Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department's press release entitled Reeves to use Parliament to drive through power plants and infrastructure, published on 20 May 2026, what steps she is taking with Cabinet colleagues to maximise the use of domestic suppliers and manufacturers in nationally significant infrastructure and energy projects accelerated under the proposed reforms.
Answered by Lucy Rigby - Chief Secretary to the Treasury
On 20 May, the Chancellor announced a package of infrastructure planning reforms to accelerate delivery of the most important clean energy projects, strengthen the UK’s energy security and support economic growth.
By reducing delays and making the judicial review process faster, more predictable and more focused on genuine legal concerns, these reforms are expected to give investors greater confidence and support continued investment in infrastructure projects.
More broadly, this Government believes that it matters where things are made and who makes them and is reforming public procurement so that more of what the public sector buys supports UK-based businesses, including in critical industries.
HM Treasury is working closely with relevant departments on the detailed policy and legislative framework for these infrastructure planning reforms. Further detail will be set out in due course.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department's press release entitled Reeves to use Parliament to drive through power plants and infrastructure, published on 20 May 2026, if she will set out what role hon. Members will have in approving or scrutinising projects designated as being of Critical National Importance under the proposals.
Answered by Lucy Rigby - Chief Secretary to the Treasury
On 20 May, the Chancellor announced a package of infrastructure planning reforms to accelerate delivery of the most important clean energy projects, strengthen the UK’s energy security and support economic growth.
These proposals include a new route for Parliament to approve projects designated as Critical National Importance, providing greater certainty where the national interest is clearest. The route would apply only to energy projects identified by the Energy Secretary as Critical National Importance, and any such designation would require explicit parliamentary approval.
HM Treasury is working closely with relevant departments on the detailed policy and legislative framework for these reforms. Further detail will be set out in due course.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of the Approved Mileage Allowance Payment rate on small and medium-sized enterprises and mobile workers in rural regions, including in Northern Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee's expenses for business mileage in their private vehicle. The AMAP rate is advisory, so employers can choose to pay more or less than the advisory rate. Employees reimbursed less than the AMAP rate may be able to claim tax relief on the difference, depending on their circumstances. Amounts reimbursed over the AMAP rate are classed as earnings and subject to Income Tax.
In recognition of the pressures facing drivers, the Government announced in May the first uprating of these rates since 2011, backdated to April 2026. For 2026/27, mileage rates for cars and vans will increase from 45p to 55p per mile for the first 10,000 miles annually, followed by 25p per mile thereafter. These rates are UK-wide so apply to Northern Ireland.
The 25p per mile rate for mileage above 10,000 miles remains unchanged, reflecting that the average motorist drives fewer than 10,000 miles for work and the need to balance targeted support with overall fiscal responsibility. Employees can also claim an additional 5p per mile for each fellow employee transported. Mileage rates for other vehicles, including motorcycles, remain unchanged.
Looking ahead and beyond 2026/27, the Government has already committed to a review of these rates and will set this out at the Budget. More broadly, 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.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her officials have had discussions with colleagues in the Northern Ireland Office on the adequacy of the Approved Mileage Allowance Payment rate of 45 pence per mile.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee's expenses for business mileage in their private vehicle. The AMAP rate is advisory, so employers can choose to pay more or less than the advisory rate. Employees reimbursed less than the AMAP rate may be able to claim tax relief on the difference, depending on their circumstances. Amounts reimbursed over the AMAP rate are classed as earnings and subject to Income Tax.
In recognition of the pressures facing drivers, the Government announced in May the first uprating of these rates since 2011, backdated to April 2026. For 2026/27, mileage rates for cars and vans will increase from 45p to 55p per mile for the first 10,000 miles annually, followed by 25p per mile thereafter. These rates are UK-wide so apply to Northern Ireland.
The 25p per mile rate for mileage above 10,000 miles remains unchanged, reflecting that the average motorist drives fewer than 10,000 miles for work and the need to balance targeted support with overall fiscal responsibility. Employees can also claim an additional 5p per mile for each fellow employee transported. Mileage rates for other vehicles, including motorcycles, remain unchanged.
Looking ahead and beyond 2026/27, the Government has already committed to a review of these rates and will set this out at the Budget. More broadly, 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.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to introduce an indexation mechanism linking the Approved Mileage Allowance Payment rate to (a) inflation and (b) motoring cost indices.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee's expenses for business mileage in their private vehicle. The AMAP rate is advisory, so employers can choose to pay more or less than the advisory rate. Employees reimbursed less than the AMAP rate may be able to claim tax relief on the difference, depending on their circumstances. Amounts reimbursed over the AMAP rate are classed as earnings and subject to Income Tax.
In recognition of the pressures facing drivers, the Government announced in May the first uprating of these rates since 2011, backdated to April 2026. For 2026/27, mileage rates for cars and vans will increase from 45p to 55p per mile for the first 10,000 miles annually, followed by 25p per mile thereafter. These rates are UK-wide so apply to Northern Ireland.
The 25p per mile rate for mileage above 10,000 miles remains unchanged, reflecting that the average motorist drives fewer than 10,000 miles for work and the need to balance targeted support with overall fiscal responsibility. Employees can also claim an additional 5p per mile for each fellow employee transported. Mileage rates for other vehicles, including motorcycles, remain unchanged.
Looking ahead and beyond 2026/27, the Government has already committed to a review of these rates and will set this out at the Budget. More broadly, 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.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the cost to the Exchequer and expected economic impact on families of the temporary reduction in VAT on children's meals and summer attractions; what categories of business and attraction will be eligible for the scheme; what assessment she has made of the proportion of the tax reduction likely to be passed on through lower prices; and whether the Government intends to publish an evaluation of the scheme following its conclusion.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
From 25 June to 1 September the Government is introducing a temporary reduced rate of VAT on children's menu meals and eligible family attractions.
This is a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks, helping families enjoy a day out for less. Individual businesses should consult HMRC’s guidance to determine how the rules apply in their circumstances.
The temporary reduced rate is estimated to cost about £300m. All costings will be subject to certification in the next OBR forecast in the usual way.
The Government expects participating businesses to pass savings on to families by lowering the prices people pay on eligible children's meals and tickets, so the VAT cut is reflected directly at the till.
The impact of the measure will be kept under review through communication with affected taxpayer groups.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of an increase in the SCAPE discount rate on police officers in the 1987 Police Pension Scheme.
Answered by Lucy Rigby - Chief Secretary to the Treasury
In line with the existing methodology, the Government announced on 19 May 2026 that the SCAPE discount rate is 2%+CPI.
HM Treasury is not the responsible authority for individual Public Service Pension Schemes. Regulation B7 of the Police Pension Scheme Regulations 1987 provides for commutation of pension to purchase lump sum and specifies that the rate is that set out by the Scheme Actuary. The factors were updated on 21 May 2026 to reflect the change to the SCAPE discount rate.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she made of the potential merits of an immediate implementation of the SCAPE discount rate.
Answered by Lucy Rigby - Chief Secretary to the Treasury
The Government remains committed to reviewing the SCAPE discount rate at every valuation cycle. The SCAPE discount rate was announced in Parliament on 19 May 2026. This is in line with established precedent for reviews of the SCAPE discount rate. Where the SCAPE discount rate changes, the factors used in the schemes (for example to calculate the commuted lump sum provided in exchange for a member giving up part of their pension) are reviewed in line with best practice and the law.
Asked by: Michelle Scrogham (Labour - Barrow and Furness)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to introduce an essential user rebate on fuel costs for haulage, van and coach operators, in addition to the recent extension of the fuel duty freeze and the 12‑month Vehicle Excise Duty holiday.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government keeps all taxes under review and will continue to monitor the situation and make the necessary decisions to help protect households and businesses from price increases from the conflict in the Middle East. The Government’s priorities will continue to be helping families with the cost of living, including through protecting the public finances to support the Bank of England with its role in keeping inflation as low as possible
In addition to the recent extension of the fuel duty freeze and the 12-month Vehicle Excise Duty holiday for HGV's, the Government also announced the first uprating of mileage rates for employees using their own vehicle for work and the self-employed who use the simplified expenses rates, back-dated to April, recognising pressures facing these drivers. Mileage rates for cars and vans will increase for2026/27 from 45p to 55p for the first 10,000 miles, and 25p thereafter, with effect from 6 April 2026. Looking ahead and beyond 2026/27, the Government has already committed to a review of these rates and will set this out at the Budget.
Asked by: Lee Pitcher (Labour - Doncaster East and the Isle of Axholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of extending the Great British Summer Savings scheme to include admission to public swimming pools.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
From 25 June to 1 September the Government is introducing a temporary reduced rate of VAT on children's menu meals and eligible family attractions.
This is a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks, helping families enjoy a day out for less. Individual businesses should consult HMRC’s guidance to determine how the rules apply in their circumstances.
Sport, including swimming pools, is not in scope of the relief. This is in line with the decision to focus on a narrower set of eligible activities to ensure the scheme is targeted and financially sustainable.
Many sports facilities which families use already enjoy some form of VAT relief, including many leisure centres and local swimming pools that are operated by local authorities and are out of scope of VAT already. Local authorities are able to reclaim their input VAT when providing sports facilities in leisure centres.