Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Minister for Creative Industries, Arts and Tourism during the debate on Hospitality Sector of 3 September 2025, Official Report, column 351WH, whether she plans to introduce a tourism tax.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth including through support for the local visitor economy, if they so choose.
We have published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders.
The precise design and scope of the power for Mayors to introduce a visitor levy is still under development and the Government welcomes engagement from the hospitality sector in developing this power through the consultation process.
The impacts of the levy will largely be determined by local decisions. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear these concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is invested.
Following consultation, we expect Mayors would publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment, informed by the consultation.
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether officials in her Department have worked on proposals to provide Mayors with powers to introduce a visitor levy.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth including through support for the local visitor economy, if they so choose.
We have published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders.
The precise design and scope of the power for Mayors to introduce a visitor levy is still under development and the Government welcomes engagement from the hospitality sector in developing this power through the consultation process.
The impacts of the levy will largely be determined by local decisions. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear these concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is invested.
Following consultation, we expect Mayors would publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment, informed by the consultation.
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has carried out modelling on a visitor levy.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth including through support for the local visitor economy, if they so choose.
We have published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders.
The precise design and scope of the power for Mayors to introduce a visitor levy is still under development and the Government welcomes engagement from the hospitality sector in developing this power through the consultation process.
The impacts of the levy will largely be determined by local decisions. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear these concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is invested.
Following consultation, we expect Mayors would publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment, informed by the consultation.
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps she is taking to help support businesses affected by food inflation.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government prioritises sound public finances, which are essential to economic and financial stability, and delivering economic growth. We are living within our means, reducing our levels of borrowing in the years ahead and supporting the Bank of England to get inflation down. We have already made progress towards this, with five interest rate cuts delivered this since the election.
The Chancellor has asked departments to prioritise reducing inflation when developing policies for the Autumn Budget, ensuring decisions continue to support stability and long-term growth.
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of the higher business rates multiplier for larger premises on the (a) prices of essential goods, (b) shop closures, (c) regional employment levels and (d) footfall in town centres.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
As set out at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with ratable values (RVs) below £500,000 from 2026-27. This permanent tax cut will ensure they benefit from much-needed certainty and support.
This tax cut must be sustainably funded, and so the Government will introduce a higher rate on the most valuable properties in 2026/27 - those with RVs of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants.
The final design, including the rates, for the new business rates multipliers will be announced at Budget 2025, so that the Government can factor the revaluation outcomes and broader economic and fiscal context into decision-making. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential implications for her policies of the recommendations of the report by the London School of Economics entitled Releasing the Mortgage Prisoners, published in February 2023.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government takes the issue of mortgage prisoners seriously. We understand the challenges that this cohort of borrowers faces and will work with regulators and the industry to ensure that this problem is properly considered.
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with his European Union counterparts on (a) seeking to increase the level of profits from frozen Russian assets and (b) sharing the legal risks of doing taking such an approach.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Chancellor is actively engaging with our EU partners, including recently at ECOFIN, and through regular discussions with G7 finance ministers to explore all viable legal avenues to make use of Russia’s sovereign assets for the benefit of Ukraine, in line with international law.
The Government remains committed to ensuring Russia is held accountable for the damage it has caused, and continues to cause, in Ukraine. Alongside our G7 partners, the UK has pledged to maintain the sanctions on Russia’s sovereign assets within our jurisdictions until Russia compensates for this harm.
Asked by: Steve Darling (Liberal Democrat - Torbay)
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 compensation scheme for people for whom the resale value of their electric vehicle was affected by changes to the level of taxation for electric vehicles after 1 April 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
There are no current plans to introduce a compensation scheme of this design. Vehicle Excise Duty (VED) is a tax on vehicles used or kept on public roads and is designed to ensure all road users pay a fair contribution. Revenue from motoring taxes helps to fund vital public services and infrastructure, including investment in roads and transport.
The Government keeps all taxes under review as part of the policy making process.
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will consider the potential merits of reopening the Equitable Life Compensation Scheme.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Equitable Life Payment Scheme has been fully wound down and closed since 2016 under the approach taken by the Conservative and Liberal Democrat Coalition Government. There are no plans to reopen any decisions relating to the Payment Scheme. Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment the Government has made of the merits of introducing National Insurance Contributions exemptions for employers who hire individuals transitioning off working benefits.
Answered by James Murray - Chief Secretary to the Treasury
The Government is committed to providing people who are out of work with the personalised support they need to find work, aiding the long-term ambition of an 80% employment rate. At the Spending Review, the Government increased funding for employment support to over £3.5 billion by 2028-29, helping people to access the skills they need to progress, tackling unemployment and inactivity and ensuring more people are in better jobs.
There are a wide range of factors to take into consideration when introducing a tax relief. These include how effective the relief would be at achieving the policy intent, how targeted support would be, whether it adds complexity to the tax system, and the cost.