Asked by: Paul Holmes (Conservative - Hamble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the revenue raised by the Residential Property Developer Tax.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Residential Property Developer Tax (RPDT) is a 4% tax on the most profitable businesses undertaking UK residential property development to help pay for building safety remediation. The tax applies to developers' profits exceeding an annual allowance of £25 million for an accounting period.
The tax forms part of the government’s broader programme of work on building safety, which also includes significant capital funding (around £5.1bn) to remediate unsafe cladding on high-risk buildings.
According to HMRC’s latest Corporation Tax statistics, the tax raised £157 million in 2022-23 and £103 million in 2023-24.
Asked by: Paul Holmes (Conservative - Hamble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans she has for revising her policy on accepting hospitality from the (a) football and (b) music industry.
Answered by James Murray - Exchequer Secretary (HM Treasury)
I refer the hon. Member to the answers by my hon. Friend, the Minister without Portfolio, during the Urgent Question, Reporting Ministerial Gifts and Hospitality, on 14 October 2024, Official Report, Columns 594-602.
Asked by: Paul Holmes (Conservative - Hamble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether (a) her Department and (b) the Office for Budget Responsibility has made an assessment of a potential Laffer Curve effect relating to (i) tobacco and (ii) alcohol duties.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Under the assumptions used in tobacco and alcohol costings certified by the Office for Budget Responsibility at Spring Budget 2024, increasing tobacco and alcohol duties increases overall duty receipts.
Asked by: Paul Holmes (Conservative - Hamble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Institute of Fiscal Studies' finding relating to the fall in revenues from tobacco duty over the last decade, outlined on page 42 of its report entitled The outlook for the public finances in the new parliament, published on 10 October 2024, what steps she is taking to help tackle the illicit and non-duty paid markets for tobacco.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HM Revenue and Customs (HMRC) launched its first strategy to tackle illicit tobacco in 2000. This, and consequent strategies with Border Force, have reduced the overall tobacco duty tax gap from 21.7% in 2005/6 to 14.5% in 2022/23.
During this time, the duty gap for cigarettes has reduced by a third, and for hand-rolling tobacco by a half.
In January this year HMRC and Border Force published their latest illicit tobacco strategy, ‘Stubbing Out the Problem’. The government is committed to reducing the trade in illicit tobacco with a focus on reducing demand, and tackling and disrupting the organised crime groups behind the illicit tobacco trade.
The strategy is supported by £100 million of new smokefree funding over the next 5 years to boost existing HMRC and Border Force enforcement capability.
Asked by: Paul Holmes (Conservative - Hamble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to page 42 of the Institute of Fiscal Studies' report entitled The outlook for the public finances in the new parliament, published on 10 October 2024, if her Department will make an assessment of the potential implications for its policies of the Office for Budget Responsibility's estimate of the impact of the generational smoking ban on revenue from tobacco excise duty by 2060.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to delivering its two key objectives on tobacco duty; to raise revenue and protect public health. High taxes reduce the affordability of tobacco products and supports the Government’s objective to reduce smoking prevalence.
The Tobacco and Vapes Bill will be the biggest public health intervention in a generation – tackling the harms of smoking and paving the way for a smoke-free UK. Alongside the Bill, DHSC will publish an impact assessment which will include an estimate for the impact on tobacco duty receipts.
The Government has consulted on proposals for a Vaping Products Duty. This would seek to discourage non-smokers and young people from taking up vaping and to raise revenue. The responses to this consultation are being reviewed and we will respond in due course.
As with all taxes, the Government keeps tobacco duty rates under review during its Budget process.
Asked by: Paul Holmes (Conservative - Hamble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential implications for its policies of the Institute of Fiscal Studies' finding relating to tobacco excise duty outlined in paragraph 10, page 3 of its report entitled The outlook for the public finances in the new parliament, published on 10 October 2024.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to delivering its two key objectives on tobacco duty; to raise revenue and protect public health. High taxes reduce the affordability of tobacco products and supports the Government’s objective to reduce smoking prevalence.
The Tobacco and Vapes Bill will be the biggest public health intervention in a generation – tackling the harms of smoking and paving the way for a smoke-free UK. Alongside the Bill, DHSC will publish an impact assessment which will include an estimate for the impact on tobacco duty receipts.
The Government has consulted on proposals for a Vaping Products Duty. This would seek to discourage non-smokers and young people from taking up vaping and to raise revenue. The responses to this consultation are being reviewed and we will respond in due course.
As with all taxes, the Government keeps tobacco duty rates under review during its Budget process.
Asked by: Paul Holmes (Conservative - Hamble Valley)
Question to the HM Treasury:
What fiscal steps his Department is taking to help small and medium-sized businesses recover from the covid-19 pandemic.
Answered by John Glen - Shadow Paymaster General
Throughout the pandemic, the Government has sought to protect people’s jobs and livelihoods while also supporting businesses of all sizes across the UK. We put in place an economic support package totaling £352 billion through the furlough and self-employed income support schemes, as well as support for businesses of all sizes through grants and loans, business rates and VAT relief, and a commercial rents moratorium.
We want to help small businesses across the UK to scale and grow as they recover from the pandemic. At Budget, we announced Help to Grow: Digital and Management. Help to Grow: Digital provides a new online platform and voucher to support SMEs to adopt software which could help them save time and money and grow faster. Help to Grow: Management offers a new, world-leading management skills training programme to upskill 30,000 small businesses across the UK over three years, to help boost their business’s performance, resilience, and long-term growth through practical leadership and management training.
Asked by: Paul Holmes (Conservative - Hamble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of limited companies that (a) operate an annual payroll for the tax year 2019-2020 and (b) qualify for the Coronavirus Job Retention Scheme.
Answered by Jesse Norman - Shadow Leader of the House of Commons
No such estimates have been made.Asked by: Paul Holmes (Conservative - Hamble Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of limited companies that operate an annual payroll system that made an RTI notification of payment to HMRC after 20 March 2020.
Answered by Jesse Norman - Shadow Leader of the House of Commons
No such estimates have been made.