Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the total revenue received to HM Treasury was from VAT on sales of petrol and diesel in the calendar month of February for each of the past 10 years.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The information is not available. HMRC does not hold information on VAT revenue from specific products or services because businesses are not required to provide figures at a product level on their VAT returns, as this would impose an excessive administrative burden.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the total revenue received by the Exchequer from fuel duty was in each of the last five years.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
During the previous five calendar years, the following amounts of revenue have been received by HM Revenue and Customs (HMRC) from Fuel Duty (also referred to as hydrocarbon oils):
2017: £27,974 million
2018: £27,929 million
2019: £27,796 million
2020: £22,646 million
2021: £24,828 million [provisional]
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the projected revenue from fuel duty is for the 2021-22 financial year.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Office for Budget Responsibility’s (OBR) latest update of its forecast was published on 27 October 2021 in the October 2021 Economic and fiscal outlook (EFO). It was forecast that fuel duty revenues would amount to £26.8 billion in 2021-22. The full EFO is available to view here: https://obr.uk/efo/economic-and-fiscal-outlook-october-2021/
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the projected level of economic activity in the hospitality sector when VAT returns to 20 per cent in the sector.
Answered by Lucy Frazer
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Budget 2021, the Government has extended the temporary reduced rate of VAT of 5% for the tourism and hospitality sector. This relief ended on 30 September. On 1 October 2021, a new reduced rate of 12.5% was introduced to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.
This relief will cost over £7 billion and, while all taxes are kept under review, there are no plans to extend the 12.5% reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the cash flow and viability of sectors that have been severely affected by COVID-19. It is appropriate that as restrictions are lifted and demand for goods and services in these sectors increases, the temporary tax reliefs are first reduced and then removed in order to rebuild and strengthen the public finances.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with representatives of the hospitality industry on the impact of VAT rates returning to 20 per cent by 2022.
Answered by Lucy Frazer
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Budget 2021, the Government has extended the temporary reduced rate of VAT of 5% for the tourism and hospitality sector. This relief ended on 30 September. On 1 October 2021, a new reduced rate of 12.5% was introduced to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.
This relief will cost over £7 billion and, while all taxes are kept under review, there are no plans to extend the 12.5% reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the cash flow and viability of sectors that have been severely affected by COVID-19. It is appropriate that as restrictions are lifted and demand for goods and services in these sectors increases, the temporary tax reliefs are first reduced and then removed in order to rebuild and strengthen the public finances.