Asked by: Martin Vickers (Conservative - Brigg and Immingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of introducing targeted business rates relief for food and drink wholesalers.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published the ‘Transforming Business Rates’ Discussion Paper at Budget setting out priority areas for reform. This paper invites industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. Further information regarding the Discussion Paper can be found at: Transforming business rates - GOV.UK.
Asked by: Martin Vickers (Conservative - Brigg and Immingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she plans to take to ensure that the business rates system supports the sustainability of food and drink wholesalers.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published the ‘Transforming Business Rates’ Discussion Paper at Budget setting out priority areas for reform. This paper invites industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. Further information regarding the Discussion Paper can be found at: Transforming business rates - GOV.UK.
Asked by: Martin Vickers (Conservative - Brigg and Immingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the impact of the higher multiplier on properties with a rateable value of £500,000 and above on the food and drink wholesale sector.
Answered by James Murray - Exchequer Secretary (HM Treasury)
As set out at Autumn Budget 2024, the Government intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, from 2026-27. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on all properties with a rateable value (RV) of £500,000 and above.
The Government will confirm the rates for the new multipliers at Budget 2025, taking account of the outcomes of the 2026 revaluation as well as the broader economic and fiscal context.
Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025 – to take effect in the 2026-27 billing year – HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.
Asked by: Martin Vickers (Conservative - Brigg and Immingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential financial impact of the classification of wholesale premises as online retail warehouses on the food and drink wholesale sector; and what steps she is taking to reduce this impact.
Answered by James Murray - Exchequer Secretary (HM Treasury)
As set out at Autumn Budget 2024, the Government intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, from 2026-27. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on all properties with a rateable value (RV) of £500,000 and above.
The Government will confirm the rates for the new multipliers at Budget 2025, taking account of the outcomes of the 2026 revaluation as well as the broader economic and fiscal context.
Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025 – to take effect in the 2026-27 billing year – HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.
Asked by: Martin Vickers (Conservative - Brigg and Immingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the impact of the higher multiplier on properties with a rateable value of £500,000 and above on the costs incurred by retail, hospitality and leisure businesses (RHL) businesses.
Answered by James Murray - Exchequer Secretary (HM Treasury)
As set out at Autumn Budget 2024, the Government intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, from 2026-27. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on all properties with a rateable value (RV) of £500,000 and above.
The Government will confirm the rates for the new multipliers at Budget 2025, taking account of the outcomes of the 2026 revaluation as well as the broader economic and fiscal context.
Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025 – to take effect in the 2026-27 billing year – HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.
Asked by: Martin Vickers (Conservative - Brigg and Immingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps she is taking to help attract foreign direct investment into green industries in the (a) Humber and (b) UK.
Answered by Tulip Siddiq
The Treasury will continue to develop policy that supports investment in partnership with business. Investment is at the heart of this Government’s growth mission and essential to increasing the number of jobs and improving productivity across the country. The Department for Business and Trade has a dedicated investment function in the UK and overseas, including the Office for Investment.
The Government is taking forward the reforms necessary to ensure foreign investors have the support needed to invest. This includes setting up new institutions such as Great British Energy, which will combine the power of the private sector and government to accelerate the UK’s clean energy transition, and the National Wealth Fund which will mobilise billions more in private investment in the UK’s green and growth sectors.
The Chancellor will set out more detail on the National Wealth Fund ahead of the International Investment Summit in October.
Asked by: Martin Vickers (Conservative - Brigg and Immingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential impact of the domestic Air Passenger Duty band announced on 22 July 2022 on the number of passengers travelling by train between UK cities.
Answered by James Cartlidge - Shadow Secretary of State for Defence
At Autumn Budget 2021, the Government announced that, from April 2023, it will introduce a new reduced domestic band of Air Passenger Duty (APD) set at £6.50 for economy passengers. The new domestic band will cover flights between England, Scotland, Wales and Northern Ireland, in order to support connectivity across the UK. As a result, around 9 million passengers will pay lower rates of APD in 2023-24.
The Government will also introduce a new ultra long-haul band, which will ensure that those who fly furthest, and have the greatest environmental impact, will pay the most.
The announcement of these reforms to APD followed the 2021 consultation on aviation tax reform, full details of which can be found on GOV.UK: https://www.gov.uk/government/consultations/consultation-on-aviation-tax-reform. On 20 July 2022, the legislation and tax information and impact note (TIIN) was published in draft on GOV.UK: https://www.gov.uk/government/publications/air-passenger-duty-banding-reforms-from-april-2023. The TIIN provides a summary of impacts.
During the COVID-19 pandemic rail ridership fluctuated widely, with the Government providing more than £16 billion of funding for rail passenger services from when it started until now. This is in addition to over £35 billion of capital investment over the Spending Review period including High Speed Two, rail enhancements and vital renewals to boost connectivity across the country – focusing on the Midlands and the North.
Asked by: Martin Vickers (Conservative - Brigg and Immingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions officials in his Department have had with representatives of stakeholder groups on the approval of the Shared Outcome Fund bid for the creation of a National Skills Academy for Maritime (Shipbuilding).
Answered by Steve Barclay
HMT Officials are in regular contact with stakeholders. But it is the responsibility of the Ministry of Defence, who are leading the National Skills Academy for Maritime bid, to engage with relevant stakeholders prior to submission of the bid.
This Government is committed to supporting people to develop the skills needed to get good jobs and improve national productivity. The Department for Education recently published the ‘Skills for Jobs’ White Paper which sets out how the government will put employers at the heart of the skills system to ensure skills provision meets local labour market needs.
The Shared Outcomes Fund encourage Departments to work together to overcome some of the most difficult social, environmental and economic challenges that sit across the areas of responsibility of multiple public sector organisations.
The second round of the Shared Outcomes Fund, announced at Spending Review 2020, will provide a further £200 million for projects to improve the join up across government.
The assessment process to award the funding is ongoing.
Asked by: Martin Vickers (Conservative - Brigg and Immingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussion he has had with the Secretary of State for (a) Work and Pensions and (b) Health and Social Care on reform of the tax exemption for employer-funded medical treatment.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Employers normally incur expenditure on employee healthcare for a business purpose and can deduct this when calculating the employer’s own taxable profits.
However, from 1 January 2015, the Government also exempted any benefit in kind or payment of earnings, up to an annual cap of £500 per employee, from a charge to income tax when an employer meets the cost of recommended medical treatment. There is also a corresponding National Insurance contributions disregard.
Medical treatment is recommended where it is provided in accordance with a recommendation from an occupational health service in order to help an employee return to work after a period of absence due to ill-health or injury. The 28 consecutive day qualifying period makes sure that the tax exemption is targeted at those cases in greatest need of support. Evidence showed that sickness absence cases lasting four weeks or longer were at the greatest risk of turning into long term cases.
The Government ensured that this exemption would be easy to understand and administer, so employers do not need to inform HMRC about payments for treatments covered by the £500 per employee per year limit. This means that information is not available to assess the direct impact of the exemption. However, the Government estimated in 2014 that employees working for approximately 10,000 businesses each year would benefit and Table 2.2 of Budget 2014 set out the expected cost to the Exchequer of £20 million per annum by 2018-19.
The Government keeps all taxes under review.
Asked by: Martin Vickers (Conservative - Brigg and Immingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has any plans to amend the Income Tax (Recommended Medical Treatment) Regulations 2014 to incentivise employers to support staff returning to work after a period of sickness absence; and what assessment he has made of the effect of the 28 consecutive day qualifying period on the number of staff returning to work.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Employers normally incur expenditure on employee healthcare for a business purpose and can deduct this when calculating the employer’s own taxable profits.
However, from 1 January 2015, the Government also exempted any benefit in kind or payment of earnings, up to an annual cap of £500 per employee, from a charge to income tax when an employer meets the cost of recommended medical treatment. There is also a corresponding National Insurance contributions disregard.
Medical treatment is recommended where it is provided in accordance with a recommendation from an occupational health service in order to help an employee return to work after a period of absence due to ill-health or injury. The 28 consecutive day qualifying period makes sure that the tax exemption is targeted at those cases in greatest need of support. Evidence showed that sickness absence cases lasting four weeks or longer were at the greatest risk of turning into long term cases.
The Government ensured that this exemption would be easy to understand and administer, so employers do not need to inform HMRC about payments for treatments covered by the £500 per employee per year limit. This means that information is not available to assess the direct impact of the exemption. However, the Government estimated in 2014 that employees working for approximately 10,000 businesses each year would benefit and Table 2.2 of Budget 2014 set out the expected cost to the Exchequer of £20 million per annum by 2018-19.
The Government keeps all taxes under review.