Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the impact of inflation on low-income households.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government recognises inflation can place particular pressure on low-income households. Analysis from the Office for National Statistics shows that lower-income households spend a larger share of their income on essentials such as food, energy and housing.
The Government is committed to bearing down on inflationary pressures and cutting the cost of living.
Alongside this, the Government is going further to support those who need it most by removing the two-child limit in Universal Credit, increasing the National Living Wage, and committing to the pensions Triple Lock for the duration of this Parliament. The Government has also expanded the £150 Warm Home Discount to a total of 6 million lower-income households, and is expanding free school meals to children in households receiving Universal Credit in England.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many apprentices her Department recruited in (a) 2025, (b) 2022, (c) 2023 and (d) 2024.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The number of apprentices has fallen for a number of reasons:
HM Treasury remains committed to apprenticeships as one pathway to break down barriers to opportunity. External recruitment campaigns for AO & EO grades are considered for a level 3 apprenticeship where appropriate.
As a result, the department has recruited the following number of apprentices:
2022 - 12
2023 - 4
2024 - 4
2025 – 0
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to her Oral Statement on Youth Unemployment, whether her Department has considered the benefits of raising the VAT Threshold to remove the potential barriers to sole traders taking on more work and hiring apprentices.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This means the majority of UK businesses are not in the VAT system at all, reducing administrative burdens and supporting their growth.
The Government’s approach to the VAT registration threshold aims to balance the impacts on small businesses, including their growth and financial sustainability, with the needs of the wider economy and the public finances. Increasing the VAT registration threshold would come at a significant fiscal cost and reduce the revenue available for vital public services.
More than £1.5 billion is being made available over the Spending Review period for investment in employment and skills support. This includes £725 million for the Growth and Skills Levy, to help support apprenticeships for young people and fully fund SME apprenticeships for under-25s.
Asked by: Bradley Thomas (Conservative - Bromsgrove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has considered changing the basis for determining Vehicle Excise Duty rates on motorcycles in line with other vehicles; and whether her Department plans to reduce Vehicle Excise Duty on motorcycles.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Vehicle Excise Duty (VED) is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as date of first registration, engine size, and CO2 emissions. VED for motorcycles is based on engine size.
Zero emission motorcycles now pay the lowest VED rate which applies to the smallest engine size of 150cc or less (currently £26, and increasing to £27 from 1 April 2026 in line with the Retail Price Index).
The government does not currently have any plans to reform the VED system for motorcycles.
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.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what her policy is on the annual uprating of fuel duty by inflation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Rates will only gradually return to early 2022 levels by March 2025.
At Budget 2025, the Government extended the 5 pence–per litre cut for a further five months, until the end of August this year. The Government has also cancelled the increase in line with inflation for 2026/27; instead, rates will only gradually return to early 2022 levels by March 2027. The 5p cut was introduced at following Russia’s invasion of Ukraine in 2022, when prices reached a peak of over £1.90 per litre.
Since Budget 2024, the Government's decisions to freeze fuel duty will save the average motorist over £90 – or 8-11 pence per litre – compared to the plans inherited from the previous government.
Asked by: Harriett Baldwin (Conservative - West Worcestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate her Department has made of the annual change in National Insurance contribution receipts as a result of the 36-month exemption for detached workers under Article 8 of the UK–India Double Contributions Convention.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Office for Budget Responsibility will certify the impact of the Comprehensive Economic and Trade Agreement (CETA), including the Double Contributions Convention (DCC), in the usual way at a fiscal event, once the deal is finalised and ratified. The cost of the DCC agreement is likely to be a small fraction of the overall deal’s economic benefit.
Asked by: Dan Carden (Labour - Liverpool Walton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the interaction between the Temporary Repatriation Facility (TRF) and the Transfer of Assets Abroad rules, and whether that could affect the revenue the OBR forecast from the TRF.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Interactions between the Temporary Repatriation Facility and the Transfer of Assets Abroad legislation were taken into consideration throughout policy development of the Temporary Repatriation Facility and the drafting of the legislation. The Government amended the Finance Bill to include an amendment to the Transfer of Assets Abroad legislation, ensuring that the interactions work as intended.
Asked by: Mary Kelly Foy (Labour - City of Durham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress her Department has made on reform of the credit union common bond.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government is a strong supporter of the mutual sector, including credit unions, and is working to support its growth in line with the manifesto commitment to double the size of the sector.
On 18 March, the government announced plans to reform the credit union common bond in Great Britain by:
These reforms will help more people get access to fair loans and a safe place to save, so families have a real alternative to high-cost credit.
Full details of the government’s plans have been published in a call for evidence response available on GOV.UK.
The government will legislate to give effect to these reforms as soon as parliamentary time allows.
Asked by: Tristan Osborne (Labour - Chatham and Aylesford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of exempting veterinary treatment for companion animals from VAT, in the context of existing VAT exemptions for certain essential goods and services.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 public services, and must represent value for money for the taxpayer.
Exceptions to the standard rate have always been limited and balanced against affordability considerations.
One of the key considerations for any potential new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates, meaning that cutting VAT may not be an effective way to reduce prices for consumers.
The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances. Since taking office the Government has taken a number of decisions on tax, welfare, and spending to fix the public finances, fund public services, and restore economic stability. This stability is critical to boosting investment and growth, and to making people across the UK better off.
Asked by: Damien Egan (Labour - Bristol North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of Child Benefit rules on children in shared care arrangements.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The current system places Child Benefit in the hands of one parent or guardian and gives that person responsibility for allocating it between capital and day to day costs. This ensures that the family with priority of entitlement for a child is provided with a suitable level of support for any particular child at any one time.
It is vital especially for parents and families on lower incomes that enough support is directed to them to lift the child out of poverty or to keep the child out of poverty.
We recognise that where families share responsibility for a child there may be issues around the availability of support. However, payment of support to the person with priority of entitlement for a child is seen as the most appropriate way to deal with the majority of families with children.