Every parliamentary written question tabled by Victoria Collins this session, with the full answer and department. Back to the MP page.
Showing 41–56 of 56 · Treasury
Whether the Financial Conduct Authority plans to review the methods used by car insurers to assess vehicle value in write-off settlements.
How insurers value vehicles in write-off settlements are a matter for the Financial Conduct Authority who is operationally independent from the Government. The Financial Conduct Authority published its findings of a multi-firm review into insurers’ claims handling processes for valuing vehicles which have been stolen or written off in March 2024.
What steps she is taking to prevent motor insurers from raising premiums for vehicle theft victims making non-fault claims in (a) Harpenden and Berkhamsted, (b) Hertfordshire, and (c) the rest of England.
Insurers make commercial decisions about pricing and the terms of cover they offer based on their assessment on the likelihood of a claim being made and the cost of those claims. The Government does not set the terms, conditions, or prices for insurance policies. Motor insurance premiums have been affected by specific economic factors that increased the costs of claims, such as the rising cost of replacement car parts.Last year, the Government launched a cross-Government taskforce on motor insurance. This Taskforce has a strategic remit to set the direction for UK Government policy, identifying short- and long-term actions for departments that may contribute to stabilising or reducing premiums, while maintaining appropriate levels of cover. The taskforce most recently met in April and the Government will provide further updates in due course. The Financial Conduct Authority (FCA), as the independent regulator, is a member of the Taskforce. Last October, the FCA launched a package of work on the motor insurance market, including a market study on premium finance. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive) and has powers to take action against firms that don’t meet its requirements.
What discussions she has had with the Financial Conduct Authority on the potential impact of changes to the costs of car insurance on vulnerable motorists.
Insurers make commercial decisions about pricing and the terms of cover they offer based on their assessment on the likelihood of a claim being made and the cost of those claims. The Government does not set the terms, conditions, or prices for insurance policies. Motor insurance premiums have been affected by specific economic factors that increased the costs of claims, such as the rising cost of replacement car parts.Last year, the Government launched a cross-Government taskforce on motor insurance. This Taskforce has a strategic remit to set the direction for UK Government policy, identifying short- and long-term actions for departments that may contribute to stabilising or reducing premiums, while maintaining appropriate levels of cover. The taskforce most recently met in April and the Government will provide further updates in due course. The Financial Conduct Authority (FCA), as the independent regulator, is a member of the Taskforce. Last October, the FCA launched a package of work on the motor insurance market, including a market study on premium finance. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive) and has powers to take action against firms that don’t meet its requirements.
If she will make an assessment of the potential impact of the off-payroll working reforms on self-employed individuals.
I refer the Hon. Member to the written answer I gave to the Hon. Member for North Cornwall on 26 March 2025:Self-employed and Small Businesses: Off-payroll Working
What estimate her Department has made of the potential economic impact of (a) extreme weather events, (b) food inflation, (c) flood recovery and (d) other climate-related impacts on (i) public services and (ii) households.
The Government recognises that preparing for the future means adapting to the effects of climate change. Without action, flooding, coastal erosion and other climate hazards will pose greater risks to lives, livelihoods and people’s wellbeingThe Office for Budget Responsibility’s latest Fiscal Risks and Sustainability report estimates the potential fiscal costs to the UK from climate damage across a range of warming scenarios. Their analysis includes both direct costs in response to physical damages and indirect costs arising from additional demands on public services. The UK’s Third Climate Change Risk Assessment also provides an evaluation of the climate risks facing the UK, with impacts across infrastructure, health and the economy.As set out at the Autumn Budget, the Government is investing in climate adaptation to protect the economy from climate change, confirming investment of £2.4 billion over two years to support flood resilience and over £400 million for tree planting and peatland restoration, which will further support resilience. The development of the Fourth Climate Change Risk Assessment will also support the Government in continuing to improve its assessment of the risks and opportunities from climate change.
Whether her Department plans to increase taxes on global tech companies.
The UK remains committed to reaching a global solution on the taxation of the digital economy through Pillar 1 of the G20-OECD Inclusive Framework project. The UK has fully implemented Pillar 2 of the project which ensures all multinationals are subject to a minimum rate. The Digital Services Tax (DST) is an interim tax measure to ensure that digital services providers pay UK tax on digital services that reflects the value they derive from UK users. It is UK’s intention to repeal our Digital Services Tax (DST) when Pillar 1 of the OECD project is in place.
Whether her Department plans to expand the scope of the Loan Change review to include (a) promoters, (b) umbrella companies, (c) recruitment agencies, (d) accountants and (e) tax advisers.
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 and 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 consulting in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.
What assessment she has made of the potential impact of taxation policies on (a) farm investment and (b) succession planning on domestic food production.
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances in a fair way. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992.The reforms are expected to result in up to 520 estates claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data. The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The independent Office for Budget Responsibility certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact. In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
What assessment she has made with Cabinet colleagues of the potential impact of changes to the Retail, Hospitality and Leisure Business Rates Relief Scheme on businesses.
The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century. At Autumn Budget 2024, we took the first step with the announcement of permanently lower tax rates for the Retail, Hospitality and Leisure properties (RHL) with rateable values below £500,000 from 2026-27.Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. Without any Government intervention, RHL relief would have ended entirely in April 2025, creating a cliff-edge for businesses. Instead, the Government has decided to offer a 40 per cent discount to RHL properties up to a cash cap of £110,0000 per business in 2025-26 and frozen the small business multiplier.
What assessment her Department has made of the potential impact of changes to inheritance tax on (a) rural communities and (b) low-income tenants.
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances in a fair way. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992.The reforms are expected to result in up to 520 estates claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data. The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The independent Office for Budget Responsibility certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact. In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
With reference to the Official Statistics by HMRC entitled Measuring tax gaps 2024 edition: tax gap estimates for 2022 to 2023, updated on 20 June 2024, updated on 21 March 2025, what steps she is taking to collect the uncollected theoretical tax liabilities.
A key part of restoring economic stability and fiscal responsibility is closing the tax gap. Unpaid tax deprives UK public services of vital funding and puts businesses who pay the right tax at a competitive disadvantage. At the Budget last autumn, the government introduced the most ambitious package ever to close the tax gap, ensuring more individuals and businesses pay the taxes they owe. At the Spring Statement, the government built on this and announced a package of measures to further close the tax gap and raise over £1 billion in additional gross tax revenue per year by 2029-30. At the Spring Statement, the government announced it will fund the recruitment of a further 500 compliance officers, bringing the total compliance officer growth since July 2024 to 5,500 by 2029/30.In addition, the government will fund the recruitment of an additional 600 staff into HMRC’s debt management teams to ensure those who can afford to pay their tax debts do so. It is also delivering on its commitments to prosecute more tax fraudsters, to introduce a new HMRC reward scheme for informants, to tackle ‘phoenixism’, and to overhaul HMRC’s approach to offshore tax non-compliance. The government has also set out its plans to go further in the future to make it easier for taxpayers to pay the right tax through a modern and digital tax system.
What fiscal steps her Department is taking to help support households in Harpenden and Berkhamsted constituency with their energy bills.
The Government is taking several fiscal steps to help support households, including those in the Harpenden and Berkhamsted constituency, with their energy bills. St Albans City and District Council and Dacorum Borough Council have received £2.5 million and £3.8 million respectively from the Warm Homes Social Housing Fund to enhance energy efficiency and low-carbon technology in social housing. Additionally, the Warm Homes Local Grant has allocated £1.5 million to St Albans and £2.3 million to Dacorum to provide energy efficiency upgrades to low-income energy inefficient homes. This support is expected to save households £300-£400 on their annual energy bills. The Government is also supporting households with their energy bills through the Warm Home Discount, a £150 energy bill rebate for eligible low-income and vulnerable households, the Winter Fuel Payment, a £200-£300 payment provided to pensioner households in England and Wales with someone receiving Pension Credit or certain other income-related benefits, the Cold Weather Payment, and Household Support Fund.
Whether she plans to take steps to provide compensation for self-invested personal pension holders affected by Hartley Pensions entering administration.
As a self-invested personal pension (SIPPs) provider, Hartley Pensions is regulated by the Financial Conduct Authority (FCA). The FCA is working with the administrators of Hartley Pensions to ensure that any customers affected by the situation achieve the best possible outcome. The Financial Services Compensation Scheme has also agreed to compensate customers by funding the costs of the Joint Administrators’ exit strategy for Hartley SIPP customers.
Whether she has made an assessment of the potential merits of providing a similar Orchestra Tax Relief to vocal concerts.
The creative industries play a key role in driving economic growth. The Government is committed to supporting them as part of its plan to fix the foundations of the economy. To qualify for Orchestra Tax Relief (OTR), a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument, but orchestra concerts with a vocal element are not excluded from the relief. Concerts with a vocal element may be eligible provided that the instrumentalists are the primary focus. The Government keeps all tax policy under review and regularly receives proposals for sector-specific tax reliefs. When considering a new tax relief, the Government must ensure it supports businesses in a fair way and that taxpayer money is effectively targeted.
Whether her Department plans to remove VAT on audiobooks.
There are no current plans to remove VAT on audiobooks. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax, forecast to raise £171 billion in 2024/25. Tax breaks reduce the revenue available for vital 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. 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 Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.
What discussions she has had with the Secretary of State for Business and Trade on reforms to business rates.
The government will create a fairer business rates system that protects the high-street, supports investment, and is fit for the 21st century. Autumn Budget 2024 announced the first steps including an intention to introduce permanently lower multipliers for high street retail, hospitality, and leisure (RHL) properties from April 2026. To fund this sustainably the government also intends to introduce a higher multiplier on properties with Rateable Values (RV) of £500,000 or more. During the interim period, for 2025-26, RHL properties will receive a 40% relief on business rates bills up to a cash cap of £110,000 per business. The small business multiplier paid by properties with RVs below £51,000 will also be frozen for a further year. The government published a discussion paper at Budget which sets out priority areas for further reform and invites stakeholders to a conversation about transforming the system over the Parliament.