Written questions by Bedford.

What discussions she has had with the Transport Department on switching road tax to be on a per mile basis.

Treasury Ministers have regular discussions with other government departments on a range of matters. Vehicle Excise Duty (VED) applies to vehicles used or kept on public roads, which does not vary by miles driven. However, fuel duty applies to the petrol or diesel used by motorists driving internal combustion engine vehicles; the greater the miles driven, the more fuel duty incurred.

For what reason betting companies operating primarily (a) over the phone and (b) by direct debit are included in the proposed single Remote Betting and Gaming Duty.

The Government is consulting on proposals to simplify the current gambling tax system by merging the three current taxes that cover remote gambling into one. The definition of ‘remote gambling’ in the Gambling Act 2005 means gambling in which persons participate by the use of remote communication. “In this Act “remote communication” means communication using — a) the internet,b) telephone,c) television,d) radio, ore) any other kind of electronic or other technology for facilitating communication” The consultation asks respondents to share views on whether this definition is appropriate for the proposed Remote Betting and Gaming duty (RBGD). As such, I would encourage interested parties to respond to it.

Whether she has made representations to the Secretary of State for Business and Trade on the monetary value of VAT registration thresholds.

At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This keeps the majority of businesses out of the VAT regime altogether.The Chancellor has regular discussions with other Government Ministers on matters of common interest.

How many permanent civil servants in her Department had their contract of employment terminated as a result of poor performance in the (a) 2022-23, (b) 2023-24 and (c) 2024-25 financial years.

When numbers are so small that individuals could be identified, identifying details are masked to protect their privacy. Data on dismissals for poor performance is held in anonymised form without details of whether employees are permanent or temporary. Dismissals during probation for poor performance have also been included in the data. Based on this data our response is as follows:(a) 2022-23 Fewer than five(b) 2023-24 Fewer than five(c) 2024-25 Fewer than five

If she will make an assessment of the potential merits of abolishing the Office for Budget Responsibility.

The Office for Budget Responsibility (OBR) is the government’s official independent forecaster. The OBR’s independent scrutiny, via its economic and fiscal forecasts, underpins the credibility of the government’s fiscal policy. That is why on coming into office, one of the first bills this Government passed was the ‘fiscal lock’ to ensure that no future government can sideline the OBR.

Pursuant to the Answer of 27 May to Question 46599 on Civil Servants: Workplace Pension, what estimate she has made of the cost to the public purse of changing the civil service pension scheme to a defined contribution model.

The Civil Service Pension Scheme in Great Britain is an unfunded defined benefit pension scheme. The Public Service Pensions Act 2013 (the Act) provided for the introduction of new pension schemes for staff in public services, including the civil service. New schemes were introduced in 2014-15, with benefits calculated on a career average rather than final salary basis.The Act provides that should the government wish to change, before the 31 March 2040, the extent to which the Civil Service Pension Scheme is a care average scheme it must consult those likely to be affected (or their representatives) with a view to reaching agreement with them and lay a report in Parliament. Under section 27 of the Act, the report must set out why the changes are proposed, having regard to the desirability of not making such a change before 31 March 2040.The government has not assessed the cost of changing the Civil Service Pension Scheme. The costs of any defined contribution structure would be dependent on the exact design of any reformed scheme, and would need to consider total civil service remuneration, including pay. A move to a funded defined contribution scheme would have significant implications for the public purse, as employer and member contributions that are currently used to meet the cost of current pensions would instead need to be invested, leading to increased Total Managed Expenditure of around £7bn per annum for the Civil Service Pension Scheme.

If she will make an assessment of the potential impact of increasing income tax bands on economic productivity.

The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds. This decision was reflected in the OBR’s spring 2025 forecast which can be found here: https://obr.uk/economic-and-fiscal-outlooks/.

What steps her Department is taking to help maintain the level of return on savings in the context of her proposal to consolidate pension schemes that have under £25 billion of assets.

Increasing the returns on savings is a key priority of the Pensions Investment Review. Our proposals to consolidate schemes will improve efficiencies, reduce costs, and allow for more effective investment strategies. Together, the review and measures outlined in the King’s Speech, such as the Value for Money framework, are focussed on improving the levels of pension scheme performance and improving saver outcomes

If she will make an assessment of the potential impact of increasing the VAT registration threshold on levels of growth of small and medium-sized businesses.

At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This keeps the majority of businesses out of the VAT regime altogether.

What assessment she has made of the potential impact of changes to Inheritance Tax at the Autumn Budget 2024 on costs to pension scheme administrators.

Most unused pension funds and death benefits will be included within the value of a person’s estate for inheritance tax purposes from 6 April 2027. A technical consultation was published at Autumn Budget 2024 on the proposal for pension scheme administrators to become liable for reporting and paying any inheritance tax due on pensions. The consultation concluded on 22 January 2025 and the responses are being considered. In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

Whether she has considered merging employee National Insurance Contributions and Income Tax.

Merging income tax and National Insurance contributions would be a major upheaval in the tax system with consequences for the labour market and impacts for a large number of individuals and businesses. As such, the Government has no plans to combine income tax and NICs.

Whether her Department has made an assessment of the potential impact of reducing the ISA allowance on pensioner savings.

The Government is committed to incentivising saving and investment, helping people to save for their future goals and build greater financial resilience. Individual Savings Accounts (ISAs) support people of all incomes and at all stages of life to save, and the flexibility of the existing ISA framework allows older individuals to save for future life events such as retirement or care needs.The Government keeps all aspects of the tax system under review.

Whether her Department has made an assessment of the potential merits of introducing tax relief for companies that employ young people who are not in (a) education, (b) employment or (c) training.

There are existing reliefs available to support and encourage youth employment. This includes the employer National Insurance contribution (NICs) relief for employers who provide apprenticeships to young people under 25 and employers who employ individuals under the age of 21. These reliefs remove the requirement for employers to pay secondary Class 1 NICs on earnings up to the Upper Earnings Limit for eligible employees.

What plans she has to reduce (a) headcount and (a) payroll costs in her Department, in the context of Cabinet Office guidance on this matter.

Spending Review 2025 Phase 2 will set the future budgets for HM Treasury. The Spending Review has not yet concluded, so it is not possible to say what the specific headcount and payroll plans are for the department.

Whether her Department is using AI software in responding to written parliamentary questions.

In HM Treasury, written parliamentary questions are drafted by civil servants and answered by ministers. For information on the use of AI in HM Treasury, I refer the member to the answer given to UIN 23715 on 22 January 2025.

Whether she has made an assessment of the potential impact of the proposed increase in employer National Insurance contributions on recent trends in employment numbers on the high street.

An assessment of the changes to Employers’ National Insurance has been published by HMRC in their Tax Information and Impact Note, including impacts on the exchequer, the economy, individuals, households and families, equalities, and businesses including civil society organisations, alongside details on monitoring and evaluation. After accounting for the Autumn Budget 2024, the independent Office for Budget Responsibility expect the employment level will increase from 33.1 million in 2024 to 34.3 million in 2029.

What assessment her Department has made of the potential impact of proposed changes to business property relief on the (a) construction and (b) plant-hire sector in (i) the UK, (ii) Leicestershire and (iii) Mid Leicestershire constituency.

The Government has received representations, including from the construction and plant hire sector, about the reforms to both agricultural property relief and business property relief. The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Information from claims is not recorded to enable regional breakdowns of the number of estates expected to be affected. However, the Government has set out that around 1,500 estates across the UK only claiming business property relief are expected to be affected in 2026-27, with around 1,000 of these expected to only hold shares designated as “not listed” on the markets of recognised stock exchanges, such as the Alternative Investment Market. The remaining 500 estates will include business assets from sectors across the economy that are eligible for business property relief. These reforms mean that around three-quarters of estates claiming business property relief in 2026-27 (excluding those only relating to holding shares designated as “not listed”) will not pay any more inheritance tax in 2026-27.

Whether her Department has had recent discussions with stakeholders in the (a) construction and (b) plant-hire sector on the potential impact of changes to business property relief on those sectors.

The Government has received representations, including from the construction and plant hire sector, about the reforms to both agricultural property relief and business property relief. The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Information from claims is not recorded to enable regional breakdowns of the number of estates expected to be affected. However, the Government has set out that around 1,500 estates across the UK only claiming business property relief are expected to be affected in 2026-27, with around 1,000 of these expected to only hold shares designated as “not listed” on the markets of recognised stock exchanges, such as the Alternative Investment Market. The remaining 500 estates will include business assets from sectors across the economy that are eligible for business property relief. These reforms mean that around three-quarters of estates claiming business property relief in 2026-27 (excluding those only relating to holding shares designated as “not listed”) will not pay any more inheritance tax in 2026-27.

What progress she has made in (a) identifying and (b) reducing inefficiencies within her Department.

HM Treasury has, and continues to, take forward considerable work in identifying and actioning efficiencies in the departmental group. This includes adopting the Government Efficiency Framework, regularly reviewing productivity and efficiency measures to remove inefficiencies on an ongoing basis. Furthermore, HM Treasury is, as required by Spending Review 2025, doing detailed work to identify the efficiencies and savings required by the cross-government process.

If she will make an assessment of the potential merits of increasing the Personal Allowance threshold from £12,570.

The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. At our first Budget, we decided not to extend the freeze on personal tax thresholds meaning they will rise with inflation from April 2028