Asked by: Neil Hudson (Conservative - Epping Forest)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of VAT liability on further education colleges’ capacity to deliver the skills priorities set out in the Industrial Strategy; and whether her Department plans to extend VAT exemption to further education colleges.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Further Education (FE) funding is vital to ensure people are being trained in the skills they need to thrive in the modern labour market. The 2025 Spending Review provided an additional £1.2 billion per year by 2028-29 for skills and £1.7 billion of capital funding to help colleges maintain the condition of their estate. In addition, the Government is providing £375 million of capital investment to support the FE system to accommodate increasing student numbers.
For their non-business activity, FE colleges are unable to reclaim VAT incurred. We operate several VAT refund schemes for schools and academies which are designed variously to ensure that VAT is not a burden on local taxation, and that academies are not disincentivised to leave LA control. FE colleges do not meet the criteria for either scheme.
In relation to business activity, FE colleges enjoy an exemption from VAT which means that they do not have to charge VAT to students but cannot recover it either.
Asked by: Jim Dickson (Labour - Dartford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how the vape excise tax will be evaluated to ensure that it reduces youth vaping, maintains smoker switching and reduces the illicit market.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
From 1 October 2026, the government will introduce a Vaping Products Duty of £2.20 per 10ml, alongside a one‑off increase in Tobacco Duty to maintain the incentive for smokers to switch from tobacco to vaping.
To minimise the risk of switching to the illicit market, the government has provided a £10 million funding boost to Trading Standards, up to £10 million from HMRC for Border Force to enhance operational information gathering capabilities between 2026-27 and over 300 new HMRC compliance officers to strengthen enforcement.
Consideration will be given to evaluating the impact and effectiveness of the Vaping Products Duty once sufficient data has been collected, particularly among young people and non-smokers. This will be in line with policy objectives and wider government aims of creating a smokefree generation.
Asked by: Jim Dickson (Labour - Dartford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans her Department has to review taxes across the tobacco and nicotine category in the context of regulation changes to the tobacco and nicotine market via the Tobacco and Vapes Bill and the planned revision of the EU Tobacco Products Directive.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government keeps all taxes under review as part of the annual Budget process and will continue to monitor the progress of the EU Tobacco Products Directive as it goes through the EU legislative process.
Asked by: Mary Kelly Foy (Labour - City of Durham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure the business rates system supports the regeneration of high streets.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has already started the work of reforming our business rates system by introducing new permanently lower multipliers for eligible retail, hospitality and leisure (RHL) properties. These new multipliers will benefit over 750,000 properties.
The Government is paying for this through higher rates on the top one per cent of most expensive properties. This includes many large distribution warehouses, such as those used by online giants. The high value multiplier is 33% more than the multiplier for small RHL properties.
The new RHL multipliers replace the temporary RHL relief that has been winding down since the pandemic. 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.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what percentage of reports of suspected tax-fraud made to HMRC by members of the public (a) result in an investigation, (b) result in the recovery of money, (c) result in a criminal conviction.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC does not hold this data.
Asked by: Mel Stride (Conservative - Central Devon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to HC Deb 9 March 2026, vol. 782 column 47, to which specific parliamentary votes was the Chancellor referring when she said opposition parties had voted against freezes in fuel duty.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As part of the debate on the “Middle East: Economic Update”, the Chancellor referred to votes relating to two Budgets, which included the policy decisions to extend the 5 pence per litre cut to fuel duty.
The 5p cut extensions have been legislated via Statutory Instrument. The primary legislative vehicle for Budget policy decisions is the Finance Bill. At second readings of the Finance Bills, the House debates the whole principle of each bill. For divisions on the second readings of the Finance Bills in 2024 and 2025, a number of opposition parties voted against, including the Conservatives.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the (a) National Insurance increase, (b) National Living Wage, (c) Increase in Beer excise duty, (d) the Tobacco and Vapes Bill and (e) the increase to business rates on the hospitality industry in (1) England and (2) other constituent nations.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the important contribution that businesses in the hospitality sector make to local communities, the high street and the wider economy across the UK. The potential impacts of changes on this sector are carefully considered as part of policy development.
Where changes are made, relevant impact notes and assessments are published at fiscal events and otherwise as necessary, in line with the Government’s usual practice. The Treasury also engages regularly with the hospitality sector to understand the challenges they face.
The Government continues to provide targeted support to the hospitality sector through the tax system and other policies and keeps all areas of the tax system under review, with future decisions taken at fiscal events under the normal process.
Asked by: Clive Betts (Labour - Sheffield South East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made that the support offered to the hotel sector on business rates is sufficient to protect jobs and investment, in the context of the significant rise in valuations.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties as they recover from the pandemic.
To respond to those who are seeing large increases, the Government has already acted to limit increases in bills, announcing a support package worth £4.3 billion package at the Budget.
The Government is also introducing new permanently lower tax multipliers for eligible retail, hospitality and leisure (RHL) properties. These new tax rates will benefit over 750,000 properties.
The Government has heard concerns from hotels about the ways they are valued for business rates and has committed to reviewing this.
Asked by: Clive Betts (Labour - Sheffield South East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she has taken to ensure that the hotel sector has not been disproportionately impacted by the rise in business rates.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties as they recover from the pandemic.
To respond to those who are seeing large increases, the Government has already acted to limit increases in bills, announcing a support package worth £4.3 billion package at the Budget.
The Government is also introducing new permanently lower tax multipliers for eligible retail, hospitality and leisure (RHL) properties. These new tax rates will benefit over 750,000 properties.
The Government has heard concerns from hotels about the ways they are valued for business rates and has committed to reviewing this.
Asked by: Clive Betts (Labour - Sheffield South East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the business rates system on the hotel sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties as they recover from the pandemic.
To respond to those who are seeing large increases, the Government has already acted to limit increases in bills, announcing a support package worth £4.3 billion package at the Budget.
The Government is also introducing new permanently lower tax multipliers for eligible retail, hospitality and leisure (RHL) properties. These new tax rates will benefit over 750,000 properties.
The Government has heard concerns from hotels about the ways they are valued for business rates and has committed to reviewing this.