Written questions by Holden.

With reference to HMRC's guidance entitled Newsletter 173 — September 2025, updated on 11 December 2025, what her planned timetable is for publishing draft regulations and laying legislation on the treatment of scheme-specific lump sums for individuals with Enhanced Protection.

Further Pensions (Abolition of Lifetime Allowance Charge etc) Regulations will be made in Spring 2026 and will include updates to the treatment of scheme-specific lump sums for individuals with Enhanced Protection.The majority of the regulations will have retrospective effect from 6 April 2024 when the Lifetime Allowance was abolished.

What assessment she has made of the potential impact of the Financial Conduct Authority’s proposed Motor Finance Consumer Redress Scheme on the future affordability of motor finance for consumers.

It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. The Government wants to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms. The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on how firms should support vulnerable consumers, and address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way. Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.

If her Department has made an estimate of of the behavioural impact of the 3 percent Benefit-in-Kind rate for zero-emission company cars, including (a) the number of additional EVs purchased by fleets and (b) the fiscal implications of those behavioural effects.

The Government publishes annual statistics on HMRC’s taxable benefits in kind for company cars and company car fuel. These reports document the number of benefit in kind recipients, the CO2 emissions of company cars and their total taxable value. The latest statistics for the tax year 2023-24 were published in June 2025, and are accessible here: https://www.gov.uk/government/statistics/benefits-in-kind-statistics-june-2025/benefit-in-kind-statistics-commentary-june-2025 Additionally, at Budget 2024 the Government announced new Company Car Tax rates for the years 2028-29 and 2029-30, which increase for both electric vehicles (EVs) and petrol/diesel vehicles, while still maintaining generous incentives to support EV take-up. The Tax Information and Impact Note (TIIN) published alongside Budget set out the expected economic, equalities and other impacts, and highlighted that overall the measure was expected to encourage the take-up of zero emission vehicles.

What the net zero targets are for (a) their Department and (b) its arm’s-length bodies; and whether guidance has been issued on adopting net zero targets earlier than 2050.

The net zero target in the Climate Change Act 2008, is a target for the whole of the UK, not individual departments or arms-length bodies. Greening Government Commitments are the central framework setting out the actions UK government departments and their agencies will take to reduce their impacts on the environment, including setting targets to reduce emissions, during the framework period. The previous framework and emission reduction targets covered the period 2021 - 2025. Under this framework HM Treasury had a target to reduce its overall emissions by 69% and direct emissions by 25%, against a 2017-2018 baseline. Defra are reviewing the Greening Government Commitments to ensure that they remain aligned with government priorities. Information regarding the Treasury’s targets and performance on operational activity relating to climate adaptation, sustainability, and the environment (CASE-Ops) can be found in ANNEX B: Sustainability in the 2024-25 Annual Report and Accounts on pages 223 to 229 at : www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2024-to-2025

What discussions she has had with the Financial Conduct Authority on the potential impact of the proposed Motor Finance Consumer Redress Scheme on future motor finance costs for consumers.

It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. The Government wants to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms. The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on how firms should support vulnerable consumers, and address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way. Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.

Pursuant to the Answer of 4 December 2025 to Question 94796 on Cars: Taxation, whether a weight-based system of vehicle taxation for cars is under consideration by her Department.

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, following the Government’s decision to abolish the Valuation Office Agency and transfer its functions into HM Revenue and Customs, she plans to maintain the current Valuation Office Agency methodology for assessing business-rates valuations.

At Budget 2025, the government published a Call for Evidence on Business Rates and Investment which will explore concerns raised by a small number of ratepayers whose properties are valued on the ‘Receipts & Expenditure’ methodology and options to improve predictability and stability.

What assessment she has made of the potential impact of changes to the Air Passenger Duty in the Autumn Budget 2025 on the competitiveness of the UK aviation sector compared to other European countries.

The government is committed to the long-term future of the aviation sector in the UK and recognises the benefits of the connectivity it creates between the UK and the rest of the world. The government remains committed to maintaining a competitive and dynamic aviation sector that supports jobs, skills, and innovation across the UK. Following previous increases to Air Passenger Duty (APD) rates to account for below inflation rates, the government will uprate APD rates in line with RPI from 1 April 2027 and rounded to the nearest penny. This constitutes a real terms freeze. This will continue to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free, and aviation fuel incurs no duty.

What assessment she has made of the potential merits of including oil refining within the UK Carbon Border Adjustment Mechanism.

The government recognises that refineries play a role in energy security and the UK’s industrial base, and will publish a call for evidence on the fuel sector. The government is also considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism (CBAM) in future.

Pursuant to WPQ 93776, if she will provide a hyperlink to that information, as set out as correct practice in paragraph 234 of the Government's Guide To Parliamentary Work.

Apologies. The draft 2026 Rating List valuations, and current 2023 List valuations, which can be filtered using the advanced search by special category code, can be viewed at: www.gov.uk/find-business-rates

Whether she plans to extend the child Air Passenger Duty exemption to Premium Economy cabins.

Air Passenger Duty (APD) applies to airlines, not individual passengers, and is the principal tax on the aviation sector. It is expected to raise £4.7 billion in 2025-26 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty. The distance-based band structure ensures that those who travel furthest, and in the greatest comfort, incur a greater tax liability. Children under 16 years old on the date of the flight, and in the lowest class of travel, are exempt from APD. This means that no APD will be paid on that passenger by the airline to the UK government. If children under 16 years old are travelling in any other class (such as premium economy) or in business jets, they are not exempt. Children under 2 years old without a seat are exempt from Air Passenger Duty for all classes of travel.

What assessment she has made of the potential impact of business rates increases at airports on i.) passenger ticket prices and ii.) airline route planning.

The government is committed to enabling investment so that airports can play their full role in the growth mission. Properties seeing large bill increases as a result of the business rates revaluation - including airports - will benefit from a redesigned transitional relief scheme worth £3.2 billion over the next 3 years. At Budget 2025, the government also published a Call for Evidence on Business Rates and Investment. It will explore the concerns that airports and a small number of other ratepayers have raised around the ‘Receipts & Expenditure’ valuation methodology and its impacts on long-term, high value investments. The government is seeking to address issues raised ahead of the 2029 revaluation, aiming to conclude this work in sufficient time before pre-list discussion commences.

What estimate her Department has made of the fiscal cost of Benefit-in-Kind rates for zero-emission company cars, including (a) the cost of the 3 per cent rate in 2025–26, (b) the revenue forgone when the rate was 0 per cent and 2 per cent, and (c) any comparable figures for plug-in hybrid and ultra-low-emission vehicles.

The Government publishes annual statistics on HMRC’s taxable benefits in kind for company cars. These reports document the number of benefit in kind recipients, the CO2 emissions of company cars and their total taxable value. The latest statistics for the tax year 2023-24 were published in June 2025, and are accessible here: https://www.gov.uk/government/statistics/benefits-in-kind-statistics-june-2025/benefit-in-kind-statistics-commentary-june-2025(opens in a new tab)

What the annual cost to the public purse is of tax reliefs provided through the Cycle to Work scheme.

The annual cost of the relief for the Cycle to Work scheme is available in last year’s publication of non-structural tax reliefs (‘Multiple tax type’ tab). In 2023-24 the estimated cost of the relief was £120m.Non-structural tax reliefs - GOV.UK

What assessment she has made of the potential impact of future increases in business rates on the financial sustainability of regional airports and the level of regional air connectivity they are able to provide.

The government is committed to enabling investment so that airports can play their full role in the growth mission. Properties seeing large bill increases as a result of the business rates revaluation - including airports - will benefit from a redesigned transitional relief scheme worth £3.2 billion over the next 3 years. Compared to the 2023 transitional relief scheme, the redesigned scheme will provide more generous support for large properties. The Government has also published a Call for Evidence exploring concerns that airports and a small number of other ratepayers have raised around the ‘Receipts & Expenditure’ valuation methodology and its impacts on long-term, high value investments. Through this call for evidence, we will seek to address issues raised ahead of the 2029 revaluation.

What estimate her Department has made of the cost to the public purse of Benefit-in-Kind rates for zero-emission company cars.

The Government publishes annual statistics on HMRC’s taxable benefits in kind for company cars and company car fuel. These reports document the number of benefit in kind recipients, the CO2 emissions of company cars and their total taxable value. The latest statistics for the tax year 2023-24 were published in June 2025, and are accessible here: https://www.gov.uk/government/statistics/benefits-in-kind-statistics-june-2025/benefit-in-kind-statistics-commentary-june-2025(opens in a new tab) 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.

What assessment she has made of the potential impact of the Energy Profits Levy on investment in North Sea oil and gas projects; and whether her Department has estimated the capital investment generated by reforming that levy before 2026.

The Government has carefully considered the potential impacts of the Energy Profits Levy (EPL), including on investment. The Treasury publishes impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside the Finance Bill. The most recent summary of impacts from the EPL can be found here: https://www.gov.uk/government/publications/energy-profits-levy-reforms-2024.The Government is clear that the EPL will end in 2030, or earlier if the EPL’s price floor, the Energy Security Investment Mechanism (ESIM), is triggered. While it remains in place, the EPL is forecast to raise around £8.5 billion between 2025/26 and 2030/31, contributing towards funding vital public services. This is in addition to more than £11 billion in tax revenues already raised through the EPL since its introduction in May 2022.The Government is committed to providing the oil and gas industry with the long-term certainty it needs on the future fiscal landscape and to support capital investment. At Budget 2025, the Government announced the details of the EPL successor regime, the Oil and Gas Price Mechanism. This new regime is designed to respond to future price shocks once the EPL ends, to create a stable, predictable fiscal environment that ensures companies continue to contribute fairly when oil and gas prices are unusually high while supporting investment in the UK’s oil and gas sector.

What assessment her Department has made of the potential merits of a weight-based system of vehicle taxation for cars.

Vehicle Excise Duty is a tax on vehicles used or kept on public roads. For certain vehicle classifications, VED liability is partially calculated in accordance with the vehicle’s weight, reflecting the greater road damage caused by heavier vehicles. For example, Heavy Goods Vehicle (HGV) VED rates are set based on a vehicle’s weight, suspension and trailer. 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.

Pursuant to the Answer of 21 November 2025 to Question 90404 on the Electric Car Grant, what assessment she has made of the value for money of the Electric Car Grant.

The Electric Car Grant makes electric vehicles more affordable by cutting the upfront costs of electric vehicles. In doing so, it accelerates the transition to zero-emission driving and has already helped over 35,000 drivers make the switch.

Pursuant to the Answer of 30 October 2025 to Question 85352 on Airports: Business Rates, what the rateable value is for each civil airport in England and Wales.

The VOA published the draft 2026 Rating List valuations on 26 November 2025; the compiled list will come into effect on 1 April 2026.