongoing. HMRC’s evaluation will help them determine how they use MSPs to better serve customers. Any decision will be taken through normal business planning and Spending Review processes, taking account of evaluation findings, affordability and operational need. This is not about replacing HMRC colleagues – no one will be made redundant as a result of this initiative and HMRC headcount is forecast to increase by the end of the Spending Review 2025 period. The current staff provided by MSPs represent additional capacity for 2025/26 and into 2026/27. HMRC faces highly variable demand throughout the year - this is about giving HMRC more flexibility to improve the service it gives customers. This complements its permanent workforce and enables it to scale capacity up and down as needed. Due to the design of the contract, costs can only be confirmed retrospectively. Comparisons with permanent recruitment and surge staffing currently indicate MSP costs are comparable or better, based on expected outcomes. Overall the projected cost for 12 months was approximately £23m of resourcing spend.

Who is responsible for the regulation of sports and non-financial spread bets in the UK.

The Financial Conduct Authority (FCA) has clarified that non-financial spread betting products are not financial instruments, and that the FCA’s regulatory framework does not account for gambling activity in relation to events which are not connected to financial markets. Furthermore, the Gambling Commission does not licence products whose name, branding or marketing contain language associated with financial products, and understands spread bets of all kinds to potentially fall within the FCA’s remit. The FCA advises that consumers who take positions in sports or other non-financial betting products should not assume they are eligible for financial compensation schemes or other financial regulatory protections.

What steps she is taking to ensure that HMRC adequately interprets the provisions of the (a) McCann report and the (b) Government's response, in the context of support for people affected by the Loan Charge.

This Government recognised that concerns continued to be raised about the loan charge and that some felt strongly that it had not been handled appropriately. The Government therefore commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge. The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating to give HMRC the power to administer a new settlement opportunity. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann. As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith. HMRC is committed to working sensitively and pragmatically with taxpayers to reach settlement. This includes offering flexible payment terms where people need more time to pay their liabilities. The Government takes the wellbeing of all taxpayers very seriously. Vulnerable customers can make use of HMRC’s well-established Extra Support Service.

What steps HMRC is taking to support people affected by the Loan Charge.

This Government recognised that concerns continued to be raised about the loan charge and that some felt strongly that it had not been handled appropriately. The Government therefore commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge. The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating to give HMRC the power to administer a new settlement opportunity. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann. As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith. HMRC is committed to working sensitively and pragmatically with taxpayers to reach settlement. This includes offering flexible payment terms where people need more time to pay their liabilities. The Government takes the wellbeing of all taxpayers very seriously. Vulnerable customers can make use of HMRC’s well-established Extra Support Service.

If she will offer the same settlement terms that will be provided in the settlement opportunity resulting from the implementation of the McCann Review to those that have already settled with HMRC.

I refer the Hon. Member to the answers I gave on 9 February 2026 to UIN 109841 and 109842.

What estimate she has made of the number of people subject to the loan charge who will have their cases settled following the independent review of the loan charge.

I refer the Hon. Member to the answers I gave on 9 February 2026 to UIN 109841 and 109842.

What the total value was of dividend payments made to Tonnage Tax qualifying companies by companies not resident in the UK for tax purposes in each year since 2003-04 to date.

The information required is not readily available. Most dividends from non-UK resident companies are exempt in any event and tax risk is accordingly low.

How many (a) ratings and (b) officers claimed Seafarers’ Earnings Deduction in each financial year between 2015-16 and 2024-25.

Seafarers are not required to report their grade as the Seafarers’ Earnings Deduction tax relief applies regardless. Outturn data for the Seafarers’ Earnings Deduction claimants is available until 2023-24; HMRC does not publish an estimate of the number of claimants for 2024-25. HMRC’s Tax Relief Statistics published on 22 January 2026 contain a forecast of the cost of relief for 2024-25. A forecast for 2025-26 will be produced for the 2026 Autumn publication and outturn cost in the following year.

With reference to the Tax Relief Statistics published on 22 January 2026, if she will provide the claimant number for Seafarers’ Earnings Deduction in 2024-25.

Seafarers are not required to report their grade as the Seafarers’ Earnings Deduction tax relief applies regardless. Outturn data for the Seafarers’ Earnings Deduction claimants is available until 2023-24; HMRC does not publish an estimate of the number of claimants for 2024-25. HMRC’s Tax Relief Statistics published on 22 January 2026 contain a forecast of the cost of relief for 2024-25. A forecast for 2025-26 will be produced for the 2026 Autumn publication and outturn cost in the following year.

When the cost figure for Seafarers’ Earnings Deduction from Income Tax for 2025-26 will be published.

Seafarers are not required to report their grade as the Seafarers’ Earnings Deduction tax relief applies regardless. Outturn data for the Seafarers’ Earnings Deduction claimants is available until 2023-24; HMRC does not publish an estimate of the number of claimants for 2024-25. HMRC’s Tax Relief Statistics published on 22 January 2026 contain a forecast of the cost of relief for 2024-25. A forecast for 2025-26 will be produced for the 2026 Autumn publication and outturn cost in the following year.

How many ship management companies have qualified for the Tonnage Tax scheme since 1 April 2024 to date.

The data on the number of ship management companies which have qualified for Tonnage Tax scheme since 1 April 2024 to date is not available as the full set of corporation tax returns relating to 2024-25 liabilities are yet to be received and processed. Estimates will be published in the next Tax relief statistics publication, scheduled for January 2027.

What the (a) actual and (b) estimated cost was of Corporation Tax relief for qualifying shipping company groups in the Tonnage Tax in each year for which there are figures between 2020-21 and 2026-27.

You can find the requested statistics here: https://www.gov.uk/government/statistics/tax-reliefs

What the cost of Electric Vehicle Excise Duty will be to the average Motability scheme user; and what equality impact assessment she has carried out on the differential impact on Motability scheme users.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty.eVED is designed to replace fuel duty for electric and plug-in hybrid cars. This means it will apply to cars driven by those who are wholly or partially exempt from Vehicle Excise Duty (VED), but where their petrol or diesel equivalents would be subject to fuel duty. This includes those who receive the mobility component of certain disability-related benefits (principally Disability Living Allowance or Personal Independence Payment). These groups will continue to receive the same VED exemptions as they do now but will not be exempt from eVED, as they are not exempt from fuel duty.As with petrol/diesel vehicles where fuel duty applies, eVED will also apply to cars that are leased. The leasing company will typically be responsible for paying eVED and can choose how to pass on to their customers.

What estimate she has made of the cost to the Exchequer of exempting Motability vehicles from the introduction of Electric Vehicle Excise Duty from April 2028.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty.eVED is designed to replace fuel duty for electric and plug-in hybrid cars. This means it will apply to cars driven by those who are wholly or partially exempt from Vehicle Excise Duty (VED), but where their petrol or diesel equivalents would be subject to fuel duty. This includes those who receive the mobility component of certain disability-related benefits (principally Disability Living Allowance or Personal Independence Payment). These groups will continue to receive the same VED exemptions as they do now but will not be exempt from eVED, as they are not exempt from fuel duty.As with petrol/diesel vehicles where fuel duty applies, eVED will also apply to cars that are leased. The leasing company will typically be responsible for paying eVED and can choose how to pass on to their customers.

With reference to her Department's press release entitled Nine million pensioners to receive Winter Fuel Payments this winter, published on 9 June 2025, what assessment she has made of the resources HMRC will require to (a) undertake the recovery of payments and (b) respond to (i) queries and (ii) complaints relating to the recovery of winter fuel payments; and whether additional funding will be made available for this work.

The Government announced in June 2025 that the Winter Fuel Payment will be made universal in England and Wales from winter 2025. Subsequently, the Scottish Government and Northern Ireland Executive have confirmed that they will mirror the approach for England and Wales. Winter Fuel Payments of £200 will be made for a household with someone of State Pension age and £300 for a household with someone aged 80 or over. They will be paid automatically to anyone who has not opted out of getting a payment. Individuals who are of State Pension age and have total income over £35,000 will have their Winter Fuel Payment recovered through the tax system. The amount recovered will be equal to the full value of the Winter Fuel Payment. If a pensioner’s total income is above the income threshold, it will be automatically recovered through PAYE, or through their Self-Assessment return if they pay tax that way. The Government will publish further details of the operational impacts on HM Revenue and Customs of making these changes in a Tax Information and Impact Note at Budget 2025, alongside draft Finance Bill legislation on the tax recovery of the Winter Fuel Payment.

If she will make an assessment of the adequacy of the length of time taken to issue A1 forms to singers.

Self-employed workers in the music industry touring within the EEA are able to complete A1 forms online. Since October 2024, 70% of these type of online applications can be processed automatically providing a quicker service for customers. Applications which require manual intervention can take longer to process.

With reference to the UN Committee on Economic, Social and Cultural Rights’ concluding observations on the seventh periodic report of the United Kingdom of Great Britain and Northern Ireland, published on 3 March 2025, what assessment she has made of the implications for her Department's policies of the findings of that report.

The government engages with various international organisations, including the United Nations, considering their reports as part of the policy development process. Any decisions on changes to HM Treasury policies are also taken in the context of the wider public finances and the government’s efforts to reform the state and sustainably grow the economy.

What representations she received that helped inform the decision to support expansion at Heathrow.

HM Treasury has received and continues to receive representations from a wide range of stakeholders about Heathrow expansion. These informed the speech supporting expansion in January and continue to inform the Government’s position on Heathrow.