Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans she has to amend inheritance tax legislation to ensure that compensation paid to the estates of deceased victims of the Infected Blood scandal is exempt from inheritance tax.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2025, the government announced that it would extend the existing relief from inheritance tax for compensation payments made from the Infected Blood Compensation Scheme and the Infected Blood Interim Compensation Payment Scheme (‘infected blood compensation payments’). A Tax Information and Impact Note has been published and can be found here: Inheritance Tax and Infected Blood compensation payments - GOV.UK.
Finance Bill 2025-26 contains a power to make changes to the inheritance tax treatment of infected blood compensation schemes in secondary legislation. The government will lay regulations subject to parliamentary approval of the Bill. More information about what this means in practical terms and what action impacted individuals should take ahead of regulations being made were published in this Written Ministerial Statement: Inheritance tax relief for infected blood compensation payments
Asked by: Carla Lockhart (Democratic Unionist Party - Upper Bann)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact in Northern Ireland of the abolition of VAT exemption for private school fees on the parents of children with special educational needs; and what estimate she has made of additional VAT receipts arising in Northern Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government conducted thorough and detailed analysis of the impacts of this policy, including in Northern Ireland, and published a Tax Impact and Information Note (TIIN) which sets out this analysis. This is a comprehensive assessment of the impacts on individuals and families, businesses and the wider economy, as well as equalities impacts. It was published online and can be found here:
www.gov.uk/government/publications/vat-on-private-school-fees/ac8c20ce-4824-462d-b206-26a567724643
In Northern Ireland, the Education Authority (EA) is responsible for funding placements of pupils with a statement of special educational needs (SEN) within a private school. The EA can recover the VAT that it is charged on these pupils’ fees, which means that those pupils are unaffected by the removal of the VAT exemption.
Due to how VAT is collected it is not possible to estimate the VAT receipts arising in Northern Ireland. However, overall this policy is expected to raise £1.7 billion per year by 2029/30.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the revaluation of business rates on levels of employment in North Yorkshire.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 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. Most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties.
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.
Asked by: Cameron Thomas (Liberal Democrat - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of funding British content creators through the taxation of online platforms.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
We support domestic film and TV production through the tax system and through funding.
The Audio-Visual Expenditure Credit (AVEC) provides companies with a generous tax credit worth 34 per cent of their UK production costs on a film or high-end TV programme, or 39 per cent of their production costs on an animation or children’s TV programme.
As of 1 April 2025, films with a UK lead writer or director and budgets of under £23.5 million are able to claim an enhanced 53 per cent rate of AVEC on up to £15m of core expenditure. This applies to expenditure incurred from 1 April 2024. This will support the next generation of independent films and help develop a pipeline of UK film talent.
Film and TV are priority sub-sectors for our Industrial Strategy, and the Department for Culture, Media and Sport (DCMS) have committed to a new £75 million Screen Growth Package over three years to develop independent UK screen content, support inward investment, and showcase the best of UK and international film. This includes a scaled-up £18 million per year UK Global Screen Fund (2026–2029) to develop international business capabilities, enable co-productions and distribute independent UK screen content.
The Government wants to ensure that there is a balanced film and TV sector and welcomes international investment, including from subscription video-on-demand platforms. We therefore have no plans to introduce additional taxes or levies on these services. However, DCMS will continue to engage with major streaming services, with the independent production sector and with public service broadcasters on how best to ensure mutually beneficial conditions for all parties.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the adequacy of the long term affordability of public sector pay settlements agreed outside the recommendations of independent pay review bodies.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent public sector pay settlements on trends in the level of public sector net borrowing in future financial years.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent public sector pay settlements on departmental budgetary flexibility in future financial years.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what analysis her Department has undertaken of the distributional impact of recent public sector pay awards across income deciles.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of civil servants in her Department are (a) on temporary contract and (b) consultants.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Information on the number of staff in HM Treasury that are (a) on temporary contracts and (b) consultants, is published annually through the HM Treasury annual report and accounts at the following web address: https://www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2024-to-2025 on pages 95 and 103, respectively.
Asked by: John Whitby (Labour - Derbyshire Dales)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what process will be used to value family businesses after the changes to Business Property Relief are introduced.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The inheritance tax value of a person’s estate is the open market value of all their assets and liabilities. The forthcoming changes to business property relief will not change the existing rules on valuing a business. Valuation assumes a sale between a hypothetical seller and buyer, reflecting reality for all other factors such as industry conditions, trading history, and prospects, according to industry standards.