Written questions by Moon.

What assessment she has made of the impact of current levels of VAT on hospitality businesses.

Awaiting answer.

Whether the Government’s review of the cost of public electric vehicle charging will consider the difference in VAT between public and domestic electric vehicle charging.

The supply of energy for domestic use attracts the reduced rate of VAT (five per cent). Whilst this relief was not designed or introduced for charging EVs at home, it applies for all uses of domestic energy, as it is not possible for energy companies to distinguish between electricity used to charge an EV and electricity used for general domestic purposes. Public EV charging, on the other hand, is subject to the standard rate of VAT (twenty per cent). This matches the VAT treatment of petrol and diesel, as well as all non-domestic electricity. The Government will review the cost of public electric vehicle charging, looking at the impact of energy prices, wider cost contributors, and options for lowering these costs for consumers. Terms of Reference for the review will be set out in due course and the review will report later in 2026.

Pursuant to the Answer of 27 January 2026 to Question 106758 on Academies: Electric Vehicles, when the review on new electric vehicle salary sacrifice schemes for academy trusts will be completed.

HM Treasury keeps public policy, including the use of salary sacrifice arrangements, under review.

Whether the proposed Electric Vehicle Excise Duty pay per mile charge for plug in hybrid vehicles will apply only to the mileage driven using electric power, or to the vehicle’s total mileage.

Electric and plug-in hybrid (PHEV) cars will be in scope of electric Vehicle Excise Duty (eVED) on the basis they can be plugged in to charge, where the electricity input is not subject to a fuel duty equivalent. PHEVs 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 of 3 pence per mile that will apply to fully electric cars. The government recognises that PHEV driving habits vary and that some motorists will drive more or less than 50% in electric mode. However, alternative options would require motorists to report their exact mileage driven in petrol versus electric mode, which is not considered a practical or proportionate approach. A reduced rate for PHEVs strikes the right balance between fairness, protecting motorists’ privacy and minimising administrative burdens on motorists.

What progress she has made on implementing the findings of the Green Book Review 2025.

The Chancellor has listened to regional leaders who have said that, for too long, the Green Book has downplayed the importance of local outcomes and the potential of targeted regional investment. The Chancellor commissioned a new review of the Green Book. The conclusions of that review were published in June, setting out a new approach to public sector appraisal that will deliver a more effective assessment of place-based interventions. This includes the introduction of place-based business cases that will galvanise departments across Whitehall and highlight the reinforcing effects of different investments within an area. Liverpool, Plymouth, Port Talbot and Birmingham will be the first early adopters of place-based business cases. HM Treasury will also publish an updated Green Book at the start of 2026. A cross-government taskforce has been established to develop the approach to place-based business cases and oversee their implementation. This taskforce is currently comprised of the Second Permanent Secretary of HM Treasury responsible for regional growth and devolution, the Director General for Local Government, Growth and Communities in the Ministry of Housing, Communities and Local Government, the Director General for Public Transport and Local Group in the Department for Transport, and the CEO of the National Infrastructure and Service Transformation Authority.

Whether the Government will consider introducing VAT relief on construction costs for sub-market housing developments.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services; this includes most construction works. Exceptions to the standard rate have always been limited and balanced against affordability considerations. To stimulate the construction of new homes, the Government currently maintains a zero rate of VAT on new-build residential buildings. Additionally, residential renovations are subject to a reduced rate of VAT of five per cent if they meet certain conditions. These include conversions of buildings from one residential use to another, conversions from commercial to residential use, and the renovation of properties that have been empty for two or more years. These reliefs apply to all residential buildings, including sub-market housing. To support the delivery of 1.5 million new homes over the course of this parliament, the Government has confirmed a new 10-year £39 billion Social and Affordable Homes Programme to kickstart social and affordable housebuilding at scale across the country. This is the biggest long-term investment in social and affordable housing in recent memory.

What assessment she has made of the potential merits of improving access to low-interest loans for councils delivering affordable homes via the Public Works Loan Board.

The government recognises the vital role that local authorities play in delivering affordable homes. The Public Works Loan Board provides councils with cost-effective loans for investment and service delivery, including affordable housing. We will continue to ensure the PWLB continues to meet local authorities’ financial needs and long-term strategies.

What assessment she has made of the potential merits of implementing an electric vehicle salary sacrifice scheme for civil service departments.

Currently electric vehicle salary sacrifice schemes are not available for central Civil Service departments. HM Treasury approval would be required for any such scheme to be implemented. HM Treasury keeps all policies under review and will consider carefully any requests which are made for scheme expansion.

What regulatory safeguards are in place to protect consumers from excessive premium increases following the transfer of life insurance policy liabilities.

Insurers make commercial decisions about the pricing of insurance policies following an assessment of the relevant risks. However, the Government expects that insurers deliver good outcomes to consumers and firms are required to do so under Financial Conduct Authority (FCA) rules. These rules require firms to ensure their products offer fair value. This means the price paid by consumers must be reasonable compared to the benefits they receive. The FCA monitors firms and has robust powers to act against firms that breach its rules. The FCA and the Prudential Regulation Authority review the terms of transfers of business between insurance providers to ensure an appropriate degree of consumer protection, and the views of both regulators are considered by the Courts as part of the transfer process. The FCA would, for example, expect to see evidence that policyholders would not be adversely affected by any changes to the way their policies will be administered (including with respect to pricing) after a transfer.

What steps her Department is taking to regulate the pricing of legacy life insurance policies following provider transfers.

Insurers make commercial decisions about the pricing of insurance policies following an assessment of the relevant risks. However, the Government expects that insurers deliver good outcomes to consumers and firms are required to do so under Financial Conduct Authority (FCA) rules. These rules require firms to ensure their products offer fair value. This means the price paid by consumers must be reasonable compared to the benefits they receive. The FCA monitors firms and has robust powers to act against firms that breach its rules. The FCA and the Prudential Regulation Authority review the terms of transfers of business between insurance providers to ensure an appropriate degree of consumer protection, and the views of both regulators are considered by the Courts as part of the transfer process. The FCA would, for example, expect to see evidence that policyholders would not be adversely affected by any changes to the way their policies will be administered (including with respect to pricing) after a transfer.

What steps she is taking to tackle the backlog of cases at the Financial Ombudsman Service.

The Financial Ombudsman Service (FOS) is non-governmental body and is independent from the Treasury. The Financial Conduct Authority’s rules on how the FOS should handle complaints state that ‘the ombudsman will attempt to resolve complaints at the earliest possible stage’. The FOS should deal with all cases in a timely manner. Ensuring timely outcomes is one of the FOS’s main priorities for 2025-26, as outlined in its annual Plans and Budget published on 1 April 2025. A number of factors may affect the time it takes for the FOS to resolve complaints that are referred to it. In 2023-24, the FOS resolved over half of its cases within three months. The FOS regularly publishes data on its casework, including progress against its annual performance targets. The latest complaints data is available at https://www.financial-ombudsman.org.uk/data-insight/our-insight and its Annual Reports and Accounts can be found at https://www.financial-ombudsman.org.uk/who-we-are/governance-funding/annual-reports-accounts My officials will continue to raise the important issue of waiting times in their regular meetings with the FOS.

What discussions she has had with energy companies on the potential merits of policy cost rebalancing on energy bills to incentivise the uptake of low-carbon technologies.

Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sector, including energy companies, on an ongoing basis.

What discussions she has had with insurers on the potential impact of the cost of monthly insurance payments on levels of financial inclusion.

Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors, including insurers, on an ongoing basis.Insurers make commercial decisions about pricing and the terms of cover they offer based on their assessment on the likelihood of a claim being made and the cost of those claims. The Government does not set the terms, conditions, or prices for insurance policies. However, the Government is determined that insurers treat customers fairly and firms are required to do so under Financial Conduct Authority (FCA) rules.Last October, the FCA launched a market study on premium finance – a form of credit that allows insurance customers to spread the upfront annual cost of their premium. The FCA noted their concern that premium finance may not represent fair value for some customers. The FCA will publish an update on its work in due course.The Government has also convened a committee of consumer and industry representatives to inform the development of a Financial Inclusion Strategy which will be published later this year. As part of this, the committee is considering barriers consumers face to accessing insurance products.

If her Department will make an assessment of the potential merits of hypothecating revenues from the zero emission vehicle mandate for decarbonising transport.

HM Treasury expects to receive no income from the ZEV mandate, due to the mandate design framework. The Chancellor provided over £300m for EV uptake and £2bn to support domestic manufacturing at the Autumn Budget.

If she will make an assessment of the potential merits of re-allocating a proportion of the National Wealth Fund for a new mineral exploration fund.

The National Wealth Fund (NWF) is a publicly owned investor which provides a range of financing tools across the capital structure, including loans, guarantees and equity investments for projects which align with its mandate.The NWF’s investment decisions are based on the Investment Principles set out in its Framework Document. Investments from the NWF focus on areas where an undersupply of private finance exists. It targets opportunities to crowd-in three times as much private capital as its own investment committed across its portfolio. Allocating grants is not within the remit of the NWF.Earmarking investment amounts for certain sectors is not within the remit of the NWF either. Maintaining a broad balance sheet, allows the NWF to remain flexible and adapt to market requirements.The critical minerals sector is a key market for the NWF, as seen with its equity investments in Cornish Lithium, and in Cornish Metals.