Asked by: Desmond Swayne (Conservative - New Forest West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to include refined products in the Carbon Border Adjustment Mechanism at a future date; and if she will take measures to support the fuels sector whilst it is excluded from a Carbon Border Adjustment Mechanism.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government recognises the role that refineries play in energy security and the UK’s industrial base. The Government published a call for evidence (https://www.gov.uk/government/calls-for-evidence/future-of-the-uk-downstream-oil-sector/future-of-the-uk-downstream-oil-sector-call-for-evidence) on the future of the fuel sector on 23rd February 2026 in order to help understand the current state of the refining sector.
Following a strategic and technical assessment by HMG, it has been decided not to expand the Carbon Border Adjustment Mechanism (CBAM) to refined oil products in January 2028. Assessing the case for and feasibility of including refined oil products within the Carbon Border Adjustment Mechanism at a later date is a priority. We are continuing to work with the sector to assess the options.
Asked by: Desmond Swayne (Conservative - New Forest West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the potential impact of the exclusion of refined products from the Carbon Border Adjustment Mechanism from January 2028; and what estimate she has made of the potential impact on the UK economy were refined products to be included in the mechanism.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government recognises the role that refineries play in energy security and the UK’s industrial base. The Government published a call for evidence (https://www.gov.uk/government/calls-for-evidence/future-of-the-uk-downstream-oil-sector/future-of-the-uk-downstream-oil-sector-call-for-evidence) on the future of the fuel sector on 23rd February 2026 in order to help understand the current state of the refining sector.
Following a strategic and technical assessment by HMG, it has been decided not to expand the Carbon Border Adjustment Mechanism (CBAM) to refined oil products in January 2028. Assessing the case for and feasibility of including refined oil products within the Carbon Border Adjustment Mechanism at a later date is a priority. We are continuing to work with the sector to assess the options.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of further income tax power devolution to Wales following her announcement on 17 March 2026 to pursue devolution of income tax powers in England.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Chancellor announced on 17th March that she will set out a roadmap at Budget for giving English regional leaders a share of some national taxes. This will include looking at income tax, alongside other taxes. It is not about new taxes or higher tax rates.
The Welsh Senedd already has significant income tax powers. This was the product of a lengthy process of debate and development, including the Silk Commission’s first report, the Wales Act 2014, and the Wales Act 2017. Consideration of any further income tax devolution would be a matter for discussion between the Welsh and UK Governments and be subject to consensus in Wales and the agreement of both the UK Parliament and the Senedd.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of fiscal drag on the number of charities expected to become liable for VAT registration over the next five years.
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.
VAT is a broad-based tax on consumption. Once an organisation’s taxable turnover exceeds £90,000, it is required to register for VAT, and VAT-registered organisations can generally reclaim the VAT they incur on their business costs.
The Government takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution. Our tax regime for charities, including Gift Aid and an exemption from paying business rates, is among the most generous of anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what consultations were had with the (a) fuel distribution industry and the (b) Welsh government on the development of the support package for households in Wales using heating oil and Liquid Petroleum gas as heating methods announced on 16 March 2026.
Answered by James Murray - Chief Secretary to the Treasury
The government has acted quickly to provide timely, targeted support for those households struggling with the rising price of heating oil.
Officials from the Department for Energy Security and Net Zero have coordinated closely with industry since the conflict in the Middle East began, and continue to do so.
I have discussed this support with all devolved government Finance Ministers. In Scotland, Wales and Northern Ireland, it is for the relevant devolved government to deliver support as they see fit.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason Northern Ireland has been allocated £17 million of the £53 million home heating oil support package announced on 16 March 2026; and if she will publish the methodology used to determine that figure.
Answered by James Murray - Chief Secretary to the Treasury
The government has acted quickly to provide timely, targeted support to low-income households struggling with the rising price of heating oils, based on the latest census data.
This means the funding is distributed in line with where the most vulnerable oil-heated homes are concentrated. It is for the Northern Ireland Executive to allocate the funding in Northern Ireland as they see fit.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the VAT registration threshold on small charities that generate income through educational public engagement activities.
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.
VAT is a broad-based tax on consumption. Once an organisation’s taxable turnover exceeds £90,000, it is required to register for VAT, and VAT-registered organisations can generally reclaim the VAT they incur on their business costs.
The Government takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution. Our tax regime for charities, including Gift Aid and an exemption from paying business rates, is among the most generous of anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Office for Budget Responsibility’s Economic and Fiscal Outlook published in March 2026, what the forecast level of public sector net debt as a proportion of GDP will be in each year of the forecast period; what the reasons are for the projected increase in debt; and what steps she is taking to reduce public debt.
Answered by James Murray - Chief Secretary to the Treasury
This data is available at Table A.9: Fiscal aggregates in the March 2026 Economic and Fiscal Outlook published by the Office for Budget Responsibility (OBR).
The government’s fiscal plan brings down borrowing and debt, keeps the public finances on a sustainable path and supports the Bank of England to bring down inflation.
Asked by: Gregory Campbell (Democratic Unionist Party - East Londonderry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will consider the potential merits of excluding hybrids cars from the Vehicle Excise Duty Expensive Car Supplement (a) after three years from the date of first registration and (b) when their resale value falls below £28,000.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The ECS applies to new petrol/diesel and hybrid cars with a list price of £40,000 or more, while as announced at Budget 2025, from 1 April 2026 the ECS will apply to new zero-emission cars with a list price of £50,000 or more which are first registered on or after 1 April 2025. The additional charge was introduced so that those who can afford to access the most expensive cars make a fair contribution.
The Government continues to view the Expensive Car Supplement (ECS) as a suitable way of distinguishing the more luxury end of the new car market. Although average list prices of cars have increased since the ECS was introduced, nearly two-thirds of petrol, diesel and hybrid vehicles still fall below the £40,000 threshold.
The Government annually reviews the rates and thresholds of taxes and reliefs, including Vehicle Excise Duty and the ECS, to ensure that they are appropriate and reflect the current state of the economy.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to review the apprenticeship levy threshold in light of changes that increase costs for small levy-paying employers.
Answered by James Murray - Chief Secretary to the Treasury
The Apprenticeship Levy was introduced in 2017 and is only paid by large employers with a total annual pay bill of over £3 million.