Written questions by Dillon.

If she will make an assessment of the potential impact of (a) VAT and (b) business rates on the hospitality sector.

In April 2026, the Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure properties with ratable values below £500,000. This permanent tax cut will ensure that eligible hospitality businesses, including pubs, benefit from much-needed certainty and support. Ahead of the new multipliers being introduced, the Government prevented RHL business rates relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business. Business rates are a vital source of Local Government funding and support critical local services, including children's and adult social care. As such, the Government has no plans to abolish business rates for pubs. VAT is a broad-based tax on consumption that applies to most goods and services.

Whether her Department plans to review inheritance tax reliefs for agricultural property.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free. The Government will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.

What assessment she has made of the effectiveness of the Digital Services Tax; and whether she plans to review the rate at which it is set.

Decisions on tax are a matter for the Chancellor and any changes will be announced at the budget in the usual way. The Digital Services Tax is an interim solution to widely held concerns with the international corporate tax framework, and the UK remains committed to remove it once a global solution on the reallocation of taxing rights is in place.

What assessment her Department has made of the potential impact of ending temporary business rates reliefs for retail, hospitality and leisure businesses from 1 April 2026 on racehorse training yards.

The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century. To deliver our manifesto pledge, from 2026/27, the Government intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support. This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties in 2026/27 - those with Rateable Values (RVs) of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants. The final design, including the rates, for the new business rates multipliers will be announced at Budget 2025, so that the Government can factor the revaluation outcomes and broader economic and fiscal context into decision-making. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements. Ahead of these changes being made, we recognise that businesses will need support in 2025/26. As such, the Government has prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and the Government has frozen the small business multiplier.

What assessment her Department has made of the potential impact of changes to the business rates system from 1 April 2026 on businesses in the horseracing industry.

The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century. To deliver our manifesto pledge, from 2026/27, the Government intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support. This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties in 2026/27 - those with Rateable Values (RVs) of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants. The final design, including the rates, for the new business rates multipliers will be announced at Budget 2025, so that the Government can factor the revaluation outcomes and broader economic and fiscal context into decision-making. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements. Ahead of these changes being made, we recognise that businesses will need support in 2025/26. As such, the Government has prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and the Government has frozen the small business multiplier.

What assessment her Department has made of the potential merits of extending Orchestra Tax Relief to (a) vocal performance groups and (b) choirs.

The Government supports the creative industries, including orchestras, through funding and through the tax system. To qualify for Orchestra Tax Relief, a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument for these purposes. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra also contains at least 12 instrumentalists, not including the voice, and the instrumentalists are the primary focus. Vocal performance groups and choirs do not qualify for Orchestra Tax Relief since the scheme aims to support the cultural and distinct economic activity associated with orchestral concerts. We do of course recognise the benefits choirs and vocal performance groups offer to those who participate and who enjoy their performances. When considering new tax reliefs, the Government takes into account a wide range of factors including costs, complexity, and fairness.The Chancellor makes announcements on tax at fiscal events in the context of the overall public finances.

What assessment she has made of the potential merits of providing full compensation to Equitable Life policyholders.

The Equitable Life Payment Scheme has been fully wound down and closed since 2016 and there are no plans to reopen any decisions relating to the Payment Scheme or review the £1.5 billion funding allocation previously made to it. Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.

What assessment she has made of the potential impact of changes to employer's National Insurance on small healthcare businesses.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the 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, and civil society organisations, as well as an overview of the equality impacts.

When her Department plans to publish details of the changes to inheritance tax.

The Government has already published significant details about the reforms to inheritance tax announced at Autumn Budget 2024. The Government is currently considering the responses to the technical consultation on the application of agricultural property relief and business property relief to trusts. The Government is also considering the responses to the technical consultation on the liability for reporting and paying any inheritance tax due on pensions. The Government will respond to both these technical consultations in due course. Draft legislation will be published in the normal way later this year and legislation implementing these policies will be brought forward ahead of the measures taking effect.

What assessment she has made of the potential impact of changes to business rates on high street retailers.

As set out at Autumn Budget 2024, the Government intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, from 2026-27. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on all properties with a rateable value (RV) of £500,000 and above. The Government will confirm the rates for the new multipliers at Budget 2025, taking account of the outcomes of the 2026 revaluation as well as the broader economic and fiscal context. Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025 – to take effect in the 2026-27 billing year – HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.

If she will make an assessment of the potential merits of introducing separate inheritance tax thresholds for (a) agricultural land and (b) business equipment for farmers.

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. It is expected that up to around 2,000 estates will be affected in 2026-27 by the changes to APR and BPR, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms. In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

What assessment has she made of the impact of the level of business rates on high street shops; and what steps she plans to take to support businesses with high business rates.

High street businesses are contending with changing consumer shopping habits and have faced a series of economic headwinds in recent years, including the pandemic. As set out in its manifesto, the government wants to ensure that the weight of business rates is permanently rebalanced and high street businesses are protected.The government announced at the Budget an intention to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties from 2026-27. During the interim period, for 2025-26, RHL properties will receive a 40% relief on business rates bills up to a cash cap of £110,000 per business. The small business multiplier paid by properties with RVs below £51,000 will also be frozen for a further year.

Whether her Department has made an assessment of the potential impact of adding VAT to schools fees on special schools.

Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, the Government will confirm its approach to these reforms at the Budget on 30 October and set out its assessment of relevant expected impacts in a Tax Information and Impact Note (TIIN).

Whether she has made an assessment of the potential merits of increasing the proportion of the UK's national income spent on education.

The government recognises the importance of education and is committed to transforming the education system so that young people get the opportunity they deserve. At the Spending Audit in July, DfE received an additional £2.1 billion in 2024-25, including to fully fund the 5.5% teacher pay award, at a national level, as recommended by the independent pay review body. At the Spending Review on 30 October, DfE received a settlement providing total DEL funding of £99.7 billion in 2025-26. This is equivalent to an annual average real-terms growth rate of 3.4% from 2023-24 to 2025-26. To raise school standards for every child, the core schools budget will increase by an additional £2.3 billion next year, increasing per pupil funding in real terms.