Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent steps she has taken to ensure local councils adhere to creditors' responsibilities when debtors are under a Debt Respite (Breathing Space) period.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Breathing Space Scheme was launched in May 2021 to give those in problem debt the space to engage with professional debt advice by providing a temporary relief from creditor enforcement action.
The scheme guidance for creditors sets out their responsibilities when a debtor enters a breathing space and makes clear that, upon being notified, creditors must stop all enforcement action, pause contact with the debtor, and freeze most interest and charges for the duration of the breathing space.
Where a creditor does not comply with the terms of the breathing space, any enforcement action they take is not valid and they may be liable for the debtor’s costs. The debt adviser will also notify the Insolvency Service which administers the scheme, so that the creditor can be reminded of their obligations. Debtors are also able to go through their creditor’s formal complaints procedure and, if relevant, escalate to the appropriate ombudsman or oversight body.
Councils are responsible for the collection of a broad range of debts and are required to recover all debts in accordance with the law.
Asked by: Damian Hinds (Conservative - East Hampshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential implications for her policies on Further Education Colleges of (a) business rates revaluation and (b) the new multiplier bands from April 2026.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the hon. Member to the answer given in UIN 104727.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the estimated annual revenue is from the hotel sector in relation to (a) business rates, (b) VAT, (c) National Insurance on employers and (d) corporation tax, according to records held by (i) HM Treasury and (ii) HMRC, in the most recent year for which figures are available.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HM Revenue and Customs does not hold aggregated data on the revenue contribution of the hotel sector in relation to VAT, National insurance on employers or corporation tax. Sectoral breakdowns for individual taxes can be found on GOV.UK. HMRC does not administer business rates.Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of reducing the rate of VAT on retail, hospitality and leisure from 20% to 13% on that sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by retail and hospitality businesses to economic growth and social life in the UK.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
HMRC estimates that the cost of reducing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services would be as follows in 2026-27: (a) to 15%: £5 billion, (b) to 12.5%: £8 billion (c) to 10%: £10.5 billion, (d) to 5%: £17 billion, (e) to 0%: £23.5 billion. Including retail would add to that significant cost.
Asked by: Jerome Mayhew (Conservative - Broadland and Fakenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether revenues generated by the inclusion of domestic maritime within the UK Emissions Trading Scheme will be ringfenced for maritime decarbonisation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government is committed to maintaining an ambitious carbon pricing scheme to ensure that polluters continue to pay for their emissions. The UK Emissions Trading Scheme is our key lever to do so. This supports a cost-efficient transition toward net zero.
In July 2025, the UK Emissions Trading Scheme Authority confirmed an expansion to emissions from domestic maritime regime, commencing on 1 July 2026.
The UK does not hypothecate revenue from the UK ETS. All receipts from the UK ETS accrue to the consolidated fund, and go to funding government priorities, which includes decarbonisation support for the maritime sector.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to include the UK oil refining sector in the scope of the UK Carbon Border Adjustment Mechanism.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As announced at Budget 2025, the government is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism (CBAM) in future. The government recognises that refineries play a role in energy security and the UK’s industrial base. Government Ministers are holding a roundtable with the refining sector this month and will also publish a call for evidence on the fuel sector shortly.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress she has made on considering the feasibility and impact of including refined products in the Carbon Border Adjustment Mechanism.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As announced at Budget 2025, the government is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism (CBAM) in future. The government recognises that refineries play a role in energy security and the UK’s industrial base. Government Ministers are holding a roundtable with the refining sector this month and will also publish a call for evidence on the fuel sector shortly.
Asked by: Lord Macpherson of Earl's Court (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the readiness of the self-employed to submit quarterly returns through Making Tax Digital.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The government is undertaking a range of activities to ensure those needing to use Making Tax Digital (MTD) for Income Tax from April 2026 are ready and able to do so successfully.
This includes media campaigns, awareness letters, developing guidance, and working with the software industry to ensure a broad range of MTD‑compatible products is available, including free options.
MTD quarterly updates are not like making a tax return each quarter. Software will manage much of the process, creating simple summaries of income and expenses from the taxpayer’s digital records ready for submission.
Information provided within the quarterly updates will be carried forward to the tax return, helping to reduce errors and make the end of year process faster and easier.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the effectiveness of UK financial oversight arrangements in the context of the rapid adoption of AI tools by banks and insurers; and what are the implications for consumer protection and financial stability.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Encouraging safe adoption is an essential part of realising that ambition.
HM Treasury works closely with the UK financial regulators to monitor evolving risks from new technologies, and ensure that the opportunities AI presents can be realised in a safe and responsible way.
Asked by: Baroness Kennedy of Cradley (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the initial public offering market over the past five years in the UK.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The government has delivered an ambitious programme of reforms that build on the UK market’s strong foundations. Recent changes, including overhauling the Prospectus and Listing regimes, have made it easier for firms to list and raise capital on UK markets.
And at the Budget in November 2025, the Chancellor went further by introducing a three-year UK Listing Relief, supporting firms to achieve higher valuations at IPO and improving their long-term growth prospects.