Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to reduce the number of illegal tobacco and vaping products on sale in North Shropshire.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is committed to reducing the number of illicit tobacco and vaping products on sale nationally.
For tobacco, HM Revenue and Customs (HMRC) has a robust strategy to tackle the illicit tobacco trade. HMRC works closely with Trading Standards to disrupt the illicit tobacco trade at retail level – known as Operation CeCe. In its first three years, more than 46 million illegal cigarettes and 12,600kg of hand-rolling tobacco were seized.
In July 2023, HM Revenue and Customs introduced a strengthened sanctions regime for breaches of the UK Tobacco Track and Trace System to combat illicit tobacco sales. New powers were also given to Trading Standards to make referrals to HMRC where they find evidence of high street retailers selling tobacco products that do not comply with the UK Tobacco Track and Trace System.
In January 2024, HMRC and Border Force published their latest illicit tobacco strategy, ‘Stubbing Out the Problem’. This sets out the Governments’ continued commitment to restrict the trade in illicit tobacco with a focus on reducing demand, and to tackle and disrupt organised crime groups. This strategy is supported by £100 million of new smokefree funding allocated over 5 years to boost existing HMRC and Border Force enforcement capability.
As with tobacco, there is a cross-government approach to reducing the number of illegal vapes. The vaping equivalent of Operation CeCe, Operation Joseph, led to the seizure of over 1 million illegal vapes in 2023-24, the last full year for which statistics are available.
HMRC are also working closely with both Trading Standards and Border Force to develop a robust compliance approach for the introduction of Vaping Products Duty (VPD) on 1 October 2026.
VPD is a new excise duty on vaping products, which will introduce additional compliance powers and controls across the vaping supply chain. This includes the introduction of a Vaping Duty Stamps (VDS) scheme, which will require highly secure stamps to be placed on all duty paid goods, supporting enforcement agencies and customers to identify illegal products.
HMRC are recruiting over 300 staff to strengthen this compliance approach and deliver VPD.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
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 of the press report by the British Retail Consortium entitled 400 of Britain's largest shops at risk, published on12 September 2025, on the potential impact of business rates on large-format stores.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
From April 2026, the Government intends to introduce permanently lower tax rates for retail, hospitality and leisure (RHL) properties with rateable values below £500,000. This permanent tax cut will ensure that eligible RHL properties benefit from much-needed certainty and support.
This tax cut must be sustainably funded, and so the Government is introducing a higher rate on the most valuable properties in 2026/27 - those with RVs of £500,000 and above. The Government recognises that, ahead of the new multipliers being introduced, RHL businesses need support in 2025-26. So, the Government has prevented RHL relief from ending by extending it for one year at 40 per centup to a cash cap of £110,000 per business and frozen the small business multiplier.
The final design, including the rates, for the new business rates multipliers will be announced at Budget 2025, so that the revaluation outcomes and broader economic and fiscal context can be factored into decision-making. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of tax calculations made through HMRC's Simple Assessment procedure were subsequently found to be incorrect in each of the last five years.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Simple Assessments are based on data from customers and third parties, such as employers, pension providers, Department for Work and Pensions and financial institutions. If any of this data is incorrect, customers can raise a query by identifying the errors and providing corrected figures to HMRC. HMRC will then revise or withdraw the assessment.
HMRC does not hold data centrally on the number of Simple Assessments amended or withdrawn over the past five years
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to reduce the time HMRC takes to process tax repayment claims.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC recognise that repayments are important for customers. They prioritise them to ensure they are processed as quickly and securely as possible.
HMRC balance the provision of prompt payments to eligible customers with effective revenue protection from fraudsters.
For Self Assessment repayments, once the repayment is created it goes through automated fraud and compliance checks. In 2024-25, after these checks, 93.1% of the repayments were paid automatically within a few days.
HMRC continues to invest in automation and to review their internal processes to ensure repayments are issued as quickly as possible.
HMRC recognise too the importance of keeping the customer, and where appropriate the customer’s representative informed of progress, and are exploring ways of doing that more effectively.
In the meantime, HMRC’s online ‘Where’s My Reply’ tool can help customers understand when they can expect to receive a response.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of HMRC's simple assessment procedure.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Simple Assessment enables HMRC to collect Income Tax from individuals without the need for customers to complete a Self Assessment return. As Simple Assessment tax calculations are based on data HMRC already holds, customers benefit from a simplified process. If a customer believes their Simple Assessment is wrong, they can query it with HMRC.
HMRC continues to improve the Simple Assessment process, including by making the Simple Assessment notice clearer for customers; expanding customer payment options; and trialling payment reminders.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the progress of (a) NFU Mutual and (b) other insurance providers in implementing the recommendations of the Financial Conduct Authority outlined in its Dear CEOs letter dated 22 January 2021.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Supreme Court published its final judgment in the Financial Conduct Authority’s (FCA) Business Interruption Insurance test case on 15 January 2021. At the time of the judgment, the FCA set out its expectation that insurers should communicate to all impacted policyholders what the judgment meant for their claim and should move quickly to resolve claims as determined by the judgment.
It is important to note that the FCA court case did not cover all potential issues with business interruption policies but aimed to provide certainty to as many policyholders as possible.
Under FCA rules, insurers must treat customers fairly. For example, the FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. The FCA has robust powers to take action against firms that do not comply with its rules.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure insurers (a) settle claims and (b) proceed litigation as (i) quickly and (ii) cheaply as possible.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Financial Conduct Authority (FCA) is the independent body responsible for regulating and supervising the financial services industry, and sets the conduct standards required of insurance firms. Under FCA rules, insurers must handle claims fairly and promptly.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to amend reforms to (a) agricultural property relief and (b) business property relief announced at the Autumn Budget 2024.
Answered by James Murray - Chief Secretary to the Treasury
The Government believes that the 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.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had discussions with the Secretary of State for Business and Trade on the impact of increased business rates on the viability of high street businesses in market towns.
Answered by James Murray - Chief Secretary to the Treasury
We are creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
To deliver our manifesto pledge, from 2026-27, we intend to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support.
This tax cut must be sustainably funded, and so, from 2026-27, we intend to introduce a higher rate on the most valuable properties – those with Rateable Values of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL 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, and we have frozen the small business multiplier.
When the new, permanently lower tax rates are set at Autumn Budget 2025, the Treasury intends to publish analysis of the effects of the new multiplier arrangements.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 June 2025 to Question 58290 on Banking Hubs: Market Towns, what steps is her Department taking to ensure LINK’s criteria sufficiently reflect the banking needs of (a) digitally excluded, (b) elderly and (c) disabled residents in rural areas.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups or face challenges using alternative payment methods. The Government also understands the importance of face-to-face banking to communities and high streets across the UK, including those in rural communities, and is committed to championing sufficient access for all as a priority.
In September 2024, The Financial Conduct Authority (FCA), which is independent of Government, introduced regulatory rules for access to cash.
The FCA’s rules require LINK to consider a range of factors in their assessments which will account for challenges in cash access faced by market towns. This includes travel times to nearby cash facilities and local population demographics, including the levels of vulnerability and the number of elderly people within the community.
However, it is important to note that the FCA’s rules, and the LINK assessment criteria which it oversees, pertain only to access to cash, and the FCA has no power to require LINK to consider a community's access to banking needs. Any decision to change LINK’s independent assessment criteria to consider access to banking is a matter for LINK and the financial services sector.