Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the Barnett consequentials allocated to the Northern Ireland Executive from the £750,000 uplift provided in 2019 for an increase in officer numbers to 20,000 in England and Wales.
Answered by James Murray - Chief Secretary to the Treasury
The Barnett formula applies to all changes in UK Government Departmental Expenditure Limits, including the Home Office, as set out in the Statement of Funding Policy. The Block Grant Transparency publication breaks down all changes to the Northern Ireland Executive’s block grant funding since Spending Review 2015. The most recent report was published in October 2025.
Asked by: Julia Lopez (Conservative - Hornchurch and Upminster)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has directed HMRC to review the application of VAT upon medicines supplied free-of-charge via EAMS and other compassionate access schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue which helps to fund public services.
The Early Access to Medicines Scheme (EAMS) allows patients access to free medicines for life threatening conditions before receiving full NHS approval.
Under UK VAT law, some transactions where no money changes hands are treated as if a supply has been made – these are called deemed supplies. This is to keep the system fair. If a business has reclaimed VAT on costs (like making or importing goods), it should not avoid accounting VAT when those goods leave the business for free.
Whether VAT applies to medicines or treatments provided for free under the EAMS will depend on the precise facts of the case. In certain circumstances the giving of goods away for free can be outside the scope of VAT. Where the supply is within the scope of VAT a relief may apply, meaning the supply can be made VAT free.
Asked by: Andrew Griffith (Conservative - Arundel and South Downs)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what is the (a) gross and (b) net revenue raised for her Department from the UK Emissions Trading Scheme in the 2024-25 financial year, broken down by auction receipts, administrative costs, and any revenue recycling and hypothecation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Receipts from auctioning of UK Emissions Trading Scheme (ETS) allowances accrue to the exchequer. The Economic and Fiscal Outlook (November 2025) published by the OBR confirms the ETS outturn for 2024-25.
The administrative cost of the UK ETS can be found in the National Audit Office’s report on the UK ETS.
The UK does not hypothecate revenue from the UK ETS, which is subject to a floating carbon price which changes frequently. All receipts from the UK ETS accrue to the consolidated fund, and go to funding government priorities, which includes decarbonisation support for ETS participants.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the annual cost to the Exchequer is of the exemption from VAT on repairs enjoyed by museums and galleries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC does not hold data that specifically relates to the refunds of VAT on repairs enjoyed by museums and galleries. HMRC does not hold information on VAT revenue from specific products or services because businesses are not required to provide figures at a product level on their VAT returns, as this would impose an excessive administrative burden.
Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the business rates revaluation 2026, whether the base liability for charity shops' (a) transitional rate relief and (b) Supporting Small Business Relief includes the application of mandatory charitable rate relief.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The base liability for charity shops within the transitional relief scheme does not include the application of mandatory or discretionary charitable rate relief. However, charitable relief where applicable is awarded against the bill after Transitional Rate relief.
A charity is not eligible for Supporting Small Business Rate relief.
For more information on Charitable Rate relief, please see: Business rates relief: Charitable rate relief - GOV.UK
Asked by: Joe Robertson (Conservative - Isle of Wight East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the impact of Air Passenger Duty on domestic air routes and regional airport connectivity in the UK, compared with the approach taken by other European countries to supporting internal air connectivity.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is committed to the long-term future of the aviation sector in the UK and recognises the importance of maintaining a thriving and competitive aviation sector in the UK to deliver connectivity.
In April 2023, reforms to APD took effect, aiming to bolster air connectivity within the UK. This included 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 (excluding private jets) and is currently set at £7 for economy passengers until April 2026.
The Government is clear that APD is an appropriate tax that ensures airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty. Other countries also have different forms of aviation taxes.
Asked by: Claire Young (Liberal Democrat - Thornbury and Yate)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the sunset clause for the Energy Saving Materials VAT relief on 31 March 2027, whether her Department has conducted an impact assessment on the potential effect on Net Zero targets if the relief reverts to 5% in 2027; and if she will consider extending the zero-rate period to help provide long-term certainty for the low-carbon heating industry.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government is committed to improving the quality and sustainability of our housing stock, through improvements such as low carbon heating, insulation, solar panels and batteries. This will be vital to making the UK more energy resilient and meeting our 2050 Net Zero commitment.
Installations of qualifying energy-saving materials (ESMs) in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent.
The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances
Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the Barnett consequentials allocated to the Northern Ireland Executive following increases in police funding to PCCs in England and Wales in each year since 2020.
Answered by James Murray - Chief Secretary to the Treasury
The Barnett formula applies to all changes in UK Government Departmental Expenditure Limits, as set out in the Statement of Funding Policy. The Block Grant Transparency publication breaks down all changes to the Northern Ireland Executive’s block grant funding since Spending Review 2015. The most recent report was published in October 2025.Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will commission a cross-government impact assessment for (a) higher National Insurance on employers, (b) higher business rates and (c) the overnight visitors levy on (i) the economic viability of the hotel sector, (ii) costs to consumers, (iii) domestic tourism and (iv) foreign visitor tourism.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the important contribution that the hotel and wider hospitality sectors make to the economy, to local communities and to the UK’s appeal as a destination for domestic and international tourists.
The Government carefully considers the impact of tax measures on businesses, including in hospitality and tourism, within the context of the need to repair the public finances and to fund high‑quality public services. Relevant impact notes and assessments are published at fiscal events and otherwise as necessary in line with the Government’s usual practice.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of increase in business rate receipts in England from 2025-26 to 2026-27 as a consequence of the CPI inflation uprating.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Details on business rates receipts for 2025-26 and 2026-27 are set out in the OBR’s economic and fiscal outlook.
The further support for pubs and live music venues will be scored at a fiscal event in the usual way.
In the coming financial year, because of the government’s interventions, the business rate system is raising broadly the same amount of revenue as it was forecast to before the Budget in Spring 2025.