Written questions by Holden.

What steps she is taking to ensure that reforms to the charity tax regime do not discourage long-term endowment building by local community foundations.

Charities rightly enjoy generous tax reliefs, worth over £6bn in 2024. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way. The new charity rules to be included in the forthcoming Finance Bill for legacy giving and attributable income will help ensure a charity uses its tax relieved income for its charitable purposes. The rules are well targeted and so should not deter legitimate donors from leaving a legacy to charity or prevent charities from building a long-term endowment. The updated rule for tainted donations will replace the current purpose test with an outcome test in order to better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation. They are not intended to affect genuine charitable giving or penalise honest donors.Updated guidance will be tested with the sector and published prior to the changes taking effect. This will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.

Whether she plans to remove the 40-year Vehicle Excise Duty exemption for historic vehicles; and whether she has made an assessment of the potential impact of such a change on (a) the classic car sector and (b) the owners currently benefiting from that exemption.

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 merits of (a) reviewing and (b) revising the proposed changes to (i) the definition of attributable income and (ii) charity donation rules during the consultation on the draft Finance Bill 2025-2026.

Charities rightly enjoy generous tax reliefs, worth over £6bn in 2024. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way. The new charity rules to be included in the forthcoming Finance Bill for legacy giving and attributable income will help ensure a charity uses its tax relieved income for its charitable purposes. The rules are well targeted and so should not deter legitimate donors from leaving a legacy to charity or prevent charities from building a long-term endowment. The updated rule for tainted donations will replace the current purpose test with an outcome test in order to better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation. They are not intended to affect genuine charitable giving or penalise honest donors.Updated guidance will be tested with the sector and published prior to the changes taking effect. This will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.

Whether HMRC plans to publish (a) examples and (b) guidance on the operation of the proposed outcome test for tainted charity donations; and what steps she is taking to prevent donors being penalised for actions beyond their control by recipient charities.

Charities rightly enjoy generous tax reliefs, worth over £6bn in 2024. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way. The new charity rules to be included in the forthcoming Finance Bill for legacy giving and attributable income will help ensure a charity uses its tax relieved income for its charitable purposes. The rules are well targeted and so should not deter legitimate donors from leaving a legacy to charity or prevent charities from building a long-term endowment. The updated rule for tainted donations will replace the current purpose test with an outcome test in order to better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation. They are not intended to affect genuine charitable giving or penalise honest donors.Updated guidance will be tested with the sector and published prior to the changes taking effect. This will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.

Whether she has made an assessment of the potential merits of extending existing VAT reliefs on defibrillators to cover direct purchases by (a) community groups, (b) sports clubs and (c) small businesses.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.The Government currently provides VAT reliefs to aid the purchase of defibrillators. For example, when an Automated External Defibrillator is purchased with funds provided by a charity and then donated to an eligible body, no VAT is charged. Furthermore, all state schools in England have been fitted with AEDs.

What assessment her Department has made of the potential impact of the Pensions (Abolition of Lifetime Allowance Charge etc) (No. 3) Regulations 2024 on people with enhance protection; and whether she has considered bringing forward further legislative proposals to ensure that their scheme-specific lump sum calculations are maintained relative to the position before 6 April 2024.

We are aware that recent changes made to the scheme-specific lump sum calculation are not operating as intended for those with certain forms of transitional protection, including those with enhanced protection. The result is that in some cases, entitlement to tax-free lump sums is smaller than prior to April 2024. HMRC intends to bring forward legislation to address this issue by April 2026. Regulations will have effect from April 2024. This will ensure the calculation for scheme-specific lump sums is similar to the position at April 2024.

Pursuant to the Answer of 8 September 2025 to Question 71207 on National Security: Finance, if she will place publish a copy of the (a) Government’s and (b) NATO guidance on the definition of (i) defence and (bii) security related expenditure, for the purposes of the UK Government meeting its NATO commitments.

The NATO definition of defence expenditure, and defence and security related expenditure can be found on the NATO website: NATO - Topic: Defence expenditures and NATO’s 5% commitment These definitions are used by the UK and all NATO allies when reporting their NATO qualifying expenditure.

What assessment she has made of the potential impact of Government policies over the last 12 months on the financial stability of small and medium-sized kitchen manufacturers.

The Government continues to monitor the UK corporate sector, including insolvency trends, using official data and engaging with firms and business groups to inform policy decisions. The Government has taken a number of measures to make the tax system competitive and give businesses, including those in the kitchen manufacturing sector, the stability and predictability they need to invest and grow. In the Corporate Tax Roadmap, the Government committed to maintain the Small Profits Rate and marginal relief at their current rates and thresholds, as well as to maintain the £1 million Annual Investment Allowance. The Government also protected the smallest businesses from the impact of the increase to Employer National Insurance by more than doubling the Employment Allowance to £10,500.The Department for Business and Trade recently published ‘Backing your business: our plan for small and medium-sized businesses’ which set out a long-term direction for the Government’s support for smaller firms. This went further than any previous government, introducing the most significant package of legislative reforms in 25 years to tackle late payments. The plan unlocks billions of pounds in finance to support businesses to invest, removes unnecessary red tape, and delivers growth-boosting support with a new Business Growth Service to unlock business potential.

If she will take steps to improve the competitiveness of UK-based kitchen manufacturers through the tax system.

The government has taken a number of measures to make the tax system competitive and give businesses, including those in the kitchen manufacturing sector, the stability and predictability they need to invest and grow. For instance, the Corporate Tax Roadmap, published at Autumn Budget 2024, committed to capping the CT rate at 25% for the duration of parliament, the lowest headline rate of CT in the G7. These taxes are also by some of the most generous business investment tax reliefs and allowances in the OECD, such as the Annual Investment Allowance of £1 million per year and Full Expensing, to encourage investment and increase the competitiveness of UK companies internationally.

Whether her Department has made an estimate of the number of UK-based (a) kitchen and (b) kitchen components manufacturers that have (i) entered administration and (ii) ceased trading since 1 January 2024.

The Government continues to monitor the UK corporate sector, including insolvency trends, using official data and engaging with firms and business groups to inform policy decisions. The Government has taken a number of measures to make the tax system competitive and give businesses, including those in the kitchen manufacturing sector, the stability and predictability they need to invest and grow. In the Corporate Tax Roadmap, the Government committed to maintain the Small Profits Rate and marginal relief at their current rates and thresholds, as well as to maintain the £1 million Annual Investment Allowance. The Government also protected the smallest businesses from the impact of the increase to Employer National Insurance by more than doubling the Employment Allowance to £10,500.The Department for Business and Trade recently published ‘Backing your business: our plan for small and medium-sized businesses’ which set out a long-term direction for the Government’s support for smaller firms. This went further than any previous government, introducing the most significant package of legislative reforms in 25 years to tackle late payments. The plan unlocks billions of pounds in finance to support businesses to invest, removes unnecessary red tape, and delivers growth-boosting support with a new Business Growth Service to unlock business potential.

Pursuant to the Answer of 5 September 2025 to Question 71209 on Motor Vehicles: Excise Duties, if she will make an estimate of the amount of tax that will be raised from Double Cab Pick Up vehicles being taxed as cars in (a) 2025-6, (b) 2026-7, (c) 2027-8, (d) 2028-9 and (e) 2029-30.

The estimated amount of tax that will be raised from double cab pick-up vehicles being treated as cars has been estimated as follows: 2025-262026-272027-282028-292029-30Exchequer Impact (£m)140235270280285As with most tax measures in the Budget the main uncertainties in this costing relate to the size of the tax base and the behavioural response to the measure in the usual way.

When she plans to publish a response to her Department's consultation entitled Consultation on the VAT Treatment of Private Hire Vehicles, which closed on 8 August 2024.

The Government continues to take this complex issue very seriously and recognises businesses’ need for certainty. The Government is carefully considering the wide range of views shared through last year's consultation on the VAT Treatment of Private Hire Vehicles and will publish a detailed response soon.

Whether the Government plans to impose VAT at 20% on all private hire fares.

The Government continues to take this complex issue very seriously and recognises businesses’ need for certainty. The Government is carefully considering the wide range of views shared through last year's consultation on the VAT Treatment of Private Hire Vehicles and will publish a detailed response soon.

Whether her Department produced an impact assessment prior to the Supreme Court judgment in DELTA Merseyside Ltd v Uber Britannia Ltd on the application of VAT to private hire vehicle journeys.

The Government continues to take this complex issue very seriously and recognises businesses’ need for certainty. The Government is carefully considering the wide range of views shared through last year's consultation on the VAT Treatment of Private Hire Vehicles and will publish a detailed response soon.

With reference to her Department's consultation entitled Consultation on the VAT Treatment of Private Hire Vehicles, which closed on 8 August 2024, what assessment her Department has made of the potential impact of applying 20% VAT to private hire vehicle journeys on vulnerable users.

The Government continues to take this complex issue very seriously and recognises businesses’ need for certainty. The Government is carefully considering the wide range of views shared through last year's consultation on the VAT Treatment of Private Hire Vehicles and will publish a detailed response soon.

Whether the merger of the Payment Services Regulator in the Financial Conduct Authority will require (a) primary and (b) secondary legislation; and what her planned timetable is for completion of that merger.

The Payment Systems Regulator (PSR) has carried out important work to support the UK’s world leading payments sector. However, moving forward, the Government wishes to see a more streamlined regulatory environment with minimal overlap between regulators’ responsibilities. That is why the Government has announced its intentions to consolidate the PSR and its functions primarily within the Financial Conduct Authority (FCA). The Government will consult on the details of this measure shortly. The consolidation of the PSR into the FCA will require primary legislation, which will be brought forward as soon as parliamentary time allows. The PSR and FCA are already taking steps to realise the benefits of a more streamlined regulatory framework, including creating a new joint PSR/FCA payments executive director; updating the Memorandum of Understanding between the PSR, the FCA, the Bank of England and the PRA; jointly progressing Open Banking; and undertaking joint stakeholder engagement.

What assessment she has made of the potential impact of insurance premium tax on the cost of car insurance; and whether she plans to increase insurance premium tax.

Last year, we established a cross-government motor insurance taskforce with 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 car insurance premiums. The taskforce's final report will be published in the autumn. Insurance pricing is a decision which is affected by a wide range of factors, and the taxes that insurers pay are just one part of this. There is additionally no guarantee that any reductions in IPT would be passed on to consumers. We keep all taxes under review and the Chancellor makes decisions at Budgets in the context of the overall public finances

With reference to paragraph 5.91 of the Autumn Budget 2024, published on 30 October 2024, what assessment she has made of the potential impact of changes to the treatment of double cab pick-up vehicles on (a) SMEs, (b) the self-employed and (c) people who work in the construction industry; and what estimate she has made of the number of taxpayers impacted by those changes in 2025-26.

Double Cab Pick Up vehicles (DCPUs) have in the past been treated as goods vehicles for tax purposes, rather than cars. Following a judgement by the Court of Appeal, DCPUs must be treated as cars, rather than goods vehicles, for certain tax purposes, based on their primary suitability. At Autumn Budget 2024, the government had to make difficult decisions, and in the given fiscal situation was not willing to legislate to change this treatment and provide a significant tax break worth hundreds of millions per year for these vehicles. The transitional arrangements put in place meant that this would not affect the capital allowances treatment of any business that already owned a DCPU, or that purchased one before April 2025; and businesses that purchase or have purchased a DCPU after this date will still be able to deduct the cost from their taxable profits at 18% or 6% per year. Under the transitional arrangements for Benefit-in-Kind treatment, anyone who accessed a DCPU before 6 April 2025 will not be impacted until the sooner of disposal of the vehicle, 5 April 2029 or when their lease expires. In addition, there are alternatives to DCPUs (such as Single Cab Pick Ups, or 4x4 vans) that are still treated as goods vehicles.

With reference to the document entitled Fixing the foundations: Public spending audit 2024-25, published on 29 July 2024, if she will publish the (a) equality impact assessment, (b) strategic environmental assessment and (b) environmental principles assessment produced for the Ministerial decision to cancel the Restoring Your Railway fund.

On 8 July 2024, the Chancellor of the Exchequer instructed HM Treasury officials to undertake a audit of public spending. The audit’s findings showed a forecast overspend on departmental spending of £21.9 billion above the resource departmental expenditure limit (RDEL) totals that had been set at Spring Budget 2024. Taking immediate action to respond to the spending pressure, the government cancelled the Restoring Your Railway programme as a cost-saving measure of £85 million. HM Treasury carefully considers the impact of its decisions on those sharing protected characteristics in line with both our legal obligations and with our commitment to promoting fairness. HM Treasury also carefully considers the environmental impacts of decisions in line with the environmental principles policy statement duty and the recognition of long-term environmental targets to tackle climate change.

Pursuant to the Answer of 7 July 2025 to Question 63330 on Cabinet Office: Electronic Purchasing Card Solution, on what date the event took place; where it took place; who attended; and what the cost of the event was.

The expenditure for PYM ARTEMISPLUS EXPRE, made via the Electronic Purchasing Card Solution, was made for a training event on the 25-26th September 2024 with 75 attendees, including over 70 Government of Philippines officials in Manila, and totalled £777.