Asked by: Lord Mott (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the merits of proposals to cut VAT for hospitality businesses to 10 per cent.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.
VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
HMRC estimates that the cost of reducing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services to 10 per cent would be in 2026-27 £10.5 billion.
Asked by: Lord Mott (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the annual cost to (1) the hospitality sector, and (2) the retail sector, of the changes to employers' national insurance contributions made at the 2024 Budget.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer National Insurance contributions (NICs). The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts. The TIIN is available at the following link: https://www.gov.uk/government/publications/changes-to-the-class-1-national-insurance-contributions-secondary-threshold-the-secondary-class-1-national-insurance-contributions-rate-and-the-empl
The Government decided to protect the smallest businesses from the changes to employer NICs by increasing the Employment Allowance from £5,000 to £10,500. This means that this tax year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government when they plan to open the public consultation on the proposed High Value Council Tax Surcharge.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government will consult on the High Value Council Tax Surcharge in due course.
Asked by: Robin Swann (Ulster Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if will list the Barnett consequentials received by the Northern Ireland Executive as a result of UK Government policy decisions on (a) energy, (b) fuel poverty, and (c) household energy support by (i) policy decision, (ii) funding stream, (iii) amount, (iv) date received and (iv) conditions in each of the last five years.
Answered by James Murray - Chief Secretary to the Treasury
The Block Grant Transparency publication breaks down all changes in the Northern Ireland Executives block grant funding from the 2015 Spending Review up to and including Spending Review 2025.
The most recent report was published in October 2025:
Block Grant Transparency: October 2025 - GOV.UK
Asked by: Katrina Murray (Labour - Cumbernauld and Kirkintilloch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether funding allocated to the Listed Places of Worship Grant Scheme in England is treated as comparable expenditure for the purposes of calculating Barnett consequentials for Scotland.
Answered by James Murray - Chief Secretary to the Treasury
Yes - funding allocated to the Listed Places of Worship Grant Scheme in England is treated as comparable expenditure for the purposes of calculating Barnett consequentials for Scotland.
Asked by: Mike Wood (Conservative - Kingswinford and South Staffordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Budget Information Security Review, published on 9 February 2026, whether monitoring and recording of access to documents classified as Budget - Market Sensitive will include Ministers.
Answered by James Murray - Chief Secretary to the Treasury
Yes.
Asked by: Nigel Huddleston (Conservative - Droitwich and Evesham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the administrative costs to charities caused by the current manual Gift Aid process, including the time and resources spent correcting errors and navigating rules.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has worked collaboratively with a broad range of charity sector stakeholders to explore the potential of Future of Gift Aid (FOGA). This work included extensive research and analysis of the implications of FOGA and the effectiveness of the existing Gift Aid system.
HMRC has not made a formal quantitative assessment of the administrative costs to charities arising from the current Gift Aid process. HMRC will continue to engage with the charities sector to improve the way that Gift Aid works through the use of digital technology.
Asked by: Nigel Huddleston (Conservative - Droitwich and Evesham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with HMRC regarding the Future of Gift Aid pilot, and what assessment has been made of its potential impact on the charity sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has worked collaboratively with a broad range of charity sector stakeholders to explore the potential of Future of Gift Aid (FOGA). This work included extensive research and analysis of the implications of FOGA and the effectiveness of the existing Gift Aid system.
HMRC has not made a formal quantitative assessment of the administrative costs to charities arising from the current Gift Aid process. HMRC will continue to engage with the charities sector to improve the way that Gift Aid works through the use of digital technology.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to support the hospitality sector in Harpenden and Berkhamsted constituency.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the important role the hospitality sector plays both in terms of its economic contribution but also to our culture.
That is why we are delivering a long overdue reform to rebalance the business rates system and support the high street businesses, as promised in our manifesto. We are introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties which are worth nearly £900 million per year and will benefit over 750,000 properties.
This Government has worked closely with the hospitality sector. We announced the first National Licensing Policy Framework and are working to ensure local authorities apply it consistently to ease licensing decisions ‘on the ground’. We have extended opening hours for Home Nations games in the later stages of the Men’s Football World Cup. We will also legislate to increase the number of Temporary Events Notices venues can hold, helping them screen further national moments and host community and cultural events.
In addition, we are more than doubling the Hospitality Support Fund to £10 over three years, ending upward-only rent review clauses and introducing a strong Community Right to Buy.
We will continue to work with the hospitality sector to develop a new cross-government High Streets Strategy to help businesses in Harpenden and Berkhamsted, and across the country, to remain the centre of local communities.
Asked by: Nigel Huddleston (Conservative - Droitwich and Evesham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Secretary of State for Culture, Media and Sport on updating VAT guidance to recognise social media advertising as qualifying zero rated charity advertising.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 third largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals.
Charities already benefit from a reduced (5%) or zero rate of tax when purchasing some goods and services. More information about VAT relief for charities can be found here: VAT for charities: What qualifies for VAT relief - GOV.UK. The Government has no plans to broaden this list of goods and services to include social media advertising, but takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution.
Our tax regime for charities, including gift aid and an exemption from paying business rates, is among the most generous of anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.