Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to assist low-income families with living costs in Inverness, Skye and West Ross-shire constituency.
Answered by James Murray - Chief Secretary to the Treasury
The Plan for Change committed to improving living standards in every part of the United Kingdom. Helping people into good work and financial independence is at the heart of our approach to supporting people on the lowest incomes. This is why we increased the National Living Wage by 6.7%, are tackling poor job security and working conditions through our plan to Make Work Pay, and are investing an additional £1 billion by 2029-30 in employment, health and skills support in the Pathways to Work Green Paper.
Beyond this, the government has introduced a Fair Repayment Rate which lowers the cap on deductions in Universal Credit from April 2025, benefitting 1.2 million households by an average of £420 a year. The Warm Home Discount is also being expanded to every billpayer on means-tested benefits, meaning 2.7 million extra households will receive £150 off their energy bills next winter. Moreover, the Child Poverty Taskforce is working with the Devolved Governments to develop a comprehensive Child Poverty Strategy, which will deliver for children in England, Scotland, Wales and Northern Ireland.
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 the Answer of 17 June 2025 to Question 60696 on the Loan Charge, which loan charge campaigner recommended Mr Ray McCann to lead the independent review.
Answered by James Murray - Chief Secretary to the Treasury
Prior to the 2024 general election, the Chancellor committed to an independent review of the Loan Charge. Following the election, I began pursuing this matter on her behalf, and met with campaigners, tax experts, and some of those affected.
Mr McCann was suggested as a potential reviewer at a meeting on 23 July 2024, to which I invited stakeholders who have campaigned on the issue. The meeting was attended by the hon. Member for Mid Buckinghamshire (Co-Chair of the Loan Charge and Taxpayer Fairness All-Party Parliamentary Group), Keith Gordon (a tax Barrister), Sarah Gabbai (a tax lawyer) and representatives from the Loan Charge Action Group.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Chancellor of the Exchequer on the potential merits of reducing the level of VAT charged for the supply of electricity at electric vehicle charging points.
Answered by James Murray - Chief Secretary to the Treasury
The supply of energy for domestic use, including domestic EV charging, attracts the reduced rate of VAT. (5 per cent).
Public EV charging is subject to the standard rate of VAT (20 per cent). This matches the VAT treatment of petrol and diesel, as well as all non-domestic electricity.
Whilst the relief for domestic energy was not designed for charging EVs at home, it applies for all uses of domestic energy, as it is not easy for energy companies to distinguish between electricity used to charge an EV and electricity used for general domestic purposes.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with representatives of (a) the cryptoasset industry and (b) UK banks on improving access to basic banking services for legitimate blockchain and digital asset firms.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government is aware that cryptoasset firms are facing challenges associated with access to banking services, and it is engaged with the sector on these matters.
Whilst the Government recognises that such decisions are commercial in nature, we also expect business to be treated fairly. That is why the Government has already taken action in this space, including laying legislation to enhance relevant protections in cases where a business has their bank account terminated by their provider.
The Government is also currently finalising legislation to create a financial services regulatory regime for cryptoassets in the UK. Under this regime, firms will need to be licensed by the FCA to provide relevant cryptoasset services in or to the UK, and the Government would not expect such licensed firms to be subject to restrictions by banking services providers simply because of the sector they belong to.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure that UK banks do not apply blanket restrictions to cryptoasset businesses.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government is aware that cryptoasset firms are facing challenges associated with access to banking services, and it is engaged with the sector on these matters.
Whilst the Government recognises that such decisions are commercial in nature, we also expect business to be treated fairly. That is why the Government has already taken action in this space, including laying legislation to enhance relevant protections in cases where a business has their bank account terminated by their provider.
The Government is also currently finalising legislation to create a financial services regulatory regime for cryptoassets in the UK. Under this regime, firms will need to be licensed by the FCA to provide relevant cryptoasset services in or to the UK, and the Government would not expect such licensed firms to be subject to restrictions by banking services providers simply because of the sector they belong to.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the adequacy of the independence of the Independent Review of the Loan Charge Scandal.
Answered by James Murray - Chief Secretary to the Treasury
The Government has commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers.
The independent review is being led by Ray McCann, a highly respected figure in the tax world whose name was suggested by one of the Loan Charge campaigners. Mr McCann is being supported by a team of officials who have not previously worked on this policy area and are based outside of the Treasury and HMRC. The reviewer will have the final say on what is included in his report and is responsible for deciding how to conduct the review.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of removing VAT exemptions for private (a) first-class and (b) business-class flights on Aviation Industry’s Carbon Footprint.
Answered by James Murray - Chief Secretary to the Treasury
The principal tax on the aviation sector is Air Passenger Duty (APD), which is expected to raise £4.7 billion in 2025-26. APD aims to ensure that airlines make a fair contribution to the public finances.
The Government has put in place a wide range of measures to support the decarbonisation of the aviation sector, including the Emissions Trading Scheme (ETS), support for sustainable aviation fuel (SAF), and development of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) through the International Civil Aviation Organization.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the merits of exempting tips paid by card from National Insurance contributions.
Answered by James Murray - Chief Secretary to the Treasury
The method of payment of a tip does not determine whether National Insurance is due. National Insurance is not due on tips paid directly to the worker, or where the employer has no influence in the allocation of the tips. If an employer is involved in deciding how tips are shared out, then the payment may be liable for National Insurance. If it is not a voluntary payment, then National Insurance is due.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the merits of the application of National Insurance contributions to tips paid by card.
Answered by James Murray - Chief Secretary to the Treasury
The method of payment of a tip does not determine whether National Insurance is due. National Insurance is not due on tips paid directly to the worker, or where the employer has no influence in the allocation of the tips. If an employer is involved in deciding how tips are shared out, then the payment may be liable for National Insurance. If it is not a voluntary payment, then National Insurance is due.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her Department will make promoters of disguised remuneration schemes jointly liable for Loan Charge tax liabilities.
Answered by James Murray - Chief Secretary to the Treasury
The Government has commissioned an independent review of the Loan Charge. The review has a focused remit, allowing it to report by this summer and the Government will respond by Autumn Budget 2025.
Alongside the review, on 30 October 2024, the Government announced further measures to tackle promoters of marketed tax avoidance. On 26 March 2025 a consultation document was published setting out proposals to tackle these promoters. The Government has also already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.