Asked by: Sarah Bool (Conservative - South Northamptonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of UK spirits duty rates for the on-trade compared to equivalent rates in (a) Ireland, (b) France, (c) Germany, and (d) other EU member states.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The UK’s alcohol duty system balances protecting the public finances and promoting health.
There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here.
Asked by: Ellie Chowns (Green Party - North Herefordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to WPQ 80434 answered on 17 October 2025, what assessment she has made of the potential merits of the proposals on the (a) minimum share rule, (b) upper limit on relief and (c) transferrable allowance in that report.
Answered by Dan Tomlinson - 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.
As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.
The report by the independent Centre for the Analysis of Taxation (CenTax) sets out its other potential amendments to the policy are not, in its own words, a “silver bullet”. For example, CenTax acknowledge the proposal for a minimum share test is less effective than the Government’s reforms in raising revenue from the wealthiest estates, could be exposed to tax planning opportunities, would not necessarily prevent wealthy individuals buying land for inheritance tax purposes, and would mean double the number of estates being affected by the reforms (and largely estates below £2 million).
Asked by: Bradley Thomas (Conservative - Bromsgrove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of a 5 pence per litre rise in fuel duty on (a) GDP and (b) levels of employment in the logistics sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2025, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut until the end of August 2026. Rates will then gradually return to previous levels. The planned increase in line with inflation for 2026-27 will not take place, with the government increasing fuel duty rates in line with RPI from April 2027. This will save the average van driver £100 next year compared to previous plans, and the average HGV driver more than £800.
The Government considers the impact of fuel duty on the economy, including households and businesses, with decisions on rates made at fiscal events.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the disparity between wage growth and increases in living costs in Greater Manchester.
Answered by James Murray - Chief Secretary to the Treasury
Through the growth mission, the government will deliver a milestone of higher living standards in every part of the United Kingdom by the end of the Parliament. The main route to higher living standards is through good, productive jobs, stable employment, and a thriving business environment.
The government is taking action to cut the cost of living and bring down inflation. At the Budget 2025, the government announced that it would deliver a set of measures to remove an average of £150 from household energy bills from April 2026 and would implement a one-year freeze on regulated train fares and prescription charges.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate she has made of the number of older people unable to pay utility bills.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
We’re committed to helping pensioners with the cost of living and ensuring financial security in retirement. The State Pension is the foundation of that support. At Autumn Budget 2025 we announced that, in line with the Government’s commitment to the Triple Lock throughout this parliament, over 12 million pensioners will benefit from a 4.8% increase to their basic or new State Pension in April 2026, increasing their income by up to £575 a year. This follows a substantial increase in 2025/26.
The Pension Credit Standard Minimum Guarantee will increase by 4.8% in April 2026, from £227.10 to £238 a week for a single pensioner and from £346.60 to £363.25 a week for a couple, protecting the income of the poorest pensioners. Those in receipt of Pension Credit will also automatically receive the Cold Weather Payment alongside other benefits
The Winter Fuel Payment will benefit over three quarters of pensioners for the duration of this parliament, targeting help to those on lower and middle incomes while ensuring fairness for pensioners and taxpayers
To reduce cost of living pressures immediately, the Budget removed around £150 on average off household energy bills from April 2026 by ending the Energy Company Obligation and taking some of the expensive legacy levies off bills
The Government knows that more needs to be done to support vulnerable households struggling with their energy bills. That's why we are expanding the Warm Home Discount to around an additional 2.7 million households. From this winter, around 6 million low-income households will receive the £150 support to help with their energy bill costs.
We are also providing support for low-income households through our Warm Homes Plan which will support investment in insulation and low carbon heating – upgrading millions of homes over this Parliament. At the recent Budget, we announced £1.5 billion in new funding to support households facing fuel poverty.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to support older people with the cost of utility bills.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
We’re committed to helping pensioners with the cost of living and ensuring financial security in retirement. The State Pension is the foundation of that support. At Autumn Budget 2025 we announced that, in line with the Government’s commitment to the Triple Lock throughout this parliament, over 12 million pensioners will benefit from a 4.8% increase to their basic or new State Pension in April 2026, increasing their income by up to £575 a year. This follows a substantial increase in 2025/26.
The Pension Credit Standard Minimum Guarantee will increase by 4.8% in April 2026, from £227.10 to £238 a week for a single pensioner and from £346.60 to £363.25 a week for a couple, protecting the income of the poorest pensioners. Those in receipt of Pension Credit will also automatically receive the Cold Weather Payment alongside other benefits
The Winter Fuel Payment will benefit over three quarters of pensioners for the duration of this parliament, targeting help to those on lower and middle incomes while ensuring fairness for pensioners and taxpayers
To reduce cost of living pressures immediately, the Budget removed around £150 on average off household energy bills from April 2026 by ending the Energy Company Obligation and taking some of the expensive legacy levies off bills
The Government knows that more needs to be done to support vulnerable households struggling with their energy bills. That's why we are expanding the Warm Home Discount to around an additional 2.7 million households. From this winter, around 6 million low-income households will receive the £150 support to help with their energy bill costs.
We are also providing support for low-income households through our Warm Homes Plan which will support investment in insulation and low carbon heating – upgrading millions of homes over this Parliament. At the recent Budget, we announced £1.5 billion in new funding to support households facing fuel poverty.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of extending the current six‑month deadline for the payment of Inheritance Tax in cases of administrative delays in the granting of probate.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The deadline for payment of Inheritance Tax (IHT) is the end of the sixth month after the month in which the death occurs. Personal representatives (PRs) are required to make a payment of IHT before applying for probate. This is a longstanding requirement which ensures that the tax due can be collected quickly and efficiently.
HMRC offers several payment options if there are not sufficient liquid funds in the estate to pay IHT before applying for probate, including the Direct Payment Scheme and the option to pay IHT by yearly instalments. For assets which are eligible for payment of IHT by instalments, only the first instalment will be due before PRs can proceed to apply for probate. Further information on IHT payment options is available at: https://www.gov.uk/paying-inheritance-tax
In certain circumstances, PRs may also apply to HMRC to defer payment of the IHT until probate has been granted (a ‘grant on credit’). Once probate has been issued, the PRs will be expected to pay the outstanding tax as soon as possible. Further information on this option is available here: https://www.gov.uk/guidance/applying-for-a-grant-on-credit-for-inheritance-tax
HM Courts & Tribunals Service has invested in more staff, alongside system and process improvements to reduce and maintain lower processing times for probate applications during the last year. The Ministry of Justice publishes regular data on probate timeliness in the quarterly family court statistics bulletin: https://www.gov.uk/government/collections/family-court-statistics-quarterly
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the cost-of-living pressures facing working people in Greater Manchester.
Answered by James Murray - Chief Secretary to the Treasury
The government is prioritising cutting the cost of living and improving living standards across the UK, including for residents in Greater Manchester. The government recognises that people are still feeling the squeeze on their finances with essential areas such as energy, food and housing remaining too high. That is why we have announced that we are taking around £150 on average off household energy bills, expanding the £150 Warm Home Discount to 6 million lower income households, freezing regulated rail fares and NHS prescription fees for one-year, and extending temporary 5p fuel duty cut until the end of August 2026.
Asked by: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of effectiveness of the tax incentives available to increase the formation of Employee Ownership Trusts.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
An evaluation of the Employee Ownership Trust (EOT) tax regime commissioned by HMRC and published in May 2025 found that the tax reliefs encourage company owners to transition their companies to employee ownership under the EOT model. This evaluation can be found at GOV.UK here: https://www.gov.uk/government/publications/qualitative-evaluation-of-employee-ownership-trusts
However, the cost of the Capital Gains Tax (CGT) relief has increased significantly in recent years. The original costing from 2013 suggested the entire EOT tax regime would cost less than £100m in 2018-19. The cost of the CGT relief alone reached £600m in 2021-22 and forecasts suggest it could rise to more than 20 times the original costing to £2 billion by 2028-29 without any action.
The relief also allowed wealthy business owners to sell their shares without paying any CGT, with around half of the relief going to the largest 10% of disposals.
At Budget 2025, the government announced that it will reduce the relief available on these disposals from 100% of the gain to 50%. This will retain a strong incentive for employee ownership whilst ensuring that business owners pay their fair share of tax. The relief remains more generous than alternative reliefs that individuals might use when disposing of their companies, such as Business Asset Disposal Relief.
Asked by: Gregory Campbell (Democratic Unionist Party - East Londonderry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what change in the number of people paying income tax at 40% does she estimate will take place between 2023 and 2028.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The number of people forecast to pay tax by marginal rate from 2023-24 to 2028-29 can be found in Table 3.19 in the OBR’s November 2025 Economic and fiscal outlook – detailed forecast tables: receipts, linked below:
The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028.