Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will hold discussions with mortgage providers on the potential impact of excluding Section 157 properties by default on rural housing markets.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
HM Treasury is regularly in contact with mortgage lenders on all aspects of their mortgage business to understand their position and current lending conditions. However, the pricing of mortgages, including the availability of mortgage finance for particular properties, is a commercial decision for lenders in which the Government does not intervene.
I would encourage any prospective homeowner to shop around and speak to a mortgage broker in order to find the best possible mortgage product for their circumstances.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had discussions with mortgage providers on their policies in relation to excluding Section 157 properties by default.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
HM Treasury is regularly in contact with mortgage lenders on all aspects of their mortgage business to understand their position and current lending conditions. However, the pricing of mortgages, including the availability of mortgage finance for particular properties, is a commercial decision for lenders in which the Government does not intervene.
I would encourage any prospective homeowner to shop around and speak to a mortgage broker in order to find the best possible mortgage product for their circumstances.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will bring forward legislative proposals to prevent mortgage providers from excluding Section 157 properties by default.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
HM Treasury is regularly in contact with mortgage lenders on all aspects of their mortgage business to understand their position and current lending conditions. However, the pricing of mortgages, including the availability of mortgage finance for particular properties, is a commercial decision for lenders in which the Government does not intervene.
I would encourage any prospective homeowner to shop around and speak to a mortgage broker in order to find the best possible mortgage product for their circumstances.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to exempt domestic wine producers from wine duty rates.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The wine industry makes a vital contribution to our economy and society. However, an exemption from alcohol duty that applied only to domestic wine producers is likely to be inconsistent with the UK’s legal obligations.
Any cut, or even a freeze, to alcohol duty represents a cost to the Exchequer. The baseline assumption is that alcohol duty will be increased annually, so that it does not fall in real terms
As with all taxes, the Government welcomes representations from stakeholders to inform policy development.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to decrease (a) National Insurance and (b) business rates costs for pubs (i) since the Spending Review and (ii) ahead of the Autumn Budget in (A) rural constituencies and (B) West Dorset.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has taken difficult but necessary decisions to deliver long-term growth. Fixing the public finances is critical to creating long-term stability in which businesses can invest and thrive.
The Government recognises the need to protect the smallest employers, which is why we have more than doubled the Employment Allowance to £10,500. This means more than half of businesses with NICs liabilities either gain or see no change this year. Businesses will still be able to claim employer NICs reliefs including those for under-21s and under-25 apprentices.
From 2026-27, we intend to introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties in England with rateable values (RVs) below £500,000. This permanent tax cut will ensure that eligible RHL businesses benefit from much-needed certainty and support.
Ahead of these changes being made, the Government recognises that business will need support in 2025-26. As such, we have extended the RHL relief for one year at 40 per cent up to a cash cap of £110,000 per business. Under the previous Government, RHL relief was due to end entirely in April 2025. By extending the relief, the Government has saved the average pub, with a RV of £16,800, over £3,300.
To ensure that key amenities are available, and that community assets are protected in rural areas, Rural Rates Relief provides 100% business rates relief for certain properties in eligible rural areas with populations below 3,000, including those that are the only public house, with a RV of up to £12,500.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she plans to take to ensure transparency in the modelling of the proposed Inheritance Tax changes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government published information in the normal way at Autumn Budget 2024 about the assumptions and methodologies for the costing of reforms. These costings, including those relating to inheritance tax, were all certified by the independent Office for Budget Responsibility (OBR). The policy costings document is available at https://assets.publishing.service.gov.uk/media/6721d2c54da1c0d41942a8d2/Policy_Costing_Document_-_Autumn_Budget_2024.pdf.
The OBR published more information in January 2025 on the modelling for the forthcoming reforms to inheritance tax. Information about the reforms to agricultural property relief and business property relief is available at https://obr.uk/docs/dlm_uploads/IHT-APR-and-BPR-supplementary-release-Jan-2025.pdf. Information about the reforms to the inheritance tax treatment of pensions is available at https://obr.uk/docs/dlm_uploads/IHT-on-pensions-supplementary-release-Jan-2025.pdf.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of proposed Inheritance Tax changes on family (a) businesses and (b) farms.
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.
The Government has set out the reforms are expected to result in up to 520 estates claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
The Government has also set out that around 1,500 estates across the UK only claiming business property relief are expected to pay more inheritance tax in 2026-27, with around 1,000 of these expected to only hold shares designated as “not listed” on the markets of recognised stock exchanges, such as the Alternative Investment Market. The remaining 500 estates will include business assets from sectors across the economy that are eligible for business property relief. These reforms mean that around three-quarters of estates claiming business property relief in 2026-27 (excluding those estates only holding shares designated as “not listed”) will not pay any more inheritance tax in 2026-27.
The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The independent Office for Budget Responsibility certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact.
The Government published a tax information and impact note on 21 July 2025 alongside the draft legislation. This is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will commission an independent review of the proposed changes to Inheritance Tax.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has set out the rationale, analysis, and expected impact of all the reforms to inheritance tax announced at Autumn Budget 2024. The independent Office for Budget Responsibility certified the costings are reasonable and central for these reforms. This includes the reforms to agricultural property relief and business property relief from 6 April 2026, the reform to the inheritance tax treatment of pensions from 6 April 2027, and the fixing of the nil-rate band and residence nil-rate band at their current levels for a further two years in 2028-29 and 2029-30.
The Government has no plans to commission an independent review of the reforms.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made a recent assessment of the potential impact of lowering the VAT threshold on the economy.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Any change to the VAT threshold would have potential impacts on small businesses, the economy as a whole, and tax revenues, which the Government would need to consider carefully. The Government keeps all taxes under review and any changes are announced at fiscal events.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC defines SSIPs as pension assets for the purposes of (a) means-tested benefits and (b) financial assessments.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The treatment of Self-Invested Personal Pensions (SIPPs) for the purposes of means-tested benefits and financial assessments does not fall within HMRC’s remit. HMRC’s role is to define and regulate pension schemes for tax purposes, including SIPPs, which may be registered pension schemes under the Finance Act 2004.
Decisions regarding the treatment of pension assets in means-tested benefits are a matter for the Department for Work and Pensions (DWP), while financial assessments for adult social care are administered by local authorities under guidance from the Department of Health and Social Care (DHSC).
HMRC does not define SIPPs as assets for the purposes of benefit entitlement or financial assessments. Any determination of how such pensions are treated in those contexts should be sought from the relevant departments.