Written questions by Robertson.

What measures HMRC has in place to prevent deliberate non-payment of tax by those who are liable but expect not to be pursued.

HMRC is committed to closing the tax gap further and tackling non-compliant behaviours such as tax evasion, tax avoidance, criminal attacks, error, failure to take reasonable care, hidden economy activity, legal interpretation issues, and non-payment. In 2024 to 2025, HMRC’s compliance work contributed to record tax revenues of £875.9 billion, collecting and protecting £48 billion of tax that would have gone unpaid if HMRC hadn’t stepped in – up from £41.8 billion the previous year. At the Autumn Budget 2025, the government announced a package of measures that will raise a further £2.4 billion in additional tax revenues in 2029 to 2030. This builds on announcements at Autumn Budget 2024 (£6.5 billion), and Spring Statement 2025 (over £1 billion) and brings the total revenue from closing the tax gap announced this Parliament to £10 billion in 2029 to 2030. HMRC pursues unpaid tax liabilities through a number of routes. Those who have not paid will be subject to initial telephone and letter campaigns to encourage swift payment. HMRC also uses private sector debt collection agencies to pursue outstanding amounts. Cases will move between these different stages of the debt collection process as part of being worked. Where payments remain outstanding, HMRC has a range of enforcement powers to address the small minority of taxpayers who deliberately refuse to pay or engage, such as taking control of goods, recovering debt through county court proceedings, and applying to make a company or person insolvent. HMRC also publishes its Annual Report and Accounts on GOV.UK, which reports on its annual tax losses and sets out the limited circumstances in which a debt may no longer be pursued. HMRC records its debt cases by tax regime, rather than customer type, and does not organise cases by specifically which stage of the debt collection process it is at.

What assessment HMRC has made of the number of individuals and companies that are liable for tax but are not currently being actively pursued for payment.

HMRC is committed to closing the tax gap further and tackling non-compliant behaviours such as tax evasion, tax avoidance, criminal attacks, error, failure to take reasonable care, hidden economy activity, legal interpretation issues, and non-payment. In 2024 to 2025, HMRC’s compliance work contributed to record tax revenues of £875.9 billion, collecting and protecting £48 billion of tax that would have gone unpaid if HMRC hadn’t stepped in – up from £41.8 billion the previous year. At the Autumn Budget 2025, the government announced a package of measures that will raise a further £2.4 billion in additional tax revenues in 2029 to 2030. This builds on announcements at Autumn Budget 2024 (£6.5 billion), and Spring Statement 2025 (over £1 billion) and brings the total revenue from closing the tax gap announced this Parliament to £10 billion in 2029 to 2030. HMRC pursues unpaid tax liabilities through a number of routes. Those who have not paid will be subject to initial telephone and letter campaigns to encourage swift payment. HMRC also uses private sector debt collection agencies to pursue outstanding amounts. Cases will move between these different stages of the debt collection process as part of being worked. Where payments remain outstanding, HMRC has a range of enforcement powers to address the small minority of taxpayers who deliberately refuse to pay or engage, such as taking control of goods, recovering debt through county court proceedings, and applying to make a company or person insolvent. HMRC also publishes its Annual Report and Accounts on GOV.UK, which reports on its annual tax losses and sets out the limited circumstances in which a debt may no longer be pursued. HMRC records its debt cases by tax regime, rather than customer type, and does not organise cases by specifically which stage of the debt collection process it is at.

How much tax revenue is currently outstanding from taxpayers known to be liable but not under active enforcement action by HMRC.

HMRC is committed to closing the tax gap further and tackling non-compliant behaviours such as tax evasion, tax avoidance, criminal attacks, error, failure to take reasonable care, hidden economy activity, legal interpretation issues, and non-payment. In 2024 to 2025, HMRC’s compliance work contributed to record tax revenues of £875.9 billion, collecting and protecting £48 billion of tax that would have gone unpaid if HMRC hadn’t stepped in – up from £41.8 billion the previous year. At the Autumn Budget 2025, the government announced a package of measures that will raise a further £2.4 billion in additional tax revenues in 2029 to 2030. This builds on announcements at Autumn Budget 2024 (£6.5 billion), and Spring Statement 2025 (over £1 billion) and brings the total revenue from closing the tax gap announced this Parliament to £10 billion in 2029 to 2030. HMRC pursues unpaid tax liabilities through a number of routes. Those who have not paid will be subject to initial telephone and letter campaigns to encourage swift payment. HMRC also uses private sector debt collection agencies to pursue outstanding amounts. Cases will move between these different stages of the debt collection process as part of being worked. Where payments remain outstanding, HMRC has a range of enforcement powers to address the small minority of taxpayers who deliberately refuse to pay or engage, such as taking control of goods, recovering debt through county court proceedings, and applying to make a company or person insolvent. HMRC also publishes its Annual Report and Accounts on GOV.UK, which reports on its annual tax losses and sets out the limited circumstances in which a debt may no longer be pursued. HMRC records its debt cases by tax regime, rather than customer type, and does not organise cases by specifically which stage of the debt collection process it is at.

What proportion of unpaid tax liabilities is written off each year; and according to what criteria HMRC determines when a tax debt will no longer be pursued.

HMRC is committed to closing the tax gap further and tackling non-compliant behaviours such as tax evasion, tax avoidance, criminal attacks, error, failure to take reasonable care, hidden economy activity, legal interpretation issues, and non-payment. In 2024 to 2025, HMRC’s compliance work contributed to record tax revenues of £875.9 billion, collecting and protecting £48 billion of tax that would have gone unpaid if HMRC hadn’t stepped in – up from £41.8 billion the previous year. At the Autumn Budget 2025, the government announced a package of measures that will raise a further £2.4 billion in additional tax revenues in 2029 to 2030. This builds on announcements at Autumn Budget 2024 (£6.5 billion), and Spring Statement 2025 (over £1 billion) and brings the total revenue from closing the tax gap announced this Parliament to £10 billion in 2029 to 2030. HMRC pursues unpaid tax liabilities through a number of routes. Those who have not paid will be subject to initial telephone and letter campaigns to encourage swift payment. HMRC also uses private sector debt collection agencies to pursue outstanding amounts. Cases will move between these different stages of the debt collection process as part of being worked. Where payments remain outstanding, HMRC has a range of enforcement powers to address the small minority of taxpayers who deliberately refuse to pay or engage, such as taking control of goods, recovering debt through county court proceedings, and applying to make a company or person insolvent. HMRC also publishes its Annual Report and Accounts on GOV.UK, which reports on its annual tax losses and sets out the limited circumstances in which a debt may no longer be pursued. HMRC records its debt cases by tax regime, rather than customer type, and does not organise cases by specifically which stage of the debt collection process it is at.

What assessment her Department has made of the potential impact of the removal of business rates relief and the business rates revaluation on high street businesses.

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.

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 assessment her Department has made of the potential impact of rateable value increases and changes to business rates relief announced at Budget 2025 on a) vacancy rates on high streets, b) employment levels, 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 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. The Call for Evidence published at Budget seeks further evidence on the role business rates and reliefs play in investment, including Empty Property Relief.

What assessment she has made of the potential impact of increases in spirit duty on trends in levels of pub closures.

Alcohol duty is paid by producers, and is therefore not typically paid directly by pubs. Further, according to estimates derived from sales data collected on behalf of the Office for National Statistics, only around 15% of spirits are consumed on-trade. At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to maintain its current real-terms value. Using HMRC’s published ready reckoner, freezing alcohol duty rates when inflation is 3.66% would cost the Exchequer around £400m a year. This ready reckoner can be found here: www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes/direct-effects-of-illustrative-tax-changes-bulletin-january-2025#change-in-various-duties.

What assessment she has made of the potential impact 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.

What assessment she has made of the potential impact of increased aviation taxes on levels of inbound tourism to the UK.

The government is committed to securing the long-term future of the aviation sector in the UK and recognises the benefits of the connectivity it creates between the UK and the rest of the world.At Budget 2025, the government announced it will uprate APD rates in line with RPI from 1 April 2027 and rounded to the nearest penny. This constitutes a real terms freeze meaning passengers will pay the same in today’s prices. As set out in the OBR forecast in March, passenger numbers are expected to exceed pre-pandemic levels in the coming year, and are expected to be around 10% higher than 2024-25 once new APD rates are implemented in 2026-27.

What assessment she has made of the potential impact on families of increases in Air Passenger Duty for Premium Economy passengers announced in the Budget.

The government is committed to securing the long-term future of the aviation sector in the UK and recognises the benefits of the connectivity it creates between the UK and the rest of the world.At Budget 2025, the government announced it will uprate APD rates in line with RPI from 1 April 2027 and rounded to the nearest penny. This constitutes a real terms freeze meaning passengers will pay the same in today’s prices. As set out in the OBR forecast in March, passenger numbers are expected to exceed pre-pandemic levels in the coming year, and are expected to be around 10% higher than 2024-25 once new APD rates are implemented in 2026-27.

What recent representations she has received from airport operators regarding the potential impact of business rates changes announced in the Budget on the competitiveness of UK airports.

The government is committed to enabling investment so that airports can play their full role in the growth mission. HM Treasury received budget submissions from several airports and AirportsUK. Both Ministers and officials have met with the sector and corresponded throughout the year on the impact of changes to rateable values as a result of the 2026 revaluation. Properties seeing large bill increases as a result of the business rates revaluation - including airports - will benefit from a redesigned transitional relief scheme worth £3.2 billion over the next 3 years. At Budget 2025, the government also published a Call for Evidence on Business Rates and Investment. It will explore the concerns that airports and a small number of other ratepayers have raised around the ‘Receipts & Expenditure’ valuation methodology and its impacts on long-term, high value investments. The government is seeking to address issues raised ahead of the 2029 revaluation, aiming to conclude this work in sufficient time before pre-list discussion commences.

What estimate she has made of the revenues generated from the ending of free allowances under the UK Emissions Trading Scheme for aviation; and whether she plans to allocate those revenues to support the production of Sustainable Aviation Fuel.

The UK ETS Authority announced in July 2023 that free allocation would end for the Aviation sector in 2026, after considering stakeholder feedback which largely supported the finding that removing aviation free allocation did not pose a significant risk to carbon leakage. The independent Office for Budget Responsibility is responsible for forecasting receipts from the UK Emissions Trading Scheme (ETS), and has published its methodology for forecasting ETS receipts on its website. Receipts from the UK ETS accrue to the consolidated fund, and go to funding government priorities, which includes decarbonisation support for the aviation sector. The UK Government is supporting the Sustainable Aviation Fuel (SAF) industry by building demand through the SAF Mandate, supporting first-of-a-kind SAF production plants through the Advanced Fuels Fund, and derisking SAF projects by introducing legislation for the Revenue Certainty Mechanism. In 2025, the government announced £400,000 to get new fuels to market quicker, delivering on the UK’s clean energy ambitions and powering up economic growth as part of the Plan for Change.

What assessment she has made of the potential impact of RPI-linked duty increases on consumer prices for spirits in pubs versus supermarkets.

Alcohol duty is paid by producers, and is therefore not typically paid directly by pubs. Further, according to estimates derived from sales data collected on behalf of the Office for National Statistics, only around 15% of spirits are consumed on-trade. At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to main its current real-terms value. The government does not expect this to have any significant impact on competition between the on and off trades.

What assessment she has made of the potential impact of spirits duty on the viability of pub in coastal communities.

Alcohol duty is paid by producers, and is therefore not typically paid directly by pubs. Further, according to estimates derived from sales data collected on behalf of the Office for National Statistics, only around 15% of spirits are consumed on-trade. At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to main its current real-terms value. The government does not expect this to have any significant impact on competition between the on and off trades.

If she will conduct a review of the potential impact of spirits duty policy on the on-trade sector.

At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to main its current real-terms value. The government does not expect this to have any significant impact to GDP, nor competition between the on and off trades. Following a detailed review between 2020 and 2023, a new duty system was introduced in August 2023. Information about this review and its outcomes are available here:www.gov.uk/government/consultations/the-new-alcohol-duty-system-consultation The Government plans to evaluate the 2023 alcohol duty reforms in late-2026, in line with our commitment to do so three years after they took effect.

Whether her Department has made an assessment of the potential impact of spirits duty on the ability of pubs to compete with off-trade retailers.

At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to main its current real-terms value. The government does not expect this to have any significant impact to GDP, nor competition between the on and off trades. Following a detailed review between 2020 and 2023, a new duty system was introduced in August 2023. Information about this review and its outcomes are available here:www.gov.uk/government/consultations/the-new-alcohol-duty-system-consultation The Government plans to evaluate the 2023 alcohol duty reforms in late-2026, in line with our commitment to do so three years after they took effect.

What assessment she has made of the contribution of on-trade sale of UK spirits to GDP.

At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated on 1 February 2026 to main its current real-terms value. The government does not expect this to have any significant impact to GDP, nor competition between the on and off trades. Following a detailed review between 2020 and 2023, a new duty system was introduced in August 2023. Information about this review and its outcomes are available here:www.gov.uk/government/consultations/the-new-alcohol-duty-system-consultation The Government plans to evaluate the 2023 alcohol duty reforms in late-2026, in line with our commitment to do so three years after they took effect.

What assessment her Department has made on the potential impact of a complete spirits duty freeze for the on-trade on revenue.

Alcohol duty is paid at the point of production or import, before it is diverted to either the on-trade or the off-trade. It is therefore not possible to freeze duty rates exclusively for the on-trade. HMRC’s latest published estimate on the effect of a 1% change in spirits duties on tax receipts can be found here: Direct effects of illustrative tax changes bulletin (June 2025) - GOV.UK.

Whether the UK delegation attending the fourth Meeting of Parties to the Framework Convention on Tobacco Control plans to (a) oppose the extension of the scope of application of the Protocol to Eliminate Illicit Trade in Tobacco Products beyond tobacco products to electronic nicotine delivery services and (b) help ensure that proposed amendments of the Treaty follow the proper procedures.

The procedures for amending the World Health Organization Protocol to Eliminate Illicit Trade in Tobacco Products are laid down in Articles 38 and 39 of that treaty. These stipulate that any proposals need to be communicated to parties at least six months before the session at which they are proposed to be adopted.As no such communication has been made in this case, if any proposals for extending the Treaty to electronic nicotine delivery services were to emerge, they would need to be considered at a future Meeting of Parties (MOP) rather than this MOP. The UK would always seek to ensure that any proposals to amend the Treaty follow the proper procedures.