Written questions by Braverman.

What assessment her Department has made of the potential impact of the Flat Rate VAT Scheme on small independent hospitality businesses' ability to claim VAT on (a) food, (b) energy, (c) supplies and (d) other input costs.

The Flat Rate Scheme offers additional simplification to smaller businesses. It allows VAT to be calculated by the application of a sector-specific percentage. These are lower than the current rate of 20% to allow for VAT on costs which cannot be claimed by scheme users.These percentages reflect average ratios of VAT on sales and purchases for registered businesses in each sector. They vary between 4% and 16.5% to account for the different levels of normal VAT recovery. This includes the 10.5% hospitality rate. Additionally, the Scheme allows businesses to recover VAT on the purchase of larger capital items.In this sector many costs do not attract VAT, including food which may be zero-rated and wages which are outside the scope of VAT. Energy costs may be charged a lower rate of VAT depending on usage.The Flat Rate Scheme is optional, and each business must make its own judgement regarding the additional simplification it offers and the different VAT liability which would be declared if it were used.

Whether she plans to review the Flat Rate Scheme rules to enable small hospitality businesses to recover VAT on essential inputs.

The Flat Rate Scheme aims to offer additional simplification to smaller businesses. It allows VAT to be calculated by the application of a sector-specific percentage. Users benefit by not having to account for VAT on sales and costs, instead applying a lower rate than the 20% Standard Rate of VAT. These percentages reflect average ratios of VAT on sales and purchases for registered businesses in each sector. They vary between 4% and 16.5% to account for the different levels of normal input tax recovery. This includes the 10.5% hospitality rate. Additionally, the Scheme allows businesses to recover VAT on the purchase of larger capital items. We keep all taxes under review and make changes at Budget in the context of the overall public finances.

Whether she has plans to (a) simplify and (b) expand access to (i) business rates relief and (ii) tax support schemes for small hospitality venues in (A) coastal and (B) rural communities.

The Government is committed to creating a fairer business rates system that supports small businesses and protects the high street. Over a third of properties (more than 700,000) already pay no business rates as they receive 100 per cent Small Business Rates Relief (SBRR), with an additional c.60,000 benefiting from reduced bills as this relief tapers. To deliver our manifesto pledge to create a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century, from 2026-27, we intend to introduce permanently lower tax rates for eligible retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000.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. Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have 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. We have also frozen the small business multiplier, protecting over a million properties from inflationary bill increases.Furthermore, Rural Rate Relief aims to ensure that key amenities are available, and community assets protected in rural areas. It provides 100% rate relief for properties that are based in eligible rural areas with populations below 3,000.As highlighted in the Transforming Business Rates Discussion Paper published at Autumn Budget 2024, the Government was interested in hearing stakeholders’ views on the extent to which the current system acts as a barrier to investment and specifically, whether the current eligibility criteria for SBRR impacts businesses' incentives to invest and expand into a second property. The Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.

Whether her Department has conducted a review into the listed causes of de-banking by banking corporations.

The government recognises that access to banking services is vital for people and businesses across the UK and is a matter of concern for certain sectors such as cryptoasset firms and their customers. The government continues to engage with the banking sector and affected industries to better understand the existing and emerging issues in this area. The government also welcomes the Financial Conduct Authority’s work to date to better understand why banks might reject or close bank accounts. Where the FCA has found areas where firms need to improve customer outcomes, the government expects firms to consider the FCA’s findings and act accordingly. Separately, the Treasury concluded a call for evidence in April 2023 which found deficiencies in the rules applying to bank account closures. In June 2025, the government therefore legislated to require banks and other providers to give customers a longer notice period of at least 90 days before terminating services and to provide a sufficiently detailed and specific explanation. These changes will give people and businesses the time and information they need to challenge decisions or find an alternative provider.

Whether her Department has conducted a review into cases of de-banking; and what steps she plans to take to prevent this.

The government recognises that access to banking services is vital for people and businesses across the UK and is a matter of concern for certain sectors such as cryptoasset firms and their customers. The government continues to engage with the banking sector and affected industries to better understand the existing and emerging issues in this area. The government also welcomes the Financial Conduct Authority’s work to date to better understand why banks might reject or close bank accounts. Where the FCA has found areas where firms need to improve customer outcomes, the government expects firms to consider the FCA’s findings and act accordingly. Separately, the Treasury concluded a call for evidence in April 2023 which found deficiencies in the rules applying to bank account closures. In June 2025, the government therefore legislated to require banks and other providers to give customers a longer notice period of at least 90 days before terminating services and to provide a sufficiently detailed and specific explanation. These changes will give people and businesses the time and information they need to challenge decisions or find an alternative provider.

Whether she has made an estimate of the number of de-banking cases involving cryptocurrency.

The government recognises that access to banking services is vital for people and businesses across the UK and is a matter of concern for certain sectors such as cryptoasset firms and their customers. The government continues to engage with the banking sector and affected industries to better understand the existing and emerging issues in this area. The government also welcomes the Financial Conduct Authority’s work to date to better understand why banks might reject or close bank accounts. Where the FCA has found areas where firms need to improve customer outcomes, the government expects firms to consider the FCA’s findings and act accordingly. Separately, the Treasury concluded a call for evidence in April 2023 which found deficiencies in the rules applying to bank account closures. In June 2025, the government therefore legislated to require banks and other providers to give customers a longer notice period of at least 90 days before terminating services and to provide a sufficiently detailed and specific explanation. These changes will give people and businesses the time and information they need to challenge decisions or find an alternative provider.

Whether her Department has made an estimate of the potential impact of the increase in employer National Insurance contributions on the average cost of operation of pub chains.

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.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 increase in employer National Insurance contributions on pubs.

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.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.

Whether her Department has made an assessment of the potential impact of the Double Contribution Convention on employment opportunities for British citizens in the seasonal entertainment industry.

The OBR will certify the impact of the trade deal including the Double Contributions Convention in the usual way at a fiscal event, once the deal is finalised and ratified. The agreement to negotiate a Double Contributions Convention was made in the context of the wider deal, which will bring billions into the economy.

Whether her Department has made any assessment of the potential impact of the Double Contribution Convention on employment opportunities for British citizens in the seasonal fitness industry.

The OBR will certify the impact of the trade deal including the Double Contributions Convention in the usual way at a fiscal event, once the deal is finalised and ratified. The agreement to negotiate a Double Contributions Convention was made in the context of the wider deal, which will bring billions into the economy.

Whether her Department has made an assessment of the potential impact of the Double Contribution Convention on employment opportunities for British citizens in the seasonal hospitality industry.

The OBR will certify the impact of the trade deal including the Double Contributions Convention in the usual way at a fiscal event, once the deal is finalised and ratified. The agreement to negotiate a Double Contributions Convention was made in the context of the wider deal, which will bring billions into the economy.

What steps her Department is taking to support the establishment of a high-street banking hub in Portchester.

The Government continues to work closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 220 hubs have been announced so far, and over 150 are already open. The location of these banking hubs is determined independently by LINK. The criteria that LINK consider includes population size, whether other banks remain nearby, the number of SMEs on the high street and public transport links, as well as the level of vulnerability in the community. Access to financial services is key to ensuring all citizens can both contribute to and benefit from growth in the UK. Cash Access UK, who oversee the rollout of banking hubs, reported from their research in Brixham (Devon) and Rochford (Essex), in October 2024 that spend on the high street is 71% higher amongst those who have visited the banking hub. Almost half (47%) of businesses surveyed said they have experienced an increase in footfall thanks to the banking hub.

What assessment her Department has made of the potential impact of banking hubs on (a) businesses and (b) economic growth in (i) towns and (ii) villages.

The Government continues to work closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 220 hubs have been announced so far, and over 150 are already open. The location of these banking hubs is determined independently by LINK. The criteria that LINK consider includes population size, whether other banks remain nearby, the number of SMEs on the high street and public transport links, as well as the level of vulnerability in the community. Access to financial services is key to ensuring all citizens can both contribute to and benefit from growth in the UK. Cash Access UK, who oversee the rollout of banking hubs, reported from their research in Brixham (Devon) and Rochford (Essex), in October 2024 that spend on the high street is 71% higher amongst those who have visited the banking hub. Almost half (47%) of businesses surveyed said they have experienced an increase in footfall thanks to the banking hub.

Whether her Department has made an estimate of the number of UK-based employers who will use the double contribution convention within the UK-India free trade agreement for exempted workers coming to work in the UK.

The OBR will certify the impact of the trade deal including the Double Contributions Convention in the usual way at a fiscal event, once the deal is finalised and ratified. The agreement to negotiate a Double Contributions Convention was made in the context of the wider deal, which will bring billions into the economy.

Whether her Department plans to use the newly applied Vehicle Excise Duty on Electric Vehicles to improve (a) road maintenance and (b) vehicle infrastructure.

As announced by the Government at Autumn Statement 2022, from 1 April 2025 zero emission cars, vans, and motorcycles have started to pay Vehicle Excise Duty (VED) in a similar way to petrol and diesel vehicles. The Consolidated Fund receives the proceeds of VED along with most other tax revenues to support public services and investment in infrastructure, including vehicle infrastructure and road maintenance.