Asked by: Gregory Campbell (Democratic Unionist Party - East Londonderry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate has been made of the number of people paying (a) basic rate, (b) higher rate, and (c) additional rate of Income Tax between 2020 and 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The number of individuals in each of the three main Income Tax rate bands from 2020 to 2025 is published in Table 2.1 of HMRC’s Accredited official statistics. Updated forecasts are published in Table 3.19 of the OBR’s November 2025 Economic and fiscal outlook, linked below:
The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028.
Asked by: Lord Rogan (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact on the economy in Northern Ireland of increasing air passenger duty.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The government is committed to securing the long-term future of the aviation sector in the UK and recognises the benefits of the connectivity it creates between the UK and the rest of the world.
Following previous increases to Air Passenger Duty (APD) rates to account for below inflation rates, the government will uprate APD rates in line with RPI from 1 April 2027 and rounded to the nearest penny. This constitutes a real terms freeze.
In 2012, the UK government devolved the power to set direct long-haul APD rates to the Northern Ireland Executive, and the Executive subsequently set these at zero. The UK government continues to set APD rates for short-haul international and domestic flights from Northern Ireland.
Reforms to APD took effect in April 2023, including the introduction of a new band for domestic flights, initially set at half the rate for short-haul international flights. The domestic rate applies to all flights between airports in England, Scotland, Wales, and Northern Ireland and is currently set at £7 for economy passengers until 31 March 2026.
Asked by: Al Pinkerton (Liberal Democrat - Surrey Heath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of extending the freeze on Income Tax thresholds on working people in Surrey Heath constituency.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028.
This government is making fair and necessary choices on tax so it can deliver on the public's priorities, including by maintaining personal tax thresholds until April 2031. Everyone is being asked to contribute to support these goals, but the government is keeping the contribution as low as possible by pursuing a programme of reform to fix longstanding issues in the tax system - modernising it, and addressing unequal and unfair treatment, while ensuring the wealthiest contribute more.
The government has published a Tax Information and Impact Note (TIIN) setting out the impact of maintaining income Tax and equivalent National Insurance contributions thresholds.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether religious-based properties will be exempt from the new tax announced in the Budget on properties valued at £2 million and over.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The High Value Council Tax Surcharge (HVCTS) is a new charge on owners of residential property in England worth £2 million or more in 2026, taking effect in April 2028. Owners, not residents, will pay the surcharge. The government will consult on potential exemptions and reliefs in the spring.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what criteria will guide decisions on whether an overnight stay levy is “modest” and appropriate for local areas; and will there be a cap.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The precise design and scope of the power for Mayors to introduce a visitor levy is still under development.
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 their concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is spent. Giving this power to local leaders who best understand their region enables them to tailor it to growing their local economies
The Government has 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 consultation seeks views on whether there should be a cap on the rate.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the policy document entitled Motability Scheme: reforming tax reliefs’ policy, published on 26 November, if she will publish the calculations used for the conclusion that the proposed changes are not expected to have any macroeconomic impacts.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The information set out in the macroeconomic impacts section of all Tax Information and Impact Notes (TIINs) corresponds to the assessments contained in the Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook. The OBR, as the Government's official forecaster, is responsible for judging the impact of policy decisions on its forecasts, including any underlying calculations.
Asked by: Luke Myer (Labour - Middlesbrough South and East Cleveland)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to review the sugar content of powdered milk based drinks and include those products within the scope of the soft drinks industry levy.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Chancellor announced her intention to review the Soft Drinks Industry levy (SDIL) to drive further product reformulation, whilst maintaining the fundamental design of the levy as a tax on pre-packaged soft drinks with added sugar.
Following this review, between April and July 2025 the government consulted on proposed reforms to the SDIL. The outcomes of this consultation were confirmed at Budget 2025.
As part of the consultation, the government considered responses on dissolvable powders. It also considered the significant redesign of the levy necessary to include them as beyond the remit of the SDIL review, as set out by the Chancellor at Autumn Budget 2024.
More information on the outcome of the Strengthening the Soft Drinks Industry Levy consultation can be found here:
The government will not make any further changes to the design of the SDIL.
Asked by: Helen Whately (Conservative - Faversham and Mid Kent)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the salary sacrifice cap policy announced in the Autumn Budget 2025 on employee hours worked in (a) the private sector and (b) the public sector.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.
The Office for Budget Responsibility’s (OBR) November 2025 Economic and Fiscal Outlook (EFO) sets out that there is not expected to be a material impact on labour supply from this measure. The OBR also do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.
The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.
Asked by: Helen Whately (Conservative - Faversham and Mid Kent)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the salary sacrifice policy announced in the Autumn Budget 2025 on hours worked by people near tax cliff edges.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.
The Office for Budget Responsibility’s (OBR) November 2025 Economic and Fiscal Outlook (EFO) sets out that there is not expected to be a material impact on labour supply from this measure. The OBR also do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.
The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.
Asked by: Helen Whately (Conservative - Faversham and Mid Kent)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the salary sacrifice policy announced in the Autumn Budget 2025 on overall hours withdrawn by employees.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.
The Office for Budget Responsibility’s (OBR) November 2025 Economic and Fiscal Outlook (EFO) sets out that there is not expected to be a material impact on labour supply from this measure. The OBR also do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.
The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.