Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of terminating the furnished holiday lettings tax regime on local (a) economies and (b) employment in tourist destinations.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government will abolish the Furnished Holiday Lets (FHLs) tax regime from April 2025, which will equalise the tax treatment of landlords’ property income and gains.
The government wants to support visitor accommodation alongside housing for long term-residents to rent or buy. Achieving this balance is crucial in supporting the tourism sector, and many of the people who work in the sector need access to local housing.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what government efficiency savings planned by the previous government she plans to (a) continue and (b) discontinue.
Answered by Darren Jones - Chief Secretary to the Treasury
Departments are responsible for managing their budgets and delivering efficiency savings, both those in plans from the previous government, and those announced by the new government.
The government has secured £5.5 billion of savings in 2024-25 rising to £8.1 billion in 2025-26. That means it has already managed down the £21.9 billion spending pressure to £16.4 billion.
The Government will set out its further plans on efficiencies in the multi-year Spending Review that will conclude Spring 2025.
Asked by: Lord Moynihan (Conservative - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government whether the outcome to the consultation The new alcohol duty system, which ran from 27 October 2021 to 30 January 2022, has met the stated core principles by making the system (1) simpler, (2) more economically rational, and (3) less administratively burdensome on businesses.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
A new duty structure for alcohol products was introduced in August 2023 by the previous Government.
HMRC plans to evaluate the impact of the new rates and structures three years after the changes took effect. This will allow time for HMRC to gather a broad range of data with which to evaluate the impacts.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking at a retail level to tackle the illicit tobacco trade.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HMRC works closely with local authorities to help tackle illicit tobacco trade at a retail level.
In January 2021 HMRC and National Trading Standards launched Operation CeCe. This joint initiative builds on decades of partnership working with local Trading Standards Officers.
HMRC funds Operation CeCe with the money being allocated by National Trading Standards to local authority Trading Standards. This supports them to undertake enforcement activity including the sharing of information and intelligence to target and seize illegal tobacco, disruption of the illicit tobacco market and prevention of fraud in their area.
In its first two years of operation more than 28 million cigarettes and nearly 8 tonnes of illicit hand rolling-tobacco were seized.
In July 2023 new powers were given to Trading Standards to make referrals to HM Revenue and Customs (HMRC) where they find evidence of tobacco products that do not comply with the UK Tobacco Track and Trace System.
In January 2024, HMRC published a new Illicit Tobacco Strategy ‘Stubbing out the problem’. The Strategy sets out how HMRC intends to build on the success of Operation CeCe by increasing the level of funding available to Trading Standards.
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 of the potential merits of increasing the Rent a Room Scheme tax-free earnings threshold.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Rent a room relief provides an incentive for people to make spare rooms available for rent.
As with all aspects of the tax system, the Government will keep this under review.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report by Offshore Energies UK entitled Impact of UKCS fiscal policy on UK economic growth, published on 2 September 2024, if she will make an assessment of the potential impact of (a) increasing the headline rate of the Energy Profits Levy to 78%, (b) extending the Energy Profits Levy for a year and (c) removing all allowances associated with the Energy Profits Levy on (i) demand for supply chain companies and (ii) business decisions on the location of (A) resource capability and (B) assets in that sector.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In July, the government confirmed changes to the Energy Profits Levy (EPL), including extending the levy’s end date to March 2030, increasing it by three percentage points to 38%, removing the levy’s main 29% investment allowance, and reducing the generosity of capital allowances when calculating profits taxable by the EPL. The government will confirm further details of these changes at Budget on October 30, including the rate of the EPL’s decarbonisation investment allowance, which has been retained. We are currently consulting with the sector to finalise these changes and ensure a phased and responsible transition for the North Sea.
Money raised from these changes will support the transition to clean energy, increasing security and independence while providing sustainable jobs for the future and helping to protect electricity bills against future price shocks. Full costings certified by the Office for Budget Responsibility (OBR) will be published at Budget on October 30. Forecasts for investment in the sector will also be published by the OBR at this time, and will take into account policy decisions impacting the production of oil and gas across the UK and UK Continental Shelf.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report by Offshore Energies UK entitled Impact of UKCS fiscal policy on UK economic growth, published on 2 September 2024, if she will make an assessment of the potential impact of (a) increasing the headline rate of the Energy Profits Levy to 78%, (b) extending the Energy Profits Levy for a year and (c) removing all allowances associated with the Energy Profits Levy on the level of capital investment on the UK continental shelf in the period between 2025 and 2029.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In July, the government confirmed changes to the Energy Profits Levy (EPL), including extending the levy’s end date to March 2030, increasing it by three percentage points to 38%, removing the levy’s main 29% investment allowance, and reducing the generosity of capital allowances when calculating profits taxable by the EPL. The government will confirm further details of these changes at Budget on October 30, including the rate of the EPL’s decarbonisation investment allowance, which has been retained. We are currently consulting with the sector to finalise these changes and ensure a phased and responsible transition for the North Sea.
Money raised from these changes will support the transition to clean energy, increasing security and independence while providing sustainable jobs for the future and helping to protect electricity bills against future price shocks. Full costings certified by the Office for Budget Responsibility (OBR) will be published at Budget on October 30. Forecasts for investment in the sector will also be published by the OBR at this time, and will take into account policy decisions impacting the production of oil and gas across the UK and UK Continental Shelf.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report by Offshore Energies UK entitled Impact of UKCS fiscal policy on UK economic growth, published on 2 September 2024, if she will make an assessment of the potential impact of (a) increasing the headline rate of the Energy Profits Levy to 78%, (b) extending the Energy Profits Levy for a year and (c) removing all allowances associated with the Energy Profits Levy on the total economic value of the sector in the period between 2025 and 2029.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In July, the government confirmed changes to the Energy Profits Levy (EPL), including extending the levy’s end date to March 2030, increasing it by three percentage points to 38%, removing the levy’s main 29% investment allowance, and reducing the generosity of capital allowances when calculating profits taxable by the EPL. The government will confirm further details of these changes at Budget on October 30, including the rate of the EPL’s decarbonisation investment allowance, which has been retained. We are currently consulting with the sector to finalise these changes and ensure a phased and responsible transition for the North Sea.
Money raised from these changes will support the transition to clean energy, increasing security and independence while providing sustainable jobs for the future and helping to protect electricity bills against future price shocks. Full costings certified by the Office for Budget Responsibility (OBR) will be published at Budget on October 30. Forecasts for investment in the sector will also be published by the OBR at this time, and will take into account policy decisions impacting the production of oil and gas across the UK and UK Continental Shelf.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report by Offshore Energies UK entitled Impact of UKCS fiscal policy on UK economic growth, published on 2 September 2024, if she will make an assessment of the potential impact of (a) increasing the headline rate of the Energy Profits Levy to 78%, (b) extending the Energy Profits Levy for a year and (c) removing all allowances associated with the Energy Profits Levy on the (i) level of employment and (ii) number of projects that will start in the period to 2029.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In July, the government confirmed changes to the Energy Profits Levy (EPL), including extending the levy’s end date to March 2030, increasing it by three percentage points to 38%, removing the levy’s main 29% investment allowance, and reducing the generosity of capital allowances when calculating profits taxable by the EPL. The government will confirm further details of these changes at Budget on October 30, including the rate of the EPL’s decarbonisation investment allowance, which has been retained. We are currently consulting with the sector to finalise these changes and ensure a phased and responsible transition for the North Sea.
Money raised from these changes will support the transition to clean energy, increasing security and independence while providing sustainable jobs for the future and helping to protect electricity bills against future price shocks. Full costings certified by the Office for Budget Responsibility (OBR) will be published at Budget on October 30. Forecasts for investment in the sector will also be published by the OBR at this time, and will take into account policy decisions impacting the production of oil and gas across the UK and UK Continental Shelf.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Office for Value for Money will investigate value for money in (a) Equality, Diversity and Inclusion spending and (b) trade union facility time in the civil service.
Answered by Darren Jones - Chief Secretary to the Treasury
The Office for Value for Money (OVfM) has two primary roles. First, to provide targeted interventions, working with Treasury and departments, so that value for money governs every decision government makes. Second, to recommend system reforms to ensure any changes support the government’s missions and deliver value for money.
The OVfM is focussed on tackling wider systemic challenges that impact Government operations. Internal teams across departments already consider the value for money on respective policies and external interactions, using existing tools to consider their impact.