Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to mitigate risks to UK economic security arising from financial instability in the Middle East.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Since the start of the conflict the Government has engaged allies and partners to urge de-escalation and shared efforts towards diplomacy, and has taken action to protect the UK public from the rising cost of living by providing immediate support for vulnerable heating oil customers and bringing energy bills down.
HM Treasury has also been working closely with the financial regulators to monitor potential risks to financial stability, including through its membership of the Bank of England’s Financial Policy Committee (FPC) and the global Financial Stability Board (FSB). The FPC is responsible in the UK for identifying, monitoring and taking action to remove or reduce systemic risks to the UK financial system.
In its April 2026 Record, the FPC assessed that conflict in the Middle East represents a negative supply shock to the global economy. The FPC noted that while the financial system has remained resilient, and the UK banking system has the capacity to support households and businesses even if conditions were to be substantially worse than expected, the conflict has increased global uncertainty following a period of already elevated risks and called for firms to actively manage their risks.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential effect of developments in the Middle East on global financial stability.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Since the start of the conflict the Government has engaged allies and partners to urge de-escalation and shared efforts towards diplomacy, and has taken action to protect the UK public from the rising cost of living by providing immediate support for vulnerable heating oil customers and bringing energy bills down.
HM Treasury has also been working closely with the financial regulators to monitor potential risks to financial stability, including through its membership of the Bank of England’s Financial Policy Committee (FPC) and the global Financial Stability Board (FSB). The FPC is responsible in the UK for identifying, monitoring and taking action to remove or reduce systemic risks to the UK financial system.
In its April 2026 Record, the FPC assessed that conflict in the Middle East represents a negative supply shock to the global economy. The FPC noted that while the financial system has remained resilient, and the UK banking system has the capacity to support households and businesses even if conditions were to be substantially worse than expected, the conflict has increased global uncertainty following a period of already elevated risks and called for firms to actively manage their risks.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of discussions at the UK–US Financial Regulatory Working Group on (a) financial stability and (b) cross-border regulatory co-operation.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Financial Regulatory Working Group (FRWG) was established in 2018 with a view to deepen bilateral financial regulatory cooperation between the UK and the US, including on issues relating to financial stability and to take stock of economic trends and market conditions. Further details on what was discussed at the most recent FRWG on 25 February 2026 can be found here: U.S. – UK Financial Regulatory Working Group Winter 2026: Joint Statement - GOV.UK.
The UK and US are also working closely together on the Transatlantic Taskforce for Markets of the Future, which was established jointly by HM Treasury and US Treasury on 22 September.
The Taskforce is exploring options to strengthen linkages between UK and US capital markets, supporting growth and competitiveness in both jurisdictions by reducing burdens for UK and US firms raising capital-cross border. It is also exploring opportunities for collaboration on digital assets and other innovative financial activities.
HM Treasury and the US Treasury have conducted joint senior-level industry engagement in both London and Washington DC to ensure the Taskforce’s work is informed by what matters most to industry on both sides of the Atlantic. The Taskforce aims to report back to both finance ministries on its recommendations via the FRWG in summer 2026.
Asked by: Jon Trickett (Labour - Normanton and Hemsworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the war in the Middle East on projected living standards in each of the next 5 years.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government keeps the economic outlook, including living standards, under close review. The economic impact of the situation in the Middle East will depend on its severity, duration and the extent of disruption to energy supplies. Official forecasts, including for living standards, are published by the independent Office for Budget Responsibility.
Living standards are rising, with real household disposable income per capita having risen by £700 in the last 12 months compared to the final year of the last Parliament.
The Government is acting to improve living standards by growing the economy, tackling inflation and supporting households, including measures at the Budget to cut energy bills, expand targeted support for lower‑income households, and freeze rail fares and NHS prescription charges.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 March 2026 to Question 120278 on Electric Vehicles: Costs, whether she will publish the analysis underpinning the estimated monthly cost savings under the proposed Government’s proposed electric Vehicle Excise Duty.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In answer to Question 120278 the Government set out that analysis suggests that the average EV driver will pay around £20 a month under the Government’s eVED proposals once the new policy starts in 2028, roughly half the equivalent rate for a petrol car.
This is based on an average EV driving 8,000 miles per year subject to an eVED rate of three pence per mile. The average EV driver will therefore pay £240 - or £20 per month - in eVED, while an average petrol/diesel car driving the same distance will pay around £480 in fuel duty, or six pence per mile.
The Government has set out expected impacts from eVED and other Budget measures in the Budget 2025 Policy Costings document at GOV.UK: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to support farmers who have been affected by the increase in the price of red Diesel in South Suffolk.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Farmers retained the entitlement to use red diesel for agricultural machinery after it was withdrawn from most sectors in 2022. In contrast to full duty diesel, taxed at 52.95p per litre, red diesel currently incurs a duty of 10.18p per litre.
At Budget 2025, the Government extended the temporary 5p fuel duty cut alongside extending the proportionate percentage cut for rebated fuels, which includes red diesel. This maintains the red diesel rate at the levels set in March 2022 at 10.18p per litre until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027, an increase of less than 1p a litre. The planned inflation increase for 2026-27 has also been cancelled.
Asked by: Sam Carling (Labour - North West Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to examine how AI could speed up the issuance of Remedial Service Statements to people in receipt of public sector pensions affected by the McCloud judgement.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Scheme managers of the individual public service pension schemes are responsible for ensuring the effective delivery of the McCloud remedy to affected members. I have written to scheme managers to remind them of their responsibilities to implement the remedy as quickly as possible and I would expect them to work with administrators the most appropiate available tools to do this.
Asked by: Sam Carling (Labour - North West Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to changes to the inheritance tax treatment of pension pots whether it is her policy that a) the total estate will be taken to include the unused pension pot, and b) donations to charity made from the unused pension pot will be considered as contributing to the 10% minimum.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government announced that unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027.
Where at least 10% of a person’s net estate is left to a qualifying charity, their estate is taxed at a reduced rate of inheritance tax of 36% instead of 40%. When considering this, the pension will fall within the general component of the estate. This component includes the deceased’s free estate and from 6 April 2027 will also include any unused pension funds and death benefits (called notional pension property). Any notional pension property that is paid to a qualifying charity will count toward the charitable giving conditions for the general component Further guidance can be found here: https://www.gov.uk/hmrc-internal-manuals/inheritance-tax- manual/ihtm45003. Guidance will be updated before the changes are implemented in April 2027.
Charity Lump Sum Death Benefits can be paid free of Income Tax. These lump sums are deliberately limited to money purchase arrangements where the deceased member had no dependants. These rules are not changing as this ensures that pension funds are used to support dependants where they exist, while allowing schemes to pay out benefits where there is no other beneficiary.
Asked by: Sam Carling (Labour - North West Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of amending the definition of a charitable lump sum death benefit so that people with dependents do not face barriers to donating to charity from their pension.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government announced that unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027.
Where at least 10% of a person’s net estate is left to a qualifying charity, their estate is taxed at a reduced rate of inheritance tax of 36% instead of 40%. When considering this, the pension will fall within the general component of the estate. This component includes the deceased’s free estate and from 6 April 2027 will also include any unused pension funds and death benefits (called notional pension property). Any notional pension property that is paid to a qualifying charity will count toward the charitable giving conditions for the general component Further guidance can be found here: https://www.gov.uk/hmrc-internal-manuals/inheritance-tax- manual/ihtm45003. Guidance will be updated before the changes are implemented in April 2027.
Charity Lump Sum Death Benefits can be paid free of Income Tax. These lump sums are deliberately limited to money purchase arrangements where the deceased member had no dependants. These rules are not changing as this ensures that pension funds are used to support dependants where they exist, while allowing schemes to pay out benefits where there is no other beneficiary.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what is the current revenue to the Exchequer of VAT from pilot training; and what would the estimated net cost to the Exchequer be of removing VAT from pilot training.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC does not hold information on the VAT revenue from pilot training.
This is because businesses are not required to provide a breakdown by product or service on their VAT returns, as this would impose an excessive administrative burden.
I refer the Honourable Member to my answer of 21 January 2026 (UIN 105280) stating that the Government has no plans to change policy in this area.