Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with hospitality businesses on the potential impact of the current rate of VAT on the viability of those businesses.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK. The Chancellor and other Ministers meet with a range of businesses and their representatives to understand the impacts of Government policy, including hospitality businesses.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the (a) reduction in business rates relief, (b) 2026 rates revaluation and (c) increase in employer National Insurance contributions announced in the 2024 Autumn Budget on pubs and breweries.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of higher rateable values and reduced business rates relief on the number of hospitality closures and empty units on high streets over the next three years.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of higher rateable values and reduced business rates relief on the number of hospitality closures and empty units on high streets over the next three years.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the reduction in business rates relief and the 2026 rates revaluation on pubs and breweries.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the combined effect of higher rateable values and reduced business rates relief on the number of hospitality closures and empty units on high streets over the next three years.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to her Department’s webpage entitled Transforming business rates, published on 30 October 2024, whether it remains her policy that the business rate system should level the playing field between high street businesses and online retailers.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many pubs closed in England in each of the last three years; and what assessment she has made of the potential impact of business rates increases on pub closure rates.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of business rates revaluation on (a) hospitality and (b) retail businesses in North Yorkshire.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the impact of the increase in rateable values on snooker clubs and venues.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask His Majesty's Government what affordability criteria were used by the Treasury when assessing the ability of farm businesses to pay the new inheritance tax charges within 10 years of death of the owner of a family farm of sufficient value to incur those charges.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.

As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.

The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.

A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.

Question to the HM Treasury:

To ask His Majesty's Government what assessment the Department for Environment, Food and Rural Affairs made of the impact of reducing inheritance tax relief on agricultural and business property on farmer suicide rates before taking the decision to do so.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.

As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.

The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.

A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.

Question to the HM Treasury:

To ask His Majesty's Government what assessment the Department for Environment, Food and Rural Affairs made of the impact of reducing inheritance tax relief on agricultural and business property on farmers' mental health before taking the decision to do so.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.

As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.

The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.

A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.

Question to the HM Treasury:

To ask His Majesty's Government what assessment His Majesty's Treasury made of the impact of reducing inheritance tax relief on agricultural and business property on farmer suicide rates before taking the decision to do so.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.

As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.

The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.

A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.

Question to the HM Treasury:

To ask His Majesty's Government what assessment His Majesty's Treasury made of the impact of reducing inheritance tax relief on agricultural and business property on farmers' mental health before taking the decision to do so.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.

As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.

The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.

A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many (a) tenanted or leased pubs (b) pubs owned and managed by a pub company and (c) standalone pubs are expected to see their business rates bill (i) go up (ii) stay the same and (iii) decrease from April 2026 as a result of the measures announced in the Autumn Budget 2025.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the number of (a) theatres, (b) cinemas, (c) live music venues, (d) comedy venues and (e) multi purpose and other entertainment venues that from next year see their business rates (i) increase, (ii) decrease and (iii) stay the same.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many retail, hospitality and leisure sector businesses in (a) England and (b) Hampshire are expected to see their business rates bill (i) go up (ii) stay the same and (iii) decrease from April 2026 as a result of the measures announced in the Autumn Budget 2025.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to employer National Insurance contributions and business rates in Budgets 2024 and 2025 on the price competitiveness of UK hotels for inbound international travel.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the potential savings to the public purse of the closure of the online filing service to support small businesses with simple tax affairs.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

I understand the impact the closure of this service for filing company accounts and tax returns may have on small, unrepresented businesses.

The service is closing because Companies House is modernising its accounts filing requirements under the Economic Crime and Corporate Transparency Act 2023, passed by the previous government. The current service does not meet these new standards.

The Act forms part of wider reforms designed to strengthen corporate transparency and give Companies House greater powers to tackle economic crime and support economic growth.

The closure of the service, which is outdated and incompatible with modern requirements, will also allow HMRC to introduce measures to prevent abuse of the tax system and help close the small business tax gap, which was estimated to be £14.7 billion in the 2023/24 tax year.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the introduction of the overnight visitors levy will be a (i) material consideration and (ii) national change in circumstances in the valuation of hereditaments for business rates.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The government has published a consultation running until 18 February, so that the public, businesses, and local government can shape the design of the power to introduce an overnight visitor levy that will be devolved to local leaders. The precise design and scope of the levy is therefore still under development.

The introduction of the visitor levy will not constitute a material change of circumstances. It may be taken into account when setting property values for future revaluations, however this will depend on the final design which is subject to consultation and subsequent legislation.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many complaints HMRC have received in the last 6 months about VAT refunds to businesses because the refund was a) not received and b) delayed.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Between 1 June to 30 November 2025, HMRC processed around 1.4 million VAT repayment returns, with around 93% paid promptly following initial risking.

Based on the information held on HMRC’s complaints database, between 1 June to 30 November 2025, HMRC received 162 complaints relating to VAT repayments of which 119 were directly linked to VAT refund delays.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many VAT refunds to businesses in the last six months a) have not been refunded and b) have been delayed.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Between 1 June to 30 November 2025, HMRC processed around 1.4 million VAT repayment returns, with around 93% paid promptly following initial risking.

Based on the information held on HMRC’s complaints database, between 1 June to 30 November 2025, HMRC received 162 complaints relating to VAT repayments of which 119 were directly linked to VAT refund delays.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with small business owners on the closure of the online filing service to support small, unrepresented businesses with simple tax affairs.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

I understand the impact the closure of this service for filing company accounts and tax returns may have on small, unrepresented businesses.

The service is closing because Companies House is modernising its accounts filing requirements under the Economic Crime and Corporate Transparency Act 2023, passed by the previous government. The current service does not meet these new standards.

The Act forms part of wider reforms designed to strengthen corporate transparency and give Companies House greater powers to tackle economic crime and support economic growth.

Government officials meet regularly with business groups and representatives to discuss issues affecting small businesses. HMRC has engaged directly with users of the service and with representative bodies. They continue to work with Companies House and software providers to support a smooth transition.

HMRC announced the closure of the service in February 2025, giving more than a year for those affected to make other arrangements. At the same time HMRC wrote to those impacted with support on how to transition. HMRC and Companies House will continue to ensure appropriate support is in place for small businesses during the transition.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what role Ministers and officials had in setting the scope and terms of reference for the review of Loan Charge settlement arrangements conducted by Ray McCann.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Review’s Terms of Reference were drafted by the independent reviewer and then agreed with Ministers.

Ministers received advice from officials in line with normal processes. This ensured that the Terms of Reference met legal requirements and the objectives agreed between Ministers and the reviewer.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what proportion of cider production is eligible for draught relief.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC’s statistics on alcohol duty and reliefs are found here: Alcohol Bulletin - GOV.UK.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how much and what percentage of cider duty receipts do registered cider makers not eligible for small producer relief raise.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC’s statistics on alcohol duty and reliefs are found here: Alcohol Bulletin - GOV.UK.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many and what percentage of registered cider makers are eligible for small producer relief.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC’s statistics on alcohol duty and reliefs are found here: Alcohol Bulletin - GOV.UK.

Question to the HM Treasury:

To ask His Majesty's Government how many people are employed by non-departmental public bodies of the Treasury through Skilled Worker visas.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

Information on non-departmental public bodies of the Treasury is not held centrally, and can only be provided at disproportionate cost.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the impact of app-only banking policies on older and digitally excluded customers; and whether she will require banks operating in the UK to provide non-digital routes for account opening, account restoration, and investment services, particularly for customers without access to smartphones.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government works closely with the Financial Conduct Authority (FCA), the independent regulator of the UK’s financial services sector, to ensure that all customers get the right support with their financial products and services.

FCA guidance highlights the actions firms should take to understand the needs of customers who may be vulnerable, including older and disabled people, and to consider these needs appropriately. This includes offering multiple channels of communication to their customers where possible.

Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. While decisions on how specific services are delivered remain commercial matters for individual banks and building societies, the Government recognises the importance of face-to-face banking to communities and is committed to championing sufficient access for customers.

The Government is working closely with industry on a commitment to roll out 350 banking hubs across the UK by the end of this Parliament, which will provide individuals and businesses across the country with cash and banking services. Over 240 hubs have been announced so far, and 200 are already open. The Government has also worked with industry to ensure that customers do not need their own digital device to access banking hub services.

More widely, the Government recently published a Financial Inclusion Strategy which seeks to ensure that people have the opportunity to make the most of the benefits of digital services, alongside continued access to the in-person services they need. Beyond the continued rollout of banking hubs, the Strategy has also launched an industry-led inclusive design working group which will examine and address accessibility issues in product design.

The Government has also published a Digital Inclusion Action Plan which includes a focus on improving digital connectivity, access, skills, and confidence.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions her Department has had with the Financial Conduct Authority regarding the absence of explicit rules governing app-only banking; and what steps are being taken to ensure that banks continue to provide non-digital access for customers who are elderly, rural, disabled, or digitally excluded.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government works closely with the Financial Conduct Authority (FCA), the independent regulator of the UK’s financial services sector, to ensure that all customers get the right support with their financial products and services.

FCA guidance highlights the actions firms should take to understand the needs of customers who may be vulnerable, including older and disabled people, and to consider these needs appropriately. This includes offering multiple channels of communication to their customers where possible.

Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. While decisions on how specific services are delivered remain commercial matters for individual banks and building societies, the Government recognises the importance of face-to-face banking to communities and is committed to championing sufficient access for customers.

The Government is working closely with industry on a commitment to roll out 350 banking hubs across the UK by the end of this Parliament, which will provide individuals and businesses across the country with cash and banking services. Over 240 hubs have been announced so far, and 200 are already open. The Government has also worked with industry to ensure that customers do not need their own digital device to access banking hub services.

More widely, the Government recently published a Financial Inclusion Strategy which seeks to ensure that people have the opportunity to make the most of the benefits of digital services, alongside continued access to the in-person services they need. Beyond the continued rollout of banking hubs, the Strategy has also launched an industry-led inclusive design working group which will examine and address accessibility issues in product design.

The Government has also published a Digital Inclusion Action Plan which includes a focus on improving digital connectivity, access, skills, and confidence.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Government plans to publish guidance or minimum service standards to help tackle financial exclusion arising from digital-only banking models.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Government works closely with the Financial Conduct Authority (FCA), the independent regulator of the UK’s financial services sector, to ensure that all customers get the right support with their financial products and services.

FCA guidance highlights the actions firms should take to understand the needs of customers who may be vulnerable, including older and disabled people, and to consider these needs appropriately. This includes offering multiple channels of communication to their customers where possible.

Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. While decisions on how specific services are delivered remain commercial matters for individual banks and building societies, the Government recognises the importance of face-to-face banking to communities and is committed to championing sufficient access for customers.

The Government is working closely with industry on a commitment to roll out 350 banking hubs across the UK by the end of this Parliament, which will provide individuals and businesses across the country with cash and banking services. Over 240 hubs have been announced so far, and 200 are already open. The Government has also worked with industry to ensure that customers do not need their own digital device to access banking hub services.

More widely, the Government recently published a Financial Inclusion Strategy which seeks to ensure that people have the opportunity to make the most of the benefits of digital services, alongside continued access to the in-person services they need. Beyond the continued rollout of banking hubs, the Strategy has also launched an industry-led inclusive design working group which will examine and address accessibility issues in product design.

The Government has also published a Digital Inclusion Action Plan which includes a focus on improving digital connectivity, access, skills, and confidence.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many disciplinary cases were concluded against civil servants in (a) her Department and (b) its agencies by (i) outcome and (ii) whether the primary allegation related to (A) performance and (B) conduct in the last twelve months.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

HMT don’t hold the information for disciplinary cases in agencies. Where there is an issue in staff performance, HMT have a managing poor performance policy to manage any concerns. Our disciplinary policy covers issues with conduct.

In the last twelve months, there have been six disciplinary cases concluded against civil servants. We consider that providing an exact breakdown of outcome would constitute the disclosure of personal data. This is because section 40(2) of the FOI Act, by virtue of section 40(3A) provides an absolute exemption for third party personal data, where disclosure would contravene any of the data protection principles set out in Article 5 of the UK General Data Protection Regulation (UK GDPR). The first data protection principle requires the disclosure of third-party personal data to be lawful, fair and transparent. We believe that releasing the information would breach the first data protection principle, since it would be unlawful and unfair to release the information.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many and what proportion of staff in each grade were rated in the top performance category in the last year.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

Performance management reviews are conducted in accordance with the relevant policies and procedures within HM Treasury. The table below presents the percentage of staff in each grade who achieved the highest performance rating in the 2024–25 end-of-year performance management process, which concluded on 31^st March 2025:

For delegated grades the high performance category is defined as delivering exceptional performance, consistently exceeding expectations in both the achievement of objectives (‘what’ is delivered) and the demonstration of organisational values and behaviours (‘how’ the work is carried out).

For SCS the exceeded performance category is defined as exceeding outcomes, exceeding expected competency and behavioral standards. The members of the SCS should have consistently performed above and beyond all of their agreed stretching objectives throughout the performance year.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many and what proportion of staff were promoted (a) in-grade and (b) to a higher grade in the last year by (i) performance marking in the previous year and (ii) grade.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

(a) This information is not held centrally due to there being no definition of an “in-grade promotion”.

(b) Please see below a table which sets out promotions in the year 2024-25 by box marking in the previous year (2023-24) .

Please note that data that could identify individuals has been suppressed. All proportions have been rounded to the nearest whole percentage; and any proportions based on less than 30 employees have been suppressed.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether 2026-27 business rate transitional reliefs should be calculated using base liabilities which include the application of Retail, Hospitality and Leisure rate relief in 2025-26.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The government has announced support for those losing RHL relief through an expanded Support Small Business scheme which caps bill increases at the higher of £800 or the relevant TR cap. The SSB cap applies to the ratepayers’ current bill, including the 40% RHL relief they are currently receiving, before changes in other reliefs and local supplements.

This is part of a generous support package worth £4.3 billion over the next 3 years, including support to help ratepayers to transition to their new bill.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the net gain in revenue from pubs and social clubs, taking account of (a) increased rateable values, (b) removal of the 40% relief and (c) introduction of transitional relief, as a result of relevant announcements in the Autumn Budget 2025.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has been made of the potential impact, average level and trends of business rates payable by businesses in the retail, hospitality and leisure sectors since 2015.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of business rates revaluation and changes to the level of rates relief on high street pubs, bars and restaurants in Bolton West.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the removal of business rates relief and business rates revaluation on high street businesses.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to analysis cited in the Road Haulage Association’s 2025 Autumn Budget Submission, what assessment she has made of the potential impact of an increase in fuel duty on household living standards.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

At Budget 2025, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut until the end of August 2026. Rates will then gradually return to early 2022 levels. The planned increase in line with inflation for 2026-27 will not take place, with the government uprating fuel duty rates by RPI from April 2027. This will save the average car driver £49 next year compared to previous plans.

The Government has set out estimated impacts on household incomes from tax, welfare and public service spending decisions taken at Budget 2025, including eVED. These impacts are available at GOV.UK: https://assets.publishing.service.gov.uk/media/69269c6222424e25e6bc31bb/Impact_on_households.pdf

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of introducing a fuel duty rebate linked to emissions reductions to encourage the use of low carbon fuels such as hydrotreated vegetable oil (HVO).

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Hydrotreated vegetable oil (HVO) is a relatively new fuel and has limited availability in the UK. When used for domestic heating, HVO benefits from the rebated duty rate of 10.18p per litre, in contrast to the full duty rate of 52.95p per litre.

The Government currently encourages the use of HVO through the Renewable Transport Fuel Obligation (RTFO), which incentivises the use of low carbon fuels and reduces emissions from fuel supplied for use in transport and non-road mobile machinery. The RTFO has been very successful in supporting a market for renewable fuel since its introduction in 2008. Renewable fuels supplied under the RTFO currently contribute a third of the savings required for the UK’s transport carbon budget.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether Ministers in her Department will have a role in the decision on the chosen option for local government reorganisation in Cambridgeshire.

Answered by James Murray - Chief Secretary to the Treasury

Decisions on local government reorganisation proposals are subject to collective agreement across government.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the proportion of premises that will be subject to higher-multiple business rates which are solely or primarily classed within Standard Industrial Classification code (a) 47910, (b) 47990 and (c) all other SIC codes.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

We are delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure properties. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.

We are paying for this sustainably through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will contribute more as a result – large distribution warehouses will pay around £100 million more in 2026/27, with this going directly to lower bills for in-person retail.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the proportion of premises that will be subject to higher-multiple business rates which are (a) owned and (b) operated by an online retailer.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

We are delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure properties. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.

We are paying for this sustainably through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will contribute more as a result – large distribution warehouses will pay around £100 million more in 2026/27, with this going directly to lower bills for in-person retail.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the marginal increase in business rates liability for a retail, hospitality and leisure hereditament moving from £500,000 to £501,000 Rateable Value under the new 2026-27 business rate system.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

In order to sustainably fund the permanently lower tax rates for retail, hospitality and leisure (RHL) properties with rateable values (RVs) below £500,000, the Government is introducing a higher tax rate for properties with RVs of £500,000 and above.

At the Budget, the Valuation Office Agency announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties.

While RVs have increased, the tax rates have decreased, so that all ratepayers, including those on the new high-value multiplier, will pay a lower tax rate than they do now. The Government appreciates that a lower tax rate does not necessarily mean a lower bill for everyone, which is why the Government has introduced a generous support package worth £4.3 billion over the next 3 years to help ratepayers to transition to their new bills.

As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down.

The ‘Business Rates and Investment: Call for Evidence’, published at Budget, builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions, including the impact of a ‘slab’ based structure where a higher multiplier applies to the entire RV once a threshold is crossed. The government believes there may be merit in moving to a ‘slice’ system for business rates, where the RV is split into slices (or brackets, bands) and each portion is taxed at its own, different rate.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many and what proportion of civil servants in her Department are (a) on temporary contract and (b) consultants.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Information on the number of staff in HM Treasury that are (a) on temporary contracts and (b) consultants, is published annually through the HM Treasury annual report and accounts at the following web address: https://www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2024-to-2025 on pages 95 and 103, respectively.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of public sector pay awards agreed since July 2024 on expenditure over the Spending Review period.

Answered by James Murray - Chief Secretary to the Treasury

No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department has taken to explore alternatives to business rates for retail, hospitality and leisure premises; and whether she has considered implementing a Commercial Landowner Levy based on land value.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.

The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties.

The Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.

Any reforms taken forward will be phased over the course of the Parliament.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what her planned timetable is for business rate bills to be issued for 2026-27; and what is the timetable for appeals against the new draft valuations published on 25 November 2025.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Local councils are responsible for the timing and issuing of business rates bills, typically these are sent in February or March for the following tax year.

New valuations cannot be formally challenged until they come into force on 1 April 2026. Until then valuations are draft. Ratepayers can let the VOA know now if any of the information used to calculate the valuation is wrong, and if necessary, the valuation will be corrected.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Valuation Office Agency's Council Tax: practice notes, Basis of Valuation- Valuation Assumptions, Section 4.3: Tenure, what estimate the Agency has made of the average difference between sale prices and council tax valuations.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Valuation Office Agency values properties in line with legislation. It is not required to provide estimates relating to the difference between sales prices and Council Tax valuations to carry out this work.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the adequacy of the long term affordability of public sector pay settlements agreed outside the recommendations of independent pay review bodies.

Answered by James Murray - Chief Secretary to the Treasury

No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent public sector pay settlements on departmental budgetary flexibility in future financial years.

Answered by James Murray - Chief Secretary to the Treasury

No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent public sector pay settlements on forecast productivity growth in relevant sectors.

Answered by James Murray - Chief Secretary to the Treasury

No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what analysis her Department has undertaken of the distributional impact of recent public sector pay awards across income deciles.

Answered by James Murray - Chief Secretary to the Treasury

No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent public sector pay settlements on trends in the level of public sector net borrowing in future financial years.

Answered by James Murray - Chief Secretary to the Treasury

No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of taking fiscal steps to offset the potential impact of recent public sector pay agreements on the public finances.

Answered by James Murray - Chief Secretary to the Treasury

No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent public sector pay settlements on the fiscal rules.

Answered by James Murray - Chief Secretary to the Treasury

No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Valuation Office Agency's publication, VOA rating list downloads, whether the Unique Address Reference Number matches individual hereditaments on the 2026 draft non-domestic rating list with their previous entry on the 2023 non-domestic rating list; and how are properties matched if they do not have an Unique Address Reference Number.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

All properties in the rating list are assigned a Unique Address Reference Number (UARN).

The UARN for each property is the same between both lists and will continue into the compiled list, due to come into effect on 1 April 2026.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the council tax bands, banding thresholds and multipliers for the new council tax surcharge will be set in (a) primary or (b) secondary legislation.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The government expects that the implementation of the High Value Council Tax Surcharge (HVCTS) will require both primary and secondary legislation.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what process will be used to value family businesses after the changes to Business Property Relief are introduced.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the revaluation of business rates on levels of employment in North Yorkshire.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties.

The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether an Electric Vehicle chargepoint within the curtilage of a domestic dwelling is deemed to be a material consideration by the Valuation Office Agency when a property is valued or revalued for council tax, including the new surcharge.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Valuation Office Agency considers a range of factors when valuing domestic properties, including property attribute details, sales data, and the valuations of similar properties.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department had any role in the development of the electric car grant.

Answered by James Murray - Chief Secretary to the Treasury

I refer the Member to the answer given to UIN 90404 on 21^st November 2025.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the potential impact of the Autumn Budget 2025 on the hospitality sector.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

In addition to our business rates support, the Chancellor also announced the first National Licensing Policy Framework at Budget 2025, which sets a new strategic direction for licensing authorities to have more regard for growth when reviewing licensing applications and decisions.

In addition, and responding to sector asks, the government committed to explore further planning reforms to make it easier for pubs and hospitality businesses to expand and grow. To help drive these reforms, we will appoint a new Retail and Hospitality Envoy to champion these sectors across government.

This is on top of measures we have already announced, such as:

• A £1.5m Hospitality fund to support sector initiative like an innovation hub to improve business productivity and help rural pubs diversify to ensure they can continue as vital community hubs;
• Protection against upward only rent clauses, and
• The introduction of strong new ‘Community Right to Buy’ to help communities safeguard valued community assets – such as pubs.

The Government will continue to work closely with the pub and hospitality sector and are committed to help them succeed.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent estimate her Department has made of the potential impact of the Autumn Budget 2025 on business costs to the average pub.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.

The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

In addition to our business rates support, the Chancellor also announced the first National Licensing Policy Framework at Budget 2025, which sets a new strategic direction for licensing authorities to have more regard for growth when reviewing licensing applications and decisions.

In addition, and responding to sector asks, the government committed to explore further planning reforms to make it easier for pubs and hospitality businesses to expand and grow. To help drive these reforms, we will appoint a new Retail and Hospitality Envoy to champion these sectors across government.

This is on top of measures we have already announced, such as:

• A £1.5m Hospitality fund to support sector initiative like an innovation hub to improve business productivity and help rural pubs diversify to ensure they can continue as vital community hubs;
• Protection against upward only rent clauses, and
• The introduction of strong new ‘Community Right to Buy’ to help communities safeguard valued community assets – such as pubs.

The Government will continue to work closely with the pub and hospitality sector and are committed to help them succeed.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions her department has had with Amazon on its proposal to support the collection of £700 million in VAT receipts from online marketplace sellers operating overseas.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.

The changes were introduced to ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.

The Government engages with a wide range of stakeholders as part of the policy making process.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will expedite a consultation into proposals to require online marketplace sellers to collect VAT from overseas sellers.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.

The changes were introduced to ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.

The Government engages with a wide range of stakeholders as part of the policy making process.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the increase in employers' National Insurance contributions on the number of people employed by SMEs in North Yorkshire.

Answered by Dan Tomlinson - Exchequer 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 announced at Autumn Budget 2024.

The Office for Budget Responsibility (OBR) set out in their November 2025 Economic and Fiscal Outlook that they expect that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the increase in employers' National Insurance contributions on the viability of businesses in North Yorkshire.

Answered by Dan Tomlinson - Exchequer 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 announced at Autumn Budget 2024.

The Office for Budget Responsibility (OBR) set out in their November 2025 Economic and Fiscal Outlook that they expect that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Treasury has reviewed its 2020 forecast of the fiscal impact of extending the VAT RES to EU residents.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The OBR’s estimate is that the withdrawal of the VAT Retail Export Scheme will save the Exchequer around £540 million per year by 2025-26.

The Government has also noted recent external data, which shows that tourism numbers and spending for the UK has recovered at a similar rate following the pandemic to other European economies that offer tax-free shopping

The Government has carefully considered external analysis estimating that a new tax-free shopping scheme would generate more revenue than cost for the Exchequer, as well as supporting data from a wide range of business stakeholders across the UK. However, these do not provide sufficient evidence that a new tax-free shopping scheme would have greater benefits to the UK than costs.

The Government therefore has no plans to introduce a new tax-free shopping scheme in Great Britain.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department is taking steps to support self-employed people who require support to file their tax returns due to economic or health difficulties; and whether she has made a recent assessment of the potential merits of reforming the penalty system, in particular for those who do not owe any tax.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The government has reformed penalties and at Budget 2025 confirmed the introduction of a new penalty regime for late filing of SA returns and late payment of income tax that will now apply to all SA customers from April 2027. This reform of late filing penalties will reduce the penalties a customer can accumulate for filing late and will introduce a further safeguard so people will not receive a financial penalty for a single failure to file on time.

HMRC also has dedicated support in place for those facing personal difficulties and encourages anyone struggling to meet their obligations to make contact as soon as possible by phone or online.

This includes:

• HMRC’s Extra Support Team provides support to customers with their tax affairs if they have a health condition or their personal circumstances make it difficult for them to contact HMRC.
• Where customers are struggling to pay their tax on time, they may be able to set up a payment plan online or a Budget Payment Plan instead

The tax system contains obligations, set out in law, to ensure that HMRC can collect the correct tax to fund vital public services. HMRC is bound by law to apply penalties where customers do not meet these obligations. Penalties also help to reassure customers who comply with their obligations that HMRC are applying the rules fairly and consistently.

Under Self Assessment (SA), HMRC requires information from customers in their tax returns to determine whether they have any liability to income tax. Even where a customer has no tax to pay, the information provided within their SA return ensures that taxpayers receive the benefits to which they are entitled, such as Tax-Free Childcare.

Where HMRC charges a penalty, a customer can formally appeal. HMRC will cancel any penalties where they accept that a taxpayer had a reasonable excuse for not filing their return on time.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the efficacy of the Government's efforts to reduce tax evasion.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC is committed to closing the tax gap further and tackling non-compliant behaviours such as tax evasion, tax avoidance, criminal attacks, error, failure to take reasonable care, hidden economy activity, legal interpretation issues, and non-payment.

In 2024 to 2025, HMRC’s compliance work contributed to record tax revenues of £875.9 billion, collecting and protecting £48 billion of tax that would have gone unpaid if HMRC hadn’t stepped in – up from £41.8 billion the previous year.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment has the Government has made of the potential impact that extending VAT Deemed Reseller rules to include UK sellers could have to closing the tax gap.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government has and will continue to engage with stakeholders to understand the impact of any changes to online marketplace liability rules on both platforms and sellers. Certified analysis by the Office for Budget Responsibility (OBR) estimates the current online marketplace liability rules, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.

HMRC has an overall compliance strategy which focuses on addressing all forms of non-compliance. The most recent published VAT gap shows a continued downward trend, falling from 13.7% to 5.4% between tax years 2005/06 and 2023/24.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the OBR has reviewed the Treasury’s 2020 forecast of the fiscal impact of extending the VAT RES to EU residents.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The OBR’s estimate is that the withdrawal of the VAT Retail Export Scheme will save the Exchequer around £540 million per year by 2025-26.

The Government has also noted recent external data, which shows that tourism numbers and spending for the UK has recovered at a similar rate following the pandemic to other European economies that offer tax-free shopping

The Government has carefully considered external analysis estimating that a new tax-free shopping scheme would generate more revenue than cost for the Exchequer, as well as supporting data from a wide range of business stakeholders across the UK. However, these do not provide sufficient evidence that a new tax-free shopping scheme would have greater benefits to the UK than costs.

The Government therefore has no plans to introduce a new tax-free shopping scheme in Great Britain.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, when she plans to publish the outcome of the review of the VAT Deemed Reseller rules announced in April 2025.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government has and will continue to engage with stakeholders to understand the impact of any changes to online marketplace liability rules on both platforms and sellers. Certified analysis by the Office for Budget Responsibility (OBR) estimates the current online marketplace liability rules, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.

HMRC has an overall compliance strategy which focuses on addressing all forms of non-compliance. The most recent published VAT gap shows a continued downward trend, falling from 13.7% to 5.4% between tax years 2005/06 and 2023/24.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans she has to amend inheritance tax legislation to ensure that compensation paid to the estates of deceased victims of the Infected Blood scandal is exempt from inheritance tax.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

At Budget 2025, the government announced that it would extend the existing relief from inheritance tax for compensation payments made from the Infected Blood Compensation Scheme and the Infected Blood Interim Compensation Payment Scheme (‘infected blood compensation payments’). A Tax Information and Impact Note has been published and can be found here: Inheritance Tax and Infected Blood compensation payments - GOV.UK.

Finance Bill 2025-26 contains a power to make changes to the inheritance tax treatment of infected blood compensation schemes in secondary legislation. The government will lay regulations subject to parliamentary approval of the Bill. More information about what this means in practical terms and what action impacted individuals should take ahead of regulations being made were published in this Written Ministerial Statement: Inheritance tax relief for infected blood compensation payments

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact in Northern Ireland of the abolition of VAT exemption for private school fees on the parents of children with special educational needs; and what estimate she has made of additional VAT receipts arising in Northern Ireland.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government conducted thorough and detailed analysis of the impacts of this policy, including in Northern Ireland, and published a Tax Impact and Information Note (TIIN) which sets out this analysis. This is a comprehensive assessment of the impacts on individuals and families, businesses and the wider economy, as well as equalities impacts. It was published online and can be found here:

www.gov.uk/government/publications/vat-on-private-school-fees/ac8c20ce-4824-462d-b206-26a567724643

In Northern Ireland, the Education Authority (EA) is responsible for funding placements of pupils with a statement of special educational needs (SEN) within a private school. The EA can recover the VAT that it is charged on these pupils’ fees, which means that those pupils are unaffected by the removal of the VAT exemption.

Due to how VAT is collected it is not possible to estimate the VAT receipts arising in Northern Ireland. However, overall this policy is expected to raise £1.7 billion per year by 2029/30.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of funding British content creators through the taxation of online platforms.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

We support domestic film and TV production through the tax system and through funding.

The Audio-Visual Expenditure Credit (AVEC) provides companies with a generous tax credit worth 34 per cent of their UK production costs on a film or high-end TV programme, or 39 per cent of their production costs on an animation or children’s TV programme.

As of 1 April 2025, films with a UK lead writer or director and budgets of under £23.5 million are able to claim an enhanced 53 per cent rate of AVEC on up to £15m of core expenditure. This applies to expenditure incurred from 1 April 2024. This will support the next generation of independent films and help develop a pipeline of UK film talent.

Film and TV are priority sub-sectors for our Industrial Strategy, and the Department for Culture, Media and Sport (DCMS) have committed to a new £75 million Screen Growth Package over three years to develop independent UK screen content, support inward investment, and showcase the best of UK and international film. This includes a scaled-up £18 million per year UK Global Screen Fund (2026–2029) to develop international business capabilities, enable co-productions and distribute independent UK screen content.

The Government wants to ensure that there is a balanced film and TV sector and welcomes international investment, including from subscription video-on-demand platforms. We therefore have no plans to introduce additional taxes or levies on these services. However, DCMS will continue to engage with major streaming services, with the independent production sector and with public service broadcasters on how best to ensure mutually beneficial conditions for all parties.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact on fraud victims of proposals allowing the Financial Ombudsman Service to pause cases at registration pending police or Serious Fraud Office investigations.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The government takes the issue of fraud very seriously and is dedicated to protecting the public from this appalling crime. As set out in our manifesto and as part of our Plan for Change, the government will introduce a new, expanded Fraud Strategy encompassing the modern-day threats that so many people become a victim to.

The government recognises the important role the Financial Ombudsman Service (FOS) plays in providing consumers with a cost-free and quick route to resolve disputes with financial services firms. However, the government’s review of the FOS concluded that in a small but significant minority of cases, the framework in which the FOS operates has resulted in it acting as a quasi-regulator.

That is why, as part of the Leeds Reforms, the Chancellor announced the most significant package of reforms to the FOS since its inception to provide greater certainty and predictability for consumers and firms who use the FOS. The government’s consultation on the proposed reforms closed on 8 October and it will set out next steps in due course.

Victims of fraud who wish to make a complaint about their financial services provider will continue to be able to bring complaints to the FOS, and the proposed changes to the legislative framework under which the FOS operates will not affect the FOS’s role in handling these complaints.

The Financial Conduct Authority (FCA) expects all firms to maintain strong systems and controls with regards to fraud prevention to deliver good outcomes for customers, including seeking to avoid foreseeable harm. It has made tackling fraud one of its priorities in its 5-year strategy from 2025 to 2030. The FCA is continuing to prioritise fighting financial crime, including by working with firms to strengthen their anti-crime systems, working with other relevant agencies who tackle crime to share intelligence and coordinate action, and working with consumers to raise awareness and ensure they have the tools they need to protect themselves.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to ensure that fraud victims retain access to Financial Ombudsman Service investigations without being forced into civil court proceedings.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The government takes the issue of fraud very seriously and is dedicated to protecting the public from this appalling crime. As set out in our manifesto and as part of our Plan for Change, the government will introduce a new, expanded Fraud Strategy encompassing the modern-day threats that so many people become a victim to.

The government recognises the important role the Financial Ombudsman Service (FOS) plays in providing consumers with a cost-free and quick route to resolve disputes with financial services firms. However, the government’s review of the FOS concluded that in a small but significant minority of cases, the framework in which the FOS operates has resulted in it acting as a quasi-regulator.

That is why, as part of the Leeds Reforms, the Chancellor announced the most significant package of reforms to the FOS since its inception to provide greater certainty and predictability for consumers and firms who use the FOS. The government’s consultation on the proposed reforms closed on 8 October and it will set out next steps in due course.

Victims of fraud who wish to make a complaint about their financial services provider will continue to be able to bring complaints to the FOS, and the proposed changes to the legislative framework under which the FOS operates will not affect the FOS’s role in handling these complaints.

The Financial Conduct Authority (FCA) expects all firms to maintain strong systems and controls with regards to fraud prevention to deliver good outcomes for customers, including seeking to avoid foreseeable harm. It has made tackling fraud one of its priorities in its 5-year strategy from 2025 to 2030. The FCA is continuing to prioritise fighting financial crime, including by working with firms to strengthen their anti-crime systems, working with other relevant agencies who tackle crime to share intelligence and coordinate action, and working with consumers to raise awareness and ensure they have the tools they need to protect themselves.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she will make an assessment of the potential impact on fraud victims of allowing the Financial Ombudsman Service to dismiss cases deemed too complex.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The government takes the issue of fraud very seriously and is dedicated to protecting the public from this appalling crime. As set out in our manifesto and as part of our Plan for Change, the government will introduce a new, expanded Fraud Strategy encompassing the modern-day threats that so many people become a victim to.

The government recognises the important role the Financial Ombudsman Service (FOS) plays in providing consumers with a cost-free and quick route to resolve disputes with financial services firms. However, the government’s review of the FOS concluded that in a small but significant minority of cases, the framework in which the FOS operates has resulted in it acting as a quasi-regulator.

That is why, as part of the Leeds Reforms, the Chancellor announced the most significant package of reforms to the FOS since its inception to provide greater certainty and predictability for consumers and firms who use the FOS. The government’s consultation on the proposed reforms closed on 8 October and it will set out next steps in due course.

Victims of fraud who wish to make a complaint about their financial services provider will continue to be able to bring complaints to the FOS, and the proposed changes to the legislative framework under which the FOS operates will not affect the FOS’s role in handling these complaints.

The Financial Conduct Authority (FCA) expects all firms to maintain strong systems and controls with regards to fraud prevention to deliver good outcomes for customers, including seeking to avoid foreseeable harm. It has made tackling fraud one of its priorities in its 5-year strategy from 2025 to 2030. The FCA is continuing to prioritise fighting financial crime, including by working with firms to strengthen their anti-crime systems, working with other relevant agencies who tackle crime to share intelligence and coordinate action, and working with consumers to raise awareness and ensure they have the tools they need to protect themselves.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, who is the Chief Risk Officer for national security risks relating to the work of their Department.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

HM Treasury is the Lead Government Department for Disruption to Financial Services, and the Principal Accounting Officer is primarily accountable to government for discharging that role.

The PAO is also responsible for HMT’s contribution to the management of other national security risks where other departments are the lead government department.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, when she plans to reply to the email from the hon. Member for South Shropshire dated 11 September 2025 with case reference number SA36696.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The email from the hon. Member for South Shropshire dated 11 September 2025 with case reference number SA36696 has been transferred to the Department for Business and Trade (DBT). DBT will respond in due course.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of bank closures on access to banking services by vulnerable and elderly people; how many Banking Hubs currently operate in Northern Ireland; and what her target is for the number of additional Banking Hubs to be opened in Northern Ireland before the end of this parliamentary term.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to supporting sufficient access for customers.

The Government is working closely with industry on the commitment to roll out 350 banking hubs across the UK by the end of this Parliament, which will provide individuals and businesses across the country with cash and banking services. Over 240 hubs have been announced so far, and 200 are already open. Of these, there are currently seven banking hubs operating in Northern Ireland.

The treatment of customers by UK banks is governed by the the Financial Conduct Authority, which requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.

While branch closures are commercial decisions for banks, Financial Conduct Authority guidance requires firms to conduct a robust impact analysis. Banks must show they have considered customer needs and identified potential reasonable alternatives. The FCA also expects engagement with stakeholders at least 12 weeks before closure and ensures that any replacement services, such as banking hubs, are in place before a branch closes. These measures aim to ensure closures are implemented fairly and transparently.

The Government does not have specific regional targets for banking hub opening as the locations of banking hubs are determined independently by LINK.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of the (a) Financial Conduct Authority and (b) Financial Ombudsman Service’s recent changes to compensatory interest.

Answered by Lucy Rigby - Economic Secretary (HM Treasury)

The Financial Ombudsman Service (FOS) is responsible for setting the interest rate it applies to awards. Following consultation, the FOS has confirmed that it will change the interest rate that it applies to some compensation awards, moving from the current 8% to a time-weighted average of the Bank of England’s base rate plus one percentage point. The FOS will continue to apply an 8% interest rate for the period after a determination has been made, if the business does not pay redress on time, to encourage timely compliance with FOS determinations. The Chancellor welcomed the new rate in her Mansion House 2025 speech on 15 July, with the Financial Services Growth and Competitiveness Strategy noting that the new rate better reflects market conditions.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, which Valuation Office Agency special category code hereditaments are eligible for the 2026-27 Retail, Hospitality and Leisure multipliers.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

VOA Special Category codes do not determine eligibility for RHL multipliers. Local authorities are responsible for administering the business rates multipliers for qualifying Retail, Hospitality and Leisure properties.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will review the scope of the Plastics Packaging Tax to exempt EN 13432–certified compostable materials; and what assessment has been made of the potential impact of including compostable materials within the tax on growth and innovation in the biodegradable and biobased materials industry and on the delivery of the UK’s circular economy objectives.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government keeps all taxes under review as part of the policymaking process. The Plastic Packaging Tax provides a price incentive for businesses to use recycled plastic in the manufacture of plastic packaging.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with the Motability Foundation on the the potential impact of her Department's changes to (a) VAT and (b) Insurance Premium Tax for the Motability Foundation on (i) funding for the Mobility Foundation and (ii) the ability of the Foundation to cross-subsidise its work to support the most vulnerable residents.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

Prior to announcing tax changes to the Motability Scheme at Budget 2025, the Government engaged with the Motability Foundation to understand how tax changes would impact the Motability Scheme and their customers.

For customers who cannot afford essential costs or need more complex adaptations, the Motability Foundation will continue to provide means-tested grants to those most in need of financial help. In 2024/25, these grants totalled £59.3 million, supporting over 10,000 customers.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 16 December 2025 to Question 97744 on Council Tax: Sutton Coldfield, if she will publish the evidential basis for the claim that the surcharge will raise £400m in revenue in 2028/29.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The policy costing note for the High Value Council Tax Surcharge is available on page 51 of the Budget 2025 policy costings document:

https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf

Question to the HM Treasury:

To ask His Majesty's Government how they intend to ensure consumer protection and regulatory compliance in blockchain and AI-enabled tokenised deposit models in the home-buying and mortgage markets.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Financial Conduct Authority is responsible for the regulation of the mortgage market. All FCA-authorised firms are required to comply with the Consumer Duty, which sets high standards of consumer protections and requires firms to put their customers’ needs first.

The Ministry of Housing, Communities and Local Government is currently consulting on reforms to the home buying and selling process. The Government has made clear its objectives that reform should support faster, more reliable transactions and reduced fall throughs and risks.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential for AI and digital technology to reduce a) tax evasion and b) tax avoidance.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

HMRC is expanding its use of AI to help tackle the tax gap and The Hon gentleman’s Telford constituency is an important hub for HMRC’s digital and AI work. HMRC’s expansion includes how they focus their compliance work through new risk-targeting capabilities to identify cases for investigation, improving case selection. It also means using AI to identify nascent issues with the tax system, so they can act rapidly to prevent them before they grow.

This year, HMRC has also significantly invested in partnering with the private sector to explore the use of novel analytical techniques and data to identify deliberate evasion.

HMRC is harnessing artificial intelligence to deliver a more efficient and professional service for customers. They will use new technology as a tool to help them to do their jobs more effectively. Greater use of AI will mean that staff spend less time on admin and more time helping taxpayers. It will also help HMRC better target their action against fraud and evasion, to bring in more money for public services.

Artificial intelligence supports some of their processes but never replaces human decision-making and oversight. HMRC remains committed to the safe use of these technologies, underpinned by strict data protection, security and ethical standards. In cases where AI is used in a way that could impact customer outcomes, HMRC ensures that results are explainable and that there is always human oversight. This means that even when AI is used to support decision-making, final decisions are always made by experienced, trained case workers.

Question to the HM Treasury:

To ask His Majesty's Government what plans they have to liquidate Russian assets currently frozen in the UK; and whether they have discussed the implications of that action with (1) leaders of the EU, and (2) President Trump.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Chancellor is actively engaging with our EU and G7 partners to explore options for using the full value of Russian sovereign assets immobilised across the G7, in line with international law.

The Government remains committed to ensuring Russia is held accountable for the damage it has caused, and continues to cause, in Ukraine. Alongside our G7 partners, the UK has pledged to maintain the sanctions in Russia’s sovereign assets within our jurisdiction until Russia has paid compensation to Ukraine.

Stop the introduction of the Vaping Products Duty in 2026. We want the Government to halt any new tax on e-liquids and vape products, including 0mg nicotine-free options, to protect small UK vape retailers and manufacturers from closure.

We ask the Government to introduce a new 30% income tax band that applies to earnings between £50,271 and £100,000. This could ensure a smoother, fairer progression in tax rates. Our aim is to create a more balanced, modern and equitable tax structure for middle-income earners.

We are concerned that pubs have been hammered with rising costs. In order to "Save Our Local Pubs", we think the tax on alcohol should be removed.

Found: Defra, working with the Environment Agency, HM Treasury, and other key partners, should: Reform flood

Found: National Savings and Investments, National Savings and Investments, HM Treasury, HM Treasury, and HM

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, if he will publish his Department’s business case on new private finance in the NHS.

Answered by Karin Smyth - Minister of State (Department of Health and Social Care)

The Department has no plans to publish the Neighbourhood Health Centre (NHC) Public Private Partnership (PPP) Feasibility Programme Business Case. Publication is not standard practice for business cases outside of the Government’s Major Projects Portfolio. This was a strategic outline business case, the purpose of which was to scope and identify the preferred way forward for a new potential PPP model in line with the HM Treasury five case model.

The Department and the National Infrastructure and Service Transformation Authority (NISTA) will continue to work with the market to further develop the new PPP model for NHCs, with further engagement next year. The final design and development of this new PPP model for NHCs will be led by NISTA and will be co-designed by the Department.

Question to the Ministry of Justice:

To ask the Secretary of State for Justice, how many firms have ceased being legal aid providers since 23 April 2025.

Answered by Sarah Sackman - Minister of State (Ministry of Justice)

This data breach was the result of serious criminal activity but it was enabled by the fragility of the LAA’s IT systems as a result of the long years of neglect and mismanagement of the justice system under the last Conservative Government. Upon taking office, I was shocked to see how fragile our legal aid systems were. The previous Government knew about the vulnerabilities of the Legal Aid Agency digital systems, but failed to invest. By contrast, since taking office, this Government has prioritised work to rebuild the LAA digital systems. That includes the allocation of over £20 million in extra funding this year to stabilise and transform the Legal Aid Agency digital services as we build back better in response to this attack. We are now in a position where all providers have online access to our civil legal aid services currently available via SiLAS, alongside our criminal legal aid services, which were restored in September.

This is an evolving situation but to date the total operational and digital costs of the incident are forecast to be £22 million for this financial year.

All providers have been able to access payment for work carried out whilst systems have been offline.

For some types of legal aid this meant adjusting the way in which providers submitted their claim for payment to the LAA. From 19 May, providers have been able to claim their usual payments for Legal Help, Crime Lower & Mediation work via a contingency process. Due to previous investment, the criminal legal aid systems were more modern, and internal access was restored more quickly. This enabled the LAA to resume paying Crown Court bills from early June.

It was necessary to agree a payment contingency for Civil Representation work with HM Treasury. This led to the implementation of the Average Payment Scheme on 27 May. The Average Payment Scheme enables providers to opt in to receive a temporary average payment for Civil Representation work that would otherwise be due, or where the value of their outstanding work varies from this, to apply for a specific payment to meet the cost of that work. Payments are made on a weekly basis. The weekly average payment is based on previous payments made to that provider over the 3 month period preceding the cyber incident.  Some providers have not opted in to receive payment in this way and wait for the restoration of the systems, but payments are there should they need it. We are unable to quantify the number of legal aid providers who have not opted in to receive an average payment in each of the weeks it has been available.

Providers are obligated to act in the best interests of their clients both by their own SRA regulatory requirements and by their LAA Contracts. In circumstances where a legal aid provider is unable to continue providing representation in an ongoing case, for whatever reason, they have a professional and contractual obligation toward their client to assist them in finding alternative representation.

We have not seen any evidence of legal aid providers leaving the market directly as a result of the cyber-attack. Since April 2023 there has been a net increase in the number of providers contracted to deliver legal aid services.

Question to the Ministry of Justice:

To ask the Secretary of State for Justice, if he will make an estimate of the costs incurred by Department as a result of the Legal Aid Agency data breach on 23 April 2025.

Answered by Sarah Sackman - Minister of State (Ministry of Justice)

This data breach was the result of serious criminal activity but it was enabled by the fragility of the LAA’s IT systems as a result of the long years of neglect and mismanagement of the justice system under the last Conservative Government. Upon taking office, I was shocked to see how fragile our legal aid systems were. The previous Government knew about the vulnerabilities of the Legal Aid Agency digital systems, but failed to invest. By contrast, since taking office, this Government has prioritised work to rebuild the LAA digital systems. That includes the allocation of over £20 million in extra funding this year to stabilise and transform the Legal Aid Agency digital services as we build back better in response to this attack. We are now in a position where all providers have online access to our civil legal aid services currently available via SiLAS, alongside our criminal legal aid services, which were restored in September.

This is an evolving situation but to date the total operational and digital costs of the incident are forecast to be £22 million for this financial year.

All providers have been able to access payment for work carried out whilst systems have been offline.

For some types of legal aid this meant adjusting the way in which providers submitted their claim for payment to the LAA. From 19 May, providers have been able to claim their usual payments for Legal Help, Crime Lower & Mediation work via a contingency process. Due to previous investment, the criminal legal aid systems were more modern, and internal access was restored more quickly. This enabled the LAA to resume paying Crown Court bills from early June.

It was necessary to agree a payment contingency for Civil Representation work with HM Treasury. This led to the implementation of the Average Payment Scheme on 27 May. The Average Payment Scheme enables providers to opt in to receive a temporary average payment for Civil Representation work that would otherwise be due, or where the value of their outstanding work varies from this, to apply for a specific payment to meet the cost of that work. Payments are made on a weekly basis. The weekly average payment is based on previous payments made to that provider over the 3 month period preceding the cyber incident.  Some providers have not opted in to receive payment in this way and wait for the restoration of the systems, but payments are there should they need it. We are unable to quantify the number of legal aid providers who have not opted in to receive an average payment in each of the weeks it has been available.

Providers are obligated to act in the best interests of their clients both by their own SRA regulatory requirements and by their LAA Contracts. In circumstances where a legal aid provider is unable to continue providing representation in an ongoing case, for whatever reason, they have a professional and contractual obligation toward their client to assist them in finding alternative representation.

We have not seen any evidence of legal aid providers leaving the market directly as a result of the cyber-attack. Since April 2023 there has been a net increase in the number of providers contracted to deliver legal aid services.

Question to the Ministry of Justice:

To ask the Secretary of State for Justice, how many (a) barristers, and (b) solicitors have not been paid by the Legal Aid Agency since the data breach of 23 April 2025.

Answered by Sarah Sackman - Minister of State (Ministry of Justice)

This data breach was the result of serious criminal activity but it was enabled by the fragility of the LAA’s IT systems as a result of the long years of neglect and mismanagement of the justice system under the last Conservative Government. Upon taking office, I was shocked to see how fragile our legal aid systems were. The previous Government knew about the vulnerabilities of the Legal Aid Agency digital systems, but failed to invest. By contrast, since taking office, this Government has prioritised work to rebuild the LAA digital systems. That includes the allocation of over £20 million in extra funding this year to stabilise and transform the Legal Aid Agency digital services as we build back better in response to this attack. We are now in a position where all providers have online access to our civil legal aid services currently available via SiLAS, alongside our criminal legal aid services, which were restored in September.

This is an evolving situation but to date the total operational and digital costs of the incident are forecast to be £22 million for this financial year.

All providers have been able to access payment for work carried out whilst systems have been offline.

For some types of legal aid this meant adjusting the way in which providers submitted their claim for payment to the LAA. From 19 May, providers have been able to claim their usual payments for Legal Help, Crime Lower & Mediation work via a contingency process. Due to previous investment, the criminal legal aid systems were more modern, and internal access was restored more quickly. This enabled the LAA to resume paying Crown Court bills from early June.

It was necessary to agree a payment contingency for Civil Representation work with HM Treasury. This led to the implementation of the Average Payment Scheme on 27 May. The Average Payment Scheme enables providers to opt in to receive a temporary average payment for Civil Representation work that would otherwise be due, or where the value of their outstanding work varies from this, to apply for a specific payment to meet the cost of that work. Payments are made on a weekly basis. The weekly average payment is based on previous payments made to that provider over the 3 month period preceding the cyber incident.  Some providers have not opted in to receive payment in this way and wait for the restoration of the systems, but payments are there should they need it. We are unable to quantify the number of legal aid providers who have not opted in to receive an average payment in each of the weeks it has been available.

Providers are obligated to act in the best interests of their clients both by their own SRA regulatory requirements and by their LAA Contracts. In circumstances where a legal aid provider is unable to continue providing representation in an ongoing case, for whatever reason, they have a professional and contractual obligation toward their client to assist them in finding alternative representation.

We have not seen any evidence of legal aid providers leaving the market directly as a result of the cyber-attack. Since April 2023 there has been a net increase in the number of providers contracted to deliver legal aid services.

Question to the Ministry of Justice:

To ask the Secretary of State for Justice, how many legal aid cases have been dropped since 23 April 2025.

Answered by Sarah Sackman - Minister of State (Ministry of Justice)

This data breach was the result of serious criminal activity but it was enabled by the fragility of the LAA’s IT systems as a result of the long years of neglect and mismanagement of the justice system under the last Conservative Government. Upon taking office, I was shocked to see how fragile our legal aid systems were. The previous Government knew about the vulnerabilities of the Legal Aid Agency digital systems, but failed to invest. By contrast, since taking office, this Government has prioritised work to rebuild the LAA digital systems. That includes the allocation of over £20 million in extra funding this year to stabilise and transform the Legal Aid Agency digital services as we build back better in response to this attack. We are now in a position where all providers have online access to our civil legal aid services currently available via SiLAS, alongside our criminal legal aid services, which were restored in September.

This is an evolving situation but to date the total operational and digital costs of the incident are forecast to be £22 million for this financial year.

All providers have been able to access payment for work carried out whilst systems have been offline.

For some types of legal aid this meant adjusting the way in which providers submitted their claim for payment to the LAA. From 19 May, providers have been able to claim their usual payments for Legal Help, Crime Lower & Mediation work via a contingency process. Due to previous investment, the criminal legal aid systems were more modern, and internal access was restored more quickly. This enabled the LAA to resume paying Crown Court bills from early June.

It was necessary to agree a payment contingency for Civil Representation work with HM Treasury. This led to the implementation of the Average Payment Scheme on 27 May. The Average Payment Scheme enables providers to opt in to receive a temporary average payment for Civil Representation work that would otherwise be due, or where the value of their outstanding work varies from this, to apply for a specific payment to meet the cost of that work. Payments are made on a weekly basis. The weekly average payment is based on previous payments made to that provider over the 3 month period preceding the cyber incident.  Some providers have not opted in to receive payment in this way and wait for the restoration of the systems, but payments are there should they need it. We are unable to quantify the number of legal aid providers who have not opted in to receive an average payment in each of the weeks it has been available.

Providers are obligated to act in the best interests of their clients both by their own SRA regulatory requirements and by their LAA Contracts. In circumstances where a legal aid provider is unable to continue providing representation in an ongoing case, for whatever reason, they have a professional and contractual obligation toward their client to assist them in finding alternative representation.

We have not seen any evidence of legal aid providers leaving the market directly as a result of the cyber-attack. Since April 2023 there has been a net increase in the number of providers contracted to deliver legal aid services.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what discussions he has had with the Chancellor of the Exchequer and financial regulators on implementation of the financial services chapter of the UK–Republic of Korea Free Trade Agreement.

Answered by Chris Bryant - Minister of State (Department for Business and Trade)

Engagement between the Secretary of State for Business and Trade and the Chancellor of the Exchequer has focused on key aims for the UK-Republic of Korea FTA. HM Treasury officials, who negotiated financial services provisions, have engaged regularly with UK financial regulators throughout.

The Department for Business and Trade will lead on implementing the agreement, with input from HMT officials on financial services provisions. The Financial Services chapter contains consultation provisions which provide a formal mechanism for the UK Government – including, where appropriate, representatives from its financial regulators - to discuss implementation of these commitments with the Republic of Korea.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what formal mechanisms exist for engagement with financial services firms on the operation of the UK–Republic of Korea Free Trade Agreement.

Answered by Chris Bryant - Minister of State (Department for Business and Trade)

Both DBT and HM Treasury conduct routine engagement with Financial Services firms and representative bodies. HMT’s Working Group discusses the negotiation and operation of UK trade agreements, including the UK-Republic of Korea FTA. DBT conducts engagement with Financial Services firms and representative bodies as part of its broader services engagement programme. This includes bilateral conversations and fora to collate interests in UK trade agreements, including the UK-Republic of Korea FTA, and assess business sentiment regarding their negotiation.

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what steps he is taking to ensure capital investment in NHS estate and infrastructure supports improvements in climate resilience.

Answered by Karin Smyth - Minister of State (Department of Health and Social Care)

We recognise the importance of increasing the climate resilience of the National Health Service estate and infrastructure. NHS trusts are responsible for maintaining their estate, including adapting premises to reduce the risks associated with climate change, as set out in the NHS Standard Contract.

The Department is supporting the improvement of NHS sites by investing £30 billion over the next five years in day-to-day maintenance and repair, with £5 billion allocated specifically to address the most critical building issues. NHS trusts will be able to direct some of this funding towards improving the climate resilience of their estate where this is locally appropriate. Additionally, the Department is making sure all new hospitals are fit for the future. The Department’s New Hospital Programme requires schemes to achieve a minimum rating of BREEAM ‘Excellent’ for new builds, and ‘Very Good’ for refurbishments. All NHS investments in new buildings and upgrades to existing facilities that are subject to HM Treasury business case approval process must align with the NHS Net Zero Building Standard, which includes a focus on overheating risks.

Question to the Department for Education:

To ask the Secretary of State for Education, whether she plans to raise the maximum reimbursement Student Finance England can provide for incorrect advice above £500.

Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)

Student Finance England is a service provided by the Student Loans Company (SLC).

The SLC is a non-departmental public body and therefore is issued its own delegated authority letter by the department. However, its delegated authority limits cannot exceed those delegated to the department by His Majesty’s Treasury (HMT). For consolatory payments (ex-gratia payments) to individuals, the limit is £500.

HMT are reviewing delegated authority limits for all government departments, as set out in the Office for Value for Money’s document ‘Reforming the spending control and accountability framework’, published on 26 October alongside the Budget. HMT and the department will consider any implications for the SLC’s delegations, in light of any changes which may be made to department’s delegations following this review.

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, whether his Department has recently proposed measures to ensure that fines against NHS trusts are ringfenced for spending on health matters.

Answered by Karin Smyth - Minister of State (Department of Health and Social Care)

The Care Quality Commission (CQC) has criminal enforcement powers to fine a health or social care provider where they identify a breach of regulations. The CQC can directly serve a fixed penalty notice to a provider, or a fine may be issued by the court following prosecution brought by the CQC.

Any fixed penalty paid to the CQC is not retained but must be passed on by the CQC to my Rt Hon. Friend, the Secretary of State for Health and Social Care. The CQC transfers the penalties received to the Department on a quarterly basis.

The size of the fine following prosecutions brought by the CQC is a decision made by the court and is informed by sentencing guidelines. The CQC does not have influence over this decision. The money raised by court fines is paid to HM Treasury.

The Department has not recently proposed any measures to change this.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what his timeline is for launching the proposed framework to scrutinise additional costs and levies on consumer energy bills.

Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

At the budget, the Chancellor agreed to subject any additional costs, including new levies, to enhanced scrutiny under a new framework to ensure they are affordable, represent value for money and do not impose unnecessary costs on households and businesses. The development of this new framework is underway with HM Treasury and we will provide an update in due course.

Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, with reference to page 132 of the Cabinet Office Annual report and accounts 2024-2025, published on 23 October 2025, for what reason his Department retained £90 million of dividends and returned £71 million of dividends to HM Treasury from the Crown Commercial Service.

Answered by Chris Ward - Parliamentary Secretary (Cabinet Office)

In the spending review 2021, HM Treasury agreed that dividends received from Crown Commercial Service were to be returned to HMT and would be compensated with an annual reserve claim of up to £71 million.

In the Autumn Budget 2024, HMT approved that in 2024-25, in addition to the annual reserve claim, the Cabinet Office may retain up to £196 million in income from dividends from the Crown Commercial Service.

Found: HMRC) as approved retailers and would be required to reduce the price of a litre of fuel 2 HM Treasury

Found: 32 NHS England, Three year delivery plan for maternity and neonatal services, March 2023 33 HM Treasury

Found: Judicial Offices Act 2022, s 1, s 39, and s 77 73 Public Service Pensions Act 2013, s 18 74 HM Treasury

Found: Auditor General, their staff and/or any appointed representatives of the National Audit Office; (d) HM Treasury

Found: Auditor General, their staff and/or any appointed representatives of the National Audit Office; (d) HM Treasury

Found: employees of other central banks, financial institutions and finance ministries to undertake a work HM Treasury

Found: The budget is prepared on value for money principles in accordance with the HM Treasury guidance ‘Managing

Found: PPM, Procurement, Property and Construction, Strategy, Technical.Payroll staff CostsPlease refer to HMT

Found: The total amount accrued is adjusted annually in line with a rate set by His Majesty’s Treasury (HMT

Found: authorities including Chief Constable of West Yorkshire Police v Homer [2012] UKSC 15, Bank Mellat v HM Treasury

Found: In total, DEC incorporates nine government departments, including HM Treasury, ONS, DCMS, DfE, the Ministry

Found: OFSI Group ID The unique HMT OFSI Consolidated List identifying code given to all entries relating to

Found: resources in carrying out its functions as set out in Managing Public Money, published by the HM Treasury

Found: Accounts Direction issued by the Secretary of State for Culture, Media and Sport with the consent of HM Treasury

Found: In particular, they report to the Cabinet Office and HM Treasury for all expenditure.

Found: In particular, they report to the Cabinet Office and HM Treasury for all expenditure.

Found: In particular, they report to the Cabinet Office and HM Treasury for all expenditure.

Found: auditor general, their staff and/or any appointed representatives of the National Audit Office; HM Treasury

Found: In particular, they report to the Cabinet Office and HM Treasury for all expenditure.

Found: In particular, they report to the Cabinet Office and HM Treasury for all expenditure.

Found: In particular, they report to the Cabinet Office and HM Treasury for all expenditure.

Found: In particular, they report to the Cabinet Office and HM Treasury for all expenditure.

Found: review involving Homes England, the Ministry of Housing, Communities and Local Government, and HM Treasury

Found: 3461 4444 | www.bankofengland.co.uk The Rt Hon Rachel Reeves Chancellor of the Exchequer HM Treasury

Found: HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ Andrew Bailey, Governor, Bank of England,

Found: deflators for June 202527; and • discounted according to the 3.5 per cent rate in line with the HM Treasury

Found: HM Treasury contacts ............................................................ 38 Introduction

Found: handbook Managing Public Money (“MPM”) as updated from time to time and has been approved by HM Treasury

Found: advocategeneral.gov.uk> Sent: 27 June 2025 10:13 To: [Redacted S.38(1)(b)], [Redacted S.38(1)(b)] - HMT