Written questions by McMurdock.

What estimate she has made of the potential impact of the (a) introduction of pay-per-mile road tax for electric vehicles and (b) changes to fuel duty freezes on small and medium-sized businesses in the logistics sector.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that electric vehicles (EVs) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. The taxation of motoring is a critical source of funding for public services and investment in infrastructure. All UK-registered electric and plug-in hybrid cars will pay eVED. Other vehicle types such as vans, buses, coaches, motorcycles and HGVs will be out of scope of the tax upon its introduction. This is because the transition to electric for these vehicle types is less advanced than for cars at this stage. At Budget 2025, the Government also announced continued support for people and businesses by extending the temporary 5p fuel duty cut until the end of August 2026. Rates will then gradually return to previous levels. The planned increase in line with inflation for 2026-27 will not take place, with the government increasing fuel duty rates in line with RPI from April 2027. This will save the average van driver £100 next year compared to previous plans, and the average HGV driver more than £800.

What recent estimate her Department has made of the cost of cyber attacks to the economy.

An increasingly hostile cyber threat poses a risk to the UK economy and public finances. According to the Office for National Statistics, the decline in the manufacture of motor vehicles, observed in the wake of the cyber attack on Jaguar Land Rover, reduced September’s GDP by 0.17%. In the 2022 Fiscal Risks and Sustainability report, the Office for Budget Responsibility estimated that a cyber-attack on critical national infrastructure could temporarily increase borrowing by around £30 billion – equivalent to 1.1% of GDP. Cyber-attacks have significant costs for UK businesses. Recent KPMG modelling for the Department for Science, Innovation and Technology suggests the average cost of a significant cyber-attack for an individual business in the UK is around £194,729. KPMG estimate this could represent a total yearly cost to businesses in the UK of £14.7 billion, representing 0.5% of the UK’s annual GDP. The government is committed to strengthening cyber security across the UK. The National Cyber Security Centre (NCSC) provides a range of tools, guidance and support to businesses to improve their cyber security. At last year's Spending Review, the government increased the Single Intelligence Account's budget by £1 billion over the SR period, which funds the critical cybersecurity work conducted by NCSC. The UK’s cyber resilience relies on all businesses playing their part. The Chancellor of the Exchequer; Secretary of State for Science, Innovation and Technology; Secretary of State for Business and Trade; Minister for Security; CEO of the National Cyber Security Centre and Director General of the National Crime Agency wrote to chief executives and chairs of FTSE 350 companies in October 2025 year asking them to make cyber security a top priority.

What estimate she has made of the cost of cyber attacks on UK-based businesses in the last 12 months.

An increasingly hostile cyber threat poses a risk to the UK economy and public finances. According to the Office for National Statistics, the decline in the manufacture of motor vehicles, observed in the wake of the cyber attack on Jaguar Land Rover, reduced September’s GDP by 0.17%. In the 2022 Fiscal Risks and Sustainability report, the Office for Budget Responsibility estimated that a cyber-attack on critical national infrastructure could temporarily increase borrowing by around £30 billion – equivalent to 1.1% of GDP. Cyber-attacks have significant costs for UK businesses. Recent KPMG modelling for the Department for Science, Innovation and Technology suggests the average cost of a significant cyber-attack for an individual business in the UK is around £194,729. KPMG estimate this could represent a total yearly cost to businesses in the UK of £14.7 billion, representing 0.5% of the UK’s annual GDP. The government is committed to strengthening cyber security across the UK. The National Cyber Security Centre (NCSC) provides a range of tools, guidance and support to businesses to improve their cyber security. At last year's Spending Review, the government increased the Single Intelligence Account's budget by £1 billion over the SR period, which funds the critical cybersecurity work conducted by NCSC. The UK’s cyber resilience relies on all businesses playing their part. The Chancellor of the Exchequer; Secretary of State for Science, Innovation and Technology; Secretary of State for Business and Trade; Minister for Security; CEO of the National Cyber Security Centre and Director General of the National Crime Agency wrote to chief executives and chairs of FTSE 350 companies in October 2025 year asking them to make cyber security a top priority.

What assessment she has made of the potential impact of the planned imposition of customs duties on low value imports from March 2029 on the logistics industry.

Following an estimated tripling of low value import volumes between 2021 and 2024, with the rapid rise in cross-border e-commerce, the Chancellor has reviewed the existing customs arrangements for low value imports to determine whether they are fit for purpose. The rapid growth in low value imports is hurting our high streets and retailers. The government is taking action to address the difference in treatment between low value imports and goods shipped by high street retailers, and ensure these goods are adequately controlled. At Budget 2025, the government announced that it is removing the customs duty relief on goods imported into the UK worth up to £135, making them subject to customs duty, and consulting on a new set of customs arrangements for these goods. The consultation covers the design and implementation of the new low value import customs arrangements, including what data could be collected, how customs duty should be applied, and whether to apply an additional fee to fund administration activity. The government recognises that these proposals will require changes and is inviting stakeholders, including the logistics industry, to provide input on how the new arrangements can be implemented to ensure changes are delivered as smoothly as possible, ensure goods are appropriately controlled, and address the tariff treatment between online retailers who ship directly to the UK and high street retailers who import goods in bulk.

How many taxpayers received repayment interest from HMRC in each year since 2020.

The information is not held in the form requested and could be provided only at disproportionate cost.

How much repayment interest was paid by HMRC in each year since 2020.

The information is not held in the form requested and could be provided only at disproportionate cost.

What proportion of payments under Private Finance Initiative contracts in the last financial year related to (a) capital repayment, (b) interest and (c) service charges.

The Government’s preferred financing model for any type of infrastructure project is the one that offers the best value for money. Proposals are appraised on a case-by-case basis using the Green Book. Public sector contracting authorities directly manage Private Finance Initiative (PFI) contracts and are responsible for monitoring and managing their respective contracts to ensure value for money. Since 2020, the National Infrastructure and Service Transformation Authority (NISTA), formerly Infrastructure and Projects Authority, has provided advice and training directly to contracting authorities to support them in navigating issues relating to PFI projects (operational and expiry-related). PFI payments are made by “unitary charge”, which are not broken down by underlying cost drivers. Therefore, the proportion of payments that are (a) capital repayment, (b) interest and (c) service charges is not readily available, nor is data on costs which have arisen because of inflation and indexing. Data on PFI and PF2 projects can be found at the following weblink: PFI and PF2 projects: 2024 Summary Data - GOV.UK

What assessment she has made of the annual cost to the logistics industry of the proposed pay-per-mile electric vehicle charging scheme.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that electric vehicles (EVs) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. The taxation of motoring is a critical source of funding for public services and investment in infrastructure. All UK-registered electric and plug-in hybrid cars will pay eVED. Other vehicle types such as vans, buses, coaches, motorcycles and HGVs will be out of scope of the tax upon its introduction. This is because the transition to electric for these vehicle types is less advanced than for cars at this stage.

What the annual cost to the public purse was of active Private Finance Initiative contracts in the most recent financial year for which data is available.

The Government’s preferred financing model for any type of infrastructure project is the one that offers the best value for money. Proposals are appraised on a case-by-case basis using the Green Book. Public sector contracting authorities directly manage Private Finance Initiative (PFI) contracts and are responsible for monitoring and managing their respective contracts to ensure value for money. Since 2020, the National Infrastructure and Service Transformation Authority (NISTA), formerly Infrastructure and Projects Authority, has provided advice and training directly to contracting authorities to support them in navigating issues relating to PFI projects (operational and expiry-related). PFI payments are made by “unitary charge”, which are not broken down by underlying cost drivers. Therefore, the proportion of payments that are (a) capital repayment, (b) interest and (c) service charges is not readily available, nor is data on costs which have arisen because of inflation and indexing. Data on PFI and PF2 projects can be found at the following weblink: PFI and PF2 projects: 2024 Summary Data - GOV.UK

How many Private Finance Initiative contracts include index‑linked payment mechanisms; and what the estimated additional cost has been as a result of inflation over the last five years.

The Government’s preferred financing model for any type of infrastructure project is the one that offers the best value for money. Proposals are appraised on a case-by-case basis using the Green Book. Public sector contracting authorities directly manage Private Finance Initiative (PFI) contracts and are responsible for monitoring and managing their respective contracts to ensure value for money. Since 2020, the National Infrastructure and Service Transformation Authority (NISTA), formerly Infrastructure and Projects Authority, has provided advice and training directly to contracting authorities to support them in navigating issues relating to PFI projects (operational and expiry-related). PFI payments are made by “unitary charge”, which are not broken down by underlying cost drivers. Therefore, the proportion of payments that are (a) capital repayment, (b) interest and (c) service charges is not readily available, nor is data on costs which have arisen because of inflation and indexing. Data on PFI and PF2 projects can be found at the following weblink: PFI and PF2 projects: 2024 Summary Data - GOV.UK

How many people paid late payment interest to HMRC in each year since 2020.

The information is not held in the form requested and could be provided only at disproportionate cost.

How much late payment interest was paid to HMRC in each year since 2020.

The information is not held in the form requested and could be provided only at disproportionate cost.

How many taxpayers were owed repayments by HMRC in each year since 2020.

The tax system is designed to give repayments to taxpayers in a number of circumstances, for example where a customer claims an allowance or an expense, or where a company is due a VAT repayment. The tax revenue repayable by HMRC each year is published as part of HMRC’s Annual Report and Accounts. This information is available on GOV.UK:https://www.gov.uk/government/publications/hmrc-annual-report-and-accounts-2024-to-2025 There are many factors that influence whether a repayment is owed or not, such as a taxpayer instructing HMRC to retain credits to offset a future liability. To calculate how many taxpayers were owed repayments by HMRC in each year since 2020 would exceed the cost threshold for answering parliamentary questions as the information (where it is available) is held on a number of different systems that would require separate interrogation and analysis to produce.

What recent assessment she has made of the potential impact of fuel margins on household finances and poverty levels.

The Government recognises that households are still struggling with the impact of the cost of living on their finances. The Government notes the Competition and Markets Authority’s (CMA) annual road fuel monitoring report found that fuel margins remain persistently high and are not explained by operating costs. This indicates that competition in the road fuel retail market remains weak. To address this, the Government is implementing Fuel Finder and extending the 5p fuel duty cut until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027.

What steps her Department is taking to monitor the financial resilience and tax arrangements of companies holding Private Finance Initiative contracts.

The Government’s preferred financing model for any type of infrastructure project is the one that offers the best value for money. Proposals are appraised on a case-by-case basis using the Green Book. Public sector contracting authorities directly manage Private Finance Initiative (PFI) contracts and are responsible for monitoring and managing their respective contracts to ensure value for money. Since 2020, the National Infrastructure and Service Transformation Authority (NISTA), formerly Infrastructure and Projects Authority, has provided advice and training directly to contracting authorities to support them in navigating issues relating to PFI projects (operational and expiry-related). PFI payments are made by “unitary charge”, which are not broken down by underlying cost drivers. Therefore, the proportion of payments that are (a) capital repayment, (b) interest and (c) service charges is not readily available, nor is data on costs which have arisen because of inflation and indexing. Data on PFI and PF2 projects can be found at the following weblink: PFI and PF2 projects: 2024 Summary Data - GOV.UK

What the projected cost is of Private Finance Initiative and PF2 contracts over their remaining lifetimes.

The Government’s preferred financing model for any type of infrastructure project is the one that offers the best value for money. Proposals are appraised on a case-by-case basis using the Green Book. Public sector contracting authorities directly manage Private Finance Initiative (PFI) contracts and are responsible for monitoring and managing their respective contracts to ensure value for money. Since 2020, the National Infrastructure and Service Transformation Authority (NISTA), formerly Infrastructure and Projects Authority, has provided advice and training directly to contracting authorities to support them in navigating issues relating to PFI projects (operational and expiry-related). PFI payments are made by “unitary charge”, which are not broken down by underlying cost drivers. Therefore, the proportion of payments that are (a) capital repayment, (b) interest and (c) service charges is not readily available, nor is data on costs which have arisen because of inflation and indexing. Data on PFI and PF2 projects can be found at the following weblink: PFI and PF2 projects: 2024 Summary Data - GOV.UK

Whether her Department has reviewed opportunities to (a) renegotiate, (b) buy out and (c) reduce the long‑term cost of Private Finance Initiative contracts.

The Government’s preferred financing model for any type of infrastructure project is the one that offers the best value for money. Proposals are appraised on a case-by-case basis using the Green Book. Public sector contracting authorities directly manage Private Finance Initiative (PFI) contracts and are responsible for monitoring and managing their respective contracts to ensure value for money. Since 2020, the National Infrastructure and Service Transformation Authority (NISTA), formerly Infrastructure and Projects Authority, has provided advice and training directly to contracting authorities to support them in navigating issues relating to PFI projects (operational and expiry-related). PFI payments are made by “unitary charge”, which are not broken down by underlying cost drivers. Therefore, the proportion of payments that are (a) capital repayment, (b) interest and (c) service charges is not readily available, nor is data on costs which have arisen because of inflation and indexing. Data on PFI and PF2 projects can be found at the following weblink: PFI and PF2 projects: 2024 Summary Data - GOV.UK

How much has been paid in unitary charges under Private Finance Initiative contracts in each of the last ten financial years.

The Government’s preferred financing model for any type of infrastructure project is the one that offers the best value for money. Proposals are appraised on a case-by-case basis using the Green Book. Public sector contracting authorities directly manage Private Finance Initiative (PFI) contracts and are responsible for monitoring and managing their respective contracts to ensure value for money. Since 2020, the National Infrastructure and Service Transformation Authority (NISTA), formerly Infrastructure and Projects Authority, has provided advice and training directly to contracting authorities to support them in navigating issues relating to PFI projects (operational and expiry-related). PFI payments are made by “unitary charge”, which are not broken down by underlying cost drivers. Therefore, the proportion of payments that are (a) capital repayment, (b) interest and (c) service charges is not readily available, nor is data on costs which have arisen because of inflation and indexing. Data on PFI and PF2 projects can be found at the following weblink: PFI and PF2 projects: 2024 Summary Data - GOV.UK

If she will make it her policy to allow Further Education colleges to reclaim VAT.

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.

What assessment her Department has made of the value for money of Private Finance Initiative and PF2 contracts.

The Government’s preferred financing model for any type of infrastructure project is the one that offers the best value for money. Proposals are appraised on a case-by-case basis using the Green Book. Public sector contracting authorities directly manage Private Finance Initiative (PFI) contracts and are responsible for monitoring and managing their respective contracts to ensure value for money. Since 2020, the National Infrastructure and Service Transformation Authority (NISTA), formerly Infrastructure and Projects Authority, has provided advice and training directly to contracting authorities to support them in navigating issues relating to PFI projects (operational and expiry-related). PFI payments are made by “unitary charge”, which are not broken down by underlying cost drivers. Therefore, the proportion of payments that are (a) capital repayment, (b) interest and (c) service charges is not readily available, nor is data on costs which have arisen because of inflation and indexing. Data on PFI and PF2 projects can be found at the following weblink: PFI and PF2 projects: 2024 Summary Data - GOV.UK