Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of trends in the level of the use of AI technologies in financial advice by (a) consumers and (b) industry.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government believes that the safe and effective adoption of artificial intelligence (AI) in financial services is a major strategic opportunity, with the potential to power growth across the UK. As set out in the Government’s Financial Services Growth and Competitiveness Strategy, it is our ambition to make the UK the world's most technologically advanced global financial sector, leveraging our dual strengths in financial services and AI.
AI is already widely used across the financial sector. A 2024 survey by the Bank of England and the Financial Conduct Authority (FCA) found that around three-quarters of UK financial services firms are now deploying AI. Industry estimates also suggest that the use of AI within the financial advice sector is rapidly growing, with the proportion of advice firms using AI more than doubling over the past year.
The government has not made a formal assessment of the level of AI use by consumers, including the use of large language models for financial advice. In recognition of growing consumer interest in these tools, the FCA has published information for consumers on using AI for investment research. This sets out the pros and cons of such tools, including the risk of incorrect or out-of-date information, and makes clear that advice from general purpose AI tools is not regulated and does not benefit from protections such as the Financial Services Compensation Scheme or the Financial Ombudsman Service.
To support the effective and safe use of AI by industry, while protecting consumers and financial stability, the government has appointed Financial Services AI champions, Harriet Rees and Rohit Dhawan. They will focus on helping firms seize the opportunities for AI in a way that supports innovation, maintains trust in UK financial services, and ensures that consumers are appropriately protected.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to Section 4.230 of the Autumn Budget 2025, whether she plans to publish the consultation on the new ISA product before the Easter recess.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
At Autumn Budget 25 the government announced that it will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.
The new design will include the government bonus being paid at the point the individual makes a withdrawal for a house purchase. This removes the need for a withdrawal charge and means a saver can withdraw funds, should their circumstances change, without penalty.
It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Financial Conduct Authority on modernising adviser charging rules.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
HM Treasury engages regularly with the Financial Conduct Authority (FCA) on a range of regulatory issues, including the regulation of financial advice.
The FCA plans to consult on simplifying and consolidating its investment advice rules and guidance to reduce unnecessary complexity and to clarify its regulatory expectations under the Consumer Duty. This will also cover the rules relating to ongoing advice services to make sure they are appropriate and relevant in future. An FCA consultation paper is expected by the end of Q1 2026.
In addition, the Government is working closely with the FCA to roll out targeted support for consumers from April this year. This represents the biggest reform of the financial advice and guidance landscape in more than a decade, and will represent a step change in the support that consumers receive to invest. Targeted support can be provided free at the point of use with firms recovering costs through cross-subsidisation, which is how HM Treasury expects most firms to operationalise the service. Firms can choose to charge a fee, but will need to follow FCA rules around fair value.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of the regulatory disclosure requirements for investing.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government wants to see more people benefit from the higher returns and long-term financial resilience that investing can provide.
On 8 December, the FCA published their final rules for the new Consumer Compositive Investment (CCI) regime which will ensure relevant consumers have access to the most useful information – including on risks, costs and performance – to support their investment decisions.
In addition, the financial promotion regime requires firms to provide consumers with clear, fair and not misleading information that enables them to make appropriate decisions for their individual circumstances.
The Government also welcomes the industry-led review into risk warnings to reform how firms talk about the risks and benefits of investing and support improved consumer understanding. The review will report back to the Treasury early this year.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Privacy and Electronic Communications Regulations 2003 on the effectiveness of Targeted Support.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Targeted support will be a new form of support, designed to bridge the gap between guidance and full financial advice. It will enable firms authorised by the Financial Conduct Authority (FCA) to proactively suggest appropriate products or courses of action using limited information about a customer and their circumstances. The regime will go live from April 2026.
In December, the FCA and Information Commissioner’s Office published a joint statement to provide clarity on the interaction between direct marketing rules and targeted support. This statement sets out how firms can inform customers of the availability of their targeted support services, including to those who have opted out of direct marketing, while complying with the relevant regulations.
In addition, feedback from industry highlighted that the way direct marketing rules apply in the workplace pensions context creates particular challenges for implementing the new regime. The government therefore committed in December to taking forward secondary legislation to address this, enabling workplace pension providers to deliver targeted support to members who have not opted out of direct marketing. This reflects that workplace pension providers have fewer opportunities to obtain consent for direct marketing, limiting the level of engagement that they can have with their members.
Asked by: Mark Garnier (Conservative - Wyre Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Secretary of State for Education on improving the delivery of financial education.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government recognises the importance of financial literacy in helping people to manage their finances and make the most of their money, and is taking steps to improve provision of financial education across all age groups.
In July 2024, the government established an independent Curriculum and Assessment Review, covering ages 5 to 18, chaired by Professor Becky Francis CBE. The Review considered whether there is sufficient coverage of key knowledge and skills to prepare children and young people for future life and to thrive in a fast-changing world. The final report was published in November 2025, alongside the government’s response.
As part of that response, the government committed to making citizenship compulsory at Key Stages 1 and 2 in England, which will include financial education. The government is also legislating through the Children’s Wellbeing and Schools Bill so that all state-funded schools in England will be legally required to teach the national curriculum up to the age of sixteen. This will mean that pupils at academies, which do not currently have to follow the national curriculum, will also benefit from the changes to the curriculum.
The Treasury is working closely with the Department for Education on how we can support these changes and how they fit into the wider landscape of measures announced to support financial capability in adults as part of the government’s Financial Inclusion Strategy. My predecessor met the Minister of State (Minister for School Standards) last year ahead of the Strategy being published.
Asked by: Stephen Gethins (Scottish National Party - Arbroath and Broughty Ferry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential financial impact for electric vehicle owners caused by the Vehicle Excise Duty becoming payable on EVs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Vehicle Excise Duty (VED) is a tax on vehicles used or kept on public roads. As announced by the previous Government at Autumn Statement 2022, from April 2025, zero emission and hybrid cars, vans and motorcycles now pay VED in a similar way to petrol and diesel vehicles. Revenue from motoring taxes helps ensure we can continue to fund the vital public services and infrastructure that people and families across the UK expect.
The rates payable by electric vehicle owners are set out in the V149 rates tables published by the Driver and Vehicle Licensing Agency (DVLA), which can be found here: https://www.gov.uk/government/publications/rates-of-vehicle-tax-v149
The Tax Information and Impact Note published alongside Autumn Finance Bill 2022 set out the expected individual, business, equalities and other impacts of the change, and it can be found here: https://www.gov.uk/government/publications/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025
The government remains fully committed to the electric vehicle transition, and at Budget 2025 announced £3.6bn of additional support for the electric vehicle market. This included £1.3 billion of additional funding for the Electric Car Grant, £200 million for chargepoint rollout, and increasing the Expensive Car Supplement threshold to £50,000 for electric vehicles.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Valuation Office Agency's statistics entitled Non-domestic rating: change in rateable value of rating lists, England and Wales, 2026 Revaluation, published on 26 November 2025, for what reason the average Rateable Values of civil airports have increased by 295%.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The revaluation is required to be carried out in relation to the relevant valuation date, 01 April 2024 for the 2026 rating list.
The current rating list valuation is carried out in relation to the relevant valuation date, 01 April 2021 for the 2023 rating list.
The annual value at each valuation reflects the economic circumstances at each valuation date. The average Rateable Values of civil airports increase 295% reflects the different economic circumstances at each valuation date.
At the Budget, the Government published a Call for Evidence seeking further evidence on the role business rates and its reliefs play in investment. Through this Call for Evidence, the Government is considering options to provide greater predictability and stability in the business rates system for long-term, high-value investments. The Call for Evidence has recently closed, and a Government response will be published in due course.
Asked by: Ellie Chowns (Green Party - North Herefordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact on the smooth functioning of the property market, of the Finance Bill's requirement for conveyancers submitting Stamp Duty Land Tax returns on behalf of clients to register as 'tax advisers'.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government has consulted extensively with stakeholders about plans to require the registration of tax advisers who interact with HMRC on behalf of their clients.
This includes the 2024 consultation ‘Raising standards in the tax advice market: strengthening the regulatory framework and improving registration’ and a technical consultation on draft legislation published in summer 2025.
HMRC will continue to work with the industry ahead of implementation and consider concerns raised by stakeholder groups, including conveyancers.
HMRC has released a tax information and impact note on GOV.UK. The note details how the measure is expected to affect businesses that provide professional tax services and interact with HMRC on behalf of their clients.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of exempting the state pension from taxation.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Exempting the State Pension from income tax entirely would undermine the public services we all rely on, including the NHS.