Asked by: Will Stone (Labour - Swindon North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of applying the summer savings scheme to the Christmas holidays.
Answered by Dan Tomlinson - Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
From 25 June to 1 September the Government is introducing a temporary reduced rate of VAT on children's menu meals and eligible family attractions.
This is a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks, helping families enjoy a day out for less. Individual businesses should consult HMRC’s guidance to determine how the rules apply in their circumstances.
VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
On the question of a further Christmas relief, the Government keeps all taxes and reliefs under review.
Asked by: Will Stone (Labour - Swindon North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether Red Diesel for the purpose running fairs and circuses is included in the off-road operation tax freeze.
Answered by Dan Tomlinson - Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
On 20 May, the Government announced support for households and businesses with their fuel costs, in response to the conflict in the Middle East. This included targeted support for users of red diesel and rebated biodiesel, where the duty rate for these fuels will be cut by over a third to 6.48p per litre, the lowest rate in over 20 years.
The cut will support substantial users of red diesel, such as farmers and rail freight, which have seen significant price increases as a result of the conflict. It will also benefit other users of red diesel, including travelling fairground and circus industries who use diesel for powering their machinery.
This red diesel cut will take effect from 15 June and remain in place until the end of 2026.
Asked by: Will Stone (Labour - Swindon North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of issuing fines to drivers who do not hold (a) a valid driving license and (b) vehicle insurance on revenues to the Exchequer.
Answered by Darren Jones
Revenue generated from fines for motoring offences is retained by Departments or directed into the Consolidated Fund. The consolidated fund is administered by HM Treasury and is used to support general expenditure on public services such as policing, healthcare, local government grants and transport. Government departments that receive income for onward surrender to the Consolidated Fund are responsible for the detailed record keeping related to it. They are not required to provide HM Treasury with this detail.
Asked by: Will Stone (Labour - Swindon North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of introducing an exemption from the increase in employer's National Insurance contributions for care homes where more than half of residents are funded by the local authority.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The Government will provide support for departments and other public sector employers for additional employer National Insurance costs only. This does not include support for the private sector, including private sector firms contracted by central or local government.
This is the usual approach Government takes to supporting the public sector with additional employer NICs costs, as was the case with the previous government’s Health and Social Care Levy.
The Government considered the cost pressures facing adult social care and wider local government spending as part of the Spending Review process.
The Government is providing a 6.8% cash terms increase in council’s Core Spending Power in 2025-26. To support social care authorities to deliver key services in light of pressures, we announced at the provisional Local Government Finance Settlement a further £200 million for adult and children’s social care. This will be allocated via the Social Care Grant, bringing the total increase of this grant in 2025-26 to £880 million, meaning that up to £3.7 billion of additional funding will be provided to social care authorities in 2025-26.