Asked by: Andrew Ranger (Labour - Wrexham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HM Revenue and Customs is taking to reduce duplication in the processes required of carers and older taxpayers; and what assessment HMRC has made of the potential impact of these requirements on those taxpayers.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
In July 2025, the government published HMRC’s Transformation Roadmap. The roadmap sets our vision for tax administration to happen with minimal effort thanks to simplified tax processes, the application of new technologies such as artificial intelligence (AI) and more digital self-serve options for customers. This will mean compliance is easy for the majority who want to get their tax and customs duties right, minimising opportunities for inadvertent errors.
HMRC assesses the impact on customers as a standard part of changes to policy and process, and routinely publishes the results as part of tax information and impact notes for tax policy changes. These also set out where impacts have been identified on customers by virtue of characteristics protected under the Equality Act 2010, including age.
Most customers are able to deal with their tax affairs on their own or with the support of their agent, though some customers have a temporary or enduring need for extra help. HMRC is committed to identifying and supporting all customers who need extra help and has published a set of commitments to support these customers in the HMRC Charter and the Principles of Support for Customers Who Need Extra Help.
Asked by: Andrew Ranger (Labour - Wrexham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government is considering proposals to replace Vehicle Excise Duty with a pay-per-mile road pricing system.
Answered by Dan Tomlinson - Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
The Government has no plans to abolish Vehicle Excise Duty (VED). VED applies to vehicles used or kept on public roads, which does not vary by miles driven. However, fuel duty applies to the petrol or diesel used by motorists driving internal combustion engine vehicles; the greater the miles driven, the more fuel duty incurred.
Asked by: Andrew Ranger (Labour - Wrexham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of reducing the rate of VAT for the hospitality sector.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
VAT is the UK’s third largest tax. It is forecast to raise £180 billion in 2025/26, which funds public services. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
HMRC estimates that the cost of a 12.5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £6.5 billion this financial year, or £8 billion if it were to include alcoholic beverages.
Asked by: Andrew Ranger (Labour - Wrexham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to (a) reduce income inequality and (b) improve social mobility for people from lower-income backgrounds.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
Distributional analysis shows that the expected impacts of government decisions from Autumn Budget 2024 onwards are progressive and benefit households in the lowest income deciles the most, on average, as a percentage of income in 2028-29.
The Government is committed to making sure the wealthiest in our society pay their fair share of tax. That is why the Chancellor announced a series of reforms at Autumn Budget 2024 to help fix the public finances in as fair a way as possible. The increases in tax are concentrated on the highest income households. Overall, on average, all but the richest 10% of households will benefit from policy decisions in 2028-29.