Asked by: Dan Aldridge (Labour - Weston-super-Mare)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to reduce the rate of VAT for the hospitality and tourism sector.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.
Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations. The exceptional VAT relief for tourism and hospitality during the Covid-19 pandemic cost over £8 billion. The Government has no current plans to change the VAT rate for the hospitality and tourism sector.
Asked by: Dan Aldridge (Labour - Weston-super-Mare)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps with Cabinet colleagues to increase taxation on (a) higher-polluting vehicles and (b) tax pickup trucks used for personal purposes as private vehicles.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government uses the tax system to support a variety of objectives including our legally binding climate targets, including the transition to electric vehicles (EVs).
At Autumn Budget 2024, the Government announced changes to the Vehicle Excise Duty (VED) first year rates from 1 April 2025, to introduce higher rates for hybrid and petrol/diesel vehicles for 2025-26, and freeze the rate for zero emission vehicles until 2029-30.
The Budget also announced new company car tax rates for 2028-29 and 2029-30, which gradually increase the rates for both petrol/diesel and electric vehicles whilst restricting incentives for hybrid vehicles, which research has shown are over three times more polluting than previously thought.
Cars are treated according to their emissions under the capital allowances system; and company cars made available for private use are also taxed according to their CO2 emissions under the benefit in kind regime.
From April 2025 this includes some pick-up trucks such as double cab pick-ups and extended cab pick-ups. These vehicles will be charged a higher rate for the benefit in kind, and be eligible for lower capital allowances reflecting their generally higher emissions.