Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the maximum additional business rate revenue that could be raised by the proposed new higher rate multiplier.
Answered by James Murray - Chief Secretary to the Treasury
To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable vales below £500,000 from 2026-27. This permanent tax cut will ensure that RHL businesses benefit from much-needed certainty and support.
This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties from 2026-27 - those with rateable values of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants.
The exact rates for any new business rate multipliers will not be set until Autumn Budget 2025 so that the Government can take into account the revaluation outcomes as well as the economic and fiscal context. Costings for these policies will be certified by the Office for Budget Responsibility and published at the Budget.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the the potential impact of changes in business rates on serviced office buildings.
Answered by James Murray - Chief Secretary to the Treasury
It is the Valuation Office Agency’s (VOA) statutory duty to maintain up-to-date Rating Lists and they are required by law to review and correct assessments if supported by evidence.
Following developments in case law, the VOA have been reviewing their approach to valuing serviced offices for business rates, including seeking legal advice on a range of agreements between owners or operators and individual occupiers.
The VOA have concluded that, rather than each room within a serviced office being assessed separately, most serviced offices will need to be assessed as a single property, unless clear evidence demonstrates a need to split.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the cost to the public purse of removing the £110,000 business rates cap for (a) retail, (b) hospitality and (c) leisure businesses with a rateable value below £500,000 after April 2026; and how this will be funded.
Answered by James Murray - Chief Secretary to the Treasury
To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable vales below £500,000 from 2026-27. This permanent tax cut will ensure that RHL businesses benefit from much-needed certainty and support.
This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties from 2026-27 - those with rateable values of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants.
The exact rates for any new business rate multipliers will not be set until Autumn Budget 2025 so that the Government can take into account the revaluation outcomes as well as the economic and fiscal context. Costings for these policies will be certified by the Office for Budget Responsibility and published at the Budget.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that Gift Aid claimed by online fundraising platforms goes to charities.
Answered by James Murray - Chief Secretary to the Treasury
Charities have the flexibility to decide on their own strategy for fundraising and are free to partner with other organisations to process their Gift Aid claims. It will ultimately be a commercial decision on the part of a charity to work with a fundraising platform and whether it is appropriate to pay a fee for any services provided.
Many of the fundraising platforms are voluntarily registered with the Fundraising Regulator which can act if it believes standards have been breached.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to ban the charging of commission on Gift Aid.
Answered by James Murray - Chief Secretary to the Treasury
Charities have the flexibility to decide on their own strategy for fundraising and are free to partner with other organisations to process their Gift Aid claims. It will ultimately be a commercial decision on the part of a charity to work with a fundraising platform and whether it is appropriate to pay a fee for any services provided.
Many of the fundraising platforms are voluntarily registered with the Fundraising Regulator which can act if it believes standards have been breached.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make a comparative assessment of the Standard Rate of Air Passenger Duty between the UK and (a) Germany, (b) France, (c) Italy and (d) Spain.
Answered by James Murray - Chief Secretary to the Treasury
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25.
At Autumn Budget 2024, the Government announced Air Passenger Duty (APD) rates for 2026-27, including a partial adjustment to help compensate for two recent years of inflation that was higher than expected. APD rates are set in advance using forecasts of inflation, and so with actual inflation being significantly greater than forecast in 2022 and 2023, APD rates fell in real terms.
The Government is clear that APD is an appropriate tax that ensures airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty. Other countries also have different forms of aviation taxes.
The Government keeps all taxes under review.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to reform Air Passenger Duty to extend the exemption for children under 16 years old to travel in Premium Economy or any other cabin classes.
Answered by James Murray - Chief Secretary to the Treasury
Air Passenger Duty (APD) applies to airlines, not individual passengers, and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty. The distance-based band structure ensures that those who travel furthest, and in the greatest comfort, incur a greater tax liability.
Children under 16 years old on the date of the flight, and in the lowest class of travel, are exempt from APD. This means that no APD will be paid on that passenger by the airline to the UK government. If children under 16 years old are travelling in any other class (such as premium economy) or in business jets, they are not exempt. Children under 2 years old without a seat are exempt from Air Passenger Duty for all classes of travel.
Airline operators declare the number of chargeable passengers by destination band and by rate. They do not break down chargeable passengers by age, and therefore this is not information that HMRC collects.
The government has published annual statistics and analysis on airline passenger numbers and Air Passenger Duty (APD) receipts in the UK which are administered by HM Revenue and Customs. It is available at: https://www.gov.uk/government/statistics/air-passenger-duty-bulletin.
As with all taxes, APD is kept under review and any changes are announced by the Chancellor at fiscal events.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of total revenue generated by Air Passenger Duty from children aged under 16 years old who travelled in Premium Economy in each of the last three years?.
Answered by James Murray - Chief Secretary to the Treasury
Air Passenger Duty (APD) applies to airlines, not individual passengers, and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty. The distance-based band structure ensures that those who travel furthest, and in the greatest comfort, incur a greater tax liability.
Children under 16 years old on the date of the flight, and in the lowest class of travel, are exempt from APD. This means that no APD will be paid on that passenger by the airline to the UK government. If children under 16 years old are travelling in any other class (such as premium economy) or in business jets, they are not exempt. Children under 2 years old without a seat are exempt from Air Passenger Duty for all classes of travel.
Airline operators declare the number of chargeable passengers by destination band and by rate. They do not break down chargeable passengers by age, and therefore this is not information that HMRC collects.
The government has published annual statistics and analysis on airline passenger numbers and Air Passenger Duty (APD) receipts in the UK which are administered by HM Revenue and Customs. It is available at: https://www.gov.uk/government/statistics/air-passenger-duty-bulletin.
As with all taxes, APD is kept under review and any changes are announced by the Chancellor at fiscal events.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the cost to the exchequer of extending the Air Passenger Duty exemption for children under 16 years old to (a) Premium Economy and (b) any other cabin class travel.
Answered by James Murray - Chief Secretary to the Treasury
Air Passenger Duty (APD) applies to airlines, not individual passengers, and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty. The distance-based band structure ensures that those who travel furthest, and in the greatest comfort, incur a greater tax liability.
Children under 16 years old on the date of the flight, and in the lowest class of travel, are exempt from APD. This means that no APD will be paid on that passenger by the airline to the UK government. If children under 16 years old are travelling in any other class (such as premium economy) or in business jets, they are not exempt. Children under 2 years old without a seat are exempt from Air Passenger Duty for all classes of travel.
Airline operators declare the number of chargeable passengers by destination band and by rate. They do not break down chargeable passengers by age, and therefore this is not information that HMRC collects.
The government has published annual statistics and analysis on airline passenger numbers and Air Passenger Duty (APD) receipts in the UK which are administered by HM Revenue and Customs. It is available at: https://www.gov.uk/government/statistics/air-passenger-duty-bulletin.
As with all taxes, APD is kept under review and any changes are announced by the Chancellor at fiscal events.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made a recent assessment of the international competitiveness of air passenger duty.
Answered by James Murray - Chief Secretary to the Treasury
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25.
At Autumn Budget 2024, the Government announced Air Passenger Duty (APD) rates for 2026-27, including a partial adjustment to help compensate for two recent years of inflation that was higher than expected. APD rates are set in advance using forecasts of inflation, and so with actual inflation being significantly greater than forecast in 2022 and 2023, APD rates fell in real terms.
The Government is clear that APD is an appropriate tax that ensures airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty. Other countries also have different forms of aviation taxes.
The Government keeps all taxes under review.