Asked by: Lord Kempsell (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what changes were made to the guidance Managing Public Money in the June 2025 version compared to the May 2023 version.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
As set out in the Dear Accounting Officer letter DAO 02/25, the 2025 edition of Managing Public Money includes the following revisions and additions.
Asked by: Rachel Gilmour (Liberal Democrat - Tiverton and Minehead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of VAT on the affordability of support services for people with (a) permanent disabilities and (b) dementia.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Supplies of welfare services, including the provision of care for people with permanent disabilities and dementia, are exempt from VAT if they are supplied by eligible bodies, such as public bodies or charities.
When developing policy, including on VAT on welfare services, the Treasury carefully considers the impact of its decisions on those sharing any of the nine protected characteristics, including disability, age, sex and race, in line with its statutory obligations under the Public Sector Equality Duty set out in the Equality Act 2010.
More generally, VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Asked by: Aphra Brandreth (Conservative - Chester South and Eddisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to consult with (a) agricultural stakeholders, (b) farmers and (c) groups that represent farmers in the development of its proposed changes to inheritance tax policy.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
Ministers from multiple Government departments have had several meetings with agricultural organisations on this matter since Autumn Budget 2024. As the Minister with responsibility for the UK tax system, I have had meetings with organisations including the National Farmers’ Union, the Tenant Farmers’ Association, the Country Land and Business Association, the Central Association of Agricultural Valuers, the Ulster Farmers’ Union, NFU Cymru, NFU Scotland and the Farmers’ Union of Wales.
Asked by: Aphra Brandreth (Conservative - Chester South and Eddisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to engage with (a) farmers and (b) other agricultural groups in the development of proposed changes to inheritance tax.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
Ministers from multiple Government departments have had several meetings with agricultural organisations on this matter since Autumn Budget 2024. As the Minister with responsibility for the UK tax system, I have had meetings with organisations including the National Farmers’ Union, the Tenant Farmers’ Association, the Country Land and Business Association, the Central Association of Agricultural Valuers, the Ulster Farmers’ Union, NFU Cymru, NFU Scotland and the Farmers’ Union of Wales.
Asked by: Aphra Brandreth (Conservative - Chester South and Eddisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with representatives of the farming sector on her Department's proposed changes to inheritance tax.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
Ministers from multiple Government departments have had several meetings with agricultural organisations on this matter since Autumn Budget 2024. As the Minister with responsibility for the UK tax system, I have had meetings with organisations including the National Farmers’ Union, the Tenant Farmers’ Association, the Country Land and Business Association, the Central Association of Agricultural Valuers, the Ulster Farmers’ Union, NFU Cymru, NFU Scotland and the Farmers’ Union of Wales.
Asked by: Aphra Brandreth (Conservative - Chester South and Eddisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, which Minister has led engagement with the agricultural sector on the proposed changes to inheritance tax.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
Ministers from multiple Government departments have had several meetings with agricultural organisations on this matter since Autumn Budget 2024. As the Minister with responsibility for the UK tax system, I have had meetings with organisations including the National Farmers’ Union, the Tenant Farmers’ Association, the Country Land and Business Association, the Central Association of Agricultural Valuers, the Ulster Farmers’ Union, NFU Cymru, NFU Scotland and the Farmers’ Union of Wales.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to support people who were ineligible for government financial support measures during the Covid pandemic.
Answered by Darren Jones - Chief Secretary to the Treasury
Decisions on eligibility for Covid-19 financial support were taken by the previous government.
The previous Government provided support through the Self-Employment Income Support Scheme (SEISS) and Coronavirus Job Retention Scheme (CJRS). The support was based on two principles: a) targeting support at those who needed it most; and b) guarding against error, fraud, and abuse, whilst reaching as many individuals as possible. Those ineligible for the schemes may have been eligible for other elements of financial support provided by the previous Government.
The current Government is working to improve living standards for everyone across the country. We are taking immediate action to support individuals, such as committing to no increases in employee National Insurance, Income Tax or VAT as we want to keep taxes low for working people. Driving growth is the Government’s number one mission, which will help individuals by boosting wages and putting more money in people’s pockets.
Asked by: Freddie van Mierlo (Liberal Democrat - Henley and Thame)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of recent changes to stamp duty thresholds on the number of first time buyers entering the property market.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Recent changes to stamp duty thresholds on 1 April 2025 were the result of policy introduced by the previous government. HMRC analysis estimates that there will be 4,000-6,000 fewer first-time buyer transactions per year between 2025/26-2029/30 as a result.
At Budget 2024, the Government increased the higher rates of Stamp Duty Land Tax (SDLT) for additional dwellings by two percentage points from 3% to 5%. This measure will help to ensure that those looking to move home, or purchase their first property, have a greater advantage over second home buyers, landlords, and companies purchasing residential property. The OBR certified costing estimates that increasing the higher rates of SDLT by two percentage points is expected to result in 130,000 additional transactions over the next five years by first-time buyers and other people buying a primary residence.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of changes to inheritance tax on social mobility.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The estates of all individuals benefit from a £325,000 nil-rate band for inheritance tax. The residence nil-rate band is a further £175,000 and is available to those passing on a qualifying residence on death to their direct descendants, such as children or grandchildren. This means qualifying estates can pass on up to £500,000 and the qualifying estate of a surviving spouse or civil partner can pass on up to £1 million without an inheritance tax liability. This is because any unused nil-rate band or residence nil-rate band is transferable to a surviving spouse or civil partner.
The combination of nil-rate bands, exemptions, and reliefs means less than 10 per cent of estates across the UK are forecast to have an inheritance tax liability in 2029-30. However, inheritance tax still makes an important contribution to the public finances and it is now forecast to raise more than £14 billion in 2029-30 to help deliver public services. This includes over £2 billion more in 2029-30 from changes to the inheritance tax system announced at Autumn Budget 2024.
Asked by: Aphra Brandreth (Conservative - Chester South and Eddisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions her Department has had with representatives of the farming sector on the implications of the proposed changes to inheritance tax.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
Ministers from multiple Government departments have had several meetings with agricultural organisations on this matter since Autumn Budget 2024. As the Minister with responsibility for the UK tax system, I have had meetings with organisations including the National Farmers’ Union, the Tenant Farmers’ Association, the Country Land and Business Association, the Central Association of Agricultural Valuers, the Ulster Farmers’ Union, NFU Cymru, NFU Scotland and the Farmers’ Union of Wales.