Asked by: Josh Newbury (Labour - Cannock Chase)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the removal of the automatic wear-and-tear allowance for childminders as part of the Making Tax Digital reforms, what steps she will take to ensure childminders receive tax relief for incidental expenses arising from the use of their home for their business.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Childminders play a vital role in childcare. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers.
At Budget 2025 the Government confirmed that the standard rules for calculating income tax would apply to childminders who are mandated into Making Tax Digital (MTD). We will phase in this change between 2026 and 2028, in line with the MTD income thresholds. The threshold from April 2026 is £50,000 of qualifying income, reducing to £30,000 from April 2027 and £20,000 from April 2028.
Childminders can continue to claim tax relief for wear and tear by deducting the actual cost of buying, repairing or replacing items. They can also deduct the cost of business expenses such as utilities, cleaning and equipment. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business.
Asked by: Josh Newbury (Labour - Cannock Chase)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the removal of the automatic wear-and-tear allowance on (a) growth in the childminding sector and (b) the number of childcare places available to parents.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Childminders play a vital role in childcare. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers.
At Budget 2025 the Government confirmed that the standard rules for calculating income tax would apply to childminders who are mandated into Making Tax Digital (MTD). We will phase in this change between 2026 and 2028, in line with the MTD income thresholds. The threshold from April 2026 is £50,000 of qualifying income, reducing to £30,000 from April 2027 and £20,000 from April 2028.
Childminders can continue to claim tax relief for wear and tear by deducting the actual cost of buying, repairing or replacing items. They can also deduct the cost of business expenses such as utilities, cleaning and equipment. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business.
Asked by: Josh Newbury (Labour - Cannock Chase)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations she has received on the potential impact of the planned rise in fuel duty on motorists.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2025, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut until the end of August 2026. Rates will then gradually return to early 2022 levels. The planned increase in line with inflation for 2026-27 will not take place, with the government uprating fuel duty rates by RPI from April 2027. This will save the average car driver £49 next year compared to previous plans.
The Government received and considered a wide variety of representations in the approach to Budget 2025.
Asked by: Josh Newbury (Labour - Cannock Chase)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of vehicles rented by her Department are electric vehicles.
Answered by James Murray - Chief Secretary to the Treasury
Carbon emission details, including vehicles rented, will be published later this year within in the Sustainability Report section of HM Treasury 2024-25 Annual Report and Accounts. This will be published at the following link.
HMT annual report and accounts - GOV.UK
Asked by: Josh Newbury (Labour - Cannock Chase)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of zero-rating Value Added Tax on admission fees for indoor play facilities.
Answered by James Murray - Chief Secretary to the Treasury
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. The Government has no plans to zero-rate VAT on admission fees for indoor play facilities.
The Government keeps all taxes under review.
Asked by: Josh Newbury (Labour - Cannock Chase)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had recent discussions with representatives of the indoor play sector on her planned review of business rates.
Answered by James Murray - Chief Secretary to the Treasury
HM Treasury releases a quarterly record of Ministers’ meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travelAt the Autumn Budget, the government published the Transforming Business Rates Discussion Paper, which sets out priority areas for reform. This paper invited stakeholders to help co-design a fairer business rates system that supports investment and is fit for the 21st century. Engagement will take place over the coming months with stakeholders who registered interest by the 15 November deadline, and the government is open to receiving further written evidence to transformingbusinessrates@hmtreasury.gov.uk.
Asked by: Josh Newbury (Labour - Cannock Chase)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking with Cabinet colleagues to support the growth of co-operatives.
Answered by Tulip Siddiq
The Government recognises the important contribution of co-operatives to the economy, serving local communities around the UK and ensuring the UK has a diverse business sector with their model of shared ownership. There are currently 7,370 co-operatives operating across the UK, with an annual income of £42.7 billion.
The Government is committed to unlocking the full potential of the mutual and co-operative sector to support inclusive growth and will work with the sector to ensure it is fully supported to grow.
To help ensure co-operatives legislation is meeting the needs of co-operative and community benefit societies, the Government is funding the Law Commission’s independent review of the Co-operative and Community Benefit Societies Act 2014. This will consider ways to update and modernise the Act.
Asked by: Josh Newbury (Labour - Cannock Chase)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made with the Secretary of State for Energy Security and Net Zero, of the potential merits of removing VAT from refrigerants used in heat pumps.
Answered by James Murray - Chief Secretary to the Treasury
No assessment has been made. The installation of certain energy-saving materials, including ground- and air- source heat pumps, in residential accommodation and charity buildings benefits from a temporary zero rate of VAT until 31 March 2027 (after which it reverts to the reduced rate of 5 per cent).
There are currently no plans to extend this relief to include the sale of the components used in energy-saving materials, where they are not part of such an installation. However, the Chancellor keeps all taxes under review.