Written questions by Johnson.

When she expects the joint HMRC and PCS evaluation of the Managed Service Provider Proof of Value trial will be completed and published.

HMRC is currently in the Proof of Value phase for the use of Managed Service Providers (MSPs), supported by a joint evaluation agreed with the PCS trade union. The evaluation covers service quality, productivity, customer experience and value for money, and is intended to inform any future decisions about MSP use. HMRC expects to complete the first phase of this evaluation in April, after which the findings will be reviewed internally and used to inform future decisions on the MSP approach. The evaluation will help ensure that any next steps are evidence‑based and aligned with service needs and value for money. Any future planning decisions will be made through normal business planning and Spending Review processes, informed by the evaluation evidence. The findings will be considered alongside operational need, value for money and commercial sensitivities, and used to shape HMRC’s future approach to the use of MSPs.

If she will make it her policy not to expand Managed Service Provider usage until the joint HMRC and PCS evaluation is concluded and reviewed.

HMRC is currently in the Proof of Value phase for the use of Managed Service Providers (MSPs), supported by a joint evaluation agreed with the PCS trade union. The evaluation covers service quality, productivity, customer experience and value for money, and is intended to inform any future decisions about MSP use. HMRC expects to complete the first phase of this evaluation in April, after which the findings will be reviewed internally and used to inform future decisions on the MSP approach. The evaluation will help ensure that any next steps are evidence‑based and aligned with service needs and value for money. Any future planning decisions will be made through normal business planning and Spending Review processes, informed by the evaluation evidence. The findings will be considered alongside operational need, value for money and commercial sensitivities, and used to shape HMRC’s future approach to the use of MSPs.

What the projected cost of the Managed Service Provider model is, including contract management and oversight costs; and whether that cost has been benchmarked against (a) recruiting and training permanent HMRC staff and (b) the use of temporary and surge staffing.

Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce. Other Government Departments (OGDs) already use MSP contracts to provide additional workforce flexibility. HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation. Due to the design of the contract, HMRC can only confirm costs retrospectively. Much of the oversight work utilises existing HMRC staff who do that work for their internal services, thereby ensuring continuity across the services. Overall the projected cost for 12 months was approximately £23m. HMRC are conducting a joint evaluation, at quarterly intervals, of the performance of the MSP including its value for money with the Trade Unions which will include customer satisfaction, quality, productivity and other metrics. HMRC provides the initial training for the services covered by the MSPs, before approving suppliers to train subsequent cohorts of staff themselves. All operational guidance is developed, owned and updated by HMRC, and HMRC retains full decision‑making authority, with a dedicated team actively managing the partnership.

Who is responsible for training Managed Service Provider staff and trainers; and what role HMRC staff play in that process.

Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce. Other Government Departments (OGDs) already use MSP contracts to provide additional workforce flexibility. HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation. Due to the design of the contract, HMRC can only confirm costs retrospectively. Much of the oversight work utilises existing HMRC staff who do that work for their internal services, thereby ensuring continuity across the services. Overall the projected cost for 12 months was approximately £23m. HMRC are conducting a joint evaluation, at quarterly intervals, of the performance of the MSP including its value for money with the Trade Unions which will include customer satisfaction, quality, productivity and other metrics. HMRC provides the initial training for the services covered by the MSPs, before approving suppliers to train subsequent cohorts of staff themselves. All operational guidance is developed, owned and updated by HMRC, and HMRC retains full decision‑making authority, with a dedicated team actively managing the partnership.

How HMRC will demonstrate value for money on the long term rollout of the Managed Service provider model.

Customer demand for HMRC services can fluctuate significantly, both seasonally and in response to external events. HMRC uses Managed Service Providers (MSPs) to provide additional, flexible capacity to help manage these types of variations and support performance on customer helplines. Incorporating MSPs into the overall resourcing mix helps HMRC maintain customer service standards, while retaining expertise within its workforce. Other Government Departments (OGDs) already use MSP contracts to provide additional workforce flexibility. HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation. Due to the design of the contract, HMRC can only confirm costs retrospectively. Much of the oversight work utilises existing HMRC staff who do that work for their internal services, thereby ensuring continuity across the services. Overall the projected cost for 12 months was approximately £23m. HMRC are conducting a joint evaluation, at quarterly intervals, of the performance of the MSP including its value for money with the Trade Unions which will include customer satisfaction, quality, productivity and other metrics. HMRC provides the initial training for the services covered by the MSPs, before approving suppliers to train subsequent cohorts of staff themselves. All operational guidance is developed, owned and updated by HMRC, and HMRC retains full decision‑making authority, with a dedicated team actively managing the partnership.

What steps she will take to address the tax disparity that sees employing hairdressing salons pay 123% more tax than self-employed hairdressing salons for the same turnover.

The Government recognises the vital role that hairdressing salons play in communities and the wider economy.An individual's employment status is determined by the facts and circumstances of the engagement between the worker and engager. This is based on case law. The Government recognises that firms in the hair and beauty sector operate under different business models.The Government has taken steps to support small businesses. To protect the smallest businesses from changes to employer National Insurance Contributions (NICs) made at Autumn Budget 2024, the Government increased 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.The Government is also supporting small businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.The Government keeps all areas of the tax system under review. Any changes to the tax system are announced as part of the annual Budget process.

What assessment her Department has made of the potential impact of its business rates policies on small hospitality 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 next year. 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. However, because of the support the Government has 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. The Government is 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. The Government is paying for this tax cut 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. 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, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.

What discussions she has had with hospitality businesses on the potential impact of the current rate of VAT on the viability of those businesses.

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK. The Chancellor and other Ministers meet with a range of businesses and their representatives to understand the impacts of Government policy, including hospitality businesses.

What assessment her Department has made of the potential merits of creating a dedicated form of business rates relief for post offices.

The Government has no plans to introduce a targeted business rates relief for post offices. However, as set out at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with ratable values below £500,000, including post offices, from 2026/27. This permanent tax cut will ensure that eligible post offices benefit from much-needed certainty and support. Post offices are also eligible for 40 per cent RHL relief up to a cash cap of £110,000 per business in 2025/26. They are also eligible for 100 per cent rural rate relief if they meet certain conditions.

If she will make an assessment of the potential merits of increasing the level of taxation paid by the gambling industry.

The government committed in its manifesto to reducing gambling-related harms, but addressing harm is not the primary purpose of the gambling duty system. Nevertheless, we will remain mindful of any potential impact on problem gamblers in the event we make any change to gambling taxes following the recently closed consultation.

What assessment she has made of the potential impact of changes to employer National Insurance contribution rates on third sector organisations; and whether she plans to provide further funding to support charities with these costs.

The Government recognises the important role charities play in our society, and has made it a priority to reset the relationship with civil society and build a new partnership to harness their full potential by developing a Civil Society Covenant recognising the sector as a trusted and independent partner. Within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving. The tax reliefs available to charities are a vital element in supporting charitable causes across the UK, with more than £6 billion in charitable reliefs provided to charities, CASCs and their donors in 2023 to 2024.To repair the public finances and help raise the revenue required to increase funding for public services, the government has taken the difficult decision to increase employer National Insurance.The Government recognises the need to protect the smallest businesses and charities, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of employers with NICs liabilities either gain or see no change next year. Charities will still be able to claim employer NICs reliefs including those for under 21s and under 25 apprentices, where eligible.The Government has committed to provide support for departments and other public sector employers for additional Employer NICs costs only. This is the usual approach the Government takes to supporting the public sector with additional Employer NICs costs, as was the case with the previous Government’s Health and Social Care Levy.