Written questions by Vickers.

What assessment she has made of the potential impact of the increase in employer National Insurance contributions on jobs in the hospitality sector.

I refer you to my previous answer to PQ UIN 125056.

What assessment she has made of the potential impact of changes to employer National Insurance contributions and business rates on the viability of pubs, restaurants and hospitality venues in towns such as Stockton, Thornaby and Yarm.

I refer you to my previous answer to PQ UIN 125056.

What estimate she has made of the number of additional taxpayers who will pay an effective marginal rate of income tax of 60% because their income is between £100,000 to £125,140 due to the freezing of income tax thresholds before 2031.

The Government recognises that taxpayers earning between £100,000 and £125,140 face a higher marginal tax rate due to the tapering of the tax-free Personal Allowance, introduced in 2010-11. The number of people forecast to pay tax by marginal rate can be found in the OBR’s March 2026 Economic and fiscal outlook – detailed forecast tables: receipts, linked below. https://obr.uk/download/march-2026-economic-and-fiscal-outlook-detailed-forecast-tables-receipts/?tmstv=1772624887 The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028 and this is reflected in the numbers.

What estimate she has made of the number of people who have reduced their taxable income to avoid the tapered withdrawal of the personal allowance for income tax.

The Government recognises that taxpayers earning between £100,000 and £125,140 face a higher marginal tax rate due to the tapering of the tax-free Personal Allowance, introduced in 2010-11. The number of people forecast to pay tax by marginal rate can be found in the OBR’s March 2026 Economic and fiscal outlook – detailed forecast tables: receipts, linked below. https://obr.uk/download/march-2026-economic-and-fiscal-outlook-detailed-forecast-tables-receipts/?tmstv=1772624887 The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028 and this is reflected in the numbers.

Whether she plans to review the long-term structure of business rates in England.

The Call for Evidence on business rates and investment closed on 18 February. It asked stakeholders for more detailed evidence on how the business rates system influences investment decisions, with questions on the business rates system’s tax structure, small business rates relief, improvement relief and empty property relief. The Government is carefully considering representations we’ve received, and a response to the Call for Evidence will be published in due course.

What assessment she has made of the potential impact of property-based business taxation, such as business rates, on business investment and productivity.

The Call for Evidence on business rates and investment closed on 18 February. It asked stakeholders for more detailed evidence on how the business rates system influences investment decisions, with questions on the business rates system’s tax structure, small business rates relief, improvement relief and empty property relief. The Government is carefully considering representations we’ve received, and a response to the Call for Evidence will be published in due course.

Whether the Government plans to apply the same inheritance tax treatment used for the infected blood compensation scheme to future comparable schemes.

Some payments made under Government established compensation schemes will not give rise to an income tax liability. This is because payments intended to compensate individuals for personal injury would generally fall within established tax principles that treat compensation for personal injury as non-taxable. If payments are made which specifically represent loss of earnings, they will be subject to income tax under miscellaneous income rules.Beyond this, tax exemptions for individual schemes will be considered on a case-by-case basis. Given the historic nature of the Infected Blood Scandal and the reduced life expectancy of Infected Blood recipients, many individuals will have passed away before they could receive their compensation. This means that concerns around the impacts of secondary transfers are particularly acute in the case of Infected Blood compensation. For this reason, we have taken steps to extend the inheritance tax relief for this scheme.

What criteria the Government uses to determine whether payments made under a Government compensation scheme are exempt from (a) income tax and (b) inheritance tax.

Some payments made under Government established compensation schemes will not give rise to an income tax liability. This is because payments intended to compensate individuals for personal injury would generally fall within established tax principles that treat compensation for personal injury as non-taxable. If payments are made which specifically represent loss of earnings, they will be subject to income tax under miscellaneous income rules.Beyond this, tax exemptions for individual schemes will be considered on a case-by-case basis. Given the historic nature of the Infected Blood Scandal and the reduced life expectancy of Infected Blood recipients, many individuals will have passed away before they could receive their compensation. This means that concerns around the impacts of secondary transfers are particularly acute in the case of Infected Blood compensation. For this reason, we have taken steps to extend the inheritance tax relief for this scheme.

What assessment she has made of the potential impact for the Exchequer of VAT non-compliance by overseas sellers posing as UK businesses on online marketplaces.

HMRC’s best estimate is that in 2021/22 there was £150 million of overseas seller non-compliance occurring through online marketplaces as referenced by the National Audit Office report entitled ‘Tackling tax evasion in high street and online retail’ published in September 2024.

When she plans to publish the outcome of the review of the VAT Deemed Reseller rules announced in April 2025.

The Government has and will continue to engage with stakeholders to understand the impact of any changes to online marketplace liability rules on both platforms and sellers. Certified analysis by the Office for Budget Responsibility (OBR) estimates the current online marketplace liability rules, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27. HMRC has an overall compliance strategy which focuses on addressing all forms of non-compliance. The most recent published VAT gap shows a continued downward trend, falling from 13.7% to 5.4% between tax years 2005/06 and 2023/24.

What assessment has the Government has made of the potential impact that extending VAT Deemed Reseller rules to include UK sellers could have to closing the tax gap.

The Government has and will continue to engage with stakeholders to understand the impact of any changes to online marketplace liability rules on both platforms and sellers. Certified analysis by the Office for Budget Responsibility (OBR) estimates the current online marketplace liability rules, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27. HMRC has an overall compliance strategy which focuses on addressing all forms of non-compliance. The most recent published VAT gap shows a continued downward trend, falling from 13.7% to 5.4% between tax years 2005/06 and 2023/24.

What assessment her Department has made of the potential impact of recent changes to Landfill Tax rates on chemical manufacturing operations in Teesside.

The Government recently consulted on proposals to reform Landfill Tax to ensure the regime remains effective in encouraging waste to be diverted away from landfill and to support the Government’s circular economy objectives. As part of the consultation, the Government has received a wide range of views from stakeholders, including representatives from the chemical manufacturing sector. The consultation closed on 28 July, and the Government is considering responses and will set out next steps in due course.

What assessment she has made of the potential impact of reforms to the Landfill Tax on businesses engaged in environmentally-responsible waste (a) treatment and (b) recycling.

The Government recently consulted on proposals to reform Landfill Tax to ensure the regime remains effective in encouraging waste to be diverted away from landfill and to support the Government’s circular economy objectives. As part of the consultation, the Government has received a wide range of views from stakeholders, including from businesses that are engaged in environmentally responsible waste management practices. The consultation closed on 28 July, and the Government is considering responses and will set out next steps in due course.

What assessment she has made of the potential impact of beer duty reforms on the growth of (a) microbreweries and (b) regional brewing clusters.

A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV. HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.

What steps her Department is taking to monitor whether reductions in beer duty are being passed on to (a) consumers and (b) publicans.

A new duty structure for alcoholic products was introduced in August 2023. This included a new Draught Relief which is a reduced rate of Alcohol Duty applied to qualifying alcoholic products sold in the on-trade (e.g. pubs, bars) under 8.5% ABV. The government estimated the cost of Draught Relief as £145m for 24-25 and published it here: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs. At Autumn Budget 2024, the Chancellor also announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents. HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including Draught Relief, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.

What recent discussions she has had with representatives of the (a) brewing and (b) pub sectors on beer duty rates.

Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system. The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings. At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far. The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget. Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL

What recent assessment she has made of the potential impact of changes to beer duty on the financial sustainability of (a) small and (b) independent breweries.

A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV. HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.

What recent discussions she has had with HMRC on the potential impact of (a) the administration of and (b) compliance with the beer duty system on small producers.

A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV. HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.

What estimate she has made of the potential fiscal impact of draught beer relief since its introduction.

A new duty structure for alcoholic products was introduced in August 2023. This included a new Draught Relief which is a reduced rate of Alcohol Duty applied to qualifying alcoholic products sold in the on-trade (e.g. pubs, bars) under 8.5% ABV. The government estimated the cost of Draught Relief as £145m for 24-25 and published it here: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs. At Autumn Budget 2024, the Chancellor also announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents. HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including Draught Relief, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.

What recent assessment she has made of the potential impact of the reduced rate of beer duty for draught products on the (a) on-trade and (b) off-trade sectors.

Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system. The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings. At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far. The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget. Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL