Written questions by Bhatti.

What consideration she has given to establishing a government-recognised (a) compliance and (b) accreditation standard for umbrella companies to reduce payroll tax risk within labour supply chains supplying public sector bodies.

Umbrella companies are a type of employment intermediary that engages workers on behalf of recruitment agencies and end client organisations. Although many umbrella companies operate diligently, others are used to facilitate non-compliance including tax avoidance and fraud. From 6 April 2026, recruitment agencies are responsible for ensuring that Pay As You Earn and National Insurance contributions obligations are met when they choose to use an umbrella company to engage a worker. Where these obligations are not met, HMRC will recover underpayments from the recruitment agency. If there is no recruitment agency involved in an arrangement with an umbrella company, this responsibility will fall to the end client organisation. The rules apply regardless of the sector in which workers are engaged. The new rules are intended to drive behavioural change in the temporary labour market, increasing the amount of assurance undertaken by organisations that use umbrella companies to force non-compliance umbrella companies out of the market. This change is forecast to protect around £2.7 billion across the scorecard period up to and including 2030-31. It is right that organisations that choose to use umbrella companies to engage workers should take steps to make sure that they are compliant. HMRC has published extensive guidance to support organisations that use umbrella companies to undertake assurance checks.

What assessment HMRC has made of the risk of unpaid employer National Insurance contributions within labour supply chains providing temporary staffing to the NHS following the Ducas tax dispute; and whether she plans to introduce a statutory (a) accreditation and (b) licensing regime for umbrella companies operating in the labour market.

Umbrella companies are a type of employment intermediary that engages workers on behalf of recruitment agencies and end client organisations. Although many umbrella companies operate diligently, others are used to facilitate non-compliance including tax avoidance and fraud. From 6 April 2026, recruitment agencies are responsible for ensuring that Pay As You Earn and National Insurance contributions obligations are met when they choose to use an umbrella company to engage a worker. Where these obligations are not met, HMRC will recover underpayments from the recruitment agency. If there is no recruitment agency involved in an arrangement with an umbrella company, this responsibility will fall to the end client organisation. The rules apply regardless of the sector in which workers are engaged. The new rules are intended to drive behavioural change in the temporary labour market, increasing the amount of assurance undertaken by organisations that use umbrella companies to force non-compliance umbrella companies out of the market. This change is forecast to protect around £2.7 billion across the scorecard period up to and including 2030-31. It is right that organisations that choose to use umbrella companies to engage workers should take steps to make sure that they are compliant. HMRC has published extensive guidance to support organisations that use umbrella companies to undertake assurance checks.

What assessment she has made of the potential impact of extending joint and several liability for payroll taxes within umbrella company arrangements on recruitment agencies supplying temporary staff to public sector bodies, including the NHS.

Umbrella companies are a type of employment intermediary that engages workers on behalf of recruitment agencies and end client organisations. Although many umbrella companies operate diligently, others are used to facilitate non-compliance including tax avoidance and fraud. From 6 April 2026, recruitment agencies are responsible for ensuring that Pay As You Earn and National Insurance contributions obligations are met when they choose to use an umbrella company to engage a worker. Where these obligations are not met, HMRC will recover underpayments from the recruitment agency. If there is no recruitment agency involved in an arrangement with an umbrella company, this responsibility will fall to the end client organisation. The rules apply regardless of the sector in which workers are engaged. The new rules are intended to drive behavioural change in the temporary labour market, increasing the amount of assurance undertaken by organisations that use umbrella companies to force non-compliance umbrella companies out of the market. This change is forecast to protect around £2.7 billion across the scorecard period up to and including 2030-31. It is right that organisations that choose to use umbrella companies to engage workers should take steps to make sure that they are compliant. HMRC has published extensive guidance to support organisations that use umbrella companies to undertake assurance checks.

What assessment she has made of the potential impact of the rise in Japanese bond yields on UK markets.

Market prices are determined by a wide range of global and domestic factors. The government does not comment on movements in financial markets.

With reference to the oral contribution by the Chief Secretary to the Treasury of 3 December 2025, Official Report, column 991, what the terms of reference are for the investigation.

A leak inquiry is now under way and the government does not comment on the details of leak inquiries. The Independent Adviser for Ministerial Standards has written to the leader of Reform UK and does not intend to investigate this matter. The Chief Executive Officer of the FCA has written to the Chair of the Treasury Select Committee and the FCA have not launched an enforcement investigation.

With reference to the oral contribution by the Chief Secretary to the Treasury of 3 December 2025, Official Report, column 991, whether the Financial Conduct Authority be involved in the investigation.

A leak inquiry is now under way and the government does not comment on the details of leak inquiries. The Independent Adviser for Ministerial Standards has written to the leader of Reform UK and does not intend to investigate this matter. The Chief Executive Officer of the FCA has written to the Chair of the Treasury Select Committee and the FCA have not launched an enforcement investigation.

With reference to the oral contribution by the Chief Secretary to the Treasury of 3 December 2025, Official Report, column 991, what the planned timetable is for the inquiry.

A leak inquiry is now under way and the government does not comment on the details of leak inquiries. The Independent Adviser for Ministerial Standards has written to the leader of Reform UK and does not intend to investigate this matter. The Chief Executive Officer of the FCA has written to the Chair of the Treasury Select Committee and the FCA have not launched an enforcement investigation.

With reference to the oral contribution by the Chief Secretary to the Treasury of 3 December 2025, Official Report, column 991, what she held discussions with the Independent Advisor on Ministerial Standards before announcing the investigation.

A leak inquiry is now under way and the government does not comment on the details of leak inquiries. The Independent Adviser for Ministerial Standards has written to the leader of Reform UK and does not intend to investigate this matter. The Chief Executive Officer of the FCA has written to the Chair of the Treasury Select Committee and the FCA have not launched an enforcement investigation.

What assessment she has made of the potential impact of higher rateable values and reduced business rates relief on the number of hospitality closures and empty units on high streets over the next three years.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit. The Call for Evidence published at Budget seeks further evidence on the role business rates and reliefs play in investment, including Empty Property Relief.

With reference to the oral contribution by the Chief Secretary to the Treasury of 3 December 2025, Official Report, column 991, how much funding her Department plans to provide for the leak inquiry.

A leak inquiry is now under way and the government does not comment on the details of leak inquiries. The Independent Adviser for Ministerial Standards has written to the leader of Reform UK and does not intend to investigate this matter. The Chief Executive Officer of the FCA has written to the Chair of the Treasury Select Committee and the FCA have not launched an enforcement investigation.

How many a) pubs, b) hotels, c) restaurants, d) indoor leisure and e) night clubs will have i) increased, ii) decreased and iii) the same business rates from April 2026.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties, including those in the hospitality and leisure sectors as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. For the pubs sector, the increase in rateable values will be 30%, which combined with the loss of the temporary RHL relief would lead to an increase in total bills paid by the sector of 45%. However, due to government intervention, the sector’s total bill will only increase by 4% next year. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

What assessment her Department has made of the potential impact of the removal of business rates relief and business rates revaluation on high street businesses.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

What assessment she has made of the potential impact of rateable value increases and changes to business rates relief on a) vacancy rates on local high streets, b) jobs, c) businesses closures and d) price levels.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. The Valuation Office Agency has published statistics on changes in the rateable value of properties in the 2026 revaluation. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties. The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. The 40% RHL relief was forecast to cost £1.7 billion in 2025/26, less than the £2.1 billion we are spending on Transitional Relief and Supporting Small Business relief in 2026/27. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit. The new RHL tax rates will be 5p below the national tax rates.

What assessment her Department has made of the potential impact of National Insurance contributions on small and medium-sized businesses ability to hire new staff.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy, including on businesses. The Government decided to protect the smallest businesses from the changes to employer NICs by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change. The OBR forecast, which accounts for the impacts of employer NICs on the economy, expects that the unemployment rate will fall to 4.1% by the end of 2027 and remaining at that rate for the rest of the forecast. After accounting for impacts of employer NICs, the OBR still expect the employment level to increase from 33.6m in 2024 to 34.8m in 2029.

Whether she has made an assessment of the potential cumulative impact of (a) National Insurance contributions and (b) the Employment Rights Act on overall hiring costs for UK businesses.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy, including on businesses. The Government decided to protect the smallest businesses from the changes to employer NICs by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change. As set out in the government’s published impact assessments for the Employment Rights Bill, there are a range of channels through which the measures in the Bill could benefit the economy, as well as potential offsetting effects. Final impacts will depend on further policy decisions that are for secondary legislation.

What steps she is taking to ensure that the Autumn Budget 2025 incentivises businesses to invest in (a) job creation and (b) workforce development.

Economic growth is the central mission of this government, and we recognise that sustainable growth can only be achieved in partnership with businesses and other stakeholders. We are providing long-term stability through clear fiscal rules that give firms the confidence to hire and expand. Through the National Wealth Fund, we are unlocking over £70 billion in private investment and creating jobs across key sectors. We are also advancing structural reforms to drive business-led job creation, including a new modern Industrial Strategy, agreeing new trade deals, reforming the UK planning system, and have launched the Backing Your Business plan, which delivers targeted support for small and medium-sized enterprises. To support workforce development, we are transforming the apprenticeship levy into a more flexible Growth and Skills Levy, enabling employers to fund a wider range of high-quality training, including shorter and foundation apprenticeships and short courses under the Industrial Strategy. Employers are also supported through an NIC exemption for apprentices under 25. However, we cannot comment in advance on Budget measures.

What assessment she has made of the potential impact of trends in the level of UK borrowing costs on government spending.

The Government has published Spending Review 2025, which set departmental spending allocations consistent with the fiscal strategy set out at Autumn Budget 2024 and Spring Statement 2025. The Chancellor will provide further updates at Autumn Budget 2025.

Whether she has had discussions with Cabinet colleagues on the potential impact of the trends in the cost of debt on Departmental Budgets.

The Government has published Spending Review 2025, which set departmental spending allocations consistent with the fiscal strategy set out at Autumn Budget 2024 and Spring Statement 2025. The Chancellor will provide further updates at Autumn Budget 2025.

Whether she has had discussions with the International Monetary Fund on the impact of the rising cost of bond yields.

The government does not comment on specific market moves. As the Governor of the Bank of England recently noted, the underlying driver of recent moves in yield curves is global. This means it is more important than ever to have fiscal rules that provide stability. Sound public finances are essential to economic and financial stability, and delivering economic growth. That is why at the Budget we will continue to meet this government’s non-negotiable fiscal rules, building on the decisions we took at Autumn Budget 2024 and Spring Statement 2025. This is the responsible choice – to live within our means, reduce our levels of borrowing in the years ahead and support the Bank of England to get inflation down, so we can deliver on the priorities of working people and spend less on servicing debt.

What assessment she has made of the potential impact of trends in the level of borrowing costs on mortgages.

The Government does not comment on specific financial market movements. Government borrowing costs are determined by a wide range of international and domestic factors, and it is normal for the price and yields of gilts to vary, especially in the context of wider movements in global financial markets. The pricing of mortgages, which is influenced by a number of factors, is a commercial decision for lenders in which the Government does not intervene. Headline average mortgage rates are materially lower than the recent peaks seen in Summer 2023 and Autumn 2022.