Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment she has made of (a) differences in vehicle excise duty between electric and petrol vehicles and (b) the impact of those vehicles on road conditions and associated maintenance costs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Vehicles used or kept on public roads pay Vehicle Excise Duty (VED). Cars registered on or after 1 April 2017 pay a variable first year VED rate according to the emissions of the vehicle, before moving to a standard annual rate after the first year.
From 1 April 2025, the VED first year rates have also changed to support the take-up of electric vehicles (EVs), with higher rates for higher emitting hybrid and petrol/diesel vehicles, and the lowest rate for zero emission cars being frozen until 2029/30.
The increasing weight of all road vehicles, both EVs and their petrol and diesel counterparts, is one of many factors affecting the condition of our roads. It is the much heavier commercial vehicles, rather than passenger vehicles, that cause the most wear and tear to road surfaces and other highway structures.
When making changes to the tax system, the Government considers a range of trade-offs, such as complexity in the tax system and administrative burdens.
The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has undertaken modelling of the potential impact of introducing an overnight visitor levy on tourism demand in terms of a) number of nights stayed by domestic and international visitors, b) number of visits by domestic and international visitors, c) accommodation spend linked to number of nights spent in accommodation and d) tourism spend.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth, including through support for the local visitor economy.
At Budget, the Government published a consultation so that the public, businesses, and local government could shape the design of these powers, including options to minimise the burden on businesses and communities. This consultation closed on the 18th of February and the Government will publish a response in due course.
The precise design and scope of the power for Mayors to introduce a visitor levy is still under development, and the impacts of the levy will largely be determined by local decisions. Evidence from international and domestic schemes suggested modest rates have minimal impact on visitor numbers. 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 any concerns. Following consultation, we expect Mayors to publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has undertaken modelling on the potential impact of introducing an overnight visitor levy on a) high street footfall, b) numbers of empty shops and c) social mobility.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth, including through support for the local visitor economy.
At Budget, the Government published a consultation so that the public, businesses, and local government could shape the design of these powers, including options to minimise the burden on businesses and communities. This consultation closed on the 18th of February and the Government will publish a response in due course.
The precise design and scope of the power for Mayors to introduce a visitor levy is still under development, and the impacts of the levy will largely be determined by local decisions. Evidence from international and domestic schemes suggested modest rates have minimal impact on visitor numbers. 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 any concerns. Following consultation, we expect Mayors to publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has undertaken an assessment of the potential impact of an overnight visitor levy on (a) employment in the hospitality and tourism sector, (b) regional growth and (c) tax receipts, including (i) VAT, (ii) income tax and (iii) National Insurance contributions associated with overnight stays and related visitor spending.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth, including through support for the local visitor economy.
At Budget, the Government published a consultation so that the public, businesses, and local government could shape the design of these powers, including options to minimise the burden on businesses and communities. This consultation closed on the 18th of February and the Government will publish a response in due course.
The precise design and scope of the power for Mayors to introduce a visitor levy is still under development, and the impacts of the levy will largely be determined by local decisions. Evidence from international and domestic schemes suggested modest rates have minimal impact on visitor numbers. 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 any concerns. Following consultation, we expect Mayors to publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has undertaken modelling of the potential impact of introducing an overnight visitor levy on the economy in terms of a) jobs, b) GDP, c) sectoral investment and d) net tax benefit.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth, including through support for the local visitor economy.
At Budget, the Government published a consultation so that the public, businesses, and local government could shape the design of these powers, including options to minimise the burden on businesses and communities. This consultation closed on the 18th of February and the Government will publish a response in due course.
The precise design and scope of the power for Mayors to introduce a visitor levy is still under development, and the impacts of the levy will largely be determined by local decisions. Evidence from international and domestic schemes suggested modest rates have minimal impact on visitor numbers. 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 any concerns. Following consultation, we expect Mayors to publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to respond to Question 126382 from the Hon. Member for Windsor.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The answers to PQs UIN126382, UIN 126383 & UIN 126384 have been answered on 16 April 2026. This was within the Parliamentary deadline.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to respond to Question 126383 from the Hon. Member for Windsor.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The answers to PQs UIN126382, UIN 126383 & UIN 126384 have been answered on 16 April 2026. This was within the Parliamentary deadline.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to respond to Question 126384 from the Hon. Member for Windsor.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The answers to PQs UIN126382, UIN 126383 & UIN 126384 have been answered on 16 April 2026. This was within the Parliamentary deadline.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of taxes on the hospitality sector in (a) 2024, (b) 2025 and (c) the first quarter of 2026; and what assessment she has made of the potential impact of further tax on hospitality businesses’ (i) confidence, (ii) profitability and (iii) ability to expand.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the important contribution that businesses in the hospitality sector make to local communities, the high street and the wider economy across the UK. The potential impacts of changes on this sector are carefully considered as part of policy development.
Where changes are made, relevant impact notes and assessments are published at fiscal events and otherwise as necessary, in line with the Government’s usual practice. The Treasury and other government departments also engage regularly with the hospitality sector to understand the challenges they face.
The Government continues to provide targeted support to the hospitality sector through the tax system and other policies and keeps all areas of the tax system under review.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has (a) undertaken and (b) commissioned an impact assessment on the potential effects of introducing an overnight visitor levy on the hospitality and tourism industry.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth, including through support for the local visitor economy.
At Budget, the Government published a consultation so that the public, businesses, and local government could shape the design of these powers, including options to minimise the burden on businesses and communities. This consultation closed on the 18th of February and the Government will publish a response in due course.
The precise design and scope of the power for Mayors to introduce a visitor levy is still under development, and the impacts of the levy 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 any concerns. Following consultation, we expect Mayors to publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment.