Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the implications for her policies of the report by the East of England APPG and Local Government East, published on 25 November 2025, entitled Opportunity East: One Year On; and what recent assessment she has made of trends in the level of (a) contribution to the public purse from the East of England and (b) economic growth potential in that area.
Answered by James Murray - Chief Secretary to the Treasury
The government’s approach to regional growth will drive growth in city regions, towns and communities and make the most of the opportunities in each part of the country, to make everyone better off. The government recognises the vital contribution the East of England makes to the wider UK economy and the significant growth the region has achieved.
Opportunity East: One Year On makes a strong case for the East of England and the role it can play in driving growth and prosperity, and we welcome the efforts of the APPG and Local Government East in raising the profile of the region and highlighting its great potential. We will consider the report with interest as we take forward our mission to kickstart growth across the country.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department plans to start a consultation on the VAT treatment of private hire vehicles.
Answered by Nigel Huddleston - Shadow Secretary of State for Culture, Media and Sport
The Government understands that, following the Uber Britannia Ltd v Sefton MBC High Court ruling, the private hire vehicle sector are seeking clarity on the VAT implications of this ruling.
The Government remains committed to consulting on the impacts of this ruling, and will publish a consultation in due course.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of applying a 0% VAT rate for licensed minicab operator journeys.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
VAT has been designed as a broad-based tax on consumption, and the twenty per cent standard rate applies to many goods and services. VAT at the standard rate has always applied to the provision of licensed minicab services when supplied by VAT registered businesses.
While there are exceptions to the standard rate, these have always been strictly limited by both legal and fiscal considerations.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the judgment in the case of Uber Britannia Limited v Sefton Borough Council [2023] EWHC 1975 (KB), what assessment his Department has made of the potential impact of that judgment on the application of VAT on taxi fares.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The Uber Britannia Limited v Sefton Borough Council [2023] EWHC 1975 judgment does not apply to taxis, it only applies to Private Hire Vehicle Operator (PHVO) services.
The VAT rules remain unchanged for PHVO fares. Fares have always been subject to VAT when provided by a VAT registered business who is providing those services as principal. The Government is carefully considering the impact this will have on the sector and passengers.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies on VAT of the High Court judgment of 28 July 2023 in Uber Britannia Limited v Sefton Metropolitan Borough Council; and if he will make a statement.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
This High Court ruling is not a tax case and does not have a direct bearing on any business’s tax position. The VAT rules, which apply to all businesses, have not changed. The Government is carefully considering the implications of the ruling for the sector and passengers.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of the application of VAT to taxis and licensed minicab journeys on vulnerable people who need to use taxis and private-hire vehicles.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The VAT rules for mini cab services and taxis remain unchanged. Fares have always been subject to VAT when provided by a VAT registered business who is providing those services as principal. The Government is carefully considering the potential impact the Uber Britannia Limited v Sefton Borough Council (2023) EWHC 1975 case will have on the sector as a whole, including passengers.Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential impact of the application of VAT to taxis and licensed minicabs journeys on minicab businesses operating in remote areas.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The VAT rules for mini cab services and taxis remain unchanged. Fares have always been subject to VAT when provided by a VAT registered business who is providing those services as principal. The Government is carefully considering the potential impact the Uber Britannia Limited v Sefton Borough Council (2023) EWHC 1975 case will have on the sector as a whole, including customers that live in remote areas.Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of raising the £450,000 property value limit for the Lifetime ISA in line with house prices.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
The Lifetime ISA is intended to support younger people saving for their first home or for later life by offering a generous government bonus of 25% on up to £4,000 of savings each year. These funds, including the government bonus, can be used to purchase a first home up to the value of £450,000.
The Government considers that the £450,000 price cap is suitable to support the majority of first-time buyers across the UK, who typically purchase less expensive properties than other buyers, while ensuring sustainable public finances.
The most recent Office for Budget Responsibility forecast stated that bonus payments will have an exchequer cost of £3.7 billion between 2021 and 2027. The price cap ensures that this significant investment of public money is more precisely targeted towards households that may find it more difficult to get onto the property ladder.
First-time buyers who can purchase a home valued over £450,000 are likely to have an income significantly above that of the average household in the UK and are therefore more likely to be able to purchase a first home without the support of this scheme.
The Government continues to keep all aspects of savings policy under review.