Written questions by Jarvis.

What recent assessment she has made of the (a) effectiveness of HMRC’s administrative and data handling processes and (b) adequacy of the average time taken by HMRC to respond to correspondence and resolve ongoing cases; and what targets are in place to improve response times.

The Government has set out its approach to improving the effectiveness of HMRC’s administrative and data‑handling processes in the HMRC Transformation Roadmap, which outlines HMRC’s digital-first approach. HMRC is modernising systems, making better use of data and technology, and increasing automation and self-serve digital options to support customers and staff. Improving day‑to‑day performance is a key priority for HMRC. HMRC has a service standard for handling customer correspondence, with the aim of processing 80% of priority post within 15 working days, and 95% within 40 working days. Regular performance updates are published on GOV.UK - https://www.gov.uk/government/collections/hmrc-quarterly-performance-updates

Whether her Department has undertaken analysis of how student loan repayment arrangements affect (1) borrowers’ disposable income and (2) their ability to access mortgages.

Student loan repayments are taken into account as part of affordability assessments for mortgage applications, but student loans are very different from a mortgage or credit card debt as repayments are determined by income, not the amount borrowed. For example, a Plan 2 graduate earning £30,000 will repay only around £4 a month in FY2026–27. The most sustainable long-term method to improve housing affordability and help people into homeownership is to increase the supply of housing. This Government has recommitted to delivering 1.5 million homes over this Parliament. The government is committed to making home ownership more accessible by supporting first-time buyers, and welcomes clarifications from the Financial Conduct Authority (FCA), which should allow customers to borrow around 10% more on the same income.

What recent assessment her Department has made of (a) levels and trends in household and public sector indebtedness, (b) levels of corporate indebtedness, including debt associated with investment in artificial intelligence, (c) risks arising from asset-price inflation relative to trends in productivity and wages; and what assessment she has made of (i) the potential impact of those trends on the UK's financial stability and (ii)) the adequacy of contingency planning for a financial market downturn.

The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying, monitoring and taking action to remove or reduce systemic risks to the UK financial system. The FPC’s most recent (December 2025) Financial Stability Report notes that risks to financial stability increased during 2025, with key sources of risk including geopolitical tensions, fragmentation of trade and financial markets, and pressures on sovereign debt markets. The FPC also judged that many risky assets valuations remain stretched, particularly for technology companies focused on Artificial Intelligence (AI), and that this heightens the risk of a sharp correction. The report also notes that indebtedness measures indicate that UK households and corporates remain resilient in aggregate, but that the increasing role of debt financing in the AI sector could increase financial stability risks. Overall, the FPC judges that the banking system is well capitalised, and strong enough to support households and businesses even in a period of stress. HM Treasury, alongside the UK financial regulators, closely monitors markets conditions, as well as potential risks to UK financial stability. In the case of any disruption, the UK financial authorities have established mature coordination mechanisms to coordinate an appropriate response; and have a range of powers available to respond.

What assessment her Department has made of the potential impact of Making Tax Digital on the childminding sector.

The government has worked extensively with taxpayers, representative bodies and software developers to ensure Making Tax Digital (MTD) for income tax works well for businesses of all types and sizes. MTD will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing, with digital tools helping to reduce errors and making annual tax returns easier. The government has worked with the software industry to ensure a wide range of options are available to suit different needs and budgets, including low cost and free software supporting those with the simplest affairs. Many products are designed for users who manage their own tax affairs or those new to digital tools. As with other businesses, MTD will allow childminders to keep better track of their finances, helping their businesses to grow. Childminders moving to MTD for income tax can continue to claim tax relief for household costs, wear and tear of household items and furniture, and food and drink, by deducting actual business costs. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business.

What steps she is taking to help mitigate the potential impact of the (a) removal of the 40% business rates relief and (b) planned revaluation of business rates revaluation on (i) gyms, (ii) swimming pools and (iii) leisure centres.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.    At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

What steps her Department is taking to monitor the impact of the introduction of Making Tax Digital for Income Tax on childminders and other home-based childcare providers; and what assessment she has made of the potential impact of replacing the wear and tear allowance with expense-based tax relief on the sustainability of those businesses.

Childminders play a vital role in childcare. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers. Childminders can continue to claim tax relief for wear and tear by deducting the actual cost of buying, repairing or replacing items. They can also deduct the cost of business expenses such as utilities, cleaning and equipment. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business. The government will monitor the impact of Making Tax Digital (MTD) for Income tax on childminder and other home-based childcare providers in the same way as it will for all sole traders moving to MTD for Income Tax.

What estimate she has made of the number of Child Benefit claims that were suspended by HM Revenue and Customs on the basis of suspected emigration and were subsequently found to be compliant; what assessment she has made of the potential merits of the decision to suspend payments before completing PAYE cross-checks; what steps she is taking to ensure that Child Benefit compliance activity is based on complete and accurate data; and what steps she is taking to ensure prompt reinstatement and appropriate redress for families whose Child Benefit was wrongly suspended.

HMRC’s Chief Executive wrote to the Treasury Select Committee on 14 November 2025 about this matter including the corrective action that HMRC has taken and its approach to redress. This letter was subsequently published by the Committee on 18 November 2025. For the number of Child Benefit claims I refer the Honourable Member to the answer I gave to Question 104272 on 14 January 2026.Written questions and answers - Written questions, answers and statements - UK Parliament

Whether she will consider establishing an Independent Commissioner to assess the claims of Equitable Life policyholders, the allocation of compensation, and the methodology used to distribute it.

The Equitable Life Payment Scheme has been fully wound down and closed since 2016 under the approach put in place by the Liberal Democrat and Conservative coalition government. Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.

What assessment she has made of the potential impact of proposed changes to Salary Sacrifice Pension arrangements from 2029 on employer National Insurance costs for charities.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice. Everyone using salary sacrifice will still benefit from the tax advantages available up to the £2,000 cap, including employers who can make up to £320 employer NICs savings per employee. Most salary sacrifice contributions are well below the £2,000 cap. This applies for all employers, including employers in the charity sector. Employer pension contributions outside of salary sacrifice will continue to be NICs-free. The Government also provides support for charities via our wider tax regime. It is among the most generous anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.

What assessment her department has made of the potential impact of the removal of business rates relief and the business rates revaluation on high street businesses.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including pubs, hotels, restaurants, indoor leisure facilities, and nightclubs. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

What assessment her Department has made of the potential merits of providing business rates relief for independent nurseries.

For early years (including maintained nursery schools), the Government funds local authorities to deliver the early years entitlements through the early years national funding formula (EYNFF) for the 3- and 4-year-old entitlement and a separate formula for the 2-year-old entitlement. The hourly funding rate paid to local authorities for these entitlements is designed to recognise the average costs across different provider types and is intended to reflect staff and non-staff costs, including business rates. Business rates are a broad-based tax on the value of non-domestic properties, including nurseries. To protect small businesses, the Government has frozen the small business multiplier for 2025-26. Taken together with Small Business Rates Relief, this intervention ensures that over a million properties will be protected from inflationary increases.

What assessment she has made of the adequacy of the financial performance of the Royal Mint in the last financial year.

The Royal Mint faced a challenging year in 2024-25, but took necessary steps to place the business on a sustainable footing. Over 60% of The Royal Mint’s reported losses were due to exceptional costs, including ending overseas coin production and a right-sizing initiative. Despite these challenges, the organisation continued to advance its transformation plan, adopting new technologies and refining its cost base. Notably, it launched the Precious Metals Recovery (PMR) plant, which uses pioneering technology to extract gold from electronic waste.

What progress the Covid Counter Fraud Commissioner has made in recovering public money lost through pandemic-related (a) fraud and (b) non-delivered contracts.

The government is leaving no stone unturned to investigate and recover public funds lost to fraud and error during the pandemic. The Covid Counter Fraud Commissioner will report to Parliament by the end of his term in December 2025. In his first phase, the Commissioner focused on £1.4 billion of disputed personal protective equipment (PPE) contracts. This revealed that that c.16% of pandemic era PPE contracts failed. Recovery action has resulted in some PPE suppliers being referred to the National Crime Agency for suspected fraud. The second phase of the Commissioner’s work focused on government-wide recovery activities. In response to his recommendation, Government launched a Voluntary Repayment Scheme and Covid fraud reporting website in September 2025. Claimants who have yet to respond to the voluntary repayment scheme risk court. New powers for the government will make detection easier and allow the government to levy civil penalties, which will ensure that those who have defrauded the taxpayer face the consequences. The Commissioner is currently preparing his final report, which will include his assessment of further opportunities for action and recommendations to strengthen government procurement, fraud prevention, and recovery in future crises.

What assessment she has made of the potential impact of changes to (a) inheritance tax and (b) business property relief on family-owned manufacturing businesses.

I refer the Honourable Member to the answer given to UIN 56360.

What assessment her Department has made of the potential risks associated with loans offered through the app Wagestream to employees on low incomes.

As a consumer credit firm regulated by the Financial Conduct Authority (FCA), Wagestream must follow the FCA’s detailed rules on affordability checks. FCA rules mean that firms should only lend to consumers who can afford repayments and this should be based on a careful assessment of their income, spending, and financial commitments. These rules aim to prevent over-indebtedness, promote responsible lending, and ensure fair treatment of customers. More broadly, ensuring individuals have access to the appropriate financial products and services they need is a key priority for the Government. This is why we are bringing forward a Financial Inclusion Strategy later this year which will seek to tackle a range of barriers individuals face, including how to increase access to affordable credit for underserved consumers. The Strategy will also consider how to improve the financial resilience of low-income households through interventions to support people to build savings, access insurance, and seek debt advice where they need it.

Whether her Department plans to review the VAT rules that apply to the supply of medicines by (a) NHS and (b) private pharmacy services.

The supply of drugs is subject to VAT at the standard rate unless an exception applies. One of these exceptions is that the zero rate of VAT is applied when a drug is supplied to an individual for personal use on prescription and dispensed by a registered pharmacist. These supplies may be made by the NHS or private pharmacies. In July 2025, the Government laid the draft Human Medicines (Authorisation by Pharmacists and Supervision by Pharmacy Technicians) Order 2025, which will enable pharmacists to authorise registered pharmacy technicians to carry out, or supervise others carrying out, the preparation, assembly, dispensing, and sale and supply of medicines. The Government intends to legislate to enable medicines dispensed by or under the supervision of a registered pharmacy technician to benefit from the zero rate of VAT.

What recent assessment her Department has made of the potential impact of (a) business rates and (b) changes to employer national insurance contributions on the (i) hospitality sector and (ii) local pubs.

The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century. From April 2026, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values (RVs) below £500,000. This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties from April 2026 - those with RVs 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 new business rates multipliers will be set at Budget 2025 so that the Government can take into account the upcoming revaluation outcomes as well as the economic and fiscal context. When the new multipliers are set, HM Treasury intends to publish analysis of the expected effects of the new RHL and higher multiplier arrangements. Regarding National Insurance contributions (NICs), a Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the Exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.

What assessment she has made of the potential impact of her Department's changes to employers' National Insurance Contributions on trends in the level of employment in the hospitality sector.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer National Insurance contributions (NICs). The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts. The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO), which sets out a detailed forecast of the economy and public finances. With all policies considered, the OBR's March 2025 EFO forecasts the employment level to increase from 33.6 million in 2024 to 34.8 million in 2029.The Government decided to protect the smallest businesses from the changes to employer NICs by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change.

If she will exempt hospitality businesses from the business rates surcharge.

To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000 from 2026-27. This permanent tax cut will ensure that RHL businesses benefit from much-needed certainty and support.This tax cut must be sustainably funded, and so we intend to apply a higher multiplier from 2026-27 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.

What assessment her Department has made of the potential impact of bank branches moving to a counter-free system on accessibility.

The Government works closely with the Financial Conduct Authority (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.