Written questions by Huddleston.

What discussions she has had with the Secretary of State for Culture, Media and Sport on updating VAT guidance to recognise social media advertising as qualifying zero rated charity advertising.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals. Charities already benefit from a reduced (5%) or zero rate of tax when purchasing some goods and services. More information about VAT relief for charities can be found here: VAT for charities: What qualifies for VAT relief - GOV.UK. The Government has no plans to broaden this list of goods and services to include social media advertising, but takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution. Our tax regime for charities, including gift aid and 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 assessment she has made of the administrative costs to charities caused by the current manual Gift Aid process, including the time and resources spent correcting errors and navigating rules.

HMRC has worked collaboratively with a broad range of charity sector stakeholders to explore the potential of Future of Gift Aid (FOGA). This work included extensive research and analysis of the implications of FOGA and the effectiveness of the existing Gift Aid system.HMRC has not made a formal quantitative assessment of the administrative costs to charities arising from the current Gift Aid process. HMRC will continue to engage with the charities sector to improve the way that Gift Aid works through the use of digital technology.

What discussions she has had with HMRC regarding the Future of Gift Aid pilot, and what assessment has been made of its potential impact on the charity sector.

HMRC has worked collaboratively with a broad range of charity sector stakeholders to explore the potential of Future of Gift Aid (FOGA). This work included extensive research and analysis of the implications of FOGA and the effectiveness of the existing Gift Aid system.HMRC has not made a formal quantitative assessment of the administrative costs to charities arising from the current Gift Aid process. HMRC will continue to engage with the charities sector to improve the way that Gift Aid works through the use of digital technology.

What discussion she has had with the Secretary of State for Culture, Media and Sport about the financial burden on charities arising from VAT on social media advertising.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals. Charities already benefit from a reduced (5%) or zero rate of tax when purchasing some goods and services. More information about VAT relief for charities can be found here: VAT for charities: What qualifies for VAT relief - GOV.UK. The Government has no plans to broaden this list of goods and services to include social media advertising, but takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution. Our tax regime for charities, including gift aid and 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 assessment her Department has made of the potential impact of the removal of business rates relief and 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.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%. 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.

Whether she has had discussions with Cabinet colleagues about a potential introduction of a tourism tax or visitor levy powers.

The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth including through support for the local visitor economy, if they so choose.We have published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders.The precise design and scope of the power for Mayors to introduce a visitor levy is still under development and the Government welcomes engagement from the hospitality sector in developing this power through the consultation process.The impacts of the levy will largely be determined by local decisions. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear these concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is invested.Following consultation, we expect Mayors would publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment, informed by the consultation.

What assessment her Department has made of the potential impact of a visitor levy on a) domestic and inbound tourism demand, b) inflation and c) the cost burden on hospitality businesses.

The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth including through support for the local visitor economy, if they so choose.We have published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders.The precise design and scope of the power for Mayors to introduce a visitor levy is still under development and the Government welcomes engagement from the hospitality sector in developing this power through the consultation process.The impacts of the levy will largely be determined by local decisions. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear these concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is invested.Following consultation, we expect Mayors would publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment, informed by the consultation.

Whether the comments made by the then Tourism Minister on 3 September 2025 (Hansard col 351), that the Government has no plans to introduce a tourism tax, remain the policy of her Department.

The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth including through support for the local visitor economy, if they so choose.We have published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders.The precise design and scope of the power for Mayors to introduce a visitor levy is still under development and the Government welcomes engagement from the hospitality sector in developing this power through the consultation process.The impacts of the levy will largely be determined by local decisions. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear these concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is invested.Following consultation, we expect Mayors would publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment, informed by the consultation.

What assessment she has made of the effectiveness of HMRC’s attempts to tackle landfill tax fraud on unauthorised illegal waste sites; and how much money has been recovered from prosecutions in the last 3 years.

The Government applies Landfill Tax to disposals made at sites without an environmental disposal permit (unauthorised waste sites). This aims to deter non-compliance by making the illegal disposal of waste less profitable, and reinforcing the principle of “polluter pays”. In the last 5 years, HMRC Landfill Tax compliance activities have generated a compliance yield of £1.3 billion. HMRC have conducted over 250 compliance interventions over the last three years at illegal unauthorised waste sites, generating approximately £4.5 million in compliance yield. HMRC also works closely with environmental regulators to identify and tackle disposals of unauthorised waste.