Written questions by Blundell.

What steps she is taking with the Greater Manchester Combined Authority to improve connections between the Greater Manchester City Region and (a) Yorkshire, (b) the Liverpool City Region and (c) North Wales.

The Government has already demonstrated its commitment to improving Northern transport infrastructure. At and since the Budget last Autumn, further commitment and funding has been provided for key transport programmes in the North, including the Transpennine Route Upgrade, an £11 billion programme that will transform rail connectivity from Manchester through to York.Through City Region Sustainable Transport Settlements (CRSTS) Round 1 (2022/23–2026/27), the Government has also provided Greater Manchester Combined Authority with £1 billion to invest in local transport priorities.Future investment priorities for Northern transport infrastructure will be considered in the round as part of the Spending Review.

How the Infrastructure Strategy will support infrastructure enhancements in the North West.

The 10 Year Infrastructure Strategy will reduce uncertainty by bringing together a long-term plan for the social, economic and housing infrastructure across the UK, including the North WestAlongside considering the UK’s economic and social infrastructure needs, the strategy will set out how we are reforming institutions and changing the way we make decisions and deliver infrastructure, maximising the benefits of our strong fiscal and spending frameworks, breaking down regulatory and planning barriers, and resetting our relationship with the private sector.

What steps she is taking to support the Northern Arc infrastructure project.

The Government has already demonstrated its commitment to improving Northern transport infrastructure. At and since the Budget last Autumn, further commitment and funding has been provided for key transport programmes in the North, including the Transpennine Route Upgrade, an £11 billion programme that will transform rail connectivity from Manchester through to York.Future investment priorities for Northern transport infrastructure will be considered in the round as part of the Spending Review.

What assessment she has made with Cabinet colleagues of the potential impact of research and development tax reliefs on the expansion of small businesses.

The Government is committed to periodically evaluating the R&D reliefs to ensure they are as effective as possible and underpinned by a credible, up-to-date evidence base. It will be some time before the required outturn data is available to conduct an accurate review following the changes announced during the review of the R&D reliefs. The Government will continue to publish annual statistics on R&D claims by sector and company size on Gov.uk. More broadly, the Government is committed to creating a positive environment for entrepreneurship and is working with leading entrepreneurs and venture capital firms on how policy supports that, including the role of existing tax schemes, as set out in the Autum Budget 2024.

What steps she is taking to tackle tax evasion by business in the hospitality sector who (a) fail to declare earnings and (b) pay cash in hand.

The Government recognises that sometimes businesses do not declare their cash income and thereby conceal their true earnings and is committed to creating a level playing field for all by ensuring that everyone pays the right amount of tax at the right time. Most taxpayers pay what they owe, but a small minority fail to register with HMRC or only declare a portion of their earnings. This small minority deprive our vital public services of funding, affect fair competition between businesses, and place unfair burdens on everyone else. It is vital these revenues are collected to fund our essential public services. Closing the tax gap and making sure that more of the tax that is owed is correctly paid is one of the Government’s top priorities for HMRC. HMRC is making it increasingly difficult for businesses to hide their earnings and have an extensive range of powers, including information gathering powers, that help build a picture of risk and identify those who are trying to abuse the system. HMRC’s approach to tax evasion aims to tackle current non-compliance and change future behaviours. Their activities include national campaigns and specialist task forces that incorporate intensive bursts of activity in targeted high risk trade sectors, such as the hospitality sector, and locations across the UK. This includes providing customer education highlighting the importance of keeping accurate records. Cash continues to be used by many people across the UK and is a legitimate means of paying for goods and services. It is the choice of a business whether to accept or decline any form of payment and is based on factors such as customer preference and cost. Where an individual or business is paid in cash, the onus is on them to ensure they meet their tax obligations, including registering for and paying the right taxes. The Government will continue to consider options to tackle cash-facilitated evasion and has indicated it will consult in the future on any measures in relation to tackling cash facilitated evasion.