Asked by: Tony Vaughan (Labour - Folkestone and Hythe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of compensation for HMRC staff due to the late award of the Flexibility Payment.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has considered the appropriateness and potential merits of compensation and reflected on the factors set out below:
HMRC is acutely aware of its additional role as the UK Tax Authority to ensure that public funds are managed with propriety, regularity, and value for money.
On conclusion of the assessment, HMRC does not believe that the delayed payment of the 2025 Flexibility Payment rates, while staff continued to be paid the former rates are sufficiently exceptional, sustained, or significant to require compensation.
Asked by: Alicia Kearns (Conservative - Rutland and Stamford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of removing the wear and tear allowance on the viability of businesses owned by registered childminders; and what consultation her Department undertook with representatives of the childminding sector before implementing this change.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Childminders make a significant contribution to children’s development, learning, and wellbeing. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers.
Only a small proportion of childminders with qualifying income over £50,000 will be mandated into Making Tax Digital (MTD) for income tax from April 2026. Childminders moving to MTD for income tax can continue to claim tax relief for household costs, wear and tear of household items and furniture, and food and drink, by deducting actual business costs. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business.
HMRC engaged with stakeholders including Coram PACEY ahead of Budget 2025. The Government will monitor the impact of MTD for income tax on childminders and other home-based childcare providers in the same way as it will for all sole traders moving to MTD for income tax.
Asked by: Jerome Mayhew (Conservative - Broadland and Fakenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has conducted modelling since July 2024 on the potential revenue that could be raised from a weight-based system of Vehicle Excise Duty for cars.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Vehicle Excise Duty (VED) is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, motorcycles and heavy goods vehicles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions.
The Government annually reviews the rates and thresholds of taxes and reliefs at fiscal events, and in doing so considers a wide range of factors including complexity, value for money, and administrative burdens for tax payers. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.
Asked by: Jim Allister (Traditional Unionist Voice - North Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to Council Regulation amending Regulation (EC) No 1186/2009 as regards the elimination of the threshold-based customs duty relief, whether the duty to be paid on the movement of parcels from Great Britain to Northern Ireland will be paid by the person (a) sending the parcel in Great Britain and (b) receiving the parcel in Northern Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is aware of the EU's plans to remove its relief for low value imports from 1 July 2026.
The facilitations under the Windsor Framework are unaffected by this change, meaning goods can continue to move from Great Britain to Northern Ireland under the UK Carrier Scheme and the UK Internal Market Scheme without the need to pay duty. We continue to engage closely with the EU to understand the future arrangements and ensure we can minimise any potential impact on consumers and businesses in Northern Ireland. We will issue appropriate guidance in due course.
As announced at Budget, the Government will remove its low value imports relief by March 2029 at the latest. The Government is consulting on the design of its new arrangements and there is a live consultation open which closes on 6 March.
Asked by: Jim Allister (Traditional Unionist Voice - North Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what guidance her Department plans to issue on whether the planned elimination of the threshold-based customs duty relief applies to (a) business to business, (b) business to consumer and (c) private individual parcel movements.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is aware of the EU's plans to remove its relief for low value imports from 1 July 2026.
The facilitations under the Windsor Framework are unaffected by this change, meaning goods can continue to move from Great Britain to Northern Ireland under the UK Carrier Scheme and the UK Internal Market Scheme without the need to pay duty. We continue to engage closely with the EU to understand the future arrangements and ensure we can minimise any potential impact on consumers and businesses in Northern Ireland. We will issue appropriate guidance in due course.
As announced at Budget, the Government will remove its low value imports relief by March 2029 at the latest. The Government is consulting on the design of its new arrangements and there is a live consultation open which closes on 6 March.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Valuation Office Agency plans to amend rateable values for rural pubs in the context of proposed changes to drink driving thresholds.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Rateable values represent the annual rent a property could reasonably have been expected to achieve at the Antecedent Valuation Date (AVD), reflecting market evidence at that point in time. For the current 2023 rateable values the AVD is 1 April 2021, and for the 2026 revaluation, it is 1 April 2024.
The Government will launch a review on how pubs are valued for business rates.
Asked by: Jenny Riddell-Carpenter (Labour - Suffolk Coastal)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the contribution of regional brewers on local economies and tourism.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is committed to ensuring that the beer and pub sector remains diverse, competitive and rooted in local communities, supporting investment and growth across towns and villages. The manufacture of alcoholic beverages supports jobs across the country with over 75% of employees working outside of London and the South East in 2024.
Small Producer Relief (SPR) supports SMEs and new entrants by permitting smaller producers who make 4,500 hectolitres or fewer of alcohol per year to pay reduced duty rates on all products below 8.5% ABV. At Budget 2025, the government increased the cash discount provided to small producers, maintaining the relative value of SPR compared to the main duty rates.
In addition, the Government has conducted a review of the beer market to determine whether there are any structural barriers preventing small breweries from accessing pubs, the findings from which are currently being reviewed. We will be announcing the outcome of the review in due course.
More broadly, we are keen to ensure that Britain’s coastline – including the Suffolk coast – remain an attraction to domestic and international visitors. The Government has set an ambitious goal to grow annual inbound tourism to 50 million visitors by 2030. To help achieve this, we have established a new Visitor Economy Advisory Council, which is currently helping to co-create a Visitor Economy Growth Strategy. The Strategy endeavours to share the benefits of tourism across every nation and region, including coastal and seaside areas.
Asked by: Jenny Riddell-Carpenter (Labour - Suffolk Coastal)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the VAT treatment of Further Education colleges on learners from disadvantaged backgrounds.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Further Education (FE) funding is vital to ensure people are being trained in the skills they need to thrive in the modern labour market. The 2025 Spending Review provided an additional £1.2 billion per year by 2028-29 for skills and £1.7 billion of capital funding to help colleges maintain the condition of their estate. In addition, the Government is providing £375 million of capital investment to support the FE system to accommodate increasing student numbers.
For their non-business activity, FE colleges are unable to reclaim VAT incurred. We operate several VAT refund schemes for schools and academies which are designed variously to ensure that VAT is not a burden on local taxation, and that academies are not disincentivised to leave LA control. FE colleges do not meet the criteria for either scheme.
In relation to business activity, FE colleges enjoy an exemption from VAT which means that they do not have to charge VAT to students but cannot recover it either.
Asked by: Jenny Riddell-Carpenter (Labour - Suffolk Coastal)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has considered extending Section 33 VAT refunds to Further Education colleges.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Further Education (FE) funding is vital to ensure people are being trained in the skills they need to thrive in the modern labour market. The 2025 Spending Review provided an additional £1.2 billion per year by 2028-29 for skills and £1.7 billion of capital funding to help colleges maintain the condition of their estate. In addition, the Government is providing £375 million of capital investment to support the FE system to accommodate increasing student numbers.
For their non-business activity, FE colleges are unable to reclaim VAT incurred. We operate several VAT refund schemes for schools and academies which are designed variously to ensure that VAT is not a burden on local taxation, and that academies are not disincentivised to leave LA control. FE colleges do not meet the criteria for either scheme.
In relation to business activity, FE colleges enjoy an exemption from VAT which means that they do not have to charge VAT to students but cannot recover it either.
Asked by: Stephen Gethins (Scottish National Party - Arbroath and Broughty Ferry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether there was ant cost to the public purse of settling the case in the United States between Andrew Mountbatten-Windsor and Virginia Giuffre in 2022.
Answered by James Murray - Chief Secretary to the Treasury
No public money was used to pay the legal or settlement fees to which the Hon Member refers.