Written questions by Duncan-Jordan.

If she will make an assessment of the potential impact of reducing the rate of VAT on retail, hospitality and leisure from 20% to 13% on that sector.

The Government recognises the significant contribution made by retail and hospitality businesses to economic growth and social life in the UK. 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. HMRC estimates that the cost of reducing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services would be as follows in 2026-27: (a) to 15%: £5 billion, (b) to 12.5%: £8 billion (c) to 10%: £10.5 billion, (d) to 5%: £17 billion, (e) to 0%: £23.5 billion. Including retail would add to that significant cost.

If she will consider reducing the multiplier for pubs to 20p below the standard multiplier.

From April, every pub and live music venue will get 15% off its new business rates bill on top of the support announced at Budget and then bills will be frozen in real terms for a further two years. Three-quarters of pubs will see bills flat or falling in April. The new relief is worth £1,650 for the average pub next year. As a sector pubs will pay 8% less in business rates in 2029 than they do right now. The Government will also launch a review on how pubs are valued for business rates.

What assessment she has made of the potential merits of ending the use of the approved guidance on valuation of public houses and introducing a standard RV calculation method for businesses.

The Valuation Office uses the ‘Fair and Maintainable Trade’ methodology to assess public houses. The Government recognises that a review of the methodology to value pubs for business rates purposes is needed. Therefore, the Government will launch a review which will explore how pubs are valued for business rates, and will engage extensively with valuation experts, businesses and their representatives.

What assessment she has made of the potential merits of using the 2023 valuations for business rates with multipliers of 0.2994 up to £51,000 and 0.333 over £51,000.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties. In recognition of the impact of the revaluation on bills, the Government introduced a support package worth £4.3 billion, to protect against ratepayers seeing large overnight increases in bills. At Budget, the Government announced wider reforms to business rates for retail, hospitality and leisure (RHL) properties, reducing tax rates paid for by a higher rate on the top one per cent of most expensive properties. The introduction of permanent, lower RHL tax rates is worth almost £1 billion to over 750,000 RHL properties. The tax rate on smaller high street businesses will be 33% lower than for businesses with the most valuable properties. Furthermore, from April, every pub and live music venue will get 15% off its new business rates bill on top of the support announced at Budget, and then bills will be frozen in real terms for a further two years.

What assessment she has made of the potential merits of replacing the VOA’s 2026 Revaluation list with the 2023 valuations list.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties. In recognition of the impact of the revaluation on bills, the Government introduced a support package worth £4.3 billion, to protect against ratepayers seeing large overnight increases in bills. At Budget, the Government announced wider reforms to business rates for retail, hospitality and leisure (RHL) properties, reducing tax rates paid for by a higher rate on the top one per cent of most expensive properties. The introduction of permanent, lower RHL tax rates is worth almost £1 billion to over 750,000 RHL properties. The tax rate on smaller high street businesses will be 33% lower than for businesses with the most valuable properties. Furthermore, from April, every pub and live music venue will get 15% off its new business rates bill on top of the support announced at Budget, and then bills will be frozen in real terms for a further two years.

What assessment she has made of the adequacy of the FCA's actions in relation to the administration of Ziglu Bank in June 2025.

Ziglu Limited is an electronic money institution which has been authorised under the Electronic Money Regulations 2011 since September 2020. These regulations require firms to meet important standards before they are allowed to carry out payment services and issue electronic money, and the FCA carries out supervision to ensure that it meets the required standards. Ziglu also provides cryptoasset services and is registered with the FCA for the purposes of ensuring compliance with the Money Laundering Regulations 2017.On 23 May 2025, the FCA placed restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds. On 7 July, Ziglu entered special administration and the FCA is engaging with the special administrators as appropriate.Payments and e-money firms are required to safeguard customer funds and segregate these from funds which belong to the firm. The special administrators are working to carry out an assessment of all funds held by Ziglu to establish which are safeguarded for customers, and which belong to Ziglu. However, cryptoasset activities are currently unregulated and Ziglu is not required to safeguard funds or assets which relate to unregulated activities. This means there is no guarantee that cryptoasset customers will receive all or any of their funds or assets back.Recently, the FCA published new rules coming into force on 7 May 2026 to improve safeguarding standards across the payments sector. The Government has also recently laid legislation to create a comprehensive financial services regulatory regime for cryptoassets.

What progress the FCA has made on its investigation into the administration of Ziglu Bank in June 2025.

Ziglu Limited is an electronic money institution which has been authorised under the Electronic Money Regulations 2011 since September 2020. These regulations require firms to meet important standards before they are allowed to carry out payment services and issue electronic money, and the FCA carries out supervision to ensure that it meets the required standards. Ziglu also provides cryptoasset services and is registered with the FCA for the purposes of ensuring compliance with the Money Laundering Regulations 2017.On 23 May 2025, the FCA placed restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds. On 7 July, Ziglu entered special administration and the FCA is engaging with the special administrators as appropriate.Payments and e-money firms are required to safeguard customer funds and segregate these from funds which belong to the firm. The special administrators are working to carry out an assessment of all funds held by Ziglu to establish which are safeguarded for customers, and which belong to Ziglu. However, cryptoasset activities are currently unregulated and Ziglu is not required to safeguard funds or assets which relate to unregulated activities. This means there is no guarantee that cryptoasset customers will receive all or any of their funds or assets back.Recently, the FCA published new rules coming into force on 7 May 2026 to improve safeguarding standards across the payments sector. The Government has also recently laid legislation to create a comprehensive financial services regulatory regime for cryptoassets.

What support she is providing to individuals who had money invested in Ziglu Bank prior to its closure in June 2025.

Ziglu Limited is an electronic money institution which has been authorised under the Electronic Money Regulations 2011 since September 2020. These regulations require firms to meet important standards before they are allowed to carry out payment services and issue electronic money, and the FCA carries out supervision to ensure that it meets the required standards. Ziglu also provides cryptoasset services and is registered with the FCA for the purposes of ensuring compliance with the Money Laundering Regulations 2017.On 23 May 2025, the FCA placed restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds. On 7 July, Ziglu entered special administration and the FCA is engaging with the special administrators as appropriate.Payments and e-money firms are required to safeguard customer funds and segregate these from funds which belong to the firm. The special administrators are working to carry out an assessment of all funds held by Ziglu to establish which are safeguarded for customers, and which belong to Ziglu. However, cryptoasset activities are currently unregulated and Ziglu is not required to safeguard funds or assets which relate to unregulated activities. This means there is no guarantee that cryptoasset customers will receive all or any of their funds or assets back.Recently, the FCA published new rules coming into force on 7 May 2026 to improve safeguarding standards across the payments sector. The Government has also recently laid legislation to create a comprehensive financial services regulatory regime for cryptoassets.

What discussions she has had with the administrator of Ziglu Bank.

Ziglu Limited is an electronic money institution which has been authorised under the Electronic Money Regulations 2011 since September 2020. These regulations require firms to meet important standards before they are allowed to carry out payment services and issue electronic money, and the FCA carries out supervision to ensure that it meets the required standards. Ziglu also provides cryptoasset services and is registered with the FCA for the purposes of ensuring compliance with the Money Laundering Regulations 2017.On 23 May 2025, the FCA placed restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds. On 7 July, Ziglu entered special administration and the FCA is engaging with the special administrators as appropriate.Payments and e-money firms are required to safeguard customer funds and segregate these from funds which belong to the firm. The special administrators are working to carry out an assessment of all funds held by Ziglu to establish which are safeguarded for customers, and which belong to Ziglu. However, cryptoasset activities are currently unregulated and Ziglu is not required to safeguard funds or assets which relate to unregulated activities. This means there is no guarantee that cryptoasset customers will receive all or any of their funds or assets back.Recently, the FCA published new rules coming into force on 7 May 2026 to improve safeguarding standards across the payments sector. The Government has also recently laid legislation to create a comprehensive financial services regulatory regime for cryptoassets.

What due diligence checks were carried out prior to the creation of Ziglu Bank in 2020.

Ziglu Limited is an electronic money institution which has been authorised under the Electronic Money Regulations 2011 since September 2020. These regulations require firms to meet important standards before they are allowed to carry out payment services and issue electronic money, and the FCA carries out supervision to ensure that it meets the required standards. Ziglu also provides cryptoasset services and is registered with the FCA for the purposes of ensuring compliance with the Money Laundering Regulations 2017.On 23 May 2025, the FCA placed restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds. On 7 July, Ziglu entered special administration and the FCA is engaging with the special administrators as appropriate.Payments and e-money firms are required to safeguard customer funds and segregate these from funds which belong to the firm. The special administrators are working to carry out an assessment of all funds held by Ziglu to establish which are safeguarded for customers, and which belong to Ziglu. However, cryptoasset activities are currently unregulated and Ziglu is not required to safeguard funds or assets which relate to unregulated activities. This means there is no guarantee that cryptoasset customers will receive all or any of their funds or assets back.Recently, the FCA published new rules coming into force on 7 May 2026 to improve safeguarding standards across the payments sector. The Government has also recently laid legislation to create a comprehensive financial services regulatory regime for cryptoassets.

What steps are being taken to replace the existing system of business rates.

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. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties. The Government is also supporting small businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.The Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.Any reforms taken forward will be phased over the course of the Parliament.

What her planned timetable is for replacing the existing system of business rates.

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. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties. The Government is also supporting small businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.The Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.Any reforms taken forward will be phased over the course of the Parliament.

To confirm how many state pensioners will be exempted from the proposed freeze on personal tax allowances from April 2026.

Those whose sole income is the basic and full new State Pension without any increments will not pay any income tax in 2026/27.The Chancellor has said that those whose only income is the basic or new State Pension without any increments will not have to pay income tax over this Parliament. At the Budget, the Government announced that it will achieve this by easing the administrative burden for pensioners so that they do not have to pay small amounts of tax via Simple Assessment from 2027/28. The Government will set out more details in due course.

What estimate she has made of the number of pensioners who will pay tax on their (a) basic state pension (b) second state pension and (c) new state pension from April 2026.

Those whose sole income is the basic and full new State Pension without any increments will not pay any income tax in 2026/27.The Chancellor has said that those whose only income is the basic or new State Pension without any increments will not have to pay income tax over this Parliament. At the Budget, the Government announced that it will achieve this by easing the administrative burden for pensioners so that they do not have to pay small amounts of tax via Simple Assessment from 2027/28. The Government will set out more details in due course.

What assessment she has made of the potential impact of repealing item 14 of group 12 of Schedule 8 to the Value Added Tax Act 1994 on disabled people.

At Budget 2025 the government announced reforms 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. These tax changes ensure Motability can continue to deliver for its customers, for example through the continued provision of a broad range of vehicle models available without any top-up payments. Further detail on the impacts of tax changes can be found in the Tax Impact and Information Note on GOV.UK Motability Scheme: reforming tax reliefs - GOV.UK.

What assessment she has made of the potential impact of limiting the relief from insurance premium under paragraph 3 of Schedule 7A to the Finance Act 1994 on disabled people.

At Budget 2025 the government announced reforms 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. These tax changes ensure Motability can continue to deliver for its customers, for example through the continued provision of a broad range of vehicle models available without any top-up payments. Further detail on the impacts of tax changes can be found in the Tax Impact and Information Note on GOV.UK Motability Scheme: reforming tax reliefs - GOV.UK.

With reference to Budget 2025, what assessment her Department has made of the potential impact of the proposed scrapping of the Energy Company Obligation scheme on the level of energy sector tax revenue.

The Energy Company Obligation is a regulated obligation on suppliers and is not a tax measure. However, as VAT is placed on the total cost of energy, lowering energy bills through ending this scheme will reduce the tax base for VAT on domestic energy. This measure, alongside the Government funding 75% of the legacy Renewables Obligation, will save households an average of £150 off their energy bills.

What assessment she has made of the potential impact of a tax of 1.5p per mile on drivers of hybrid vehicles.

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 infrastructurePHEVs have the capacity to drive in either electric or petrol mode and will continue to pay fuel duty on miles driven in petrol mode. In recognition of this, they will be subject to a reduced eVED rate of 1.5 pence per mile upon its introduction in April 2028 – half the rate that will apply to fully electric carsAlongside the introduction of eVED, the Government is also providing generous additional support to incentivise the use of electric vehicles, including £1.3 billion of additional funding for the Electric Car Grant (ECG), £200 million for chargepoint rollout, and increasing the Expensive Car Supplement (ECS) threshold to £50,000 for EVsNew electric car sales are still forecast to more than triple from nearly 0.5 million sales in 2025/26 to around 1.6 million by 2030/31.

What assessment she has made of the potential impact of the decision to introduce a pay per mile levy on hybrid and EV drivers on their future choice of vehicle.

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 infrastructurePHEVs have the capacity to drive in either electric or petrol mode and will continue to pay fuel duty on miles driven in petrol mode. In recognition of this, they will be subject to a reduced eVED rate of 1.5 pence per mile upon its introduction in April 2028 – half the rate that will apply to fully electric carsAlongside the introduction of eVED, the Government is also providing generous additional support to incentivise the use of electric vehicles, including £1.3 billion of additional funding for the Electric Car Grant (ECG), £200 million for chargepoint rollout, and increasing the Expensive Car Supplement (ECS) threshold to £50,000 for EVsNew electric car sales are still forecast to more than triple from nearly 0.5 million sales in 2025/26 to around 1.6 million by 2030/31.

Whether the planned increase in vehicle tax from April 2026 will be based on (a) emissions from vehicles based on factory information when new and (b) MOT results annually.

Vehicle Excise Duty (VED), sometimes known as 'road tax' or 'vehicle tax', is a tax on vehicles used or kept on public roads. Different 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. As announced by the government at Budget, from 1 April 2026, VED rates for cars, vans, motorcycles and heavy goods vehicles (HGVs) will be uprated in line with the Retail Price Index (RPI) in 2026-27.