Written questions by Holden.

What estimate she has made of the total cost of electric vehicle (a) incentives and (b) tax reliefs for fleet and company car (i) leasing and (ii) purchases to the exchequer; and what assessment she has made of the value for money of those schemes.

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 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 8 September 2025 to Question 71255 on the Restoring Your Railway Fund, if she will publish all the assessments undertaken by her Department relating to the decision to cancel the Restoring Your Railway fund.

In her first week on the 8th of July 2024, the Chancellor of the Exchequer instructed HM Treasury officials to undertake an audit of public spending and public finances left by the last government. The audit’s findings showed a devastating 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 on the UK’s public finances left by the last government, the government cancelled the Restoring Your Railway programme as a vital cost-saving measure of £85 million. HM Treasury always carefully considers the impact of its decisions, but had to make difficult decisions in light of the black hole left by the last government.

Whether she plans to increase Air Passenger Duty on domestic or international flights; and whether she has made an assessment of the potential impact of any such increase on (a) regional connectivity and (b) aviation sector competitiveness.

Air Passenger Duty (APD) applies to airlines 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. At Autumn Budget 2024, the Government announced increases to APD rates for 2026-27, which partially make up for a real-terms fall in rates following a period of high inflation. The increase equates to £1 per economy class passenger more for those taking domestic flights, and for those travelling short-haul in economy class, this will be an increase of £2 per passenger per flight. A higher rate currently applies to larger private jets, and this will rise by an additional 50 per cent on top of the general increase made to all APD rates. The Government also published a consultation on the extension of the higher rate to cover all private jets already within scope of the APD regime. At present, the higher rate only applies to larger private jets, and so many private jet passengers pay the same rates as commercial airline passengers. The consultation closed on 22 January and the Government will respond in due course. The Chancellor makes decisions on tax policy at fiscal events in the context of public finances. The Government publishes Tax Information and Impact Notices (TIINs) alongside tax policy changes.

Whether she plans to increase fuel duty; and whether she has made an assessment of the potential impact of any such increase on the (a) cost of living and (b) business transport costs.

The Government carefully considers the impact of fuel duty on households and businesses and the public finances, with decisions on rates made at fiscal events.

Whether she plans to introduce or extend VAT to private hire vehicle journeys; and whether she has made an assessment of the potential impact of such a measure on (a) fares for passengers and (b) small operators.

Private hire vehicle services provided by VAT-registered businesses are, and always have been, subject to VAT.

Whether she plans to increase the rate of Insurance Premium Tax; and whether she has made an assessment of the potential impact of any such increase on (a) household and (b) business insurance costs.

Insurance Premium Tax (IPT) is a broad-based tax which raises important revenue to fund essential public services including the NHS, defence, and education. The rate of IPT has been unchanged since 2017.The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances. At Autumn Budget 2024 and Spring Statement 2025, the Government took a number of difficult but necessary decisions on tax, welfare, and spending to fix the public finances, fund public services, and restore economic stability.

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.

What assessment she has made of the potential impact of including charitable legacies within the scope of income tax on levels of legacy giving to (a) charities and (b) 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 increase business rates on (a) airports and (b) airport operators; and if she will make an assessment of the potential impact of such an increase on regional airport (i) viability and (ii) connectivity.

The Valuation Office Agency (VOA) conducts analysis of changes in rateable value to prepare for regular revaluations. The VOA is currently working on a revaluation of all non-domestic properties, which will come into effect on 1 April 2026. For the upcoming 2026 revaluation, as with other revaluations, the VOA is receiving ongoing representations from the airport sector.The Government will confirm the rates for the new multipliers at Budget 2025, taking account of the outcomes of the 2026 revaluation as well as the broader economic and fiscal context.We are fully committed to supporting the aviation industry. The sector is vital to our future as a global trading nation and will play an important role in local economies.

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 HMRC plans to issue guidance for charitable trustees on the treatment of legacies under section 523A of the draft Finance Bill 2025–26.

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.

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 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.

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.

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.

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.

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.