Written questions by Cleverly.

What will each of the new four council tax surcharge bands be called.

The bands are numbered 1-4, as set out below:BandsThreshold (£m)Rate (£)1£2.0-£2.5£2,5002£2.5-£3.5£3,5003£3.5-5.0£5,0004£5+£7,500

Whether transitional relief will apply to the application of the high-value business rate multiplier in 2026-27.

At Budget 2025, the Government announced updated property values independently assessed by the Valuation Office. Revaluations ensure that the rateable values (RVs) of properties are updated in line with market changes, and that the tax rates adjust to reflect changes in the tax base. Following growth in the tax base, all ratepayers will pay a lower tax rate than they do now.Revenue raised from business rates is forecast to increase for a number of reasons. The tax rates change with inflation to maintain income for local authorities in real terms; the size of the tax base is forecast to increase; and temporary reliefs taper away. The Government is spending £4.3bn over the next three years on a support package, including protection for those seeing bills increase.This includes a re-designed Transitional Relief (TR) scheme, to protect businesses from large bill increases as a result of the revaluation. This is worth £3.2 billion over the next three years and, compared to the 2023 TR scheme, provides more generous support for those paying higher tax rates (including the high-value multiplier).To reduce the Exchequer cost the Government is introducing a 1p supplement in 2026/27 only, paid by ratepayers who do not receive TR or the Supporting Small Business scheme.

Whether the charging of (a) second homes and (b) empty homes council tax premiums on a dwelling will affect the calculation of the high value council tax surcharge liability.

The second homes and empty homes premiums will not affect the calculation of the High Value Council Tax Surcharge liability.

Whether the valuation of the high value council tax surcharge will be undertaken through the use of the Valuation Office Agency’s Automated Valuation Model; and what is the frequency by which the valuations will be revalued.

The Valuation Office Agency are developing their approach to the targeted revaluation and will set out more details in due course, following the outcome of the Government's consultation.

Whether the 2026 business rates revaluation is revenue neutral (i) in the first year, or (ii) over the valuation cycle.

At Budget 2025, the Government announced updated property values independently assessed by the Valuation Office. Revaluations ensure that the rateable values (RVs) of properties are updated in line with market changes, and that the tax rates adjust to reflect changes in the tax base. Following growth in the tax base, all ratepayers will pay a lower tax rate than they do now.Revenue raised from business rates is forecast to increase for a number of reasons. The tax rates change with inflation to maintain income for local authorities in real terms; the size of the tax base is forecast to increase; and temporary reliefs taper away. The Government is spending £4.3bn over the next three years on a support package, including protection for those seeing bills increase.This includes a re-designed Transitional Relief (TR) scheme, to protect businesses from large bill increases as a result of the revaluation. This is worth £3.2 billion over the next three years and, compared to the 2023 TR scheme, provides more generous support for those paying higher tax rates (including the high-value multiplier).To reduce the Exchequer cost the Government is introducing a 1p supplement in 2026/27 only, paid by ratepayers who do not receive TR or the Supporting Small Business scheme.

Further to the HMT guidance entitled High Value Council Tax Surcharge published on 26 November 2025, for what reason social housing is exempt from the new council tax surcharge.

The High Value Council Tax Surcharge (HVCTS) applies to the highest-value properties to make taxation fairer. It affects less than 1% of homes in England and ensures those with the broadest shoulders contribute their fair share towards funding local government services. The tax will only be paid by owners of homes worth over £2m. Social housing is provided to support low-income and vulnerable groups, and therefore social landlords will be exempt.

Whether the banding thresholds for the high value council tax surcharge will be uprated each year in line with changes to (a) inflation or (b) the house price index.

Properties will be revalued every 5 years and banding thresholds will be kept under review alongside the revaluations.

Pursuant to the Answer of 17 January 2025, to Question 23941, on Tourism: Taxation, and further to the MHCLG press release, "Levy on overnight trips will help mayors invest in local growth", of 25 November 2025, what was the rationale for the change in the Chancellor’s policy further to that set out in January.

The Government keeps all tax policy under review. The Government’s number one mission is to kickstart economic growth, and devolving fiscal powers is critical to achieving this. Introducing powers to raise a visitor levy provides Mayors with a new lever to both raise and reinvest revenue locally. Mayors in Strategic Authorities have made clear that introducing a new, discretionary visitor levy power is one of their shared priorities for further devolution.

With reference to the Ministry of Housing, Communities and Local Government's press release entitled Levy on overnight trips will help mayors invest in local growth, published on 25 November 2025, whether VAT will be levied (a) before and (b) after the addition of the overnight visitor levy to the core hotel bill.

The design of the visitor levy is subject to consultation and decisions from Mayors about whether to introduce a levy and how it is implemented locally.

Further to the Ministry of Housing, Communities and Local Government's press release entitled Levy on overnight trips will help mayors invest in local growth of 25 November 2025, what assessment she has made of the cumulative impact of (a) VAT, (b) corporation tax, (c) National Insurance for employers, (d) business rates and (e) the overnight visitor levy on (i) the economic viability of the British hospitality sector and (ii) the cost of a domestic family holiday.

The impacts of visitor levies will largely be determined by local decisions.Mayors will need to decide whether to implement a levy, and, if so, consult on specific proposals. Giving this power to local leaders who best understand their region enables them to tailor it to growing their local region.Individuals and organisations will have the opportunity to engage with Mayors on these decisions throughout the consultation period and beyond.The precise design and scope of the power for Mayors to introduce a visitor levy is still under development and the Government welcomes engagement from the hospitality sector through the consultation process. On business rates, many hospitality businesses have seen their independent valuations go up since the pandemic. For properties seeing bills go up our support package will cap most increases at 15% or less next year, or £800 for the smallest. We've also reduced tax rates for eligible retail, hospitality and leisure properties to rebalance the system for good. On employer National insurance contributions, in the Government published a Tax Information and Impact Note (TIIN) which set out the impact of the Autumn Budget 2024 changes. The Government decided to protect the smallest businesses from these changes by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change.

What estimate she has made of the number of (a) shops, (b) sports stadiums, (c) film studios and (d) airports that would be liable for the surcharge on Rateable Values above £500,000.

As announced at Autumn Budget 2024, the Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with rateable values (RVs) below £500,000 from 2026/27. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government is sustainably funding this by introducing a higher multiplier on properties with RVs of £500,000 and above.The Valuation Office Agency has published data on the number of properties with current RVs of £500,000 or above.Every three years, all non-domestic properties are revalued. The next revaluation will take effect on 1 April 2026. This may affect which properties are in scope of the new higher multiplier. Further detail will be published at the Budget.

Whether the Valuation Office Agency has had recent discussions with the (a) Scottish Government and (b) Scottish Assessors Association on (i) council tax (A) revaluation and (B) re-banding and (ii) the automated valuation model.

The Valuation Office Agency (VOA) routinely meet with devolved governments. The VOA has not discussed banding with Scottish Government or Scottish Assessors Association (SAA) but has provided an overview of their model assisted valuation to the SAA as part of regular knowledge sharing.

Whether local councillors will be included in Making Tax Digital scheme.

Making Tax Digital (MTD) for Income Tax will be introduced from April 2026 for sole traders and landlords with qualifying income over £50,000. Qualifying income is the total income from self-employment and property, assessed before expenses. Local Authority councillors are office holders rather than sole traders. Their income and allowances do not count towards qualifying income for the purposes of Making Tax Digital for Income Tax. Where a councillor has additional qualifying income from self-employment or property, they will need to comply where that income exceeds the MTD thresholds. If a councillor is required to use MTD, and where expenses are claimed through a return, the councillor would make that claim as part of the end-of-year tax return through their MTD software.

Whether her Department plans to allow councillors to submit their expenses in the Making Tax Digital scheme.

Making Tax Digital (MTD) for Income Tax will be introduced from April 2026 for sole traders and landlords with qualifying income over £50,000. Qualifying income is the total income from self-employment and property, assessed before expenses. Local Authority councillors are office holders rather than sole traders. Their income and allowances do not count towards qualifying income for the purposes of Making Tax Digital for Income Tax. Where a councillor has additional qualifying income from self-employment or property, they will need to comply where that income exceeds the MTD thresholds. If a councillor is required to use MTD, and where expenses are claimed through a return, the councillor would make that claim as part of the end-of-year tax return through their MTD software.

If she will publish a list of the training videos produced by the Valuation Office Agency.

The Valuation Office Agency (VOA) produces a range of videos for publication on its YouTube channel, including information about working at the VOA, and guidance and information videos on Council Tax and Business Rates. Please see: www.youtube.com/@VOAgovuk.

With reference to the Valuation Office Agency: July 2025 transparency data, published on 31 August, what the contracted out services to Eunoia Consulting Ltd costing £83,705.52 are.

I refer the rt hon Member to the response to UIN 66194.

If she will publish the Valuation Office Agency’s training manual for the Automated Valuation Model.

Details on the Valuation Office Agency’s (VOA) Automated Valuation Model (AVM) including its development, testing and data are published here: More_information_on_mass_appraisal_and_AVM.pdfModel_specification_document.pdf

With reference to the HMRC guidance, Local authorities and similar bodies (VAT Notice 749), whether local authorities will be able to recover VAT on private hire for school transport.

Local authorities have a duty to provide free transport from home to school, in certain circumstances. This is a non-business activity for VAT and where a local authority purchases the services of private hire companies in order to fulfil their statutory obligations, the VAT can be recovered under the section 33 refund scheme for local authorities.However, if a VAT-registered local authority is charging for transport services, and VAT is due on the fee, that is a taxable business activity. In these circumstances, the local authority can reclaim the VAT on its costs as input tax, under the normal rules.Guidance on when a local authority’s activities are regarded as non-business for VAT purposes is covered in section 2 of VAT Notice 749, which is available on GOV.UK. Section 4 of the Notice provides guidance on the section 33 refund scheme.

How many people have received a Lifetime ISA 25% withdrawal charge in the last 12 months for which figures are available.

In the latest year 2024-25, 129,200 individuals made unauthorised withdrawals from their Lifetime ISA, resulting in 25% withdrawal charges.

With reference to the policy paper entitled Transforming Business Rates: Interim Report, updated 17 September 2025, whether the proposed reforms on moving from a slab to slice system will be implemented for the introduction of the new surcharge for hereditaments over £500,000 Rateable Value.

The Transforming Business Rates: Interim Report, published on 11 September, sets out the Government’s next steps to deliver a fairer business rates system. The Interim Report brings together extensive feedback from a broad range of stakeholders and outlines the Government’s next steps to delivery a fairer business rates system, that supports investment and is fit for the 21st century. Stakeholders told us that the business rates system can discourage expansion into bigger properties. The Government will explore the case to move to a marginal tax rate, similar to income tax, to support investment and expansion. The Government will provide a further update at the Budget. Transforming the business rates system is a multi-year process. The Government will consider reforms beyond Budget 2025, and any reforms taken forward will be phased over the course of the Parliament.