Written questions by Osborne.

Whether her Department has made a recent comparative assessment of the adequacy of Vehicle Excise Duty treatment for (a) motorcycles and (b) cars; and if she will review the basis on which motorcycles are taxed.

VED, sometimes known as 'road tax' or 'car tax', is a tax on vehicles used or kept on public roads. Different VED 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. Revenue from motoring taxes helps to fund vital public services and infrastructure, including investment in roads and transport. VED for motorcycles is currently based on engine size. There are four engine size ranges, with the lowest rate applying to zero emission motorcycles and the smallest engines sized 150cc or less (currently £27). The highest rate applies to engines sized 600cc and above (currently £125). This compares with the standard rate for cars registered on or after 1 April 2017 which is currently £200. Motorcycles also do not pay different rates in the first year of purchase, unlike cars where first year rates vary from £10 to £5,690 for the most polluting vehicles. 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.

Whether she has made an assessment of the potential merits of exempting veterinary treatment for companion animals from VAT, in the context of existing VAT exemptions for certain essential goods and services.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for public services, and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations. One of the key considerations for any potential new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates, meaning that cutting VAT may not be an effective way to reduce prices for consumers.The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances. Since taking office the Government has taken a number of decisions on tax, welfare, and spending to fix the public finances, fund public services, and restore economic stability. This stability is critical to boosting investment and growth, and to making people across the UK better off.

What steps she plans to take to help ensure the UK is an attractive destination for cryptoasset capital.

The government recognises the transformative potential of digital assets and blockchain technologies to drive economic growth in the UK and increase efficiencies across financial markets. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets. This will support growth in the UK by giving cryptoasset firms the regulatory certainty needed to invest here, and to help drive innovation in our financial services sector.

Whether she has made an assessment of the potential impact of introducing clearer regulatory and tax frameworks for cryptoasset investment on a) high-skilled job creation and b) assets under management.

The government recognises the transformative potential for digital assets and blockchain technologies to drive economic growth in the UK and increase efficiencies across financial markets. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets. This will support growth in the UK by giving cryptoasset firms the regulatory certainty needed to invest here, and to help drive innovation in our financial services sector. The government also keeps the tax framework for cryptoassets under review.

Whether she has made an assessment of the potential merits of simplifying tax-compliant investment structures for cryptoassets in innovative finance ISAs to include all cryptoassets; and if she will make an assessment of the potential impact of doing so on levels of involuntary non-compliance among retail investors.

The government recognises the transformative potential for digital assets and blockchain technologies to drive economic growth in the UK and increase efficiencies across financial markets. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets. This will support growth in the UK by giving cryptoasset firms the regulatory certainty needed to invest here, and to help drive innovation in our financial services sector. A draft consultation on legislation that enables the inclusion of cETNs in the IFISA is out now and will come int force in April 2026. While there are currently no plans to include all cryptoassets in IFISAs, any future consideration would take account of market maturity, stability, and the suitability of providing targeted tax reliefs alongside the new regulatory regime.

Whether her Department has made an assessment of the potential impact of trends in the value of the pound since the UK left the EU on the UK economy.

The government does not comment on specific financial market movements. The value of sterling is determined by a wide range of international and domestic factors. The Bank of England assesses the impact of financial market movements on the economy in its quarterly Monetary Policy Report - the latest can be found here.

Whether her Department has undertaken research into the potential impact of VAT reductions on (a) the re-use of goods, (b) minimum warranty periods and (c) other circular economic practices in industry.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. The Government keeps all taxes under review.

What plans her Department has to introduce (a) semi-transparent and (b) non-transparent Exchange Traded Funds.

The Government is committed to supporting the UK’s world-leading asset management sector. Exchange Traded Funds (ETFs) are often domiciled outside of the UK to benefit from increased marketing access, and existing pockets of administrative expertise. However, many of these funds are still managed here - 49% of all assets managed in the UK are managed on behalf of overseas clients. Semi-transparent and non-transparent ETFs which are domiciled in Europe can list in the UK and market to retail investors, following the UK’s recognition of certain retail funds from the EEA states, under the Overseas Funds Regime. At present no non-transparent or semi-transparent ETFs have sought to be established in the UK. The Financial Conduct Authority, as the relevant regulator, would deal with any such applications on a case-by-case basis.

Whether she is considering steps to incentivise domicile Exchange Traded Funds in the UK if they have a significant corporate footprint in country.

The UK is home to the world’s second largest investment management sector, with over £10.9 trillion of assets under management (11% of global assets). The UK has historic expertise in portfolio management, a crucial part of the Financial Services ecosystem. The UK Government is committed to supporting this important sector and in the recently published Financial Services Growth and Competitiveness Strategy committed to be one of the most competitive places globally to manage investments. Exchange Traded Funds (ETFs) are often domiciled outside of the UK for a range of reasons including marketing access, and existing pockets of administrative expertise. However, many of these funds are still managed here - 49% of all assets managed in the UK are managed on behalf of overseas clients. The Government has undertaken a wealth of work to enhance the UK’s fund domicile offering, including as part of the recent review of the UK funds regime. This has led to the introduction of new UK fund structures focused on enhancing real-economy investment including the Reserved Investor Fund, the Long-Term Asset Fund and Qualifying Asset Holding Companies.

Whether she is taking steps to establish an Exchange Traded Fund.

The UK is home to the world’s second largest investment management sector, with over £10.9 trillion of assets under management (11% of global assets). The UK has historic expertise in portfolio management, a crucial part of the Financial Services ecosystem. The UK Government is committed to supporting this important sector and in the recently published Financial Services Growth and Competitiveness Strategy committed to be one of the most competitive places globally to manage investments. Exchange Traded Funds (ETFs) are often domiciled outside of the UK for a range of reasons including marketing access, and existing pockets of administrative expertise. However, many of these funds are still managed here - 49% of all assets managed in the UK are managed on behalf of overseas clients. The Government has undertaken a wealth of work to enhance the UK’s fund domicile offering, including as part of the recent review of the UK funds regime. This has led to the introduction of new UK fund structures focused on enhancing real-economy investment including the Reserved Investor Fund, the Long-Term Asset Fund and Qualifying Asset Holding Companies.

Whether she plans to review the definition of recycled in Section 49 of the Finance Act 2021 to recognize organic recycling through food waste schemes.

The Plastic Packaging Tax provides a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging, thereby stimulating the collection and recycling of plastic waste and diverting it away from landfill or incineration. The government has no plans to review the definition of recycled plastic that is used for the tax.

If she will make it her policy to review the level of the Video Games Expenditure Credit for projects with a budget of £10m or less.

The Government recognises the importance of the UK’s video games sector and the key role it plays in driving economic growth. As part of our modern Industrial Strategy, we are developing a creative industries sector plan with business, local leaders, and sector experts. The Government supports the video games sector through the tax system and through funding. Video games companies already benefit from the Video Games Expenditure Credit (VGEC), which provides a generous tax credit of 34 per cent on UK video games development costs. In addition, companies may benefit from the £5.5 million UK Games Fund for 2025/26, which helps high-potential start-ups scale-up. When considering new tax reliefs, the Government has to balance a wide range of factors, including the fiscal position and complexity of the tax system.

If she will make an assessment of the potential merits of creating a similar scheme to the Small Business Investment Company in the USA.

The government is committed to supporting small businesses, recognising their vital role in driving economic growth and innovation. The government continually reviews its support for small businesses to ensure it remains effective and responsive to their needs. The government will publish its Small Business Strategy in 2025 after the Phase 2 Spending Review. This will set out the government’s vision for supporting small businesses, from boosting scale-ups to growing the co-operative economy and across key policy areas. The government already has schemes in place that deliver outcomes similar to the US’s SBIC scheme: providing finance to small businesses. Currently, the UK offers a range of support mechanisms for small businesses, including the Enterprise Investment Scheme (EIS), the Seed Enterprise Investment Scheme (SEIS), and the Venture Capital Trust (VCT) scheme which provide tax reliefs to investors who make new equity investments in high risk, early stage Small and Medium-sized Enterprises (SMEs), in order to help them grow and develop. Additionally, the British Business Bank plays a crucial role in improving access to finance for small and medium-sized enterprises (SMEs) through various programmes, helping them to grow and succeed. These include programmes which provide funding to professional equity and debt fund managers, as well as guarantees to enable high street lenders provide additional finance to SMEs.

What her planned timetable is for the proposed consultation on e-invoicing.

At Budget 2024, the Chancellor of the Exchequer announced a public consultation on e-invoicing to promote its wider use across UK businesses and government departments. HMRC and Department for Business and Trade will be publishing a joint consultation with an expected publication date of early 2025. The consultation will run for 12 weeks and will be open to all business sizes and sectors, individuals, and software providers.

With reference to HMRC's policy paper on making tax digital, updated on 19 December 2022, if she will make an assessment of the potential merits of introducing a digital tax system for managing duty on vaping.

The government is committed to modernising tax administration to enhance efficiency and compliance.HMRC operates on a ‘digital by default’ basis and will look to mandate digital channels by which all businesses within the scope of the Vaping Products Duty (VPD) must register, report and pay online, with exceptions only for those who are digitally excluded by virtue of protected characteristics. This was set out in VPD consultation response document: https://assets.publishing.service.gov.uk/media/672263b43ce5634f5f6ef582/Vaping_Products_Duty_consultation_response.pdf