Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of extending online marketplace VAT liability rules to domestic sellers as a way to reduce fraud and close the tax gap.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has and will continue to engage with stakeholders to understand the impact of any changes to online marketplace liability rules on both platforms and sellers. Certified analysis by the Office for Budget Responsibility (OBR) estimates the current online marketplace liability rules, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.
HMRC has an overall compliance strategy which focuses on addressing all forms of non-compliance. The most recent published VAT gap shows a continued downward trend, falling from 13.7% to 5.4% between tax years 2005/06 and 2023/24.
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact on saving behaviour and consumer confidence of existing Lifetime ISA users arising from the introduction of a new product to replace the Lifetime ISA.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
At Autumn Budget 25 the government announced that it will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.
The LISA was designed to help people save for both their first home and later life. The Treasury Select Committee‘s 2025 LISA inquiry concluded that this dual purpose has made it unnecessarily complex and that ‘the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives’. The upfront bonus that requires a withdrawal charge for non-compliant withdrawals was highlighted as a specific concern.
The new design will include the government bonus being paid at the point the individual makes a withdrawal for a house purchase. This removes the need for a withdrawal charge and means a saver can withdraw funds, should their circumstances change, without penalty.
It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of reforming the Lifetime ISA, rather than replacing it with a new product.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
At Autumn Budget 25 the government announced that it will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.
The LISA was designed to help people save for both their first home and later life. The Treasury Select Committee‘s 2025 LISA inquiry concluded that this dual purpose has made it unnecessarily complex and that ‘the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives’. The upfront bonus that requires a withdrawal charge for non-compliant withdrawals was highlighted as a specific concern.
The new design will include the government bonus being paid at the point the individual makes a withdrawal for a house purchase. This removes the need for a withdrawal charge and means a saver can withdraw funds, should their circumstances change, without penalty.
It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the relative value for money of reforming the Lifetime ISA compared with introducing a new product to replace it.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
At Autumn Budget 25 the government announced that it will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.
The LISA was designed to help people save for both their first home and later life. A 2025 report by the Treasury Select Committee, however, concluded the dual purpose has made it unnecessarily complex and that ‘the Lifetime ISA may not be the most efficient use of taxpayers’ money to achieve those disparate objectives’. In addition, the provision of an upfront bonus requires a withdrawal charge for non-compliant withdrawals.
HMRC have also conducted research into use of the Lifetime ISA which can be found here: Understanding the use of the Lifetime ISA: qualitative research - GOV.UK
The new design will include the government bonus being paid at the point the individual makes a withdrawal for a house purchase. This removes the need for a withdrawal charge and means a saver can withdraw funds, should their circumstances change, without penalty.
It will remain possible to open a Lifetime ISA until the new product becomes available and for account holders to continue to save into their Lifetime ISA in line with the existing rules indefinitely.
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the restriction on tax relief for banks' compensation payments for motor finance compensation payments.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
We are monitoring the redress situation closely and want to see it resolved in an efficient way that provides certainty for consumers and firms.
In line with international norms, companies generally obtain Corporation Tax deductions for compensation payments, though the bank compensation restriction which was introduced as part of a wider bank tax regime, prevents banks from doing so.
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the number of leasehold flats containing combustible material with higher insurance costs that will be classified as permanently impaired under the Basel 3.1 requirements; and if she will make a statement.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
We understand the question relates to regulatory requirements for property valuations under Basel 3.1.
There are several changes in the Prudential Regulation Authority’s (PRA) implementation of the Basel 3.1 standards that are relevant to mortgage valuation. Banks using the standardised approach to credit risk will have to update the valuation of mortgaged properties under specific circumstances such as if five years have passed since the valuation was last updated, when a borrower refinances their mortgage at the end of a fixed period, if modifications have been made to the property that unequivocally increase its value, or an event occurs that results in a likely permanent reduction in the property’s value (‘permanent impairment’).
The PRA does not expect the changes to have a material impact on current industry practice for determining property valuations, including for properties with cladding, as the changes primarily relate to when a valuation for a given property is updated as opposed to how the valuation itself is determined.
The government does not hold data on the number of properties, including for properties with cladding, that will be required to be re-valued under the different circumstances listed above
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to review the Trivial Benefit Allowance in advance of the Autumn Budget 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
There are a wide range of factors to take into consideration when introducing or widening a tax relief or exemption. These include how effective the exemption would be at achieving the policy intent, how targeted support would be and the cost.
The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way.
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what data her Department holds on (a) employer uptake of the Trivial Benefit Allowance and (b) the frequency of its use in employee reward schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The requested data is not available. There is no tax paid on employee benefits covered by the Trivial Benefit Allowance and as such they are not required to be reported to HMRC.
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department considers the (a) have regard duty on the Financial Conduct Authority and (b) guidance provided in the Government’s remit letter, published on 14 November 2024, to be sufficient basis for the Financial Conduct Authority to take steps to support people with low financial resilience.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government recognises the key role the Financial Conduct Authority (FCA) has in improving financial inclusion for UK consumers. This is why the FCA is part of the Financial Inclusion Committee which has been convened to develop a Financial Inclusion Strategy. The membership of the committee reflects the fact that the whole financial inclusion ecosystem will need to work together for the strategy to be a success, including government, industry, consumer representatives, and the regulator.
The strategy will be published later this year and will seek to tackle a range of barriers which prevent individuals from accessing the financial services and products they need. This will include actions for the FCA to take forward as part of their responsibilities within the sector, as well as relevant metrics to monitor the strategy’s progress.
The Government will work closely with the FCA to deliver the strategy and regularly engages with the FCA on this topic at ministerial and official level. In November, the Chancellor also included reinforcing financial inclusion as a matter for the FCA to have regard to in her letter of recommendation. In response to this, Nikhil Rathi noted the FCA’s support for the development of the Financial Inclusion Strategy and its collaboration with partners to help build consumers’ financial resilience.
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what outcomes her Department has set for the Financial Conduct Authority to deliver under the forthcoming National Financial Inclusion Strategy; and how will these be (a) measured and (b) reported.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government recognises the key role the Financial Conduct Authority (FCA) has in improving financial inclusion for UK consumers. This is why the FCA is part of the Financial Inclusion Committee which has been convened to develop a Financial Inclusion Strategy. The membership of the committee reflects the fact that the whole financial inclusion ecosystem will need to work together for the strategy to be a success, including government, industry, consumer representatives, and the regulator.
The strategy will be published later this year and will seek to tackle a range of barriers which prevent individuals from accessing the financial services and products they need. This will include actions for the FCA to take forward as part of their responsibilities within the sector, as well as relevant metrics to monitor the strategy’s progress.
The Government will work closely with the FCA to deliver the strategy and regularly engages with the FCA on this topic at ministerial and official level. In November, the Chancellor also included reinforcing financial inclusion as a matter for the FCA to have regard to in her letter of recommendation. In response to this, Nikhil Rathi noted the FCA’s support for the development of the Financial Inclusion Strategy and its collaboration with partners to help build consumers’ financial resilience.