Written questions by Niblett.

If she will make it her policy to leave Motability VAT at nil / exempt for those accessing the scheme through the Armed Forces Independent Payment.

At Budget 2025 the government announced tax changes 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.The tax framework for Motability, and other qualifying schemes, treats all eligible welfare benefits equally, and the Government has no plans to change this. Recent tax changes were designed to ensure Motability can continue to deliver affordability for its customers, for example through the continued provision of a broad range of vehicle models available without any top-up payments.

If she will hold discussions with the Royal British Legion on the potential impact of changes to VAT rules on price lists for poppy appeal items.

HMT Ministers regularly meet a wide array of stakeholders as part of the tax policymaking process. The Government recognises the importance of Remembrance events and the role they play in honouring those who have served. Where a charity chooses to offer its goods or services for free and invite voluntary donations, no VAT is charged. Charities also rightly enjoy generous tax reliefs, worth over £6 billion in 2024, including Gift Aid, exemptions from corporation tax and a number of VAT reliefs to support fund-raising activities. However, where charities sell goods and services, for example charging a set price, and the charity is VAT registered, it must charge VAT unless a VAT relief is available.

What steps she is taking to assist people with student debt to gain access to a mortgage.

The Government is committed to making home ownership more accessible by supporting first-time buyers, and welcomes changes made last year to support homeowners. The FCA clarifications to their affordability testing rules have been adopted by 85% of the market and should allow customers to borrow around 10% more on the same income. Additional flexibility from the Bank of England in relation to their loan-to-income rules are also allowing more customers to access larger mortgages in relation to their incomes. The Bank of England estimates that this change provide capacity for lenders to support up to 36,000 additional first-time buyers in the first year. The UK also benefits from a competitive mortgage market that offers various low deposit products; prospective buyers are encouraged to shop around and speak to a mortgage broker to find the best possible product for their circumstances. As a Government, we recognise the impact that previous Government terms can have on graduates’ finances. The government is capping the maximum interest rates on Plan 2 and 3 student loans at 6% from 1 September, for the 2026/27 academic year, delivering stability and protections for graduates from escalating student loan interest. We will continue to keep the terms of the student loan system under review to ensure that it is sustainable and fair for both students and taxpayers.

What assessment she has made of the potential impact of VAT rules on the accessibility and affordability of services provided by CBT psychotherapists, counsellors and other health professionals on PSA Accredited Registers.

Many services provided directly or supervised by registered health professionals are exempt from VAT, meaning no VAT is charged to the final consumer. This does not apply to professionals who do not have statutory registers, such as counsellors and psychotherapists. The UK’s approach of linking VAT exemption to statutory registration provides a clear and objective criterion for defining ‘health professionals’ for VAT purposes, ensuring that VAT reliefs are tightly targeted. While the Government keeps all taxes under review, there are no current plans to introduce VAT exemptions for counsellors and psychotherapists without statutory registration.

What assessment she has made of the potential merits of extending VAT exemption to counsellors, psychotherapists and CBT therapists who are on Professional Standards Authority-accredited registers.

Many services provided directly or supervised by registered health professionals are exempt from VAT, meaning no VAT is charged to the final consumer. This does not apply to professionals who do not have statutory registers, such as counsellors and psychotherapists. The UK’s approach of linking VAT exemption to statutory registration provides a clear and objective criterion for defining ‘health professionals’ for VAT purposes, ensuring that VAT reliefs are tightly targeted. While the Government keeps all taxes under review, there are no current plans to introduce VAT exemptions for counsellors and psychotherapists without statutory registration.

How many outstanding cases involving individuals subject to the Loan Charge she expects to be resolved as a result of the recommendations of the McCann Review.

At Budget 2024 the Government announced a new independent review of the loan charge. The purpose of the review was to bring the matter to a close for people who have not settled and paid their loan charge liabilities. The review identified affordability as a key barrier preventing those individuals from settling and made recommendations to remove this barrier. The Government has gone further in supporting people on the lowest incomes by providing an additional £5,000 deduction for those in scope of the review. This entirely removes approximately 10,000 individuals from the charge. Most others will see their liabilities reduced by at least half. Under the review recommendations, an individual earning £30,000 who used a disguised remuneration scheme for three years would have their liability reduced by 66 percent. Under the Government’s plans, they will instead see 89 percent written off. It represents the Government’s attempt to provide a fair route to resolution for those who have not settled with HMRC. In turn, those people need to come forward and engage with HMRC in good faith.

What assessment she has made of the potential impact of adding a default notice to customers' credit files before the resolution of their payment disputes with energy providers on their credit rating.

The Government recognises that information relating to arrears, such as a default notice, can have an adverse impact on an individual’s credit file. While the decision to report arrears information about an energy account to a credit reference agency is ultimately a matter for the energy company, energy companies and other organisations that report such information are expected to follow the Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies, available at: https://www.scoronline.co.uk/wp-content/uploads/2021/05/Principles-for-the-Reporting-of-Arrears-Arr….

What plans she has to extend the current section 33 Value Added Tax Act 1994 rule for school sixth forms to include further education colleges.

The Government recognises that Further Education (FE) funding is vital to ensure people are being trained in the skills they need to thrive in the modern labour market. The 2025 Spending Review provided an additional £1.2 billion per year by 2028-29 for skills and £1.7 billion of capital funding to help colleges maintain the condition of their estate. In addition, the Government is providing £375 million of capital investment to support the FE system to accommodate increasing student numbers. For their non-business activity, FE colleges are unable to reclaim VAT incurred. We operate several VAT refund schemes for schools and academies. FE colleges do not meet the criteria for either scheme. In relation to business activity, FE colleges enjoy an exemption from VAT which means that they do not have to charge VAT to students, but cannot recover it either. The Government is not currently planning to introduce a VAT refund scheme for FE institutions.

Whether she plans to introduce VAT exemptions for counsellors and psychotherapists, in line with those for art and dance therapy practitioners.

Many services provided directly or supervised by registered health professionals are exempt from VAT, meaning no VAT is charged to the final consumer. This does not apply to professionals who do not have statutory registers, such as counsellors and psychotherapists. The UK’s approach of linking VAT exemption to statutory registration provides a clear and objective criterion for defining ‘health professionals’ for VAT purposes, ensuring that VAT reliefs are tightly targeted. While the Government keeps all taxes under review, there are no current plans to introduce VAT exemptions for counsellors and psychotherapists without statutory registration.

Whether the Treasury has estimated the economic cost of outages on hyperscale cloud providers, and whether such risks are factored into national digital resilience planning.

The Government monitors systemic risks to UK critical national infrastructure, including resilience measures and contingency planning, including cloud providers.The Government recognises the importance of robust protections for the services essential to our society and economy. That is why we introduced the Cyber Security and Resilience Bill on 12 November. The Bill will make sure more types of essential and digital services adhere to robust cyber security practices.

What assessment the Office for Value for Money has made of the potential impact of restrictive licensing practices on Departmental spend on digital transformation.

The Office for Value for Money (OVfM) is a time limited unit in HM Treasury that was set two roles at Autumn Budget 2024: making targeted interventions at Spending Review 2025 and developing recommendations for reforming the spending framework. The OVfM has not made an assessment of the potential impact of restrictive licensing practices on departmental spend on digital transformation. Given the OVfM is a small, time limited team, it has needed to focus on a limited set of issues, deploying resources efficiently to target areas where the it can have most impact. Officials across departments consider the value for money of specific policies and external interactions using existing tools.

If she will hold discussions with mortgage lenders on the adequacy of their lending criteria for homes within 200 metres of a pylon.

The pricing and availability of mortgages is a commercial decision for mortgage lenders in which the Government does not intervene. However, the Government is regularly in contact with mortgage lenders on all aspects of their business, including the provision of finance to different cohorts of borrowers. The UK also benefits from a competitive mortgage market, with a wide variety of products available. Any prospective borrower should speak to a mortgage broker, who will be able to assist them in finding the best possible product for their circumstances.

What discussions she has had with mortgage lenders on ensuring mortgage offers are maintained for properties near electricity pylons, in the context of proposals to increase the number of electricity pylons.

The pricing and availability of mortgages is a commercial decision for mortgage lenders in which the Government does not intervene. However, the Government is regularly in contact with mortgage lenders on all aspects of their business, including the provision of finance to different cohorts of borrowers. The UK also benefits from a competitive mortgage market, with a wide variety of products available. Any prospective borrower should speak to a mortgage broker, who will be able to assist them in finding the best possible product for their circumstances.

Whether the independent review of the loan charge will cover the (a) current and (b) historic roles of (i) promoters, (ii) umbrella companies and (iii) HMRC; what steps she is taking to ensure the independence of the staff of the review; whether people who (A) work and (B) have worked for (1) HMRC and (2) her Department will be permitted to work for the review; and what steps she is taking to ensure the confidentiality of the conclusions and recommendations of the review until it is published.

At Budget, the Government committed to an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. Further details will be set out in due course.