Written questions by Heylings.

What assessment her Department has made of the differential treatment of electric and internal combustion engine motorcycles under the proposed electric Vehicle Excise Duty framework; and whether she has considered extending any VED exemptions to all motorcycles on the basis of their road surface impact.

The government will implement electric Vehicle Excise Duty (eVED) as an additional mileage based add-on to Vehicle Excise Duty (VED) for electric and plug-in hybrid cars, which is designed to replace the fuel duty revenues which will be lost as petrol and diesel vehicles are phased out over time. Other vehicle types, such as vans, buses, HGVs and motorcycles will not be in scope of eVED upon its introduction in April 2028. At this stage, the transition to electric for these other vehicle types is less advanced than for cars. Under VED, 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. There are no plans to extend VED exemptions to motorcycles based on their road surface impact.

Whether any Ministers or officials in HM Treasury have met with representatives of oil and gas companies to discuss North Sea oil and gas extraction since 1 March 2026.

Treasury Ministers and officials regularly engage with multiple industry stakeholders. The Chancellor met the UK’s oil and gas sector this month following the events in the Middle East. This included discussing how to navigate this uncertain period and the desire to provide certainty to support jobs in the UK, particularly in Scotland.

What assessment her Department has made of the potential impact of differential treatment of electric and internal combustion engine motorcycles under the proposed electric Vehicle Excise Duty framework on drivers; and whether he has considered extending any VED exemptions to all motorcycles on the basis their road surface impact.

All UK-registered electric and plug-in hybrid cars will pay Electric Vehicle Excise Duty (eVED). Other vehicle types such as vans, buses, coaches, motorcycles and heavy goods vehicles will be out of scope of the tax upon its introduction. This is because the transition to electric for these vehicle types is less advanced than for cars at this stage. With regards to existing VED, the government has no current plans to exempt motorcycles on the basis of their impact on road surfaces. The taxation of motoring is a critical source of funding for our vital public services and investment in infrastructure, including upkeep of the roads.

For what reason repairs and maintenance are treated differently for VAT purposes for (a) places of worship and (b) museums and art galleries.

Construction repair and remedial works to all buildings are charged at the standard rate of VAT, this includes places of worship and museums/art galleries. Previously major alterations to listed buildings were zero-rated, including places of worship. Since 2012, alteration works to a protected building are standard rated for VAT. Details are set out in HMRC guidance, available on GOV.UK: https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708#section9 Some museums and galleries receive VAT refunds on the costs associated with providing free access to their permanent collections, under the museums and galleries VAT Refund Scheme. More information can be found at VAT Refund Scheme for museums and galleries (VAT Notice 998) - GOV.UK The Listed Places of Worship Grant Scheme provides grants for VAT paid by listed places of worship on their repair and maintenance costs, with the objective of helping to preserve UK heritage. From April 2026 the scheme will be replaced by a Places of Worship Renewal Fund, which will invest £92 million capital funding into listed places of worship. It is designed to ensure that taxpayer funding is targeted more effectively toward the preservation of our heritage assets.

What discussions she has had with the Crown Estate on the steps it is taking to manage its assets in the public interest alongside profit maximisation when it is auctioning off plots of seabed to offshore wind developers.

The Crown Estate is an independent commercial business established by Parliament and returns its net profits to the Consolidated Fund. It has a statutory duty to secure best consideration while exercising good management. HM Treasury Ministers and officials engage regularly with The Crown Estate. The Crown Estate runs transparent, competitive processes in offshore wind leasing that treat bidders equally and balance commercial outcomes alongside its wider environmental, social and economic objectives.

Whether she has plans to consult with representatives of choirs and other vocal ensembles on the scope of Orchestra Tax Relief.

The Government supports the creative industries, including orchestras, through funding and via the tax system. Orchestra Tax Relief (OTR) was introduced to recognise and sustain the distinct cultural and economic activity associated with orchestral productions. Under current rules, qualifying concerts must be performed by a group of at least twelve instrumentalists. The human voice is not considered an instrument for these purposes. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra has at least 12 instrumentalists, and the instrumentalists are the primary focus. In considering any changes to existing tax reliefs or introducing new ones, Government has to consider a wide range of factors, including the specific aims of the relief, the costs and complexity of designing and administering new provisions, and fairness. Decisions on tax are taken by the Chancellor at fiscal events, in the context of overall public finances.

What assessment she has made of the potential impact on community choirs of extending Orchestra Tax Relief to include vocal ensembles.

The Government supports the creative industries, including orchestras, through funding and via the tax system. Orchestra Tax Relief (OTR) was introduced to recognise and sustain the distinct cultural and economic activity associated with orchestral productions. Under current rules, qualifying concerts must be performed by a group of at least twelve instrumentalists. The human voice is not considered an instrument for these purposes. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra has at least 12 instrumentalists, and the instrumentalists are the primary focus. In considering any changes to existing tax reliefs or introducing new ones, Government has to consider a wide range of factors, including the specific aims of the relief, the costs and complexity of designing and administering new provisions, and fairness. Decisions on tax are taken by the Chancellor at fiscal events, in the context of overall public finances.

What steps she is taking to ensure parity of access to creative tax reliefs between orchestras and choirs.

The Government supports the creative industries, including orchestras, through funding and via the tax system. Orchestra Tax Relief (OTR) was introduced to recognise and sustain the distinct cultural and economic activity associated with orchestral productions. Under current rules, qualifying concerts must be performed by a group of at least twelve instrumentalists. The human voice is not considered an instrument for these purposes. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra has at least 12 instrumentalists, and the instrumentalists are the primary focus. In considering any changes to existing tax reliefs or introducing new ones, Government has to consider a wide range of factors, including the specific aims of the relief, the costs and complexity of designing and administering new provisions, and fairness. Decisions on tax are taken by the Chancellor at fiscal events, in the context of overall public finances.

What recent assessment her Department has made of the adequacy of the use of Defence Bonds for financing military expenditure; and whether her Department has had recent discussions with financial investors on their issuance.

As the Prime Minister announced in February, we are fully funding the path to 2.5% by reducing ODA spending. That is why we can announce a £10.9bn real-terms increase to the MOD budget over the Spending Review period. On top of this, we are recognising the contribution provided by our intelligence agencies on defence, in line with practice among our Allies. This means that in 2027-28 we expect to reach 2.6% of GDPThe increase in defence spending will be funded by reducing ODA from 0.5% to 0.3% of Gross National Income (GNI) by 2027, and reinvesting it into defence.The government’s core gilt programme is the most stable and cost-effective way of raising finance to fund the day-to-day activities of the government, owing to the depth and liquidity of the market. This is, in part, down to the fungibility of the instruments issued to the market. Issuing bonds aimed at financing specific areas of spending risks fragmenting the gilt market, which would not be consistent with the government’s debt management objective of minimising the long-term cost of financing, taking into account risk.The government keeps under regular review the introduction of new debt instruments. The government would however need to be satisfied that any new instrument would meet value-for-money criteria, enjoy strong and sustained demand in the long term, and be consistent with wider fiscal objectives.

Whether her Department has considered changing the withdrawal percentage for Lifetime ISAs.

The Lifetime ISA (LISA) is designed to support people to achieve the aspiration of homeownership, or to build up savings for their later life. LISA funds, including any Government bonus, can be withdrawn for the purchase of a first home under £450,000, in the case of terminal illness or from the age of 60.Any unauthorised withdrawals are subject to a 25% withdrawal charge. This recoups the Government bonus, any interest or growth arising from it, and a proportion of the individual’s initial savings. Reducing the withdrawal charge would encourage the use of LISAs in ways for which they were not intended.The Government keeps all aspects of savings tax policy under review.

What recent assessment her Department has made of the adequacy of the compensation provided to Equitable Life policyholders.

The Equitable Life Payment Scheme has been fully wound down and closed since 2016 and there are no plans to reopen any decisions relating to the Payment Scheme or review the £1.5 billion funding allocation previously made to it. 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.

If she will undertake an investigation into the Financial Conduct Authority's regulation of Collateral (UK) Limited.

The conduct of Collateral’s Directors was plainly unacceptable, as evidence by their conviction for fraud and the criminal sentence that they are now serving. More widely, the Government does not have plans to commence an investigation into the Financial Conduct Authority's regulation of Collateral. The FCA has investigative and enforcement powers of its own and has already commenced investigations into particular peer-to-peer lenders, certain of which are ongoing. In the case of Collateral specifically, the FCA has undertaken an internal investigation already, including into its own role – the outcome of which is publicly available.

If she will remove VAT on (a) labour and (b) materials for restoration work on listed buildings.

The Government has no plans to remove VAT on restoration work on listed buildings. VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Taxation is a vital source of revenue that helps to fund vital public services. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers. The Department for Culture, Media and Sport administer the Listed Places of Worship Grant Scheme. This provides grants towards VAT paid on repairs and maintenance to the nation's listed places of worship. The Government keeps all tax policy under review, and any decisions on tax policy will be announced at fiscal events in the context of the overall public finances.

If she will increase the cap on Lifetime ISAs.

Data from the latest UK House Price Index shows that while the average price paid by first-time buyers has increased, it is still below the LISA property price cap in all regions of the UK except for London, where the average price paid is affected by boroughs with very high property values. The Government keeps all aspects of savings tax policy under review.

What assessment her Department has made of the potential merits of occupational pension scheme investment supporting economic growth.

I refer the member to the answer given to PQ UIN 34987 on 6 March 2025. The Government published the Interim Report of the Pensions Investment Review at Mansion House, which sets out proposals to reform the UK Pensions system. These reforms could unlock up to £80 billion in new productive investment including in businesses and infrastructure, including sustainable infrastructure to help reach the Government’s net zero targets, and help improve returns for savers. The proposed reforms to the defined contribution workplace pension market will accelerate consolidation, creating fewer, larger schemes, with a minimum scale requirement. This will allow schemes to deliver better value, governance, and investment opportunities, through larger ‘mega-funds’ more able to undertake productive investment. The Review also proposes reforms to the Local Government Pension Scheme (England and Wales) to tackle fragmentation and inefficiency. The LGPS manages £392 billion worth of assets, and the Interim Report proposes to require all 86 administering authorities to delegate investment management to pools. This will create large pools of professionally managed capital, in line with international best practice, and enhance the capacity and capability of the scheme to continue to drive national, local and regional investment and will help to ensure investments are able to reach all corners of the nation. The final Pensions Investment Review report, including the final proposals to be legislated for, will be published in the Spring ahead of the introduction of the Pension Schemes Bill. In addition to these reforms, the Government announced in January that it will pave the way for more well-funded DB pension schemes to share surplus funds with sponsoring employers and members, helping to drive growth by freeing up these funds for the benefit of the economy.

With reference to paragraph 3.11 of the Autumn Budget 2024, published on 30 October 2024, what assessment she has made of the potential impact of investments by occupational pension schemes on the (a) place, (b) people and (c) net zero pillars of the growth mission.

The Government published the Interim Report of the Pensions Investment Review at Mansion House, which sets out proposals to reform the UK Pensions system. These reforms could unlock up to £80 billion in new productive investment including in businesses and infrastructure. Amongst other things this would help improve returns for savers and support the net-zero transition. The proposed reforms to the defined contribution workplace pension market will accelerate consolidation, creating fewer, larger schemes. This will allow schemes to deliver better value, governance, and investment opportunities, through larger ‘mega-funds’ more able to undertake productive investment. The Review also proposes reforms to the Local Government Pension Scheme (England and Wales) to tackle fragmentation and inefficiency. The LGPS manages £392 billion worth of assets, and the Interim Report proposes to require all 86 administering authorities to delegate investment management to pools. This will create large pools of professionally managed capital, in line with international best practice, and enhance the capacity and capability of the scheme to continue to drive national, regional and local investment. The final Pensions Investment Review report, including the final proposals to be legislated for, will be published in the Spring ahead of the introduction of the Pension Schemes Bill.

Whether she made an assessment of the potential merits of including the (a) role and (b) conduct of HMRC within the terms of reference of the independent review of the loan charge.

The Government has commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers.The Government does not think it is right for people affected by the Loan Charge to have to wait years for any progress on bringing this matter to a close for them. The Government has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.Alongside the review, the Government is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.

If she will have discussions with Ray McCann on including the role of people who (a) recommended and (b) operated disguised remuneration schemes with the Loan Charge review.

The Government has commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers.The Government does not think it is right for people affected by the Loan Charge to have to wait years for any progress on bringing this matter to a close for them. The Government has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.Alongside the review, the Government is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.

If she will make an assessment of the adequacy of the Independent Review of the Loan Charge.

The Government has commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers.The Government does not think it is right for people affected by the Loan Charge to have to wait years for any progress on bringing this matter to a close for them. The Government has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.Alongside the review, the Government is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.

What discussions she has had with (a) the Country Land and Business Association and (b) other industry bodies to support working farms, in the context of her proposed changes to (i) agricultural property relief and (b) business property relief.

As the Minister responsible for the UK tax system, I have participated in several meetings with agricultural organisations since Autumn Budget 2024 to listen to views. Similarly, ministers from other Departments, such as the Department for Environment, Food and Rural Affairs, have also held meetings with these organisations to listen to their views. Most recently, on 18 February 2025, the Minister for Food Security and Rural Affairs and I met with representatives from various agricultural organisations, including the President of the Country Land and Business Association.