Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Spring Statement 2025, whether she has had discussions with Cabinet colleagues on the potential impact of welfare reforms on costs to the NHS.
Answered by Darren Jones - Minister for Intergovernmental Relations
The Chancellor discussed welfare reforms with Cabinet colleagues in the usual way ahead of the publication of the Pathways to Work Green Paper and Spring Statement 2025.
As the Chancellor and the Work and Pensions Secretary have set out, these reforms will make the benefits system more pro work, and putting it on a more fiscally sustainable trajectory so that it can continue to protect the most vulnerable.
The Government is committed through its Plan to Change to getting the NHS back on its feet and has prioritised investment into it through a £22.6bn increase in resource spending for DHSC from 23/24 to 25/26.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to reform business rates to reduce the financial burden on small high street businesses.
Answered by James Murray - Chief Secretary to the Treasury
The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
At Autumn Budget 2024, we took the first step with the announcement of permanently lower tax rates for the Retail, Hospitality and Leisure properties that make up the backbone of our high streets, from 2026-27.
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.
The Budget announcements reflect the Government’s first steps to support the high street. We want to go further to modernise the system, and so, we have published a Discussion Paper setting out priority areas for reform. This paper invites industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century.
In 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 Autumn Budget 2025.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of (a) increasing Employment Allowance and (b) reducing National Insurance contributions for small businesses.
Answered by James Murray - Chief Secretary to the Treasury
The Government has taken necessary decisions to fix the public finances and create long-term stability in which businesses can invest and thrive.
The Government decided to protect the smallest businesses from the changes to Employer NICs announced at the last Budget by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change. It means employers will be able to employ up to four full-time workers on the National Living Wage without paying employer NICs.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to reform business rates to reduce the financial burden on small high street businesses in Newton Abbot constituency.
Answered by James Murray - Chief Secretary to the Treasury
The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
At Autumn Budget 2024, we took the first step with the announcement of permanently lower tax rates for the Retail, Hospitality and Leisure properties that make up the backbone of our high streets, from 2026-27.
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.
The Budget announcements reflect the Government’s first steps to support the high street. We want to go further to modernise the system, and so, we have published a Discussion Paper setting out priority areas for reform. This paper invites industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century.
In 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 Autumn Budget 2025.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 1 April 2025 to Question 42193 on Digital Technology: Taxation, what recent discussions she has had with her G20 counterparts on the taxation of the digital economy.
Answered by James Murray - Chief Secretary to the Treasury
G20 Finance Ministers and Central Bank Governors met in February 2025. International taxation was among the topics discussed, including OECD/G20 work on addressing the tax challenges arising from the digitalisation of the economy through ‘Pillar 1 and 2’ reforms to international corporate taxation. South Africa subsequently published a Chair’s summary of these meetings which is indicative of G20 members’ views.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to ensure the digital service tax is not repealed.
Answered by James Murray - Chief Secretary to the Treasury
The Digital Services Tax (DST) is an interim tax measure to ensure that digital services providers pay UK tax on digital services that reflects the value they derive from UK users.
The UK remains committed to reaching a global solution on the taxation of the digital economy through Pillar 1 of the G20-OECD Inclusive Framework project. It is UK’s intention to repeal our Digital Services Tax (DST) when this international solution is in place.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the HM Revenue and Customs' Policy paper entitled Alcohol Duty uprating, published on 30 October 2024, if she will make an assessment of the potential impact of the 3.4% increase in alcohol duties on the pub sector.
Answered by James Murray - Chief Secretary to the Treasury
At Autumn Budget the Chancellor announced that she would uprate alcohol duty in line with RPI inflation on 1 February 2025. This decision weighed the impacts on businesses, cost-of-living pressures on people who drink moderately and responsibly, and the public health case for higher duties to tackle increasing alcohol-related deaths, as well as economic inactivity.
However, in recognition of the economic and cultural importance of pubs, and the wider “on trade”, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is reducing alcohol producers’ duty bills by over £85m a year and has cut 1p off the duty on an average strength pint.
A Tax Information and Impact Note was published alongside this Budget announcement. This includes an assessment of the impact on businesses, including alcohol retailers. This is available here: Alcohol Duty uprating - GOV.UK
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to end the digital services tax.
Answered by James Murray - Chief Secretary to the Treasury
The Digital Services Tax was introduced as a temporary measure to address international corporate tax issues, until a global solution on the taxation of the digital economy is reached through Pillar 1 of the G20-OECD Inclusive Framework project. It is the UK’s intention to repeal our DST when this international solution is in place.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate her Department has made of the contribution of the (a) brewery, (b) distillery and (b) pub sector to the UK economy in the 2024-25 financial year.
Answered by James Murray - Chief Secretary to the Treasury
Pubs, brewers and distillers make a significant contribution to our economy, which is recognised in the tax system. According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were a) 14,000 people employed in distilling, rectifying and blending of spirits, b) 21,000 people employed in the manufacture of beer and c) 474,000 people employed in public houses and bars across Great Britain.
At Autumn Budget, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint. This reduction increased the relief available on draught products to 13.9%.
The government will also consult on ways to encourage small brewers to retain and expand their access to UK pubs, maximising drinkers’ choice and local economies, including through provisions to enable more ‘guest beers’. Generosity of the discount available for small producers has also been increased.
Regarding Business Rates, the Chancellor confirmed her intention to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties with rateable values below £500,000, including pubs, from 2026-27. In the interim, the Government extended the current RHL relief for one year at 40%, up to a cash cap of £110,000 per business and freeze the small business multiplier for 2025-26.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps her Department is taking to support the growth of the (a) beer and (b) pub sector.
Answered by James Murray - Chief Secretary to the Treasury
Pubs, brewers and distillers make a significant contribution to our economy, which is recognised in the tax system. According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were a) 14,000 people employed in distilling, rectifying and blending of spirits, b) 21,000 people employed in the manufacture of beer and c) 474,000 people employed in public houses and bars across Great Britain.
At Autumn Budget, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint. This reduction increased the relief available on draught products to 13.9%.
The government will also consult on ways to encourage small brewers to retain and expand their access to UK pubs, maximising drinkers’ choice and local economies, including through provisions to enable more ‘guest beers’. Generosity of the discount available for small producers has also been increased.
Regarding Business Rates, the Chancellor confirmed her intention to introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties with rateable values below £500,000, including pubs, from 2026-27. In the interim, the Government extended the current RHL relief for one year at 40%, up to a cash cap of £110,000 per business and freeze the small business multiplier for 2025-26.