Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent changes to (a) business rates relief, (b) VAT and (c) employer's National Insurance contributions on (i) small and medium-sized hospitality businesses and (ii) independent pubs and restaurants in rural constituencies.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the vital role that all hospitality businesses play in supporting the UK’s economy and communities.
That is why, as set out at Autumn Budget 2024, the Government will introduce permanently lower business rates multipliers for retail, hospitality and leisure (RHL) properties with ratable values below £500,000 from 2026-27. Ahead of the new multipliers being introduced, the Government prevented RHL business rates relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business. By extending the RHL relief, the Government has saved the average pub, with a ratable value of £16,800, over £3,300. Without any Government intervention, the RHL relief would have ended entirely.
To ensure that key amenities are available, and that community assets are protected in rural areas, Rural Rates Relief provides 100% business rates relief for certain properties in eligible rural areas with populations below 3,000, including those that are the only public house, with a RV of up to £12,500.
The 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, and the Office for Budget Responsibility forecasts employment levels to increase over the coming years.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of the Lifetime ISA price threshold on prospective first-time buyers in Chichester constituency.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Data from the latest UK House Price Index shows that while the average price paid by first-time buyers has increased, it is still below the LISA property price cap in all regions of the UK except for London, where the average price paid is affected by boroughs with very high property values.
HMRC commits to publishing all research in their Annual Report and Accounts. The findings from all strands of research on the LISA will be published in due course.
The Government keeps all aspects of savings tax policy under review.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to HM Treasury’s consultation on the tax treatment of online gambling, whether her Department has made an assessment of the potential impact of harmonising remote betting and gaming duties on (a) turnover in horserace betting, (b) receipts to the Horserace Betting Levy, (c) employment across the racing and racecourse sectors, and (d) Exchequer revenues.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government consultation on proposals to simplify the current gambling tax system by merging the three current taxes that cover remote (including online) gambling into one closed on 21 July 2025. Responses are now being analysed and a response to the consultation will be published at Autumn Budget 2025.
If any changes are made to gambling duties at a future Budget following the consultation, they will be accompanied by a Tax Information and Impact Note which will set out the expected impacts.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential (a) impact of the Lifetime ISA price cap on prospective first-time buyers in the South East and (b) merits of introducing regionalised property caps on Lifetime ISAs.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Data from the latest UK House Price Index shows that while the average price paid by first-time buyers has increased, it is still below the LISA property price cap in all regions of the UK except for London, where the average price paid is affected by boroughs with very high property values.
HMRC commits to publishing all research in their Annual Report and Accounts. The findings from all strands of research on the LISA will be published in due course.
The Government keeps all aspects of savings tax policy under review.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to review Business Rates.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is committed to creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
At Autumn Budget 2024, we took the first step with the announcement of permanently lower tax rates for the Retail, Hospitality and Leisure properties that make up the backbone of our high streets, from 2026-27.
The Budget announcements reflected the Government’s first steps to support the high street. We wanted to go further to modernise the system, and so, we published a Discussion Paper, setting out priority areas for reform and inviting industry to co-design a fairer system.
The Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of HMRC developing Making Tax Digital software without using third-party providers.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has always maintained that it would not offer its own software products for Making Tax Digital. This helps to ensure a competitive market which will better support taxpayers with a flexible and tailored range of software that integrates with other business management tools. This includes free and low-cost options, which would be undermined by an HMRC produced solution. Third party developers are also well placed to build the necessary help and support within their products that is particularly important for unrepresented customers or those who do not already use digital tools to manage their affairs.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of exempting infected blood scandal compensation payments from Inheritance Tax when such payments are transferred to the next of kin of deceased victims.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Infected Blood compensation payments are relieved from inheritance tax under Schedule 15 of the Finance Act 2020. This is applied to the estate of the recipient of the compensation payment. Where these payments are subsequently inherited, they become part of the beneficiary’s estate and are subject to standard inheritance tax rules, in line with normal practice for compensation schemes.
This ensures victims receive full compensation without tax burdens whilst maintaining fairness in the tax system and protecting the public finances.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of trends in levels of charges incurred at ports due to customs procedures on small businesses.
Answered by James Murray - Chief Secretary to the Treasury
HMRC and Border Force do not typically charge for any customs related processes or checks carried out at ports, and any costs levied at ports are a commercial matter for port operators. HMRC is committed to making customs processes as simple as possible while ensuring effective checks are in place at the border and to reducing trader burden related to complying with customs obligations.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of a reduction on the savings limit on Individual Savings Accounts on savers.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government is committed to incentivising greater saving and investment. Individual Savings Accounts (ISAs) help people save for their future goals and build greater financial resilience.
The Government recognises the important role that cash savings play in helping households build a financial buffer for a rainy day. The Government also wants to see more consumers participate in capital markets and benefit from the long-term financial security and returns that investing can provide.
The impact of any changes to ISAs would be set out in a tax information impact note. The Government continues to keep all aspects of savings policy under review.
Asked by: Jess Brown-Fuller (Liberal Democrat - Chichester)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of changes to orchestral tax relief for International work on the orchestral sector's ability to deliver loss-making activities in the UK.
Answered by James Murray - Chief Secretary to the Treasury
The UK provides world-leading support for orchestras: at Autumn Budget 2024, the Government confirmed that from 1 April 2025, the rate of Orchestra Tax Relief (OTR) will be set at the generous rate of 45%.
From April 2024, qualifying expenditure is expenditure incurred on goods or services that are ‘used or consumed in the UK’, replacing the previous rule that qualifying costs were those incurred on goods and services provided from the UK or EEA. To ease the transition to the new rule, orchestras with concerts in train on 1 April 2024 were permitted to continue claiming relief on goods and services provided from within the EEA until 31 March 2025.
It is appropriate to refocus orchestra tax relief on UK expenditure now that the UK has left the EU. Under the new rule, the relief incentivises activity within the UK, rather than the UK and the EEA.