Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of differences between beer duty rates in the UK and other European countries on the financial sustainability of UK pubs.
Answered by James Murray - Exchequer Secretary (HM Treasury)
A Tax Information and Impact Note was published alongside the changes to alcohol duty announced at Autumn Budget. This is available here: Alcohol Duty uprating - GOV.UK
The alcohol duty cut on qualifying draught products impacts approximately 60% of the alcoholic drinks sold in pubs. This represents an overall cut in duty bills of over £85m a year.
Although alcohol duty is paid directly by producers, duty changes are ‘passed-through' to consumers in prices. This link between alcohol duty and prices is widely acknowledged, including by the Office of Budget Responsibility in its inflation forecasts.
The Chancellor also confirmed her intention to introduce permanently lower business rates for high street retail, hospitality, and leisure (RHL) properties with rateable values below £500,000, including pubs, from 2026-27, and in the interim to extend the current RHL relief for one year at 40%, up to a cash cap of £110,000 per business.
There is significant variation in alcohol taxation policy amongst European countries, with some countries having lower alcohol duty rates and some having higher rates.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment her Department has made of the level of beer duty rates between the UK and the European average.
Answered by James Murray - Exchequer Secretary (HM Treasury)
A Tax Information and Impact Note was published alongside the changes to alcohol duty announced at Autumn Budget. This is available here: Alcohol Duty uprating - GOV.UK
The alcohol duty cut on qualifying draught products impacts approximately 60% of the alcoholic drinks sold in pubs. This represents an overall cut in duty bills of over £85m a year.
Although alcohol duty is paid directly by producers, duty changes are ‘passed-through' to consumers in prices. This link between alcohol duty and prices is widely acknowledged, including by the Office of Budget Responsibility in its inflation forecasts.
The Chancellor also confirmed her intention to introduce permanently lower business rates for high street retail, hospitality, and leisure (RHL) properties with rateable values below £500,000, including pubs, from 2026-27, and in the interim to extend the current RHL relief for one year at 40%, up to a cash cap of £110,000 per business.
There is significant variation in alcohol taxation policy amongst European countries, with some countries having lower alcohol duty rates and some having higher rates.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the 1.7% reduction in Alcohol Duty rates for draught products on the financial viability of pubs.
Answered by James Murray - Exchequer Secretary (HM Treasury)
A Tax Information and Impact Note was published alongside the changes to alcohol duty announced at Autumn Budget. This is available here: Alcohol Duty uprating - GOV.UK
The alcohol duty cut on qualifying draught products impacts approximately 60% of the alcoholic drinks sold in pubs. This represents an overall cut in duty bills of over £85m a year.
Although alcohol duty is paid directly by producers, duty changes are ‘passed-through' to consumers in prices. This link between alcohol duty and prices is widely acknowledged, including by the Office of Budget Responsibility in its inflation forecasts.
The Chancellor also confirmed her intention to introduce permanently lower business rates for high street retail, hospitality, and leisure (RHL) properties with rateable values below £500,000, including pubs, from 2026-27, and in the interim to extend the current RHL relief for one year at 40%, up to a cash cap of £110,000 per business.
There is significant variation in alcohol taxation policy amongst European countries, with some countries having lower alcohol duty rates and some having higher rates.
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 support small businesses impacted by a reduction in (a) local bank branches and (b) in-person banking services in West Dorset constituency.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government understands the importance of face-to-face banking to constituents and businesses in West Dorset and across the UK and is committed to championing sufficient access for all. That is why the Government is working closely with the industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to delivering these hubs by the end of this Parliament. Over 200 hubs have been announced so far, and over 100 are already open.
FCA guidance expects firms to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and put in place alternatives where reasonable. This seeks to ensure that branch closures are implemented in a way that treats customers fairly.
Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills, and cash cheques. The Government protects the Post Office network by setting minimum access criteria. These include ensuring that 99% of the UK population lives within three miles of a Post Office and 90% of the population within one mile.
To stimulate local economic growth, the Government intends to introduce permanently lower tax rates for high street retail, hospitality, and leisure properties with rateable values below half a million pounds from 2026–2027 and later this year, the Government will publish a Small Business Strategy, setting out our vision for small businesses.
Taken together, these actions will support businesses in West Dorset and across the country to drive local economic growth.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of recent trends in the level of bank branch closures in West Dorset constituency on (a) small businesses and (b) constituents.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government understands the importance of face-to-face banking to constituents and businesses in West Dorset and across the UK and is committed to championing sufficient access for all. That is why the Government is working closely with the industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to delivering these hubs by the end of this Parliament. Over 200 hubs have been announced so far, and over 100 are already open.
FCA guidance expects firms to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and put in place alternatives where reasonable. This seeks to ensure that branch closures are implemented in a way that treats customers fairly.
Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills, and cash cheques. The Government protects the Post Office network by setting minimum access criteria. These include ensuring that 99% of the UK population lives within three miles of a Post Office and 90% of the population within one mile.
To stimulate local economic growth, the Government intends to introduce permanently lower tax rates for high street retail, hospitality, and leisure properties with rateable values below half a million pounds from 2026–2027 and later this year, the Government will publish a Small Business Strategy, setting out our vision for small businesses.
Taken together, these actions will support businesses in West Dorset and across the country to drive local economic growth.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions her Department has had with farming representatives on the potential impact of the Furnished Holiday Lettings tax scheme on farmers who have diversified into holiday accommodations.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government will abolish the Furnished Holiday Lettings (FHLs) tax regime from April 2025. This will equalise the tax treatment of FHL and non-FHL landlords’ income and gains.
Draft legislation to abolish the FHL tax regime was published on 29 July 2024, providing farming representatives and other businesses with an opportunity to share their views on the legislation with the Government.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has taken steps to support farmers who have diversified into holiday accommodations to mitigate the potential financial impact of changes to the Furnished Holiday Lettings tax regime.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government will abolish the Furnished Holiday Lets (FHL) tax regime from April 2025. This will equalises the tax treatment of FHL and non-FHL landlords’ income and gains, making the tax system fairer.
Tax reliefs will still be available to landlords, including farmers, who provide furnished holiday letting services, including mortgage interest relief at 20 per cent and relief for the replacement of domestic items. These reliefs will be at the same level as those available to landlords who provide long-term residential lets.
Individual landlords can also benefit from the income tax Personal Allowance, which is the amount of income that can be earned before income tax is paid (£12,570 in 2024-25).
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 5.91 of the Autumn Budget 2024, what assessment she has made of the potential impact of the reclassification of double cab pick-ups with a payload of one tonne or more as cars for tax purposes on farmers from April 2025.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Following recent case law, Double Cab Pick Ups must be treated as cars, rather than goods vehicles, for certain tax purposes, based on their primary suitability. The government will not legislate to treat DCPUs as goods vehicles as this would depart from the broader principles underpinning the Court of Appeal’s judgement, and be a significant tax break worth hundreds of millions per year.
As per paragraph 5.91, this will not affect the capital allowances treatment of anyone who already owns a DCPU; anyone who purchases a DCPU before April 2025 will still benefit from the previous tax treatment. For Benefit in Kind, anyone who has accessed a DCPU as a company car before April 2025 will not be impacted until the sooner of disposal of the vehicle, April 2029 or when their lease expires; and employers that have purchased, leased, or ordered a DCPU before 6 April 2025 will also be able to benefit from the previous treatment, until the earlier of disposal, April 2029, or when the lease expires.
There are alternatives available to farmers, which provide the same off-road and haulage capabilities and are still treated as goods vehicles, such as single cab pick-ups and 4 x 4 vans.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the increase in employer National Insurance contributions on transport companies who provide services for children with Special Educational Needs and Disabilities.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In order to repair the public finances and help raise the revenue required to increase funding for public services, the Government has taken the difficult decision to increase employer National Insurance contributions (NICs).
The Government published a Tax Information and Impact Note on 13 November which sets out the impact of the employer NICs changes on employers.
At Autumn Budget 2024 and the recent provisional Local Government Finance Settlement, the Government announced £2 billion of new grant funding for local government in 2025-26. This includes £515m to support councils with the increase in employer National Insurance Contributions.
The £515m of additional funding made available to compensate local government for the impact of changes to employer NICs has been determined based on a national assessment of the costs for directly employed staff across the public sector. However, this funding is unringfenced and it is for LAs to determine how to use this funding across relevant services and responsibilities.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has had discussions with Lloyds Bank on the potential impact of the planned closure of its Dorchester branch on (a) local residents and (b) businesses.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government understands the importance of face-to-face banking to communities and high streets in Dorset and across the UK, and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with banks to roll out 350 banking hubs, which will provide local residents and businesses up and down the country with critical cash and banking services. Over 100 banking hubs are already open.
FCA guidance expects firms to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and put in place alternatives where reasonable. This seeks to ensure that branch closures are implemented in a way that treats customers fairly.
Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking and via the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK.