Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to orchestral tax relief on orchestras that rely on touring.
Answered by James Murray - Chief Secretary to the Treasury
The UK provides world-leading support for orchestras: at Autumn Budget 2024, the Government confirmed that from 1 April 2025, the rate of OTR will be set at the generous rate of 45%.
From April 2024, qualifying expenditure for the orchestra tax relief (OTR) is expenditure incurred on goods or services that are ‘used or consumed in the UK’, replacing the previous rule that qualifying costs were those incurred on goods/services provided from the UK or EEA. To ease the transition to the new rule, orchestras with concerts in train on 1 April 2024 were permitted to continue claiming relief on goods/services provided from within the EEA until 31 March 2025.
It is appropriate to refocus orchestra tax relief on UK expenditure now that the UK has left the EU. Under the new rule, the relief incentivises activity within the UK, rather than the UK and the EEA. This does not prevent qualifying productions from touring in the EEA (nor elsewhere).
Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to support parents and carers who are survivors of domestic abuse that caused them to be unable to claim Child Benefit and National Insurance credits; and if she will take steps to support them.
Answered by James Murray - Chief Secretary to the Treasury
Where HMRC is made aware that a person is a victim of domestic abuse, consideration of a claim for Child Benefit will be prioritised before other, standard claims. A Child Benefit claim can be backdated for a maximum of three months. However, only one person can be entitled to Child Benefit for the same period except in exceptional circumstances, those being fraud or misrepresentation.Parents and carers who are entitled to Child Benefit automatically receive National Insurance credits until their child turns twelve. These credits count towards their future State Pension entitlement. The government recognises that some individuals may have missed out on entitlement towards their State Pension if they were eligible to claim Child Benefit but did not do so.
From April 2026 a new National Insurance credit will be introduced for people who missed out on the National Insurance credits because they did not claim Child Benefit and where no other successful claim to Child Benefit was made for the same period. There will be transitional arrangements in place that will allow people to claim the new credit retrospectively as far back as 2013.
Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to amend the definition of relevant carer in Section 23A of the Social Security Contributions and Benefits Act 1992 to include individuals unable to apply for Child Benefit due to (a) extenuating circumstances and (b) domestic abuse.
Answered by James Murray - Chief Secretary to the Treasury
Parents and carers who claim Child Benefit automatically receive National Insurance credits until their child turns twelve. These credits count towards future State Pension entitlement.
Where HMRC is made aware that a person is a victim of domestic abuse, consideration of their Child Benefit claim will be prioritised before other, standard claims.
The Government recognises that some individuals may have missed out on entitlement towards their State Pension if they were eligible to claim Child Benefit but were unable or chose not to. This is why the Government is introducing a new NI credit for people who missed out on National Insurance credits because they did not claim Child Benefit, where no other successful claim to Child Benefit was made for the same period. The credit will be available to claim from April 2026. Transitional arrangements will be in place to ensure those affected from 2013 will be able to claim retrospectively.
Information about the full range of National Insurance credits available, the criteria that must be met to be awarded them and guidance on how to apply for them, is provided on the Government website at: www.gov.uk/national-insurance-credits/eligibility.
Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of (a) increasing employers' National Insurance contributions, (b) increasing minimum wage and (c) cutting the business rates relief for retail, hospitality, and leisure on the hospitality sector.
Answered by James Murray - Chief Secretary to the Treasury
An assessment of the changes to Employers’ National Insurance has been published by HMRC in their Tax Information and Impact Note, including impacts on the exchequer, the economy, individuals, households and families, equalities, and businesses including civil society organisations, alongside details on monitoring and evaluation.
The National Minimum Wage (NMW) and National Living Wage (NLW) rates are set based on recommendations by the independent and expert Low Pay Commission (LPC). The government has asked the LPC to monitor the effects of the NLW and has given them a clear mandate to recommend a change of course where necessary.
On business rates, for 2025-26, the government will provide a 40 per cent discount to Retail, Hospitality and Leisure (RHL) properties up to a cash cap of £110,0000 per business and has frozen the small business multiplier. This will save the average pub, with a rateable value (RV) of £16,800, over £3,300 in 2025.
From 2026-27, the government intends to introduce permanently lower tax rates for RHL properties with an RV below £500,000. To sustainably fund this tax cut, the government intends to introduce a higher rate on the most valuable properties in 2026-27 - those with an RV of £500,000 and above. These represent less than one per cent of all properties.
Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of removing VAT on school uniforms.
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.
Children’s clothing designed for young children, including branded school uniform, already benefits from VAT relief. To ensure that this relief is carefully targeted this relief is limited to clothing designed and labelled for children under the age of 14.
Increasing the scope of this VAT relief to all school uniform would come at a cost to the Exchequer, with no guarantee that any reliefs would be passed on to consumers. We therefore have no plans to make changes here.
Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the planned reforms to agricultural property relief, what steps her Department will take to support farmers who have lost their exemption because their (a) spouse or (b) civil partner has died.
Answered by James Murray - Chief Secretary to the Treasury
The Government published information about the reforms to agricultural property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
The reforms mean that individuals can access 100% relief for the first £1 million of combined business and agricultural assets, and 50% relief thereafter - meaning an effective tax rate of up to 20% – regardless of their relationship status. Any liability can also be paid over 10 years interest free – a benefit that is not seen anywhere else in the inheritance tax system.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms.
Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of proposed reforms to agricultural property relief on farmers whose (a) spouse and (b) civil partner has died.
Answered by James Murray - Chief Secretary to the Treasury
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the potential impact of disguised employment practices in the hair and beauty sector on (a) VAT and (b) National Insurance revenue.
Answered by James Murray - Chief Secretary to the Treasury
HMRC has not estimated the size of the disguised employment risk in this sector.
The Government is aware of concerns over the rent-a-chair model in the hair and beauty sector. When this model is operated properly, the Government considers it a legitimate working practice.