Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to remove VAT on audiobooks.
Answered by James Murray - Exchequer Secretary (HM Treasury)
There are no current plans to remove VAT on audiobooks. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax, forecast to raise £171 billion in 2024/25.
Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers.
The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Secretary of State for Business and Trade on reforms to business rates.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government will create a fairer business rates system that protects the high-street, supports investment, and is fit for the 21st century.
Autumn Budget 2024 announced the first steps including an intention to introduce permanently lower multipliers for high street retail, hospitality, and leisure (RHL) properties from April 2026. To fund this sustainably the government also intends to introduce a higher multiplier on properties with Rateable Values (RV) of £500,000 or more.
During the interim period, for 2025-26, RHL properties will receive a 40% relief on business rates bills up to a cash cap of £110,000 per business. The small business multiplier paid by properties with RVs below £51,000 will also be frozen for a further year.
The government published a discussion paper at Budget which sets out priority areas for further reform and invites stakeholders to a conversation about transforming the system over the Parliament.