Written questions by Duncan-Jordan.

What support she is providing to individuals who had money invested in Ziglu Bank prior to its closure in June 2025.

Ziglu Limited is an electronic money institution which has been authorised under the Electronic Money Regulations 2011 since September 2020. These regulations require firms to meet important standards before they are allowed to carry out payment services and issue electronic money, and the FCA carries out supervision to ensure that it meets the required standards. Ziglu also provides cryptoasset services and is registered with the FCA for the purposes of ensuring compliance with the Money Laundering Regulations 2017.On 23 May 2025, the FCA placed restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds. On 7 July, Ziglu entered special administration and the FCA is engaging with the special administrators as appropriate.Payments and e-money firms are required to safeguard customer funds and segregate these from funds which belong to the firm. The special administrators are working to carry out an assessment of all funds held by Ziglu to establish which are safeguarded for customers, and which belong to Ziglu. However, cryptoasset activities are currently unregulated and Ziglu is not required to safeguard funds or assets which relate to unregulated activities. This means there is no guarantee that cryptoasset customers will receive all or any of their funds or assets back.Recently, the FCA published new rules coming into force on 7 May 2026 to improve safeguarding standards across the payments sector. The Government has also recently laid legislation to create a comprehensive financial services regulatory regime for cryptoassets.

What due diligence checks were carried out prior to the creation of Ziglu Bank in 2020.

Ziglu Limited is an electronic money institution which has been authorised under the Electronic Money Regulations 2011 since September 2020. These regulations require firms to meet important standards before they are allowed to carry out payment services and issue electronic money, and the FCA carries out supervision to ensure that it meets the required standards. Ziglu also provides cryptoasset services and is registered with the FCA for the purposes of ensuring compliance with the Money Laundering Regulations 2017.On 23 May 2025, the FCA placed restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds. On 7 July, Ziglu entered special administration and the FCA is engaging with the special administrators as appropriate.Payments and e-money firms are required to safeguard customer funds and segregate these from funds which belong to the firm. The special administrators are working to carry out an assessment of all funds held by Ziglu to establish which are safeguarded for customers, and which belong to Ziglu. However, cryptoasset activities are currently unregulated and Ziglu is not required to safeguard funds or assets which relate to unregulated activities. This means there is no guarantee that cryptoasset customers will receive all or any of their funds or assets back.Recently, the FCA published new rules coming into force on 7 May 2026 to improve safeguarding standards across the payments sector. The Government has also recently laid legislation to create a comprehensive financial services regulatory regime for cryptoassets.

What discussions she has had with the administrator of Ziglu Bank.

Ziglu Limited is an electronic money institution which has been authorised under the Electronic Money Regulations 2011 since September 2020. These regulations require firms to meet important standards before they are allowed to carry out payment services and issue electronic money, and the FCA carries out supervision to ensure that it meets the required standards. Ziglu also provides cryptoasset services and is registered with the FCA for the purposes of ensuring compliance with the Money Laundering Regulations 2017.On 23 May 2025, the FCA placed restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds. On 7 July, Ziglu entered special administration and the FCA is engaging with the special administrators as appropriate.Payments and e-money firms are required to safeguard customer funds and segregate these from funds which belong to the firm. The special administrators are working to carry out an assessment of all funds held by Ziglu to establish which are safeguarded for customers, and which belong to Ziglu. However, cryptoasset activities are currently unregulated and Ziglu is not required to safeguard funds or assets which relate to unregulated activities. This means there is no guarantee that cryptoasset customers will receive all or any of their funds or assets back.Recently, the FCA published new rules coming into force on 7 May 2026 to improve safeguarding standards across the payments sector. The Government has also recently laid legislation to create a comprehensive financial services regulatory regime for cryptoassets.

What steps are being taken to replace the existing system of business rates.

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. The Government is also supporting small businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.The Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.Any reforms taken forward will be phased over the course of the Parliament.

What her planned timetable is for replacing the existing system of business rates.

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. The Government is also supporting small businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.The Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.Any reforms taken forward will be phased over the course of the Parliament.

To confirm how many state pensioners will be exempted from the proposed freeze on personal tax allowances from April 2026.

Those whose sole income is the basic and full new State Pension without any increments will not pay any income tax in 2026/27.The Chancellor has said that those whose only income is the basic or new State Pension without any increments will not have to pay income tax over this Parliament. At the Budget, the Government announced that it will achieve this by easing the administrative burden for pensioners so that they do not have to pay small amounts of tax via Simple Assessment from 2027/28. The Government will set out more details in due course.

What estimate she has made of the number of pensioners who will pay tax on their (a) basic state pension (b) second state pension and (c) new state pension from April 2026.

Those whose sole income is the basic and full new State Pension without any increments will not pay any income tax in 2026/27.The Chancellor has said that those whose only income is the basic or new State Pension without any increments will not have to pay income tax over this Parliament. At the Budget, the Government announced that it will achieve this by easing the administrative burden for pensioners so that they do not have to pay small amounts of tax via Simple Assessment from 2027/28. The Government will set out more details in due course.

What assessment she has made of the potential impact of repealing item 14 of group 12 of Schedule 8 to the Value Added Tax Act 1994 on disabled people.

At Budget 2025 the government announced reforms to the Motability scheme which will save over £1 billion over the next five years. The VAT relief for top-up payments made to lease more expensive vehicles will be removed for new leases from July 2026, and Insurance Premium Tax will apply at the standard rate to insurance contracts on the Scheme. The VAT reliefs on weekly lease costs and vehicle resale will remain in place, and the tax changes will not apply to vehicles designed, or substantially and permanently adapted, for wheelchair or stretcher users. These tax changes ensure Motability can continue to deliver for its customers, for example through the continued provision of a broad range of vehicle models available without any top-up payments. Further detail on the impacts of tax changes can be found in the Tax Impact and Information Note on GOV.UK Motability Scheme: reforming tax reliefs - GOV.UK.

What assessment she has made of the potential impact of limiting the relief from insurance premium under paragraph 3 of Schedule 7A to the Finance Act 1994 on disabled people.

At Budget 2025 the government announced reforms to the Motability scheme which will save over £1 billion over the next five years. The VAT relief for top-up payments made to lease more expensive vehicles will be removed for new leases from July 2026, and Insurance Premium Tax will apply at the standard rate to insurance contracts on the Scheme. The VAT reliefs on weekly lease costs and vehicle resale will remain in place, and the tax changes will not apply to vehicles designed, or substantially and permanently adapted, for wheelchair or stretcher users. These tax changes ensure Motability can continue to deliver for its customers, for example through the continued provision of a broad range of vehicle models available without any top-up payments. Further detail on the impacts of tax changes can be found in the Tax Impact and Information Note on GOV.UK Motability Scheme: reforming tax reliefs - GOV.UK.

With reference to Budget 2025, what assessment her Department has made of the potential impact of the proposed scrapping of the Energy Company Obligation scheme on the level of energy sector tax revenue.

The Energy Company Obligation is a regulated obligation on suppliers and is not a tax measure. However, as VAT is placed on the total cost of energy, lowering energy bills through ending this scheme will reduce the tax base for VAT on domestic energy. This measure, alongside the Government funding 75% of the legacy Renewables Obligation, will save households an average of £150 off their energy bills.

What assessment she has made of the potential impact of a tax of 1.5p per mile on drivers of hybrid vehicles.

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 electric vehicles (EVs) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. The taxation of motoring is a critical source of funding for public services and investment in infrastructurePHEVs have the capacity to drive in either electric or petrol mode and will continue to pay fuel duty on miles driven in petrol mode. In recognition of this, they will be subject to a reduced eVED rate of 1.5 pence per mile upon its introduction in April 2028 – half the rate that will apply to fully electric carsAlongside the introduction of eVED, the Government is also providing generous additional support to incentivise the use of electric vehicles, including £1.3 billion of additional funding for the Electric Car Grant (ECG), £200 million for chargepoint rollout, and increasing the Expensive Car Supplement (ECS) threshold to £50,000 for EVsNew electric car sales are still forecast to more than triple from nearly 0.5 million sales in 2025/26 to around 1.6 million by 2030/31.

What assessment she has made of the potential impact of the decision to introduce a pay per mile levy on hybrid and EV drivers on their future choice of vehicle.

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 electric vehicles (EVs) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. The taxation of motoring is a critical source of funding for public services and investment in infrastructurePHEVs have the capacity to drive in either electric or petrol mode and will continue to pay fuel duty on miles driven in petrol mode. In recognition of this, they will be subject to a reduced eVED rate of 1.5 pence per mile upon its introduction in April 2028 – half the rate that will apply to fully electric carsAlongside the introduction of eVED, the Government is also providing generous additional support to incentivise the use of electric vehicles, including £1.3 billion of additional funding for the Electric Car Grant (ECG), £200 million for chargepoint rollout, and increasing the Expensive Car Supplement (ECS) threshold to £50,000 for EVsNew electric car sales are still forecast to more than triple from nearly 0.5 million sales in 2025/26 to around 1.6 million by 2030/31.

Whether the planned increase in vehicle tax from April 2026 will be based on (a) emissions from vehicles based on factory information when new and (b) MOT results annually.

Vehicle Excise Duty (VED), sometimes known as 'road tax' or 'vehicle tax', is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions. As announced by the government at Budget, from 1 April 2026, VED rates for cars, vans, motorcycles and heavy goods vehicles (HGVs) will be uprated in line with the Retail Price Index (RPI) in 2026-27.

Further to the answer of 16 December 2025 to Question 98338, whether she has reviewed the Bank Confidential report; and if she will establish a judge-led inquiry into its findings.

The Treasury is aware of the Bank Confidential report about former misconduct in SME banking by the NatWest Group. The Government also recognises the serious impact that historical issues of misconduct have had on small businesses, and we acknowledge the significant distress and hardship this has caused to many business owners. Successive Governments, as well as the Financial Conduct Authority, working with lenders, have taken steps that aimed to address these issues. This included helping to establish and support a range of compensation and redress schemes to enable those affected to seek appropriate compensation, with redress over interest rate hedging rate disputes alone paying out more than £2bn to affected customers. As I set out in my previous response, the Government keeps the financial services regulatory framework under ongoing review, working closely with the Financial Conduct Authority.

What assessment she has made of the net gain in revenue from pubs and social clubs, taking account of (a) increased rateable values, (b) removal of the 40% relief and (c) introduction of transitional relief, as a result of relevant announcements in the Autumn Budget 2025.

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.Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%. 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.The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Whether Transitional Relief for pubs only applies to the portion of increase directly attributable to Rateable Value change after the effect of new multipliers.

The Government is introducing permanently lower business rates multipliers 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. To sustainably fund these lower RHL multipliers, the Government is also introducing a higher rate on the top one per cent of most expensive properties. To protect businesses from large bill increases at the 2026 revaluation the government has introduced a generous support package worth £4.3 billion over the next 3 years, including support to help ratepayers to transition to their new bill. For properties losing their RHL relief, the caps apply to their current bill, including the 40% relief, before changes in other reliefs and local supplements. This means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. Without this support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support the Government has put in place this falls to just 4%.

Whether religious-based properties will be exempt from the new tax announced in the Budget on properties valued at £2 million and over.

The High Value Council Tax Surcharge (HVCTS) is a new charge on owners of residential property in England worth £2 million or more in 2026, taking effect in April 2028. Owners, not residents, will pay the surcharge. The government will consult on potential exemptions and reliefs in the spring.

Pursuant to the policy document entitled Motability Scheme: reforming tax reliefs’ policy, published on 26 November, if she will publish the calculations used for the conclusion that the proposed changes are not expected to have any macroeconomic impacts.

The information set out in the macroeconomic impacts section of all Tax Information and Impact Notes (TIINs) corresponds to the assessments contained in the Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook. The OBR, as the Government's official forecaster, is responsible for judging the impact of policy decisions on its forecasts, including any underlying calculations.

Whether she is taking steps to ensure that people affected by interest rate hedging products are compensated.

The Government recognises the impact that the historic mis‑selling of interest rate hedging products (IRHPs) has had on many SMEs, and we acknowledge the distress this caused.Responsibility for regulating the sale of these products, and for ensuring appropriate redress, rests with the independent Financial Conduct Authority (FCA). The FCA required the major banks to carry out a comprehensive review of past IRHP sales. This led to around 14,000 businesses receiving a total of £2.2 billion in redress.The Government believes this industry‑wide redress scheme broadly met its objectives in delivering compensation to businesses that were mis‑sold these products. The Government has always been clear that mis‑selling of financial products is completely unacceptable. That is why we supported both the FCA’s redress scheme and its decision to commission an independent ‘lessons‑learned’ review of its supervisory interventions in relation to IRHPs. The FCA accepted the majority of the recommendations from that review, and, in light of the review’s findings, it also carefully considered whether further steps should be taken to facilitate access to redress for customers who had initially been excluded.More generally, the Government continues to keep the financial services regulatory framework under review, working closely with the FCA to help ensure that consumers and businesses are protected and have clear, effective routes to compensation where misconduct occurs.

If she will set out the difference between (a) recovered unpaid taxes and (b) outstanding unpaid taxes in the period since July 2024 to date.

HMRC is committed to making sure that individuals and businesses who can pay, do so on time. Since Autumn Budget 2024, HMRC has received £782 million of investment in its debt collection activities, which will help it to collect over £12 billion more debt by the end of 2030-31. HMRC published an update to its tax debt strategy at Budget 2025, outlining how the recent investment is helping to close the tax gap and reduce tax debt year-on-year as a percentage of receipts. The tax debt balance as a percentage of receipts fell from 5.2% in 2023-24 to 5% in 2024-25, and HMRC is aiming for this to decrease to between 3% and 4% by 2029-30. HMRC has effective processes in place to collect debt including telephone and letter campaigns, strategic partnerships with private sector debt collection agencies, and where necessary, enforcement action. For customers who need financial support, it offers flexible Time to Pay payment plans which collect debt in affordable and sustainable instalments. HMRC publishes quarterly performance updates on GOV.UK. You can find this here: