Written questions by Hayes.

What assessment her Department has made of the potential impact of increases in employer National Insurance contributions on agricultural businesses.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of 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, civil society organisations and an overview of the equality impacts. The Chancellor has decided to protect the smallest employers by increasing the Employment Allowance to £10,500, and removing the £100,000 eligibility threshold, meaning all eligible employers benefit. This means that next year, 865,000 employers – including small farms who employ staff - will pay no NICs at all. More than half of employers will see no change or will gain overall from this package.

If she will introduce an exemption from changes to employer National Insurance contributions for (a) small and (b) local charities.

The Government has protected the smallest businesses and charities from the impact of the increase to Employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no NICs at all next year, more than half of employers will see no change or will gain overall from this package, and all eligible employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs. All charities are eligible for the Employment Allowance, even if they are wholly or mainly carrying out functions of a public nature.The UK tax regime for charities, including an exemption from paying business rates, is among the most generous of anywhere in the world with tax reliefs for charities and their donors, worth just over £6 billion for the tax year to April 2024.

What steps she is taking to help prevent people from fraudulently claiming child benefit.

HMRC estimated the 2023-24 Child Benefit Error and Fraud (E&F) rate to be 1.6% (£200m) of total Child Benefit expenditure.Child Benefit has strong pre-award controls. The emphasis of HMRC’s compliance strategy remains on unreported changes in circumstance including improving detection through further data acquisition. As part of this strategy the government announced in Autumn Statement 2024 that it is investing in 180 new counter-fraud staff to increase HMRC’s capabilities to better tackle fraud and error in Child Benefit and Tax-Free Childcare. This is expected to deliver a net saving of £355 million from 2025-26 to 2029-30.

What information her Department holds on how many high-street branches of (a) banks and (b) building societies have closed in (i) South Holland and the Deepings constituency and (ii) Lincolnshire in the last 10 years.

The Government does not hold bank branch closure data. However, according to consumer website Which?, South Holland and The Deepings constituency lost just over 60% of its branch network between January 2015 and November 2024, and has six branches remaining. Guidance from the FCA sets out its expectation of firms when they are deciding to reduce their physical branches or the number of free-to-use ATMs. Firms are expected to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs, and put in place alternatives, where this is reasonable. The Government is working closely with banks to roll out 350 banking hubs, which will provide individuals and businesses up and down the country with critical cash and banking services. The Government also recognises the value that building societies bring to local communities, including through their 28% share of the UK’s branch network.

What estimate her Department has made of the number of farmers who will be affected by changes to business property relief in (a) Lincolnshire and (b) South Holland and the Deepings constituency.

I refer the Honourable Member to the PQ referenced 12250 published on 11th November 2024 at: https://questions-statements.parliament.uk/written-questions/detail/2024-11-01/12250. The Chancellor also recently wrote to the Chair of the Treasury Select Committee on this issue, and her letter may be of interest: https://committees.parliament.uk/publications/45691/documents/226235/default/.

What estimate her Department has made of the value of the counterfeit cigarette market.

HMRC estimated that the illicit tobacco market cost £2.2bn in lost excise duty and VAT for the year 2022/23. Cigarettes account for £0.7bn of this amount. We do not have an estimate relating to specifically counterfeit cigarettes. Further details can be found in the Measuring Tax Gaps 2024 publication.

Whether her Department conducted an impact assessment on the proposed change on inheritance tax for agricultural properties.

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, and further explanatory information at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief. Around 500 estates across the UK are expected to be affected each year from 2026-27. In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

If she will list which external organisations her Department consulted before the change in policy on inheritance tax for agricultural properties.

The Government has 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 made ahead of the Budget, and meets with stakeholders on a regular basis.

What estimate her Department has made of the number of farmers who will be affected by the withdrawal of agricultural property relief in (a) Lincolnshire and (b) South Holland and the Deepings constituency.

The Government has published information about the reforms to agricultural property relief and business property relief at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief. Around 500 estates across the UK are expected to be affected each year from 2026-27.

If she will make an assessment of the potential impact of bank closures in (a) South Holland and the Deepings constituency and (b) Lincolnshire on (i) pensioners and (ii) small business owners.

The Government understands the impact of bank branch closures on communities and the importance of face-to-face banking. It is committed to championing sufficient access for all as a priority. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this parliament. These hubs will provide small businesses and individuals who need face-to-face support with critical cash and in-person banking services. Over 80 banking hubs are already open and Cash Access UK, who oversee banking hub rollout, expect 100 hubs to be open by Christmas. Furthermore, FCA guidance expects firms to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and put in place alternatives where reasonable. As well as banking hubs, alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking and via the Post Office.

Whether she has made an assessment of the potential impact of the introduction of VAT on private school fees on faith schools.

On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools. A technical note setting out the details of the policy has been published online here: https://www.gov.uk/government/publications/vat-on-private-school-fees-removing-the-charitable-rates-relief-for-private-schools(opens in a new tab).Draft VAT legislation was also published alongside this technical note, forming a technical consultation, which closed on 15 September. As part of this technical consultation, the Government engaged with a broad range of stakeholders.Whilst developing these policies, the Government has carefully considered the impact that they will have on pupils and their families across both the state and private sector, as well as the impact they will have on state and private schools. Following scrutiny of the Government's costings by the independent Office for Budget Responsibility (OBR), details of the Government’s assessment of the expected impacts of these policy changes will be published at the Budget on 30 October in a Tax Information and Impact Note.