Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has the Government has made of the potential impact that extending VAT Deemed Reseller rules to include UK sellers could have to closing the tax gap.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has and will continue to engage with stakeholders to understand the impact of any changes to online marketplace liability rules on both platforms and sellers. Certified analysis by the Office for Budget Responsibility (OBR) estimates the current online marketplace liability rules, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.
HMRC has an overall compliance strategy which focuses on addressing all forms of non-compliance. The most recent published VAT gap shows a continued downward trend, falling from 13.7% to 5.4% between tax years 2005/06 and 2023/24.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to publish the outcome of the review of the VAT Deemed Reseller rules announced in April 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has and will continue to engage with stakeholders to understand the impact of any changes to online marketplace liability rules on both platforms and sellers. Certified analysis by the Office for Budget Responsibility (OBR) estimates the current online marketplace liability rules, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.
HMRC has an overall compliance strategy which focuses on addressing all forms of non-compliance. The most recent published VAT gap shows a continued downward trend, falling from 13.7% to 5.4% between tax years 2005/06 and 2023/24.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact for the Exchequer of VAT non-compliance by overseas sellers posing as UK businesses on online marketplaces.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC’s best estimate is that in 2021/22 there was £150 million of overseas seller non-compliance occurring through online marketplaces as referenced by the National Audit Office report entitled ‘Tackling tax evasion in high street and online retail’ published in September 2024.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of reforms to the Landfill Tax on businesses engaged in environmentally-responsible waste (a) treatment and (b) recycling.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recently consulted on proposals to reform Landfill Tax to ensure the regime remains effective in encouraging waste to be diverted away from landfill and to support the Government’s circular economy objectives. As part of the consultation, the Government has received a wide range of views from stakeholders, including from businesses that are engaged in environmentally responsible waste management practices. The consultation closed on 28 July, and the Government is considering responses and will set out next steps in due course.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent changes to Landfill Tax rates on chemical manufacturing operations in Teesside.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recently consulted on proposals to reform Landfill Tax to ensure the regime remains effective in encouraging waste to be diverted away from landfill and to support the Government’s circular economy objectives. As part of the consultation, the Government has received a wide range of views from stakeholders, including representatives from the chemical manufacturing sector. The consultation closed on 28 July, and the Government is considering responses and will set out next steps in due course.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the beer duty rate on (a) pubs and (b) hospitality businesses in (i) rural and (ii) coastal communities.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:
https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating
HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with representatives of the (a) brewing and (b) pub sectors on beer duty rates.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:
https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating
HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of the reduced rate of beer duty for draught products on the (a) on-trade and (b) off-trade sectors.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:
https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating
HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to help ensure that the beer duty structure supports (a) growth and (b) job creation in the brewing industry.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:
https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating
HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.
The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with HMRC on the potential impact of (a) the administration of and (b) compliance with the beer duty system on small producers.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV.
HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.