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.

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.