Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the average increase in annual tax paid by households earning between £25,000 and £50,000 following the Autumn Budget 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HM Treasury’s ‘Impact on households’ publication, produced alongside Budget 2025, shows that the impact of government tax, welfare and public service spending decisions from Autumn Budget 2024 onwards are progressive and benefit households in the lowest income deciles the most, on average, with increases in tax concentrated on the highest income households. On average, all but the richest 10% of households will benefit from policy decisions in 2028-29.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of raising taxes on property income on the private rented sector, including supply and rent levels.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The independent Office for Budget Responsibility does not expect that the reform to property income tax will have a significant impact on rental prices.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the level of taxation set out in the Budget on savings, dividends and property income on small investors, retired people relying on investment income, and small business owners.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government is taking action to ensure income from assets are taxed more fairly. That is why we have increased taxes on property, dividend and savings income to narrow the gap between tax paid on work and tax paid on income from assets.
The majority of taxpayers, and the majority of pensioners, have no taxable savings, dividend or property income and will pay no more tax as a result of these changes.
Those with small amounts of income from assets will continue to be protected by tax-free allowances, and all income from savings and investments held in ISAs will continue to be entirely tax-free.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the level of taxation as a result of the Autumn Budget 2025 on the economy.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
HM Treasury does not publish forecasts of the economy. Forecasts, including assessments of the impact of policy decisions, are the responsibility of the independent Office for Budget Responsibility (OBR). The OBR publishes its forecast in the Economic and Fiscal Outlook (EFO). The OBR’s latest EFO can be found here: Economic and fiscal outlook – November 2025 - Office for Budget Responsibility.
The OBR does not expect a material impact on economy-wide growth as a result of Budget 2025 tax changes.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what analysis her Department has carried out of the potential macro-economic effects (on investment, business growth, rental markets, and savings behaviour) of raising dividend, property and savings income tax rates by two percentage points as part of the 2025 Autumn Budget.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Economic forecasts, including assessments of the impact of policy decisions, are the responsibility of the independent Office for Budget Responsibility (OBR). The OBR publishes its forecast in the Economic and Fiscal Outlook (EFO). The OBR’s latest EFO can be found here: Economic and fiscal outlook – November 2025 - Office for Budget Responsibility.
The OBR does not expect a material impact on economy-wide growth, investment, or savings behaviour as a result of Budget 2025 tax changes.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the (a) number of savers who will exceed the new reduced annual ISA limit and (b) additional revenue from that measure.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The overall annual ISA limit has not changed and remains at £20,000. Individuals under 65s and subscribing £12,000 in a Cash ISA can still invest the remaining £8,000 in Stocks & Shares and/or Innovative Finance ISAs and up to £4,000 in a Lifetime ISA.
HMRC estimate that 1.3 million individuals aged under 65 subscribed over £12,000 into Cash ISAs based on the latest available data.
The exchequer impact for this measure, combined with other savings measures, has been published (Page 79) in the AB25 Budget policy costing document: Budget_2025-Policy_Costings.pdf
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how she plans to assess and administer the new high-value property charge; what steps she is taking to prevent avoidance and undervaluation; and whether there will be transitional relief for homeowners whose property value has recently increased due to market fluctuations.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Valuation Office Agency will be conducting a targeted valuation to identify properties in scope of the High Value Council Tax Surcharge (HVCTS). HVCTS will then be collected by local authorities.
The Government will consult on the detailed implementation of the HVCTS in the new year, including the provision of support for those who may find it more difficult to pay. Further information on HVCTS is available at the following link:
High Value Council Tax Surcharge - GOV.UK
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of introducing a 3p-per-mile charge for electric cars and 1.5p for plug-in hybrids on low-income households, the environment, society and the economy.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty.
The Government has set out estimated impacts on household incomes from tax, welfare and public service spending decisions taken at Budget 2025, including eVED. These impacts are available at GOV.UK: https://assets.publishing.service.gov.uk/media/69269c6222424e25e6bc31bb/Impact_on_households.pdf
The Government has also set out Exchequer and behavioural impacts from eVED and other Budget measures in the Budget 2025 Policy Costings document at GOV.UK: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people will move into higher tax bands due to the freezing of income tax and National Insurance thresholds for three years; and estimate she has made of the revenue raised through these measures.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The number of people forecast to pay tax by marginal rate can be found in Table 3.19 in the OBR’s November 2025 Economic and fiscal outlook – detailed forecast tables: receipts, linked below:
The estimated revenue from maintaining the personal income tax and equivalent national insurance thresholds at current levels for a further three years until April 2031 can be found in Table 4.1, policy 46 in HMT’s Budget 2025 document, linked below:
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of applying National Insurance to salary-sacrificed pension contributions above £2,000 from 2029 on small and medium-sized employers, pension take-up and long-term pension savings; and whether she plans to bring forward measures to mitigate the impact on pension auto-enrolment and retirement preparedness.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.
Small and medium-sized employers (SMEs) are less likely to be affected by these changes. Based on the latest ASHE data (2023/24), 28% of employees of SMEs use pension salary sacrifice, compared to 39% of larger employers.
The government supports all individuals to save into pensions through a generous system of tax reliefs worth over £70 billion a year.