Written questions by Garnier.

With reference to paragraph 4.167 State Pension and Simple Assessment of the Budget 2025, published in November 2025, when her Department began consulting on this policy.

As the Chancellor has said, over this Parliament those whose only income is the basic or new State Pension without any increments will not have to pay income tax. As announced at the Budget, the government will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28. The government will set out more detail next year.

Whether she considered including an assessment of the potential impact of paragraph 4.167 State Pension and Simple Assessment of the Budget 2025, published in November 2025, on costs to the public purse within the Budget 2025 document.

As the Chancellor has said, over this Parliament those whose only income is the basic or new State Pension without any increments will not have to pay income tax. As announced at the Budget, the government will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28. The government will set out more detail next year.

With reference to Section 4.167 of the Autumn Budget 2025, when her Department plans to publish the solution ensuring that pensioners who only receive the state pension will not (a) have to fill out a tax return and (b) pay income tax.

As the Chancellor has said, over this Parliament those whose only income is the basic or new State Pension without any increments will not have to pay income tax. As announced at the Budget, the government will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28. The government will set out more detail next year.

Whether it is her policy to protect accrued pension rights when changing the tax treatment of pensions.

The Government does not comment on media speculation ahead of Budgets nor collect real-time data on the number of individuals accessing their pensions. Taking unplanned steps in respect of an individual’s pension may not be in their long-term financial interest. Individuals should get suitable professional advice, including from a regulated financial adviser.

What estimate she has made of the number of customers accessing pensions prior to the Autumn Budget 2025; and whether she has made an assessment of the potential impact of media coverage of the Budget on pension adequacy throughout retirement.

The Government does not comment on media speculation ahead of Budgets nor collect real-time data on the number of individuals accessing their pensions. Taking unplanned steps in respect of an individual’s pension may not be in their long-term financial interest. Individuals should get suitable professional advice, including from a regulated financial adviser.

Whether her department has made an assessment of the benefits of tokenised financial infrastructure.

Using distributed ledger technology to tokenise assets could deliver a step change in financial market efficiency, particularly by enabling more efficient, real-time data sharing which could lower operational costs and enhance resilience. It is important that the government works with the financial services regulators and the sector to understand and deliver these benefits. That is why the government has published its Wholesale Financial Markets Digital Strategy and why it has taken forward the Digital Securities Sandbox which will facilitate the issuance, trading and settlement of tokenised securities in the UK on distributed ledgers. It is also taking forward other initiatives such as the Digital Gilt Instrument, or ‘DIGIT’, which will help demonstrate the benefits of these new technologies.

Whether it will be a formal requirement for the Digital Markets Champion to have a strong proficiency in (a) blockchain and (b) digital assets.

On July 15th the government published the Wholesale Financial Markets Digital Strategy. The strategy announced that the government will appointing an industry expert as Digital Markets Champion, who will provide leadership from, and for, the sector on wholesale market digitalisation. The government is working at pace to identify and appoint a suitable candidate for the role and will provide an update in due course.

What steps her Department is taking to ensure that stablecoin issuers maintain sufficient backing assets to protect consumers and financial stability.

On 29 April, HM Treasury published draft legislation for the future financial services regulatory regime for cryptoassets. The draft legislation includes a new regulated activity for stablecoin issuance in the UK, meaning firms carrying on this activity will need to be authorised by the Financial Conduct Authority. The Government is seeking to bring forward final legislation before the end of this year.

Whether her Department has made an estimate of the number of individuals who intend to leave the UK following the ending of Business Asset Disposal Relief.

No estimate of the number of individuals who would leave the UK if Business Asset Disposal Relief (BADR) were to be abolished has been made. The government recognises the important role that small businesses and entrepreneurs will play in boosting Britain’s growth. That’s why BADR has been maintained with a generous lifetime limit of £1 million, and BADR rates increases have been phased in over 18 months to give business owners time to adjust. You can find statistics on the number of claimants, amounts of qualifying gains and tax charged at the BADR rate in table 4 of the Capital Gains Tax accredited official statistics.Capital Gains Tax statistics - GOV.UK You can also find an estimate for the cost of BADR in the cost of non-structural tax reliefs statistics:Tax relief statistics - GOV.UK

Whether she has had recent discussions with the Secretary of State for Housing, Communities and Local Government, on the potential impact of changes to cash ISAs on mortgage costs.

HM Treasury does not prepare forecasts for the UK economy. These forecasts, including assessments of the impact of policy decisions on the macroeconomy, are the responsibility of the independent Office for Budget Responsibility (OBR). The OBR does not typically publish estimates of the impact of individual policies. Instead, the net effect of the government’s policy package is assessed by the OBR. The Government is looking at options for reforms to ISAs that get the balance right between cash and equities to earn better return for savers, boost the culture of retail investment, and support the growth mission. The Government recognises that cash savings play an important role in helping households build a financial buffer for a rainy day.

Whether her Department has made an assessment of the potential impact of changes to cash ISAs on (a) house prices and (b) mortgage costs.

HM Treasury does not prepare forecasts for the UK economy. These forecasts, including assessments of the impact of policy decisions on the macroeconomy, are the responsibility of the independent Office for Budget Responsibility (OBR). The OBR does not typically publish estimates of the impact of individual policies. Instead, the net effect of the government’s policy package is assessed by the OBR. The Government is looking at options for reforms to ISAs that get the balance right between cash and equities to earn better return for savers, boost the culture of retail investment, and support the growth mission. The Government recognises that cash savings play an important role in helping households build a financial buffer for a rainy day.

What steps her Department is taking to ensure that the (a) development and (b) delivery of the Digital Gilt Instrument programme supports UK-based firms; and if she will make an assessment of the potential impact of that programme on (i) domestic innovation and (ii) sovereign capability in digital financial infrastructure.

The Government is taking forward its digital gilt instrument (DIGIT) pilot which will be issued onto a platform within the Digital Securities Sandbox (DSS). Eligibility for the DSS requires that firms must be legally established in the UK, and therefore DIGIT will be issued onto a UK based DLT platform.With this pilot, the Government has two key aims: to explore how distributed ledger technology (DLT) can be applied across the lifecycle of the debt issuance process; and catalyse the development of DLT in UK financial markets. The department is making ongoing assessments to design and deliver DIGIT in support of these aims.In April the government issued a market engagement notice for the pilot digital gilt instrument (DIGIT) to understand both the current landscape of services available or in development in the UK and what potential investors want to see from a DIGIT issuance. This included questions for industry as to how DIGIT could be developed and delivered in such a way as to meet these objectives, which the department is currently analysing and incorporating into its ongoing assessments.

What assessment her Department has made of the potential merits of adopting the common domain model standard in the Digital Gilt Instrument programme; and if she will make an assessment of the potential impact of doing so on the (a) interoperability, (b) automation and (c) transparency of that programme.

In April the government issued a market engagement notice for the pilot digital gilt instrument (DIGIT) to understand both the current landscape of services available or in development in the UK and what potential investors want to see from a DIGIT issuance. This included questions aimed at understanding how important interoperability and other design features would be for meeting the project’s objective to catalyse the growth and adoption of DLT in UK financial markets. The department is in the process of analysing responses to inform the design of DIGIT ahead of issuing an invitation to tender in the coming months.

Whether her Department is taking steps to align the Digital Gilt Instrument programme with (a) the common domain model and (b) other international standards.

In April the government issued a market engagement notice for the pilot digital gilt instrument (DIGIT) to understand both the current landscape of services available or in development in the UK and what potential investors want to see from a DIGIT issuance. This included questions aimed at understanding how important interoperability would be for meeting the project’s objective to catalyse the growth and adoption of DLT in UK financial markets. The department is in the process of analysing responses to inform the design of DIGIT ahead of issuing an invitation to tender in the coming months.

What steps her Department is taking with the Financial Conduct Authority to help ensure that digital sovereign instruments issued by the Digital Securities Sandbox are fully interoperable with existing (a) financial infrastructure and (b) secondary markets.

The Government is taking forward its digital gilt instrument (DIGIT) pilot which will be issued onto a digital securities platform within the Digital Securities Sandbox (DSS). With this pilot, the Government is seeking to explore how distributed ledger technology (DLT) can be applied across the lifecycle of the debt issuance process and catalyse the development of DLT in UK financial markets. In April the government issued a market engagement notice, to understand both the current landscape of services available or in development in the UK and what potential investors want to see from a DIGIT issuance. This included questions aimed at understanding how important both secondary market trading and interoperability with existing market infrastructure were for the sector. The department is currently analysing responses ahead of launching an invitation to tender in the coming months. The department is working closely with regulators, including the FCA, to ensure that DIGIT is successful in meeting its objective to catalyse the growth and adoption of DLT in UK financial markets.

Whether she plans to bring forward legislative proposals to regulate open banking under the Data (Use and Access) Act 2025.

The National Payments Vision, published in November, set out the government’s ambitious plans for the next phase of Open Banking, building on the UK’s leadership in this area. This includes steps towards delivering seamless, Open Banking enabled, account-to-account payments.The government intends to use powers in the ‘Data (Use and Access) Act’ to put in place a long-term regulatory framework for Open Banking. This will also secure the foundations for Open Finance, by establishing the necessary oversight functions within the FCA to regulate ‘Smart Data’ schemes.

Whether she has had recent discussions with the Secretary of State for Business and Trade on (a) potential changes to the threshold at which the Soft Drinks Industry Levy starts and (b) the potential impact of that levy on (i) the economy and (ii) her fiscal policy.

His Majesty’s Treasury engages with the Department for Business and Trade at ministerial and official level on a range of issues. The Soft Drinks Industry Levy (SDIL) is central to the Government’s strategy for reducing rates of obesity, and helping to secure the fit and healthy population that is essential for a thriving economy. After SDIL was announced, the average sugar content of soft drinks in scope of the levy fell 46% between 2015 and 2020. These positive health outcomes have been achieved without a negative impact on soft drink sales, with sales of drinks subject to the levy increasing by 21% over the same period. The Government is currently consulting on proposals to strengthen SDIL.Any changes to the levy will be announced at a future fiscal event, with costings certified by the Office of Budget Responsibility as standard.

Whether she plans to consult on bringing forward legislative proposals to introduce open finance under the Data (Use and Access) Act 2025.

The National Payments Vision, published in November, set out the government’s ambitious plans for the next phase of Open Banking, building on the UK’s leadership in this area. This includes steps towards delivering seamless, Open Banking enabled, account-to-account payments.The government intends to use powers in the ‘Data (Use and Access) Act’ to put in place a long-term regulatory framework for Open Banking. This will also secure the foundations for Open Finance, by establishing the necessary oversight functions within the FCA to regulate ‘Smart Data’ schemes.

What discussions her Department has had with institutional market participants on the adoption of (a) tokenised sovereign instruments and (b) associated standards.

My team regularly engages with the sector on issues relating to tokenisation in UK financial markets. In addition, we have had further discussions with participants in relation to our digital gilt instrument (DIGIT) pilot. The Government is taking forward its DIGIT pilot which will be issued onto a digital securities platform within the digital securities sandbox (DSS). In April, the government issued a market engagement notice and is currently analysing responses ahead of launching an invitation to tender in the coming months. Following the deadline for responses, my team has held constructive discussions with a range of industry groups and participants who responded and attended an industry roundtable hosted by UK Finance. This engagement with the market has provided valuable information to inform how a DIGIT pilot can help catalyse the adoption of DLT across UK financial markets. The Government remains committed to working with the sector on tokenisation and the pilot DIGIT issuance, to effectively catalyse the adoption of DLT in UK financial markets.

What assessment her Department has made of Fujitsu’s suitability to bid for the Trader Support Service, in the context of the failures of the Horizon system.

All of our contract opportunities are publicly available through Contracts Finder and/or Find A Tender Service and are available to any economic operator that is able to meet the requirements of the procurement in compliance with the Public Contracts Regulations 2015.