Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what response was provided by DHSC to the consultation by HM Treasury around changes to the VAT treatment of public bodies under Section 41 of the VAT Act.

Answered by Karin Smyth - Minister of State (Department of Health and Social Care)

The Department of Health and Social Care did not submit a formal response to HM Treasury’s consultation on proposed changes to the VAT treatment of public bodies under section 41 of the Value Added Tax Act 1994.

The consultation, VAT and the Public Sector: Reform to VAT Refund Rules, was published by HM Treasury on 27 August 2020 and closed on 19 November 2020.

As a central Government department, the Department of Health and Social Care engaged with HM Treasury and HM Revenue and Customs through cross-Government discussions to consider the potential implications of the proposals for the health and care system, including National Health Service bodies, rather than responding as a stakeholder in its own right.

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, whether any NHS Trusts are developing proposals for new SubCos.

Answered by Karin Smyth - Minister of State (Department of Health and Social Care)

National Health Service trust proposals to establish subsidiary companies are reviewed by NHS England in line with its published subsidiary transaction guidance. NHS England has one proposal under formal consideration.

As set out on 26 September 2025, NHS England will shortly consult on updating national guidance to confirm that subsidiaries involving the transfer of NHS staff will now only be approved in a limited number of circumstances and only where there is clear local union support and protection of NHS terms and conditions, including pension access.

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what assessment had been made by DHSC or provided to DHSC by NHS England about the potential impact on the NHS of proposed changes to introduce the full refund model for VAT in the NHS.

Answered by Karin Smyth - Minister of State (Department of Health and Social Care)

The Department has not made a formal published assessment of the potential impact on the National Health Service of the proposed changes to introduce a full refund model for VAT under section 41 of the Value Added Tax Act 1994.

The Department of Health and Social Care and NHS England have engaged with HM Treasury and HM Revenue and Customs through cross-Government discussions to understand the potential implications of the proposals for the NHS, including the interaction with NHS funding flows and the principle that any reform would need to be fiscally neutral.

NHS England has provided input to the Department to support this engagement, including analysis of existing VAT recovery arrangements and high-level consideration of the potential impacts of moving from the current Contracted Out Services regime to a full refund model. This work has been undertaken to inform cross-Government discussions and data-gathering exercises led by HM Treasury, rather than as a standalone assessment of the impact on NHS services.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of 1) the challenges faced by electric vehicle manufacturers and 2) the output of electric vehicle manufacturing in the UK.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Government acknowledges the challenges the EV sector faces due to volatile consumer demand. However, our ambition is to make the UK one of the best locations in the world to manufacture electric vehicles. We engage closely with UK industry on the challenges it faces and how we can ensure the sector remains internationally competitive and a global leader in innovation.

Our flagship DRIVE35 (Driving Research and Investment in Vehicle Electrification) commits £4 billion of capital and R&D funding to the British automotive industry through to 2035. It will support the latest research and development, accelerate commercial scale up, and increase capital investment in zero emission vehicles, batteries and their supply chains. In addition, we are making an additional £200 million available for EV charging infrastructure on top of the £400 million committed at the summer 2025 Spending Review.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps he is taking to reduce energy costs for vehicle manufacturers.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

Our new British Industrial Competitiveness Scheme will reduce electricity costs by up to 25% from 2027, bringing electricity costs more in line with other economies in Europe, and help level the playing field for British businesses.

The scheme will benefit frontier manufacturing industries identified in the Industrial Strategy, such as automotive, as well as foundational manufacturing industries in their supply chains. Responses to the recent Government consultation are currently being reviewed, and Government's response will be published shortly.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if he will consider conducting a review of electric vehicle manufacturing in the UK.

Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Government remains firmly committed to the EV transition and increasing vehicle manufacturing in the UK. This is why we have committed £4 billion of capital and R&D funding through to 2035 for our flagship DRIVE35 (Driving Research and Investment in Vehicle Electrification) programme which will support the latest R&D in strategic vehicle technologies, accelerate commercial scale up, and unlock investment in their industrialisation. We continue to listen closely to feedback from vehicle manufacturers.

In addition, we are investing an additional £1.3 billion in the Electric Car Grant, taking total funding to £2 billion, and extending it until 2030 which will mean more motorists will benefit from discounts of up to £3,750.

Found: Alison Griffiths (Conservative; Bognor Regis and Littlehampton) Sonia Kumar (Labour; Dudley) Justin Madders

Found: Q362 Justin Madders: Indeed.

Submit Evidence (by 12 Apr 2026)

Demand for critical minerals has grown rapidly in recent years. New technologies, including turbines and data centres, require more minerals than the older systems they replace. At the same time, global trade in these materials has become more fractured and competitive.

Submit Evidence (by 3 Apr 2026)

The Business and Trade Committee is launching an inquiry into Artificial Intelligence (AI) in order to better understand the opportunities and costs for businesses and the workforce, and to make recommendations on Government priorities.