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 pensioners who will be required to pay tax for the first time after 2027.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The majority of pensioners paid tax under the previous Government, with 8.3 million taxpayers over state pension age in 2024/2025.
The Chancellor has said that those whose only income is the basic or new State Pension without any increments will not have to pay income tax over this Parliament
At the Budget, the Government announced that it will achieve this by easing the administrative burden for pensioners so that they do not have to pay small amounts of tax via Simple Assessment from 2027/28. The Government will set out more details in due course.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to ensure that pensioners are not required to file self-assessment tax returns for small amounts after the new state pension exceeds the tax-free allowance in 2027.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Pensioners whose sole income is the basic or new State Pension without any increments will not pay income tax in 2026-27.
At Budget 2025, the Government announced that it will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28.
The Government will set out more detail in due course.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make a comparative assessment of the potential impact of levels of [a] standard and [b] hospitality VAT on the sustainability of the hospitality industry in [i] France, [ii] Germany, [iii] Italy and [iv] the Republic of Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Providing further VAT relief or introducing new reduced rates would reduce tax revenue and add further complexity to the tax system.
Furthermore, HMRC estimates that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £17bn in 2026-27. This would reduce VAT revenue, which pays for public services, by almost 10%.
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 the increase in employer National Insurance contributions on the financial sustainability of opticians and eye care practices.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has protected the smallest businesses and charities from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. That means more than half of businesses with NICs liabilities either gain or see no change this financial year.
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.
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.