Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of businesses closing and vanishing from high streets on councils seeking payment of business rate liabilities.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Business rates are an important source of funding for services local Government provides. A fair business rates system is one in which everyone pays their share
As announced at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000 from 2026/27. This permanent tax cut will ensure that eligible RHL properties benefit from much-needed certainty and support.
Ahead of the new multipliers being introduced, the Government prevented RHL business rates relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of introducing employers’ National Insurance contributions for General Practice partners on retention.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Partners are treated as self-employed for tax purposes and therefore no Employer National Insurance Contributions (NICs) are due on their income.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the number of General Practice partners who do not pay employers’ National Insurance contributions due to the partnership funding model.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Partners are treated as self-employed for tax purposes and therefore no Employer National Insurance Contributions (NICs) are due on their income.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an estimate of the potential annual income from introducing employers’ National Insurance contributions for General Practice partners.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Partners are treated as self-employed for tax purposes and therefore no Employer National Insurance Contributions (NICs) are due on their income.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to replace the business rates system from 2026-27; and whether she plans to hold a consultation to inform the new system.
Answered by James Murray - Chief Secretary to the Treasury
Over the course of this Parliament, the Government will create a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
The Government published a Discussion Paper at Autumn Budget 2024 setting out priority areas for reform. This paper invited industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. The Treasury received over 160 written responses to that Discussion Paper and met with over 250 stakeholders.
On 17 February, the Government published a ‘forward look’ of the expected timeline for reforms announced at Autumn Budget 2024, and how stakeholders should engage with the Government on business rates reform going forwards.
In the summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Budget 2025.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of increases in employer National Insurance contributions on the (a) fiscal position and (b) sustainability of independent SMEs.
Answered by James Murray - Chief Secretary to the Treasury
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.
The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO), which sets out a detailed forecast of the economy and public finances.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 May 2025 to Question 46841 on Personal Care Services: Licensing, how many hairdresser and barber businesses has HMRC investigated following evidence suggesting that they may have misclassified individuals for tax purposes in the last five years.
Answered by James Murray - Chief Secretary to the Treasury
HMRC is committed to ensuring the tax system operates fairly and efficiently, creating a level playing field for all compliant businesses.
Businesses providing personal care services, including hairdressers and barbers often operate using the ‘rent-a-chair’ business model. This unique but legitimate business model, unless applied correctly, can result in individuals being wrongly classed as self-employed for employment purposes.
HMRC are committed to tackling false self-employment and will investigate evidence that suggests businesses have misclassified individuals for tax purposes.
HMRC have worked with trade bodies for this sector to develop new educational material including a YouTube video and have published guidance on GOV.UK to better explain the employment status and tax implications of different business models, including the ‘rent-a-chair’ model. Details can be found at: https://youtu.be/5o3au6PyXG8 & https://www.gov.uk/guidance/check-employment-status-if-you-work-in-hair-and-beauty.
HMRC does not segment its data on businesses who have been investigated for misclassification of individuals for tax purposes by sector.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, which representative bodies she intends to meet to hold preparatory discussions with on proposals to reform the business rates system in the 2026-2027 financial year.
Answered by James Murray - Chief Secretary to the Treasury
HM Treasury releases a quarterly record of Ministers’ meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
At the Autumn Budget, the Government published the Transforming Business Rates Discussion Paper, which sets out priority areas for reform. This paper invited stakeholders to help co-design a fairer business rates system that supports investment and is fit for the 21st century.
On 17 February the Government published a ‘forward look’ of the expected timeline for reforms announced at Autumn Budget 2024, and how stakeholders should engage the Government. This will be updated when further information is available.
In the summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she had had with stakeholders on proposals to reform the business rates system in the 2026-2027 financial year.
Answered by James Murray - Chief Secretary to the Treasury
HM Treasury releases a quarterly record of Ministers’ meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
At the Autumn Budget, the Government published the Transforming Business Rates Discussion Paper, which sets out priority areas for reform. This paper invited stakeholders to help co-design a fairer business rates system that supports investment and is fit for the 21st century.
On 17 February the Government published a ‘forward look’ of the expected timeline for reforms announced at Autumn Budget 2024, and how stakeholders should engage the Government. This will be updated when further information is available.
In the summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Spring Statement 2025, which Departments will be impacted by the £150 million for Government employee exit schemes.
Answered by Darren Jones - Minister for Intergovernmental Relations
As announced at Spring Statement the government has allocated £150 million for government employee exit schemes. Information can be found in the Spring Statement supporting documentation here:
https://assets.publishing.service.gov.uk/media/67e3ec2df356a2dc0e39b488/E03274109_HMT_Spring_Statement_Mar_25_Web_Accessible_.pdf. This will be match-funded by a further £150 million from Departments.
Exit schemes will enable delivery of leaner, smarter, more efficient government, whilst delivering savings over the medium term.
Departments will bid for funding from this central pot in order to run exit schemes, and therefore the exact details of which departments will benefit from this and how this will be spent is not yet known.