Every parliamentary written question tabled by Rachel Gilmour this session, with the full answer and department. Back to the MP page.
Showing 1–18 of 18 · Treasury
What estimate her Department has made of the total revenue raised through VAT on electricity used to charge electric vehicles, including (a) domestic charging at the reduced 5% VAT rate and (b) public charging at the standard 20% rate.
Awaiting answer.
What assessment she has made of the impact of the overall tax burden on hospitality businesses.
Awaiting answer.
What estimate her Department has made of the costs of expanding the rural fuel duty relief scheme to cover all of Tiverton and Minehead constituency.
The Rural Fuel Duty Relief Scheme has provided a 5p reduction to motorists buying fuel in certain areas since its introduction in 2012. The areas included in the scheme demonstrate certain characteristics such as: pump prices much higher than the UK average; remoteness leading to high fuel transport costs from refinery to filling station, and; relatively low sales meaning that retailers cannot benefit from bulk discounts.There are no plans to amend the list of eligible locations.
What assessment she has made of the potential impact of the business rates model on rural pubs that have been rescued and are operated by volunteers in local communities; and what steps she is taking to ensure that non‑viable pubs, kept open because of the efforts of volunteers to preserve them, are not taxed for volunteering.
The Government has announced a £4.3 billion business rates support package to protect ratepayers from large overnight increases in bills. In addition, the Government is introducing permanently lower multipliers for eligible RHL properties. These are worth almost £1 billion per year, and will benefit over 750,000 properties. On top of this, pubs and live music venues will also benefit from 15% off their new business rates bills, ahead of their bills being frozen in real terms for a further two years. Three-quarters of pubs will see bills flat or falling in April. The new relief is worth £1,650 for the average pub next year. As a sector pubs will pay 8% less in business rates in 2029 than they do right now. Pubs in rural areas may also benefit from either Rural Rate Relief or Small Business Rate Relief (SBRR). Rural Rate Relief aims to ensure that key amenities are available and community assets are protected in rural areas. It provides 100% rate relief for properties that are based in eligible rural areas with populations below 3,000. Around a third of properties in England pay no business rates because of SBRR. The Government will also launch a review which will explore how pubs are valued for business rates.
What assessment she has made of the potential merits of extending VAT exemption to include essential (a) day care and (b) respite services for people with (i) dementia and (ii) other permanent disabilities.
Supplies of welfare services, including the provision of care for people with permanent disabilities and dementia, are exempt from VAT if they are supplied by eligible bodies, such as public bodies or charities. When developing policy, including on VAT on welfare services, the Treasury carefully considers the impact of its decisions on those sharing any of the nine protected characteristics, including disability, age, sex and race, in line with its statutory obligations under the Public Sector Equality Duty set out in the Equality Act 2010. More generally, 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 second largest tax, forecast to raise £180 billion in 2025/26. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
If she will make an assessment of the potential implications for her policies of the size of the backlog on Valuation Office Agency decisions.
The Valuation Office Agency (VOA) is working as quickly as possible to clear cases, and moving staff to where there is the greatest customer demand. The VOA is focusing on the oldest cases first, and where customers are facing financial hardship. The VOA is replacing IT systems with modern cloud-based platforms that will deliver significant efficiencies. It is also upskilling its workforce to ensure there is flexibility in managing a wide range of cases and improving its digital services to make it easier for customers to self-serve.
What assessment her Department has made of the potential impact of VAT on the affordability of support services for people with (a) permanent disabilities and (b) dementia.
Supplies of welfare services, including the provision of care for people with permanent disabilities and dementia, are exempt from VAT if they are supplied by eligible bodies, such as public bodies or charities. When developing policy, including on VAT on welfare services, the Treasury carefully considers the impact of its decisions on those sharing any of the nine protected characteristics, including disability, age, sex and race, in line with its statutory obligations under the Public Sector Equality Duty set out in the Equality Act 2010. More generally, 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 second largest tax, forecast to raise £180 billion in 2025/26. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
If her Department will make an assessment of the potential impact of the increase in employer National Insurance contributions on independent businesses in rural constituencies.
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer National Insurance contributions (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.The Government decided to protect the smallest businesses from these changes by increasing 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. It means employers will be able to employ up to four full-time workers on the National Living Wage without paying employer NICs.
What assessment she has made of the potential impact of the change in banks' policies on block management accounts on people who own apartment buildings.
The Government is aware of ongoing action taken by some banks to restrict their services in respect of pooled client accounts, which may include block management accounts. We understand the difficulties this can cause for those whose accounts have been closed as a result. The Government is considering changes to the regulations in this area, in order to improve access to pooled client accounts for the businesses which depend on them. Proposals on this issue formed part of the recent consultation on Improving the Effectiveness of the Money Laundering Regulations. The Government is reviewing responses to this consultation and will respond in due course.
If she will make an assessment of the potential merits of extending business rate relief to include angling boats as small businesses.
Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value (RV). Eligible properties with an RV under £12,000 will receive 100 per cent relief and there is also tapered support available to properties valued between £12,000 and £15,000. More information about SBRR can be found here: https://www.gov.uk/apply-for-business-rate-relief/small-business-rate-relief Charitable rates relief provides 80% relief to eligible properties. More information about charitable rates relief can be found here: https://www.gov.uk/apply-for-business-rate-relief/charitable-rate-relief To be considered a rateable hereditament, a boat has to have a sufficient degree of permanence, as defined by case law. Examples include floating restaurants, nightclubs and tourist attractions. Further information on the business rates treatment of boats can be found here: https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-670-mooringsAt the Autumn Budget, the Government published the ‘Transforming Business Rates’ Discussion Paper, which sets out priority areas for reform. This paper invited stakeholders to help co-design a fairer business rates system that supports investment and is fit for the 21st century. As set out in the Discussion Paper, the government is open to receiving written evidence on priority areas.
If her Department will make an assessment of the adequacy of the eligibility criteria for Rateable Charity Relief for charity organisations using (a) tidal mooring and (b) harbour spaces.
Small Business Rate Relief (SBRR) is available to businesses with a single property below a set rateable value (RV). Eligible properties with an RV under £12,000 will receive 100 per cent relief and there is also tapered support available to properties valued between £12,000 and £15,000. More information about SBRR can be found here: https://www.gov.uk/apply-for-business-rate-relief/small-business-rate-relief Charitable rates relief provides 80% relief to eligible properties. More information about charitable rates relief can be found here: https://www.gov.uk/apply-for-business-rate-relief/charitable-rate-relief To be considered a rateable hereditament, a boat has to have a sufficient degree of permanence, as defined by case law. Examples include floating restaurants, nightclubs and tourist attractions. Further information on the business rates treatment of boats can be found here: https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-670-mooringsAt the Autumn Budget, the Government published the ‘Transforming Business Rates’ Discussion Paper, which sets out priority areas for reform. This paper invited stakeholders to help co-design a fairer business rates system that supports investment and is fit for the 21st century. As set out in the Discussion Paper, the government is open to receiving written evidence on priority areas.
If she will make an assessment of the adequacy of current council tax guidance for the valuation of farm properties with outbuildings.
The Valuation Office Agency (VOA) publishes its guidance manual here: https://www.gov.uk/guidance/council-tax-manual/council-tax-practice-notes. Practice Note 2, Appendix 2 refers. Technical experts are also available internally to provide support to VOA staff as required. The VOA’s guidance is kept under review and updated when needed.
What assessment she has made of the potential impact of EU parcel regulations on the ability of small and medium-sized enterprises to trade with the EU.
The Government is aware of the EU Commission’s proposed reforms to the Union Customs Code (UCC), which include proposals aimed at addressing significant increases in volumes of parcels imported directly to consumers. The Government will continue to monitor the progress of the proposed reforms through the EU institutions and will monitor potential impacts on UK businesses. Various forums exist for UK-EU dialogue on issues such as this, including the UK/EU Trade Specialised Committee on Customs and Rules of Origin.
If she will make an estimate of the potential impact of freezing Income Tax thresholds until 2028 on the number of people who will begin paying (a) Income Tax and (b) the higher rate of Income Tax in each financial year of this Parliament.
The information requested is published as part of the OBR’s Economic and Fiscal Outlook (EFO). The published table sets out the effects of the threshold freeze on taxpayers, by showing estimated numbers with and without indexation of the thresholds and the impact of the thresholds being frozen. This information has been updated in the EFO at each recent fiscal event. The below is an extract from this published table: 3.18 Effect of threshold freezes on additional taxpayers Million 2023-242024-252025-262026-272027-282028-292029-30Number of taxpayers …brought into income tax2.23.33.53.94.24.24.2…brought into higher-rate band1.42.22.52.83.03.03.0 The full table is available as Table 3.18 in the detailed forecast of receipts: October 2024 Economic and fiscal outlook – detailed forecast tables: receipts (obr.uk)
If she will make an assessment of the potential merits of exempting hospitality businesses from proposed changes to employer National Insurance contributions.
The Government has taken a number of difficult but necessary decisions on tax, welfare, and spending to fix the public finances, fund public services, and restore economic stability after the situation we inherited from the previous administration. The Government has protected the smallest businesses 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 employer NICs at all next year. More than half of employers will see no change or will gain overall from this package and eligible employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs.
What assessment she has made of the potential implications for her policies of Office for Budget Responsibility forecasts of long-term alcohol consumption trends; and what assessment she has made of the potential impact of those trends on estimated future receipts from Alcohol Duty.
The OBR recently reviewed its forecasts of tax receipts from alcohol duty and commented on this in its Economic and Fiscal Outlook, published in October. Its updated forecast reflects lower-than-anticipated alcohol consumption in 2024-25, and a reduction in alcohol consumption growth over the medium term. Following a request for further detail in respect of the price elasticities used in its alcohol duty costings, the OBR also published updated price elasticities for alcohol in July 2024. The government carefully considers OBR forecasts as part of its tax policy-making process and keeps all taxes under review.
With reference to her Department's policy paper entitled Alcohol Duty uprating, published on 30 October 2024, if she will publish an estimate of the future administrative and operational costs to businesses associated with the withdrawal of the temporary easement on 1 February 2025.
At the recent Budget, the Chancellor confirmed that the current temporary wine easement will end as planned from 1 February 2025. By this time, the wine industry will have had over two years to adapt to the strength-based alcohol duty system. The summary of impacts from the alcohol duty reforms announced at Spring Budget 2023, including the wine easement, can be found here: Alcohol Duty Reforms - GOV.UK The Budget also announced that alcohol duty will be uprated in line with RPI inflation on 1 February 2025, except on qualifying draught products. A Tax Information and Impact Note was published alongside this Budget announcement. This is available here: Alcohol Duty uprating - GOV.UK HMRC plans to evaluate the impact of the new rates and structures three years after the changes took effect on 1 August 2023. The Government welcomes evidence from industry on the impact of the changes so far.
Whether she plans to (a) review the planned changes to alcohol duty rates before their implementation in February 2025, notwithstanding an extension of the current duty freeze and (b) publish an impact assessment of the planned changes (i) on the (A) hospitality and (B) wine production sectors and (ii) more broadly.
As with all taxes, the Government keeps alcohol duty rates under review during its Budget process. Any substantive tax changes would be accompanied by a relevant Tax Information and Impact Note. The current temporary duty easement for wine is due to end on 31 January 2025.