Every parliamentary written question tabled by Greg Smith this session, with the full answer and department. Back to the MP page.
Showing 1–20 of 21 · Treasury
With reference to the Answer of 23 April 2026 to Question 127591 on Electric Vehicles: Costs, whether the Treasury has made projections of when the proposed electric Vehicle Excise Duty pay-per-mile rates will reach parity with the equivalent per-mile rates of fuel duty for petrol and diesel vehicles.
Awaiting answer.
What recent discussions she has had with the Department for Education on the effect of VAT on the affordability for families of children's play centres.
The Government recognises the vital role that children’s play centres play in supporting working families and their contribution to communities across the country. To support them and other businesses we are introducing new permanently lower business rates for eligible retail, hospitality and leisure (RHL) properties, including soft play centres. These tax reductions are worth nearly £1 billion per year and will benefit over 750,000 properties. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. A tax relief here would come at a cost to the Exchequer, reducing the revenue available for vital public services and would have to represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
What recent assessment she has made of the potential economic merits of zero rating VAT on admission tickets for children's play centres.
The Government recognises the vital role that children’s play centres play in supporting working families and their contribution to communities across the country. To support them and other businesses we are introducing new permanently lower business rates for eligible retail, hospitality and leisure (RHL) properties, including soft play centres. These tax reductions are worth nearly £1 billion per year and will benefit over 750,000 properties. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. A tax relief here would come at a cost to the Exchequer, reducing the revenue available for vital public services and would have to represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
What assessment she has made of the cost impact on the public purse of zero rating VAT for children's play centres.
The Government recognises the vital role that children’s play centres play in supporting working families and their contribution to communities across the country. To support them and other businesses we are introducing new permanently lower business rates for eligible retail, hospitality and leisure (RHL) properties, including soft play centres. These tax reductions are worth nearly £1 billion per year and will benefit over 750,000 properties. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. A tax relief here would come at a cost to the Exchequer, reducing the revenue available for vital public services and would have to represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
What assessment she has made of the potential impact of the cost of Red Diesel on a) agriculture and horticulture, b) forestry, c) rail and d) marine; and what steps she is taking to help mitigate changes in prices.
Certain sectors, such as agriculture and horticulture, retained access to red diesel after it was withdrawn from most sectors in 2022. In contrast to full duty diesel, taxed at 52.95 pence per litre (ppl), red diesel currently incurs a duty of 10.18 ppl. At Budget 2025, the Government extended the temporary 5p fuel duty cut alongside extending the proportionate percentage cut for rebated fuels, which includes red diesel. This maintains the red diesel rate at the levels set in March 2022 at 10.18 ppl until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027, an increase of less than 1 ppl. The planned inflation increase for 2026-27 has also been cancelled. As the Chancellor has set out, the Government will keep fuel duty under review.
What estimate she has made of the number of people subject to the loan charge who will have their cases settled following the independent review of the loan charge.
The Government accepted all but one of the independent review’s recommendations and in some cases we are going further. We are legislating a generous new settlement opportunity that will help those who have not yet settled to do so. Most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely.
What estimate her Department has made of the additional annual cost to motorists of introducing a weight-based Vehicle Excise Duty system for cars weighing over (a) 1,600kg, (b) 2,000kg, and (c) 2,400kg.
Vehicle Excise Duty (VED) is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, motorcycles and heavy goods vehicles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions. The Government annually reviews the rates and thresholds of taxes and reliefs at fiscal events, and in doing so considers a wide range of factors including complexity, value for money, and administrative burdens for tax payers. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.
What assessment she has made of the potential impact of her policy of no reduced rate or exemption for children or family travelling in premium economy of Air Passenger Duty on families travelling with children in premium economy cabins on long haul flights; and how the UK’s approach compares with aviation passenger tax regimes in other European countries.
Air Passenger Duty (APD) applies to airlines, not individual passengers, and is the principal tax on the aviation sector. It is expected to raise £4.7 billion in 2025-26 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. Other countries also have different forms of aviation taxes.Children under 16 years old on the date of the flight, and in the lowest class of travel, are exempt from APD. 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.
What estimate her department has made of how many a) pubs b) hotels c) restaurants d) indoor leisure and e) night clubs are expected to see their business rates bill i) go up ii) stay the same or iii) decrease from April 2026 as a result of the measures announced in Budget 2025.
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties, including those in the hospitality and leisure sectors as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. For the pubs sector, the increase in rateable values will be 30%, which combined with the loss of the temporary RHL relief would lead to an increase in total bills paid by the sector of 45%. However, due to government intervention, the sector’s total bill will only increase by 4% next year. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
What guidance or analysis her department has undertaken on the potential impact on high street businesses of the removal of business rates relief and the simultaneous business rates revaluation.
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including pubs. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
If she will make an assessment of the potential impact of applying a) a 10p multiplier b) a 15p multiplier or c) the full 20p discount on high street and hospitality businesses; and if she will publish that assessment.
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties. The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit. The new RHL tax rates will be 5p below the national tax rates. Making the RHL tax rates even lower would have led to a higher tax rate for high-value properties.
What assessment she has made of the reasons for the difference in the projected changes in liabilities for (a) pubs and (b) distribution warehouses over the three-year revaluation period after transition.
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. Without this support, pubs would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in, this falls to just 4%. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties. The RHL multipliers are being funded through a higher rate for high-value properties (those with a RV of £500,000 and above). These high-value properties cover the majority of distribution warehouses, including those used by the online giants. Distribution warehouses will pay around £100 million more in business rates in 2026/27, with this going directly to lower bills for in-person retail, including pubs.
What impact assessments the Government has conducted on the potential effect of rateable value increases and changes to business rates relief, announced at Budget 2025, on a) vacancy rates on local high streets b) job losses c) businesses closures and d) price levels.
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. The Valuation Office Agency has published statistics on changes in the rateable value of properties in the 2026 revaluation. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties. The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. The 40% RHL relief was forecast to cost £1.7 billion in 2025/26, less than the £2.1 billion we are spending on Transitional Relief and Supporting Small Business relief in 2026/27. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit. The new RHL tax rates will be 5p below the national tax rates.
Whether it is her policy to use the business rates system to help support high street businesses in the context of their competition with online retailers.
The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, while ensuring that warehouses used by online giants will pay more. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit. The Government is paying for lower tax rates for RHL through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
Whether it remains the Government’s policy to reform the business rates system to level the playing field between bricks and mortar businesses and large online businesses.
The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, while ensuring that warehouses used by online giants will pay more. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit. The Government is paying for lower tax rates for RHL through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
What assessment she has made of the potential impact of the combined effect of higher rateable values and reduced business rates relief on the number of hospitality closures and empty units on high streets over the next three years.
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit. The National Insurance Contributions (NICs) Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs.
With reference to the RAC Report on Motoring 2025, published in October 2025, what assessment she has made of that report's recommendations on fuel duty.
At Autumn Budget 2024, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut and cancelling the planned increase in line with inflation for 2025/26. The temporary 5p cut is scheduled to expire in March 2026. The Government considers representations from a wide variety of stakeholders, with decisions on rates made at fiscal events.
With reference to the RAC Report on Motoring 2025, published in October 2025, what assessment she has made of that report's recommendations on motor insurance tax.
We have established a cross-government motor insurance taskforce with a strategic remit to set the direction for UK government policy, identifying short- and long-term actions for departments that may contribute to stabilising or reducing car insurance premiums. The taskforce's final report will be published in the autumn. Insurance pricing is a decision which is affected by a wide range of factors, and the taxes that insurers pay are just one part of this. There is no guarantee that any reductions in Insurance Premium Tax (IPT) would be passed on to policy holders.
What estimate her Department has made of the (a) staffing, (b) system, (c) compliance and (d) other costs of (i) implementing and (ii) administering the proposed changes to Agricultural Property Relief and Business Property Relief; and if she will take steps to publish an estimate prior to the reforms taking effect in April 2026.
I refer to the answer given on 5 September 2025 at UIN 70546 :https://questions-statements.parliament.uk/written-questions/detail/2025-08-29/70546
What recent discussions she has had with the Chair of the Independent Review of the Loan Charge on the progress of that review.
Ministers have not held discussions with the independent reviewer of the Loan Charge since the review was launched. However, the review team has confirmed that they expect to conclude in the summer, and the government will respond to their report by Autumn Budget 2025.