Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
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.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with regulators on reviewing rules on credit unions offering insurance products such as income protection.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Credit unions are regulated by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) to ensure the stability and soundness of the sector. The regulators are independent and make decisions on the regulation of credit unions in line with their statutory objectives.
Credit unions themselves are not insurance providers. Following the Financial Services and Markets Act 2023, credit unions were given clearer permissions to act as distributors, enabling their members to access insurance products through partner firms. This does not allow credit unions to underwrite insurance themselves, and any arrangements made under these rules would be subject to the regulators' consumer protection rules.
In response to a request from HM Treasury, the PRA and FCA published reports on the mutuals sector on 5 December. As part of this, the regulators have committed to reviewing the regulatory framework governing credit unions.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what place based funding allocations has the Government confirmed for each area in the UK for the current spending review period.
Answered by James Murray - Chief Secretary to the Treasury
The government is investing billions in city regions, towns and communities across the UK as a commitment to driving growth everywhere.
This includes, for example, the historic £15.6 billion investment in transport infrastructure in major city regions outside London; £410 million for a Local Innovation Partnerships Fund to support local leaders to drive innovation excellence in key sectors across the UK; at least £13 billion of funding via Integrated Settlements from 2026-27 to 2029-30 for seven Mayoral Strategic Authorities; and a Local Transport Grant providing £2.3 billion to enable local authorities to deliver transport improvements.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made of trends of junior bank account openings and levels of savings for young people since 2015.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Ensuring that individuals have access to appropriate financial services and products is a key Government priority. This is vital for supporting financial resilience and wellbeing and enables people, including young people, to fully participate in the economy.
HM Treasury does not hold data on junior current account openings specifically. However, the Money and Pensions Service’s (MaPS) UK Strategy for Financial Wellbeing 2020–2030 reports that one in ten 16- to 17-year-olds have no bank account at all. Of those who do have accounts, 30% have never deposited money.
Through the Financial Inclusion Strategy, the Government is working with schools and the Money and Pensions Service to improve young people’s financial capability. As part of this, financial education will become compulsory in primary schools in England through a new statutory requirement to teach citizenship. In 2025–26, MaPS will also pilot its Talk, Learn, Do programme, which helps parents have money conversations with their children. The pilot will run through five family hubs and other organisations that support families in England, with the aim of achieving sustainable scale across the UK.
The Government is also supportive of industry’s efforts to develop age-appropriate products and services for young people.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made of the potential impact of coordinating place-based (a) Government funding and (b) philanthropic, institutional and private sector investment on regional growth.
Answered by James Murray - Chief Secretary to the Treasury
Following a review of the Green Book, the government has announced the introduction of place-based business cases. This new approach will highlight the reinforcing effects of different investments within an area and better coordinate both public sector funding decisions and non-public sector investments in specific places to support growth. Liverpool, Plymouth, Port Talbot and Birmingham will be the first adopters of place-based business cases. The government will set out plans to rollout place-based business cases further in due course.
More widely, Government is giving local leaders and communtiies the power and resources to make decisions for their places.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had discussions with banks on maintaining high street branches to 2030.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Chancellor and Treasury Ministers regularly engage with banks on a range of issues, including access to banking services.
Banking is changing, with many customers benefiting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to high streets and communities and is committed to championing sufficient access for customers. The financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 190 are already open. Government is working closely with industry on this commitment.
While decisions on branch provision are commercial decisions for banks themselves, Financial Conduct Authority guidance requires firms to conduct a robust impact analysis. In the case of closures, firms 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 firms must ensure that any replacement services are in place before a branch closes. These measures aim to ensure closures are implemented fairly and transparently.
As well as bank branches, alternative non-digital options to access everyday banking services include telephone banking and the Post Office. The Post Office Banking Framework allows personal and business customers of participating banks to withdraw and deposit cash, check their balance, pay bills and cash cheques at thousands of Post Office branches across the UK.
Some banks also provide points of access through initiatives such as pop-up services in libraries and community centres, or mobile banking vans serving remote areas. The Government supports initiatives which give customers access to in-person banking, as well as digital access.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to further regulate business lending where (a) a private residence is used as security (b) personal guarantees are required as a condition of the loan.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government has set out its plans in this area in its small business strategy, ‘Backing Your Business’, published this summer, and in the Government’s reply to the Call for Evidence on SME Finance, published earlier this month.
As set out in the Government’s small business strategy, the Government is committed to working with lenders to ensure the appropriate use of personal guarantees. This includes the introduction of a mandatory Code of Conduct for accredited lenders that use the British Business Bank’s Growth Guarantee Scheme, to ensure that personal guarantees under the Scheme are used fairly and transparently.
The Government is also working with UK Finance to build on its existing lender commitments to use personal guarantees responsibly, and with the business finance community to help businesses access the right finance on the right terms, including where personal guarantees are involved.
More widely, personal guarantees can play a necessary role in business lending, where they may help enable SMEs to access lending that might otherwise not be advanced, or where the price of lending would deter SMEs from accessing finance. This includes cases where a business has limited or no trading history, nor assets for use as collateral to access debt finance. While personal guarantees may be called upon, this does not automatically result in enforcement action, and property repossessions linked to personal guarantees remain rare.
The Government will continue to keep the issues relating to personal guarantees under review and promote further transparency around their use.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate has been made of the value of the tourism levy by mayoral combined authority area.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The precise design and scope of the power for Mayors to introduce a visitor levy if they so choose is still under development.
The Government has published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders.
The impacts of the levy, including how much it will raise, will largely be determined by local decisions. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear their concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is raised. Giving this power to local leaders who best understand their region enables them to tailor it to growing their local economies.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made of the potential impact of the lower rate of business rates retail, hospitality and leisure multipliers, revaluation, and transition arrangements on pubs, bars and restaurants.
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, including those in the hospitality sector 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.
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 new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. 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.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has been made of the potential impact of proposed changes to the annual subscription limit of ISA savings for under-65s on the range of building society lending products.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
This government’s number one priority is growth, putting more money in people’s pockets and creating an economy that both works for and rewards working people.
A key part of this is people’s savings, which are not working hard enough for them or the economy because hundreds of millions of pounds are sitting in low-interest earning accounts.
We want to get more people investing so they can also benefit from the growth of the FTSE which has grown by 50% in the last 5 years.
Investing generates better returns over the long term, and this is about getting the balance right cash savings and investment. If you invested £1,000 a year in an average stocks and shares ISA every year from 1999, you would be £50,000 better off compared to having saved the same amount in a cash ISA
This policy will affect those aged under 65 from April 2027, but the overall ISA limit will remain at £20,000 for all savers when the annual Cash ISA limit is set at £12,000. It will not affect existing cash ISA savings.
The government regularly engages with the building societies sector to understand how best to support its growth.