Asked by: Tom Hayes (Labour - Bournemouth East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of donating excess vehicles from the Government estate to Ukraine.
Answered by James Murray - Chief Secretary to the Treasury
The UK’s commitment to Ukraine is ironclad. We are making a significant commitment to Ukraine in 2026, including $2bn of guarantees for World Bank lending and $1bn of ERA loans. We also have a standing commitment to provide £3bn p.a. in military support, providing Ukraine with a further £6bn of support over the next two years.
Asked by: Tom Hayes (Labour - Bournemouth East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the OBR's report entitled Economic and fiscal outlook, published in November 2025.
Answered by James Murray - Chief Secretary to the Treasury
The OBR’s November 2025 Economic and Fiscal Outlook is a detailed document, and plays a key role in our robust and transparent fiscal framework.
The report shows that growth is up this year, that living standards are up over the Parliament, and that we are getting borrowing and debt down.
Asked by: Tom Hayes (Labour - Bournemouth East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking with the financial sector to support the transition to net zero.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The UK’s sustainable finance sector is world leading, and the Government is actively mobilising capital to support the transition and improve our energy independence.
Since July 2024, over £50 billion of private investment has been announced in clean energy industries and this summer the Government set out our vision for the UK’s sustainable finance regulatory framework in the Financial Services Growth and Competitiveness Strategy.
Asked by: Tom Hayes (Labour - Bournemouth East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Institute for Fiscal Studies report entitled, The short- and medium-term effects of Sure Start on children’s outcomes, published in May 2025, what assessment she has made of the impact of Sure Start children's centres on long term potential earnings.
Answered by Darren Jones - Minister for Intergovernmental Relations
The Government shares the IFS’s assessment that Sure Start made a positive impact on children’s outcomes. To this end, the government recently announced over £500 million investment by the end of 2028 to roll out Family Hubs to every local authority in England over the Spending Review period. The programme aims to reach children in the most disadvantaged areas and draws on the legacy of Sure Start to ensure all children have the best start in life.
Asked by: Tom Hayes (Labour - Bournemouth East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made with Cabinet colleagues of the potential impact of the cost of (a) living and (b) housing on the number of families choosing to have a child.
Answered by Darren Jones - Minister for Intergovernmental Relations
We know increased costs in essential areas worrying and cause hardship and hardship for many families with children. The Government is taking a comprehensive approach—providing support while addressing the structural changes necessary to fix the country's foundations.
We are supporting families with everyday costs, including an uplift of over £1.6 billion per year by 2028-29 for government-funded childcare, rolling out Best Start Family Hubs to every LA in England, and extending Free School Meals eligibility to all children in England with a parent receiving Universal Credit.
The Government has also extended the Household Support Fund in England which helps households facing the greatest hardship with the cost of essentials such as food, energy and water. At the Spending Review, we committed to continue investing in crisis support to enable a new Crisis and Resilience Fund, including support for housing costs and to fund councils to support some of the poorest households so that their children do not go hungry outside of term time. We also funded the biggest boost to social and affordable housing in a generation through the Affordable Homes Programme.
Asked by: Tom Hayes (Labour - Bournemouth East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made a recent assessment of the potential merits of exempting DIY loft insultation from VAT.
Answered by James Murray - Chief Secretary to the Treasury
Installations of qualifying energy-saving materials (ESMs), including insulation materials, in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027. After this, they will revert to the reduced rate of VAT at five per cent.
Insulation products purchased for DIY insulation are subject to the standard rate of VAT at 20 per cent, which applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. The Government has no current plans to introduce a VAT relief on the sale of insulation productions, but the Government keeps all taxes under review.
Asked by: Tom Hayes (Labour - Bournemouth East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment with Cabinet colleagues of the potential merits of introducing tax (a) incentives and (b) subsidies for battery storage solutions.
Answered by James Murray - Chief Secretary to the Treasury
The installation of qualifying energy-saving materials (ESMs) in residential accommodation and buildings used solely for a relevant charitable purpose benefits from a temporary VAT zero rate until March 2027. Following a Call for Evidence (CfE) last year, electrical storage batteries were one of the technologies added to the relief. However, as set out in the Government response to the CfE, at that time, the Government was unable to identify sufficient independent data regarding the efficiency of heat batteries. As such, they do not currently qualify for VAT relief.
EV charge points were also proposed to be added to the ESMs VAT relief by CfE respondents. However, they were not added to the relief, because their primary purpose is not to save energy or reduce carbon emissions, meaning EV charge points don’t meet the objectives of the relief.
The Government currently has no plans to add further technologies to this VAT relief. Nevertheless, the Government keeps all taxes under review as part of the policy making process. Changes to the tax system are announced at fiscal events in the usual way.
Asked by: Tom Hayes (Labour - Bournemouth East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to make localised funding available to support businesses to help local economies.
Answered by Darren Jones - Minister for Intergovernmental Relations
Sustained economic growth is the only route to improving the prosperity of our country and the living standards of working people, and ensuring growth is realised everywhere across the UK is key to the government’s Growth Mission.
The government will therefore work with Mayors and local leaders, giving them to the tools they need to boost their economies and drive local growth, including supporting businesses.
The government will also set out its long-term vision for local growth at the muti-year spending review in the Spring, moving away from the short-termist, competitive approach of the past, to better support local leaders to drive growth in the areas that need it most. The government will also set out more detail on its strategy for regional growth alongside, and integrated with, plans for infrastructure, investment, and the Industrial Strategy.
Asked by: Tom Hayes (Labour - Bournemouth East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to review the VAT framework to reduce incentives towards (a) demolition and (b) rebuilding of housing.
Answered by James Murray - Chief Secretary to the Treasury
This Government is committed to improving the quality and sustainability of our housing stock, through improvements such as low carbon heating, insulation, solar panels, and batteries. This will be vital to making the UK more energy resilient and meeting our 2050 Net Zero commitment.
Installations of qualifying energy-saving materials in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent.
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax forecast to raise £171 billion in 2024/25. Taxation is a vital source of revenue that helps to fund vital public services.
One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as savings will not always be passed on to consumers.
The Government has no current plans to formally review the VAT treatment of building works. However, all taxes are kept under review as part of the tax policymaking process. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.