Written questions by Holden.

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.

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.

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.

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 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.

How many applications were made to the Chief Secretary to the Treasury under the approval of senior pay process for salaries above (a) £150,000 and (b) £174,000 since 4 July 2024; how many of those applications were (i) approved and (ii) rejected; and how many applications were (A) approved and (B) rejected for performance-related pay arrangements exceeding (1) £17,500 and (2) £25,000 since 4 July 2024.

Since 4 July 2024, HM Treasury has approved 200 cases under the senior pay approval process. Following a July 2025 update to the guidance, HM Treasury approval is required for salaries above £174,000 and performance-related pay over £25,000.

Pursuant to the Answer of 1 July 2025 to Question 62994 on Defence: Expenditure, whether expenditure on (a) transport and (b) broadband networks are within the scope of spending on critical infrastructure.

As set out in the Government's answer of 1 July to Question 62994 on Defence: Expenditure, the Government defines defence and national security spending in line with NATO's definition. NATO's definition of defence and security related expenditure includes areas such as strengthening the defence industrial base and our energy security, enhancing civil preparedness and resilience, and countering hybrid treats.

With reference to her Department's policy paper entitled Spring Statement 2025: Policy Costings, updated on 2 April 2025, for what reason that document uses both (a) RPI and (b) CPI inflation.

The Government confirms tax rates and thresholds annually. In some cases, to make sure that they reflect the current economy, they are uprated to account for inflation. The policy paper entitled Spring Statement 2025: Policy Costings sets out the indexation assumed in the public finances forecast baseline, which underpin the costings set out in the document.The Office for National Statistics (ONS), regulated by the UK Statistics Authority (UKSA), produces a range of inflation statistics. The most widely used estimates of inflation, both by Government and the private sector, are the Consumer Prices Index (CPI) and the Retail Prices Index (RPI)The Government agrees with UKSA that RPI is a flawed measure of inflation, which at times overstates and at times understates changes in prices. RPI’s shortcomings are well-documented. In 2013, as a result of flaws in the way it is measured, RPI lost its status as a National Statistic. Since 2010 the Government has been reducing its use of RPI and has committed to not introduce any new uses of RPI.

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 9 July 2025 to Question 65151 on Permanent Secretaries: Pay, which two Permanent Secretary roles were approved; and what the salaries were.

Since July 2024, HM Treasury and Cabinet Office have approved two Permanent Secretary roles to exceed the Permanent Secretary pay band; one in each the Department of Health and Social Care and Foreign, Commonwealth and Development Office.

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.

Whether her Department has made an estimate of the number of state pensioners that have had their taxable pension income miscalculated due to HMRC applying 52 weeks of the uprated rate rather than accounting for the weeks paid at the previous year’s rate.

The Government is committed to making sure older people can live with the dignity and respect they deserve in retirement. The State Pension is the foundation of the support available to them. Over the course of this Parliament, the yearly amount of the full new State Pension is currently projected to go up by around £1,900 based on the Office for Budget Responsibility's latest forecast. In line with the Government's commitment to the Triple Lock for the duration of this parliament, over 12 million pensioners have benefitted from a 4.1 per cent increase to their basic or new State Pension this year. Those on a full new State Pension will be getting an additional £470 a year. The extra income comes on top of a substantial increase in 2024/25, which saw those receiving a full new State Pension get a £900 boost. When it comes to taxes, social security benefits are treated differently depending on why they are paid. Generally, benefits that replace income, like the State Pension, are taxable. The Personal Allowance - the amount an individual can earn before paying tax - will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax. Most pensioners who pay tax on their State Pension are in Pay As You Earn. For these customers, HMRC calculates how much State Pension an individual accrues each year by calculating one week at the old rate of State Pension and 51 weeks at the new rate and adjusting their tax code accordingly. This means most pensioners pay the right amount of tax in real time. HMRC has become aware that for a sub-set of individuals in receipt of the State Pension, a calculation error means that their tax is calculated based on 52 weeks at the new rate. The difference in tax owed is approximately £5. Affected individuals can call HMRC to amend any incorrect figures of State Pension.

What steps her Department is taking to ensure HMRC tax calculations accurately reflect the period in which state pension upratings apply; and whether HMRC has a planned date for resolving this issue.

The Government is committed to making sure older people can live with the dignity and respect they deserve in retirement. The State Pension is the foundation of the support available to them. Over the course of this Parliament, the yearly amount of the full new State Pension is currently projected to go up by around £1,900 based on the Office for Budget Responsibility's latest forecast. In line with the Government's commitment to the Triple Lock for the duration of this parliament, over 12 million pensioners have benefitted from a 4.1 per cent increase to their basic or new State Pension this year. Those on a full new State Pension will be getting an additional £470 a year. The extra income comes on top of a substantial increase in 2024/25, which saw those receiving a full new State Pension get a £900 boost. When it comes to taxes, social security benefits are treated differently depending on why they are paid. Generally, benefits that replace income, like the State Pension, are taxable. The Personal Allowance - the amount an individual can earn before paying tax - will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax. Most pensioners who pay tax on their State Pension are in Pay As You Earn. For these customers, HMRC calculates how much State Pension an individual accrues each year by calculating one week at the old rate of State Pension and 51 weeks at the new rate and adjusting their tax code accordingly. This means most pensioners pay the right amount of tax in real time. HMRC has become aware that for a sub-set of individuals in receipt of the State Pension, a calculation error means that their tax is calculated based on 52 weeks at the new rate. The difference in tax owed is approximately £5. Affected individuals can call HMRC to amend any incorrect figures of State Pension.

Whether her Department has made an assessment of the potential impact of draught beer duty relief on the viability of pubs in (a) rural areas and (b) newly developed communities.

The Chancellor’s draught rate cut at Autumn Budget 2024 applied to approximately 60% of the alcoholic drinks sold in pubs. Draught beer and cider now pay 13.9% less in duty than their packaged equivalents – a 50% increase on the previous draught discount of 9.2%. This took a penny of duty off a typical strength pint.Draught beer and cider now pay 13.9% less in duty than their packaged equivalents – a 50% increase on the previous draught discount of 9.2%.The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.

If she will introduce a three month extension to the transition period for capital allowance rules for Double Cab Pick Ups.

Following recent case law from 2020, Double Cab Pick Ups with a payload of one tonne or more must be treated as cars for capital allowances purposes, in line with the Court of Appeal's judgement on the primary suitability of such vehicles. The government recognised that this change will affect businesses, who need certainty and predictability. Which is why HMRC has put in place substantial transitional arrangements. These ensure that current owners, and those who purchased Double Cab Pick Ups before 1 April 2025 (for Corporation Tax) and 6 April 2025 for (Income Tax), and incur expenditure before 1 October 2025, are not impacted. The purpose of the transition period was to provide certainty and allows businesses time to adapt. The government gave just under a year’s notice of the October 2025 deadline.

Pursuant to the Answer of 1 July 2025 to Question 63032 on National Security: Expenditure, if she will publish the NATO reporting guidelines.

NATO has a common definition of defence expenditure that is agreed by all NATO allies.The definition of NATO defence expenditure, and the recently announced defence and security related spending, can be found on the NATO website.NATO - Topic: Defence expenditures and NATO’s 5% commitment

Whether her Department has provided additional funding to government departments to compensate public bodies for the increase in employer National Insurance contributions for each year of the Spending Review 2025.

At Autumn Budget 2024 the Government set aside funding to support the public sector with the additional cost of employer National Insurance Contributions. The Government then updated Parliament on allocations by department for 2025-26 (published alongside Main Estimates 2025-26).Spending Review 2025 departmental settlements fully reflect these changes for 2026-27, 2027-28 and 2028-29, with the Barnett formula applying in the usual way.

Whether she is taking steps to help ensure that SME firms with defence contracts are not de-banked by financial institutions.

The government recognises that access to banking services is vital for people and businesses across the UK. It is this government's firm position that no firm should be denied access to banking services solely on the grounds they work in defence. The upcoming Defence Industrial Strategy will have SMEs at its heart, and will lay out the steps we are taking as government to support defence SMEs.The government has already legislated to strengthen protections for customers. From April 2026, banks and other providers will be required to give customers a longer notice period of at least 90 days and to provide customers with a sufficiently detailed and specific explanation before they terminate services. This will give people and businesses the time and information they need to challenge decisions or find an alternative provider. We continue to monitor wider access to bank account provision but recognise this is largely a commercial matter. Firms have strict obligations to ensure the legitimacy of a business and protect against financial crime.