Written questions by Holden.

What assessment she has made of the potential impact of (a) the abolition of non-dom status and (b) increases in levels of taxation on the retention of international shipowners in the UK; what estimate she has made of the number of shipowning individuals or companies that (i) have relocated and (ii) are considering relocating as a result of these changes; and what steps the Government is taking to ensure that the UK remains an attractive base for global shipping and maritime businesses.

The Government’s priority is improving the UK’s competitiveness internationally and securing economic growth. The reforms to the tax treatment of non-domiciled individuals have been specifically designed to make the UK competitive, with a modern, simple tax regime that is also fair. The reforms establish a tax regime for new residents which is more attractive to new arrivals than the current rules.The introduction of a residence-based tax system is expected to raise £39.5bn by 2030-31 (as costed by the OBR last autumn), and the OBR have said that there is no firm evidence to change the estimated impact of the reforms on migration. As set out at Budget 2025, the Chancellor has been clear that she will continue to assess the regime to ensure it strikes the right balance, including on competitiveness.The Government published a Tax Information and Impact Note for this policy on 30 October 2024, which can be found here: https://www.gov.uk/government/publications/tax-changes-for-non-uk-domiciled-individuals/reforming-the-taxation-of-non-uk-domiciled-individualsRegarding global shipping and maritime businesses, the Government is maintaining the Tonnage Tax regime, introduced in 2000 to improve the competitiveness of the UK’s shipping industry. This is designed to make it easier for shipping companies to move to the UK and ensures they are not disadvantaged compared with firms operating in other countries.

Whether her Department has conducted a comparative assessment of Air Passenger Duty rates in the UK with aviation passenger taxes and equivalent charges in other European countries; and whether such analysis is used to inform decisions on Air Passenger Duty policy.

Air Passenger Duty (APD) applies to airlines, not individual passengers, and is the principal tax on the aviation sector. It is expected to raise £4.7 billion in 2025-26. The Government is clear that APD is an appropriate tax that ensures airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty. Other countries also have different forms of aviation taxes.

What discussions she has had with her G7 counterparts on (a) the potential impact of the oil price cap on the level of the Russian Federation's revenues to date and (b) the potential merits of reducing the level of the oil price cap; and what estimate she has made of the potential impact of the oil price cap on the Russian Federation's fiscal revenues in each of the last three years.

The implementation of the oil price cap has achieved its joint aims of 1) reducing Russian oil revenues by capping the price at which Russian oil can be transported using G7 maritime services (such as insurance and brokering for example), while also, 2) maintaining global oil flows and limiting market in instability. This is why the UK, alongside the EU announced our intention to lower the crude oil price cap in July 2025 with Canada, Japan and New Zealand following shortly afterwards. At 23:01 (GMT) Saturday 31 January 2026 the crude Oil Price Cap will be lowered from $47.60 to $44.10 per barrel. The UK has chosen to mirror the EU's new price to maintain regulatory alignment in targeting Russian revenues and is part of the UK’s ongoing commitment to supporting Ukraine. Remaining aligned with the EU on this matter ensures clarity and ease for UK businesses operating in Europe.Following the introduction of the oil price cap on crude oil in December 2022, and refined oil products in February 2023, Russian oil export revenues have been significantly reduced. Compared to 2022, the price cap contributed to an approximately 18% fall in Russian oil export revenues in 2023 and 2024, and a 30% decline in 2025. This success, coupled with significantly lower Urals prices, has weakened Putin’s ability to sustain his illegal war in Ukraine.

With reference to Chart 3.4 in the Office for Budget Responsibility’s Economic and Fiscal Outlook, what the annual percentage point contributions are to CPI inflation in each year by policy measure and output gap.

The contribution of each policy measure to CPI inflation in the Office for Budget Responsibility can be found in their supporting documents at the following link: https://obr.uk/download/november-2025-economic-and-fiscal-outlook-charts-and-tables-chapter-3/?tmstv=1769169856 In total, the Office for Budget Responsibility forecast that Budget measures will reduce CPI inflation by 0.4pp in 2026/27, with the most significant impact coming from the reduction in energy bills.

Whether she plans to retain the Vehicle Excise Duty exemption for vintage motorcycles.

At Budget 2014 the Government at the time announced that it would introduce a rolling 40-year exemption from Vehicle Excise Duty (VED) for historic vehicles, including motorcycles. This means that currently vehicles constructed before 1 January 1985 are exempt from paying VED. From 1 April 2026 vehicles constructed before 1 January 1986 will become exempt from VED. The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy.

Whether she has made an assessment of the potential impact of the increase in civil service remuneration approval to £174,000 on civil service salaries.

Civil Servant pay is set within a pay framework which is reviewed annually by the Senior Salaries Review Body. The senior pay control process, including approvals required from HM Treasury, acts as an additional layer of scrutiny to Senior Civil Servant salaries.

What steps her Department is taking to improve oversight and enforcement action against the use of unregulated informal value transfer systems.

Informal transfer value systems (IVTS) is a type of Money Service Business (MSB) activity. HM Revenue & Customs is the main supervisor of MSBs and leads inter-agency work to tackle the money laundering and illicit finance risks faced by the sector. That work includes a specific focus on IVTS. Any entity engaging in IVTS without being registered with and supervised by HMRC (or another UK AML supervisor) is doing so illegally. HMRC supervision activity that identifies breaches of the MLR 2017 may result in warnings, civil sanctions, or criminal prosecution, depending on the severity and nature of the breaches. HMRC works closely with partners to ensure a joined-up approach to tackling risks in the sector, including from unregistered MSBs. In the last 2 years, HMRC issued 27 financial penalties to MSBs and cancelled the registration of 12 others (meaning they can no longer lawfully engage in MSB activity). HMRC also issued 248 warning letters to MSBs which needed to improve their AML compliance.

What assessment she has made of the potential impact of VAT on the cost of pilot training in the UK; and whether she has considered extending VAT exemption to all commercial pilot training regardless of provider status.

Pilot training may be exempt from VAT when provided by an eligible body which meets certain conditions (for example, when provided by a government institution or certain regulated organisations), but otherwise will be subject to the standard rate. VAT-registered businesses paying for training will be able to recover any VAT they pay.The Government currently has no plans to remove VAT on pilot flight training courses more broadly.

With reference to HMRC's guidance entitled Newsletter 173 — September 2025, updated on 11 December 2025, what her planned timetable is for publishing draft regulations and laying legislation on the treatment of scheme-specific lump sums for individuals with Enhanced Protection.

Further Pensions (Abolition of Lifetime Allowance Charge etc) Regulations will be made in Spring 2026 and will include updates to the treatment of scheme-specific lump sums for individuals with Enhanced Protection.The majority of the regulations will have retrospective effect from 6 April 2024 when the Lifetime Allowance was abolished.

If her Department has made an estimate of of the behavioural impact of the 3 percent Benefit-in-Kind rate for zero-emission company cars, including (a) the number of additional EVs purchased by fleets and (b) the fiscal implications of those behavioural effects.

The Government publishes annual statistics on HMRC’s taxable benefits in kind for company cars and company car fuel. These reports document the number of benefit in kind recipients, the CO2 emissions of company cars and their total taxable value. The latest statistics for the tax year 2023-24 were published in June 2025, and are accessible here: https://www.gov.uk/government/statistics/benefits-in-kind-statistics-june-2025/benefit-in-kind-statistics-commentary-june-2025 Additionally, at Budget 2024 the Government announced new Company Car Tax rates for the years 2028-29 and 2029-30, which increase for both electric vehicles (EVs) and petrol/diesel vehicles, while still maintaining generous incentives to support EV take-up. The Tax Information and Impact Note (TIIN) published alongside Budget set out the expected economic, equalities and other impacts, and highlighted that overall the measure was expected to encourage the take-up of zero emission vehicles.

What assessment she has made of the potential impact of the Financial Conduct Authority’s proposed Motor Finance Consumer Redress Scheme on the future affordability of motor finance for consumers.

It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. The Government wants to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms. The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on how firms should support vulnerable consumers, and address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way. Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.

What the net zero targets are for (a) their Department and (b) its arm’s-length bodies; and whether guidance has been issued on adopting net zero targets earlier than 2050.

The net zero target in the Climate Change Act 2008, is a target for the whole of the UK, not individual departments or arms-length bodies. Greening Government Commitments are the central framework setting out the actions UK government departments and their agencies will take to reduce their impacts on the environment, including setting targets to reduce emissions, during the framework period. The previous framework and emission reduction targets covered the period 2021 - 2025. Under this framework HM Treasury had a target to reduce its overall emissions by 69% and direct emissions by 25%, against a 2017-2018 baseline. Defra are reviewing the Greening Government Commitments to ensure that they remain aligned with government priorities. Information regarding the Treasury’s targets and performance on operational activity relating to climate adaptation, sustainability, and the environment (CASE-Ops) can be found in ANNEX B: Sustainability in the 2024-25 Annual Report and Accounts on pages 223 to 229 at : www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2024-to-2025

What discussions she has had with the Financial Conduct Authority on the potential impact of the proposed Motor Finance Consumer Redress Scheme on future motor finance costs for consumers.

It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. The Government wants to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms. The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on how firms should support vulnerable consumers, and address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way. Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.

Pursuant to the Answer of 4 December 2025 to Question 94796 on Cars: Taxation, whether a weight-based system of vehicle taxation for cars is under consideration by her Department.

The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.

What assessment she has made of the potential merits of including oil refining within the UK Carbon Border Adjustment Mechanism.

The government recognises that refineries play a role in energy security and the UK’s industrial base, and will publish a call for evidence on the fuel sector. The government is also considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism (CBAM) in future.

Whether, following the Government’s decision to abolish the Valuation Office Agency and transfer its functions into HM Revenue and Customs, she plans to maintain the current Valuation Office Agency methodology for assessing business-rates valuations.

At Budget 2025, the government published a Call for Evidence on Business Rates and Investment which will explore concerns raised by a small number of ratepayers whose properties are valued on the ‘Receipts & Expenditure’ methodology and options to improve predictability and stability.

What assessment she has made of the potential impact of changes to the Air Passenger Duty in the Autumn Budget 2025 on the competitiveness of the UK aviation sector compared to other European countries.

The government is committed to the long-term future of the aviation sector in the UK and recognises the benefits of the connectivity it creates between the UK and the rest of the world. The government remains committed to maintaining a competitive and dynamic aviation sector that supports jobs, skills, and innovation across the UK. Following previous increases to Air Passenger Duty (APD) rates to account for below inflation rates, the government will uprate APD rates in line with RPI from 1 April 2027 and rounded to the nearest penny. This constitutes a real terms freeze. This will continue to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free, and aviation fuel incurs no duty.

Pursuant to WPQ 93776, if she will provide a hyperlink to that information, as set out as correct practice in paragraph 234 of the Government's Guide To Parliamentary Work.

Apologies. The draft 2026 Rating List valuations, and current 2023 List valuations, which can be filtered using the advanced search by special category code, can be viewed at: www.gov.uk/find-business-rates

Whether she plans to extend the child Air Passenger Duty exemption to Premium Economy cabins.

Air Passenger Duty (APD) applies to airlines, not individual passengers, and is the principal tax on the aviation sector. It is expected to raise £4.7 billion in 2025-26 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty. The distance-based band structure ensures that those who travel furthest, and in the greatest comfort, incur a greater tax liability. Children under 16 years old on the date of the flight, and in the lowest class of travel, are exempt from APD. This means that no APD will be paid on that passenger by the airline to the UK government. If children under 16 years old are travelling in any other class (such as premium economy) or in business jets, they are not exempt. Children under 2 years old without a seat are exempt from Air Passenger Duty for all classes of travel.

What assessment she has made of the potential impact of business rates increases at airports on i.) passenger ticket prices and ii.) airline route planning.

The government is committed to enabling investment so that airports can play their full role in the growth mission. Properties seeing large bill increases as a result of the business rates revaluation - including airports - will benefit from a redesigned transitional relief scheme worth £3.2 billion over the next 3 years. At Budget 2025, the government also published a Call for Evidence on Business Rates and Investment. It will explore the concerns that airports and a small number of other ratepayers have raised around the ‘Receipts & Expenditure’ valuation methodology and its impacts on long-term, high value investments. The government is seeking to address issues raised ahead of the 2029 revaluation, aiming to conclude this work in sufficient time before pre-list discussion commences.