Written questions by Bowie.

What assessment her Department has made of the impact of employer National Insurance contributions on labour-intensive sectors such as hospitality.

The Government recognises the important role the hospitality sector plays both in terms of its economic contribution but also to our culture.A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.Furthermore, the Government has protected the smallest hospitality businesses from recent changes to employer National Insurance by increasing the Employment Allowance to £10,500. While Business Rates is a devolved issue, we have introduced new permanently lower multipliers for eligible retail, hospitality and leisure (RHL) properties which are worth nearly £900 million per year and will benefit over 750,000 properties.The Government is doing more to support sectors like hospitality. The National Licensing Policy Framework for England and Wales set a new strategic direction for licensing authorities to have more regard for growth. We are exploring planning reforms to help pubs and hospitality expand. The Hospitality Support Fund has helped pubs in rural areas to diversify, ensuring they can continue in their role as vital community hubs.We have also introduced a new Community Right to Buy, the English Devolution Bill will ban upward only rent reviews, and the Pride in Place programme will provide up to £5bn over 10 years to support our high streets, and later this year we will bring forward a new High Streets Strategy, to reinvigorate our communities. We will work with businesses and representative bodies to pull this Strategy together.

What assessment her Department has made of the potential impact of current National Insurance costs on closure rates among hospitality businesses.

The Government recognises the important role the hospitality sector plays both in terms of its economic contribution but also to our culture.A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.Furthermore, the Government has protected the smallest hospitality businesses from recent changes to employer National Insurance by increasing the Employment Allowance to £10,500. While Business Rates is a devolved issue, we have introduced new permanently lower multipliers for eligible retail, hospitality and leisure (RHL) properties which are worth nearly £900 million per year and will benefit over 750,000 properties.The Government is doing more to support sectors like hospitality. The National Licensing Policy Framework for England and Wales set a new strategic direction for licensing authorities to have more regard for growth. We are exploring planning reforms to help pubs and hospitality expand. The Hospitality Support Fund has helped pubs in rural areas to diversify, ensuring they can continue in their role as vital community hubs.We have also introduced a new Community Right to Buy, the English Devolution Bill will ban upward only rent reviews, and the Pride in Place programme will provide up to £5bn over 10 years to support our high streets, and later this year we will bring forward a new High Streets Strategy, to reinvigorate our communities. We will work with businesses and representative bodies to pull this Strategy together.

What assessment her Department has made of the potential impact of current VAT rates on closure rates among hospitality businesses.

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. The UK’s VAT rate of 20 per cent is close to the OECD average of 19.3 per cent. The UK also has a higher VAT registration threshold than any EU country and the joint highest in the OECD, at £90,000. This keeps the majority of businesses out of the VAT regime altogether. The Government has already started the work of reforming our business rates system by introducing new permanently lower multipliers for eligible retail, hospitality and leisure (RHL) properties. These new multipliers are worth nearly £1 billion per year and benefit over 750,000 properties.

What estimate her Department has made of the number of hospitality venues that have permanently closed in the current financial year; and what projections her Department has made for closures in the future financial year.

ONS data has shown that there were over 1,600 more hospitality business net openings in 2025 than in 2024. We continue to closely monitor the health of different sectors across the UK economy, including hospitality, and regularly engage with the hospitality sector. The Government is working to support sectors like hospitality. We have introduced new permanently lower business rates multipliers for eligible retail, hospitality and leisure properties which will benefit over 750,000 properties and the National Licensing Policy Framework for England and Wales set a new strategic direction for licensing authorities to have more regard for growth. The Government has also doubled the Hospitality Support Fund to £10 million which will help rural pubs to diversify and ensure they can continue to be vital community hubs, and the Pride in Place programme will provide up to £5 billion to support our high streets.

Whether she has made an assessment of the potential impact of the energy profits levy on government revenue.

The Office for Budget Responsibility’s (OBR) forecast at Spring Statement 2025 estimated that revenues from the Energy Profits Levy (EPL) will be £10.8 billion between 2025-26 and 2029-30. This is in addition to more than £10 billion in tax revenues already raised through the EPL since its introduction.A full breakdown of revenue projections for all North Sea oil and gas taxes is available in the OBR’s Economic and Fiscal Outlook, published at Spring Statement 2025 (https://obr.uk/efo/economic-and-fiscal-outlook-march-2025/). Information on tax receipts already raised by the EPL is published and regularly updated by the Office for National Statistics (ONS) (https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/datasets/appendixdpublicsectorcurrentreceipts).

Whether she has made an assessment of the potential impact of taxation of the oil and gas sector on levels of future development in the North Sea.

The Government is taking a responsible and proportionate approach to managing the taxation of the North Sea which recognises the ongoing role of the oil and gas industry and workforce in our current energy mix while ensuring the sector contributes more towards our energy transition. The Government engages regularly with industry stakeholders and monitors independent analysis, to assess the effects of taxation on investment and development activity in the basin. The Government’s Building the North Sea’s Energy Future consultation sought to gather responses on the long term future of the North Sea. Britain is well-placed to mobilise its natural advantage, using the skills and expertise of our offshore workforce and supply chain to support the energy transition.

What estimate she has made of the revenue which would be accrued from applying Duty Free allowances to people departing from Great Britain to the European Union.

Allowances are generally not applied to outbound passengers. Instead, goods will be taxed upon arrival in the destination country (subject to any duty free allowances available in that country).Inbound passengers to the UK are usually entitled to duty free allowances, which allow them to bring in goods up to certain limits without paying UK taxes, providing they are for personal use or to be gifted. Details of those allowances can be found here: https://www.gov.uk/bringing-goods-into-uk-personal-use/arriving-in-Great-Britain

What assessment she has made of the potential merits of applying the duty-free allowance to people departing from Great Britain to the European Union.

Allowances are generally not applied to outbound passengers. Instead, goods will be taxed upon arrival in the destination country (subject to any duty free allowances available in that country).Inbound passengers to the UK are usually entitled to duty free allowances, which allow them to bring in goods up to certain limits without paying UK taxes, providing they are for personal use or to be gifted. Details of those allowances can be found here: https://www.gov.uk/bringing-goods-into-uk-personal-use/arriving-in-Great-Britain

Whether she has made an assessment of the potential merits of allowing duty free purchases to be made on landing in Great Britain.

Current duty-free policy avoids large quantities of untaxed goods entering the UK market, while reducing operational burdens at the border and supporting wider health objectives.The Government keeps all taxes under review as part of the policy making process.

When she plans to convene the next Oil and Gas Fiscal Forum.

The government is committed to maintaining an open and constructive dialogue with the oil and gas sector to support our energy security and ensure the sector plays its role in our clean energy ambitions. In line with this I will chair the next Oil and Gas Fiscal Forum in the first quarter of this year.

Whether she has made an assessment of the impact of changes to Agricultural Property Relief on Scottish farms.

The Government published information about the reforms to agricultural property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms. It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms. In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

What discussions she has had with the National Farmers Union of Scotland on changes to Agricultural Property Relief in the Autumn Budget 2024 since 30 October 2024.

The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms. The Government takes into account all representations, and HM Treasury officials and Ministers meet with stakeholders on a regular basis.

What discussions she has had with the Convention of Scottish Local Authorities on increases to Employers' National Insurance contributions in the Autumn Budget.

The Government takes into account all representations made ahead of the Budget, and meets with stakeholders on a regular basis, including officials and ministers from the Scottish Government. Funding for local authorities in Scotland, including support for additional employer National Insurance Contribution (NICs) costs falls under the devolved responsibilities of the Scottish Government. At Autumn Budget 2024, we set aside funding for public sector employers for additional NICs costs. This includes funding for the Scottish Government through the usual application of the Barnett formula. Funding resulting from the employer NICs policy change will be in addition to the £47.7 billion the Scottish Government is receiving in 2025-26, which already includes an additional £3.4 billion through the operation of the Barnett formula. This settlement is the largest in real terms since devolution. Decisions on devolved priorities, including local authority funding, are a matter for the Scottish Government. It is for the Scottish Government to determine how to allocate its budget across devolved areas and it is accountable to Scottish Parliament for these decisions.

What discussions she has had with Aberdeenshire Council on increases in Employers National Insurance contributions in the Autumn Budget.

The Government takes into account all representations made ahead of the Budget, and meets with stakeholders on a regular basis, including officials and ministers from the Scottish Government. Funding for local authorities in Scotland, including support for additional employer National Insurance Contribution (NICs) costs falls under the devolved responsibilities of the Scottish Government. At Autumn Budget 2024, we set aside funding for public sector employers for additional NICs costs. This includes funding for the Scottish Government through the usual application of the Barnett formula. Funding resulting from the employer NICs policy change will be in addition to the £47.7 billion the Scottish Government is receiving in 2025-26, which already includes an additional £3.4 billion through the operation of the Barnett formula. This settlement is the largest in real terms since devolution. Decisions on devolved priorities, including local authority funding, are a matter for the Scottish Government. It is for the Scottish Government to determine how to allocate its budget across devolved areas and it is accountable to Scottish Parliament for these decisions.

Whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Edinburgh Airport.

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 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.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. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty

Whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Glasgow Airport.

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 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.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. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty

Whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Aberdeen Airport.

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 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.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. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty

Whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Dundee Airport.

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 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.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. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty

Whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Inverness Airport.

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 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.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. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty

Whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Sumburgh Airport.

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 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.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. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty