Asked by: Lord Macpherson of Earl's Court (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the readiness of the self-employed to submit quarterly returns through Making Tax Digital.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The government is undertaking a range of activities to ensure those needing to use Making Tax Digital (MTD) for Income Tax from April 2026 are ready and able to do so successfully.
This includes media campaigns, awareness letters, developing guidance, and working with the software industry to ensure a broad range of MTD‑compatible products is available, including free options.
MTD quarterly updates are not like making a tax return each quarter. Software will manage much of the process, creating simple summaries of income and expenses from the taxpayer’s digital records ready for submission.
Information provided within the quarterly updates will be carried forward to the tax return, helping to reduce errors and make the end of year process faster and easier.
Asked by: Baroness Kennedy of Cradley (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the initial public offering market over the past five years in the UK.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The government has delivered an ambitious programme of reforms that build on the UK market’s strong foundations. Recent changes, including overhauling the Prospectus and Listing regimes, have made it easier for firms to list and raise capital on UK markets.
And at the Budget in November 2025, the Chancellor went further by introducing a three-year UK Listing Relief, supporting firms to achieve higher valuations at IPO and improving their long-term growth prospects.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what role external organisations, including the Resolution Foundation, have played in advising the her Department on policy relating to self-employment taxation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government engages regularly with a wide range of external organisations, including the Resolution Foundation, to inform and strengthen the policymaking process.
In the lead‑up to each Budget, HM Treasury operates the Budget representation portal, through which individuals, interest groups, and representative bodies can submit written representations directly to the Treasury. These submissions allow stakeholders to comment on existing government policies and propose new policy ideas for consideration in the forthcoming Budget. This engagement provides valuable evidence and insights on a variety of issues, including the taxation of self‑employment.
As evidenced at Budget 2025, the Government is making fair and necessary choices on tax so it can deliver on the public’s priorities. Everyone is being asked to contribute to support these goals, but the government is keeping the contribution as low as possible by pursuing a programme of reform to fix longstanding issues in the tax system – modernising it, and addressing unequal and unfair treatment, while ensuring the wealthiest contribute more.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of reducing the rate of VAT on retail, hospitality and leisure from 20% to 13% on that sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by retail and hospitality businesses to economic growth and social life in the UK.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
HMRC estimates that the cost of reducing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services would be as follows in 2026-27: (a) to 15%: £5 billion, (b) to 12.5%: £8 billion (c) to 10%: £10.5 billion, (d) to 5%: £17 billion, (e) to 0%: £23.5 billion. Including retail would add to that significant cost.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the cost to (1) businesses, and (2) consumers, in Northern Ireland of the introduction by the European Union of a €2 handling charge for parcels with a value of less than €150.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
We are aware of changes to the EU’s rules of low-value imports and the announcement in December 2025 of its intention to introduce a handling fee on consumer parcels from November 2026.
At the Budget in November 2025, the Chancellor also announced the removal of the UK's relief from customs duty on goods below £135 from March 2029 at the latest. There is currently a consultation on these changes that closes on 6th March 2026.
We are committed to ensuring that the current facilitations available for parcels under the Windsor Framework continue to operate. The EU has not yet published their full legislation in relation to the handling fee and therefore an assessment cannot be made. The Government is, however, engaging closely with the EU with regard to their announcements.
The Government continues to engage with industry and the EU to ensure any applicable arrangements are implemented correctly and to minimise any negative impacts on Northern Ireland consumers and businesses.
Asked by: Lord Naseby (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of representations from the British Ports Association about the impact of removing the landfill tax exemption for dredging on major industrial developments, particularly in ports, rivers and canals; and what action they plan to take, if any, in response.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government recognises the vital role that the ports sector plays in supporting the government’s objectives on transport and infrastructure.
At the Budget in November 2025, the Government announced it would legislate to remove the Landfill Tax exemption for stabilisers used in dredged material from April 2027.
This decision followed a consultation on reforms to Landfill Tax during which the government engaged with a range of stakeholders, including representatives from the ports sector. This decision will not prevent the use of stabilisers, but it will encourage businesses to limit their use to what is necessary.
The Government does not expect the change to have a significant impact on flood risk management as most material removed during routine waterway maintenance of rivers and canals is reused locally and deposited adjacent to the channel, avoiding the need for disposal at landfill sites.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to work with financial regulators to develop the use of AI-specific stress testing in financial services.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Encouraging safe adoption is an essential part of realising that ambition.
HM Treasury works closely with the UK financial regulators to monitor evolving risks from new technologies, and ensure that the opportunities AI presents can be realised in a safe and responsible way.
Stress testing is a key tool the Bank use to ensure the financial system is sufficiently resilient to a wide range of potential scenarios. The Bank intends to consider the macroeconomic and core financial market consequences of AI adoption under various scenarios. This will enable it to form a view on the range of outcomes that need to be encompassed by future stress tests, in order to capture the potential severe but plausible risks associated with the range of potential AI outcomes.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the effectiveness of UK financial oversight arrangements in the context of the rapid adoption of AI tools by banks and insurers; and what are the implications for consumer protection and financial stability.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Encouraging safe adoption is an essential part of realising that ambition.
HM Treasury works closely with the UK financial regulators to monitor evolving risks from new technologies, and ensure that the opportunities AI presents can be realised in a safe and responsible way.
Asked by: Jerome Mayhew (Conservative - Broadland and Fakenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether revenues generated by the inclusion of domestic maritime within the UK Emissions Trading Scheme will be ringfenced for maritime decarbonisation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government is committed to maintaining an ambitious carbon pricing scheme to ensure that polluters continue to pay for their emissions. The UK Emissions Trading Scheme is our key lever to do so. This supports a cost-efficient transition toward net zero.
In July 2025, the UK Emissions Trading Scheme Authority confirmed an expansion to emissions from domestic maritime regime, commencing on 1 July 2026.
The UK does not hypothecate revenue from the UK ETS. All receipts from the UK ETS accrue to the consolidated fund, and go to funding government priorities, which includes decarbonisation support for the maritime sector.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to include the UK oil refining sector in the scope of the UK Carbon Border Adjustment Mechanism.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As announced at Budget 2025, the government is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism (CBAM) in future. The government recognises that refineries play a role in energy security and the UK’s industrial base. Government Ministers are holding a roundtable with the refining sector this month and will also publish a call for evidence on the fuel sector shortly.