Oral Answers to Questions

Dan Tomlinson Excerpts

Tuesday 23rd June 2026 Commons Chamber

[Andrew Rosindell (Romford) (Reform)]

2. What steps she has taken to support people adversely affected by the loan charge.

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

The Government introduced legislation in the Finance Act 2026 to provide for a new settlement offer for those affected by the loan charge. The Government will write off the first £5,000 of liabilities, and that is in addition to the proposals put forward by the independent reviewer, Ray McCann.

[Andrew Rosindell]

The Minister will be aware that tens of thousands of people continue to suffer because of the loan charge scandal, and that successive Governments, both Labour and Conservative, have failed those people. They have dithered, delayed and ignored reviews, causing confusion, worsening the financial harm and anxiety for so many people. Surely the Minister must agree that the victims deserve resolution and closure, so that they can move on with their lives?

[Dan Tomlinson]

I do agree that those who have been affected by the loan charge need to be able to move on with their lives. That is why the Government put forward a generous settlement offer at the last Budget that went further than the proposals set out by the independent reviewer. I would just note that it was a Government that the hon. Gentleman supported for 14 years who introduced the loan charge and did not do enough to reform it for those who were affected by it.

[Euan Stainbank (Falkirk) (Lab)]

3. What steps she has taken to help support people with the cost of living in Falkirk.

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[Alex Easton (North Down) (Ind)]

4. What assessment she has made of the adequacy of the temporary reduction in the rate of VAT in supporting the hospitality sector in Northern Ireland.

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

I thank the hon. Member for giving me another chance to talk about the great British summer savings scheme, which the Chancellor has just talked us through. It is fantastic that it is coming into place in just a couple of days’ time and will run until the end of the summer holidays. It extends across all four nations of the United Kingdon, benefiting businesses in Northern Ireland as well as in Great Britain.

[Alex Easton]

Given Northern Ireland’s unique position in the United Kingdom, sharing an open border with the Republic of Ireland where the VAT rate is 13.5% for the hospitality industry, will the Chancellor look to reduce the rate of VAT for the hospitality sector in Northern Ireland—at minimum for a trial, if not permanently—to maintain price competitiveness, safeguard UK jobs and businesses, and make us more competitive with the Republic of Ireland?

[Dan Tomlinson]

I understand that the VAT rate in Northern Ireland is different from the rate in Ireland—there are different rates of VAT across Europe. It is important to remember that VAT is a national tax in the UK, at 20% across the country. It is important to have consistency for businesses operating across the UK. Significant cuts to VAT come with significant fiscal costs. For example, halving the rate of VAT on hospitality would cost the Exchequer about £11 billion.

[Claire Young (Thornbury and Yate) (LD)]

5. What steps she is taking to reform business rates.

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

I am very busy today, Mr Speaker, as ever. I thank the hon. Member for asking about business rates. She will know that we have already started the work of reforming the business rates system so that we can put in permanently lower multipliers for high street businesses. As part of tax update day, we will be consulting on ways to collect more of the VAT that online sellers dodge by making online marketplaces liable for VAT on both UK and overseas business sales of goods. We will put every penny of the additional revenue raised into improving the business rates system for high street businesses.

[Claire Young]

When I met Chipping Sodbury chamber of commerce recently, business owners told me that the business rates system is broken and unfair, in part because it is based on turnover, not profit. In response to a letter, the Exchequer Secretary promised to bear in mind the points that I had raised ahead of future Budgets. Does he now accept that the business rates system is broken, and that rather than being reformed it should be abolished and replaced with a fairer system?

[Dan Tomlinson]

We have a tax on profits in the UK, which is corporation tax. In our corporate tax road map, we have committed to keeping that stable in this Parliament, rather than having it jump around as it did in the last one. It is important to have a broad tax base, so it is reasonable for business rates to continue to be—as they have been since the late 1980s—set in accordance with an estimate of the rents of properties. I do not think it would be right to change that.

[Neil Duncan-Jordan (Poole) (Lab)]

The Minister will know that coastal towns, such as Poole, which I represent, rely on small businesses. Poole would not be Poole without its restaurants or ice cream parlours. Polling this week shows strong public support for higher levies on big tech. Could this be a way to raise revenue to cut business rates and support the bricks-and-mortar shops that give life to our high streets?

[Dan Tomlinson]

I understand my hon. Friend’s point. There are many businesses in rural and coastal communities across the country that we want to see thrive and grow, which is why the Chancellor announced the great British summer savings scheme, which will run until 1 September. On the point about the online giants, we are looking at further ways to raise more revenue by going after those online giants dodging VAT. In the last Budget, the Chancellor changed the multipliers in the business rates system so that the tax rate paid by a small high street business would be 33% lower than that paid by large properties, such as those occupied by online giants.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

It was recently reported that the newly elected hon. Member for Makerfield had pledged that he would cut business rates for pubs, clubs and music venues by 20% if he became Prime Minister. Given that the hon. Member is facing the near certainty of becoming Prime Minister, I ask those on the Front Bench whether the Treasury has started modelling the numbers to deliver on that pledge, and if not, when that work will begin.

[Dan Tomlinson]

I have to correct the Liberal Democrat spokesperson—I do not think that this hon. Member has a near certainty of becoming Prime Minister any time soon. [Laughter.] It is good that my newly elected right hon. Friend the Member for Makerfield (Andy Burnham) has taken inspiration from the decision that we made in January to cut business rates for pubs, bars and live music venues by 15% so that we can back the great British pub and other hospitality venues.

[Peter Lamb (Crawley) (Lab)]

6. Whether she plans to update the Treasury Green Book supplementary guidance on wellbeing. [R]

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[Euan Stainbank (Falkirk) (Lab)]

T4. The loss of Grangemouth’s refinery was a loss to Scotland’s economy. The Chancellor rightly consulted on including refined products in the carbon border adjustment mechanism to level the playing field for domestic refining—a level playing field the Tories did not pursue before the closure of Grangemouth was announced in 2023. Will the Chancellor meet me and other colleagues to discuss the merits of accelerating the inclusion of refined products in the CBAM?

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

I thank my hon. Friend for his strong representation on behalf of his constituency and the important refining industry. I have seen the letter to the Chancellor that has been sent by colleagues and I would be very happy to meet my hon. Friend and other interested Members.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

T3. Will the Chancellor explain why she is now clawing back VAT on the compassionate medicines scheme, which means that this Labour Government are taxing free cancer drugs given to children? Will she reverse that decision? Patients are starting to miss out on the treatments they really need.

[Dan Tomlinson]

I regret to inform the hon. Gentleman that that policy was implemented by his Government—[Interruption.] It was in 2023 that HMRC wrote to businesses that were not paying the VAT, unlike some others that were, and began the enforcement action—it started under his Government. However, I recognise the challenges that these rules are causing, so today I confirm that the Government will soon bring forward a new approach, consisting of either changes to the VAT rules or a reimbursement scheme. The changes will be effective for donations of medicines made on or after today.

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[Robin Swann (South Antrim) (UUP)]

In an earlier answer, the Minister ruled out a VAT reduction for hospitality businesses across the United Kingdom. Will he at least meet me, Hospitality Ulster and the Northern Ireland Food to Go Association to discuss the concept of a Northern Ireland-specific pilot?

[Dan Tomlinson]

I would of course meet the hon. Member.

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[Harriet Cross (Gordon and Buchan) (Con)]

In my constituency, we have lost the Scotbeef abattoir and the famous Donald Russell butchers in recent months, both of which were crucial to the agricultural supply chain. Both blamed high energy costs and the increased costs of doing business, such as the huge rises in national insurance under this Government and big business rate rises under the SNP. What steps is the Treasury taking to support, not suffocate, the agricultural supply chain and other crucial elements of the farming sector?

[Dan Tomlinson]

I thank the hon. Member for the representations she makes on behalf of the businesses in her constituency. This Government are taking every step we can—within the tight fiscal constraints that we inherited from the previous Government—to reform, and invest in, our business rates system so that we can raise revenue in a fair and sustainable way. I am sure that the Chancellor and colleagues across Government will continue to listen to representations and consider what further changes we can make at the Budget to support businesses.

[David Burton-Sampson (Southend West and Leigh) (Lab)]

T10. The Tory Government squandered billions of pounds of public money on covid fraud, waste and corruption. Will the Chancellor tell the House what measures she is taking to address this issue on behalf of taxpayers?