Asked by: Melanie Onn (Labour - Great Grimsby and Cleethorpes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to update Parliament on future expansions of the UK Carbon Border Adjustment Mechanism, including whether refined petroleum products are under consideration for inclusion.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
For the introduction of Carbon Border Adjustment Mechanism (CBAM) in January 2027, the UK has focused on the sectors most at risk of carbon leakage within scope of the UK ETS, and where it is technically feasible to include products in scope.
As announced at Budget 2025, the government is considering the feasibility and impacts of including refined products in the CBAM in future.
The sectoral scope of the CBAM will be kept under review beyond 2027 as new evidence comes to light to reflect methodological and technological advances.
Asked by: Melanie Onn (Labour - Great Grimsby and Cleethorpes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make a comparative assessment of Vehicle Excise Duty rates for motorcycles with cars; and whether she has plans to review the Vehicle Excise Duty framework for motorcycles.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Vehicle Excise Duty (VED), sometimes known as 'road tax' or 'car tax', is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions.
VED for motorcycles is currently based on engine size. There are four engine size ranges, with the lowest rate applying to zero emission motorcycles and the smallest engines sized 150cc or less (currently £26, and increasing to £27 from 1 April 2026 in line with RPI).The highest rate applies to engines sized 600cc and above (currently £121, and increasing to £125 from 1 April 2026 in line with RPI).
The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.
Asked by: Melanie Onn (Labour - Great Grimsby and Cleethorpes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the adequacy of the Approved Mileage Allowance Payments rate; and whether she plans to update that rate.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle. These rates are also used by self-employed drivers to claim tax relief on business mileage (simplified motoring expenses). In considering potential changes to the AMAP/simplified motoring expenses rates, the Government would need to balance support for individuals with the responsible management of public finances which fund our essential public services.
Asked by: Melanie Onn (Labour - Great Grimsby and Cleethorpes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to help improve access to cash for disabled people who are not able to use cash machines.
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 in vulnerable groups, and is committed to protecting access to cash for individuals as a priority.
The Financial Conduct Authority (FCA) assumed regulatory responsibility for access to cash in September 2024. Its rules ensure cash continues to be a viable method of payment for the millions of people who depend on it and help businesses to continue to accept cash by providing reasonable access to cash deposit facilities.
The Government is also working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this parliament. These hubs will provide small businesses and individuals who need face-to-face support with critical cash and in-person banking services. Over 180 Banking Hubs are already open across the UK.
The provision of cash machines (and their functions) is overseen by LINK, the operator of the UK’s largest ATM network. LINK provide a free cash locator tool on their website allowing consumers to find their nearest cash access points, including showing access points where audio assistance and wheelchair access is available. https://www.link.co.uk/cash-locator
The Equality Act 2010 provides legal protection from discrimination for disabled people in a range of circumstances, including in the provision of goods, facilities and services and requires retailers to make reasonable adjustments. The Financial Conduct Authority also requires authorised financial services firms to comply with their ‘Consumer Duty’, which requires them to deliver good outcomes for retail customers, including those with disabilities.
Asked by: Melanie Onn (Labour - Great Grimsby and Cleethorpes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the merits of implementing a national strategy to tackle (a) the sale of (i) illegal tobacco and (ii) vapes and (b) money laundering.
Answered by James Murray - Chief Secretary to the Treasury
The UK Government has national strategies to curb the sale of illegal tobacco and combat money laundering, and is developing a robust compliance framework for the upcoming Vaping Products Duty.
In January 2024, HM Revenue and Customs (HMRC) and Border Force launched their latest illicit tobacco strategy, “Stubbing Out the Problem”. This builds on a series of previous strategies which, together, have contributed to a significant reduction in the tobacco duty tax gap, from 21.7% in 2005/06 to 13.8% in 2023/24. Tackling the trade in illicit tobacco requires a comprehensive, cross-government approach and the latest strategy is supported by over £100 million in new Smokefree funding over five years to further enhance enforcement capabilities to disrupt both supply and demand across the entire tobacco supply chain.
As announced at Autumn Budget 2024, Vaping Products Duty (VPD) will come into effect on 1 October 2026. In preparation HMRC is developing a comprehensive compliance strategy to address the illicit vaping market. This includes vaping duty stamps and enhanced enforcement powers. These measures will be implemented before the duty goes live and will form part of a cross-government enforcement approach supporting provisions in the Tobacco and Vapes Bill.
The Government’s approach to tackling money laundering is embedded within the Economic Crime Plan 2 (2023–2026). This plan sets out what the public and private sectors should do to continue to transform the UK’s response to economic crime, including money laundering. HMRC supports several of the actions in their plan, such as anti-money laundering supervisory reform and targeted intelligence and operational work on high-harm money laundering methodologies.
Asked by: Melanie Onn (Labour - Great Grimsby and Cleethorpes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of introducing VAT exemptions for (a) small charities and (b) volunteer organisations.
Answered by James Murray - Chief Secretary to the Treasury
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax forecast to raise £171 billion in 2024/25. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals.
Charities can already benefit from a reduced (5%) or zero rate of tax when purchasing some goods and services. More information about VAT relief for charities can be found here: VAT for charities: What qualifies for VAT relief - GOV.UK.
The Government has no plans to change this approach, but takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution. Our tax regime for charities, including exemption from paying business rates, is among the most generous of anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.
Asked by: Melanie Onn (Labour - Great Grimsby and Cleethorpes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that full tax receipts are being obtained from cash-only businesses.
Answered by James Murray - Chief Secretary to the Treasury
Cash continues to be used by many people across the UK and is a legitimate means of paying for goods and services. It is the choice of a business whether to accept or decline any form of payment and is based on factors such as customer preference and cost.
Like all other businesses, those which only or primarily accept cash must ensure they meet their legal obligations regarding tax, including that they register for and pay the right taxes at the right time.
Most taxpayers pay what they owe, but a small minority fail to register with HMRC or only declare a portion of their earnings. This small minority deprive our vital public services of funding, affect fair competition between businesses, and place unfair burdens on everyone else. The Government is committed to creating a level playing field for all by ensuring that everyone pays the right amount of tax at the right time. Closing the tax gap and making sure that more of the tax that is owed is correctly paid is one of the Government’s top priorities for HMRC. It is vital these revenues are collected to fund our essential public services.
HMRC is making it increasingly difficult for businesses to hide their earnings and have an extensive range of powers, including information gathering powers, that help build a picture of risk and identify those who are trying to abuse the system. HMRC’s approach to tax evasion aims to tackle current non-compliance and change future behaviours. Their activities include national campaigns and specialist task forces that incorporate intensive bursts of activity in targeted high risk trade sectors and locations across the UK. This includes providing customer education highlighting the importance of keeping accurate records.
Asked by: Melanie Onn (Labour - Great Grimsby and Cleethorpes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government plans to reduce excise duty on UK produced petroleum.
Answered by Simon Clarke
The government recognises that transport is a significant cost for households and businesses. That is why for the last nine years the government has frozen fuel duty at a cost of £53bn, saving the average car driver £1,000 compared to pre-2010 plans.
All taxes remain under review with any future decision made as part of the normal Budget processes and in the context of the wider fiscal position.