Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to extend VAT relief for hospitality businesses.
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 the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
HMRC estimate that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £13 billion this financial year. If the scope were also to include alcoholic beverages, the cost would be approximately £3 billion greater.
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 financial contribution of the hospitality sector to the Exchequer.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government values the significant contribution made by hospitality businesses to economic growth and social life in the UK.
HMRC does not hold aggregated data on the financial contribution of the hospitality sector to the Exchequer, but sectoral breakdowns for individual taxes can be found on gov.UK.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made on the potential impact of changes to alcohol duty reforms on the (a) pub and (b) hospitality sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Following public consultation, a new duty structure for alcohol products was introduced in August 2023.
The alcohol duty system taxes all alcohol products according to their strength, so the duty owed increases with alcohol content. The system is also progressive, ensuring that higher strength products pay proportionately more tax
The 2023 reforms significantly reduced previous inconsistencies in treatment between different types of alcohol product and introduced two new reliefs: Draught Relief (DR); and Small Producer Relief (SPR).
DR enables products served on draught below 8.5 per cent alcohol by volume (ABV) to pay less duty. This relief provides support to pubs and other hospitality venues, as well as helping producers of eligible products.
At Autumn Budget 2024, the Chancellor made DR more generous by cutting draught rates by 1.7%, taking a penny of duty off a typical strength pint.
SPR replaced and extended the previous Small Brewers Relief. SPR supports SMEs and new entrants by permitting smaller producers who make 4,500 hectolitres or less of alcohol per year to pay reduced duty rates on all products below 8.5 per cent ABV.
HMRC plans to evaluate the new rates and structures three years after the changes took effect on 1 August 2023. This will allow time for HMRC to gather a broad range of data. The Government welcomes evidence from industry on the impact of the changes so far.
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 increased business rates on the viability of large-format retail stores.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
We are creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
From 2026-27, the Government intends to introduce permanently lower tax rates for retail, hospitality and leisure properties with rateable values (RVs) under £500,000. The Government intends to fund this by introducing a higher multiplier on properties with RVs of £500,000 or more. These high-value properties cover the majority of large distribution warehouses, including those used by the online giants.
The final design of the new multipliers, including the rates, will be set at Budget 2025 so that we can take into account the upcoming revaluation outcomes, as well as the economic and fiscal context. When the new multipliers are set at Budget 2025, we intend to publish analysis of the effects of the new multiplier arrangements.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of introducing a separate personal allowance for pensioners.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.
The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025.
From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk:
Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK
Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Chancellor of the Exchequer on ensuring that pensioners with no other income do not pay income tax on the state pension.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.
The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025.
From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk:
Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK
Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.
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 relevant stakeholders on exempting the state pension from income tax.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.
The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025.
From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk:
Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK
Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.
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 freezing the personal allowance on pensioners whose sole income is the state pension.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.
The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025.
From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk:
Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK
Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the number of pensioners brought into paying income tax in the next financial year as a result of the state pension exceeding the personal allowance.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.
The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025.
From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk:
Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK
Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.
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 (a) the withdrawal of winter fuel payments, (b) frozen tax thresholds and (c) state pension taxation on pensioner households.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.
The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025.
From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk:
Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK
Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.