Written questions by Rosindell.

What steps she has taken to support the motor finance industry.

The Government recognises the central role of the motor finance industry in helping consumers and businesses access vehicles and in supporting the wider automotive sector. Ensuring that consumers can access motor finance on manageable and affordable terms is therefore of vital importance and the Government wants to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms. The Financial Conduct Authority (FCA), as the independent regulator, has consulted on proposals for a motor finance consumer redress scheme. Throughout the consultation period, which closed on December 12, the Government encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March.

Whether she has reviewed the Financial Conduct Authority’s proposed motor finance consumer redress scheme.

The Government recognises the central role of the motor finance industry in helping consumers and businesses access vehicles and in supporting the wider automotive sector. Ensuring that consumers can access motor finance on manageable and affordable terms is therefore of vital importance and the Government wants to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms. The Financial Conduct Authority (FCA), as the independent regulator, has consulted on proposals for a motor finance consumer redress scheme. Throughout the consultation period, which closed on December 12, the Government encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March.

What assessment she has made of the implications for her Department’s policies of levels of tobacco excise taxes in Australia; and what assessment she has made of the potential relationship between trends in the level of tobacco excise taxes and (a) the size of the illicit tobacco market and (b) associated organised criminal activity.

Australia imposes some of the highest tobacco duty rates globally with excise accounting for a significant share of retail price. In the UK, tobacco duty aims to both raise revenue and reduce harm to public health by discouraging smoking. High duty rates make tobacco less affordable and are a proven way to reduce smoking prevalence and have helped reduce the percentage of adult smokers in the UK from 26% in 2000 to 10.6% in 2024. The illicit tobacco market is dominated by organised crime groups that make money by smuggling and selling illicit tobacco products in the UK. Strong enforcement is essential in tackling the illicit tobacco market. HM Revenue and Customs and Border Force have had illicit tobacco strategies in place since 2000. Our latest strategy, “Stubbing out the problem”, was published in January 2024. The Department continues to investigate how the illicit tobacco market is evolving, including through its compliance activity, and the extent to which that may affect overall tax receipts seen. Whilst tobacco duty has been progressively increased over time, successive illicit tobacco strategies have proven effective in tackling the size of the illicit tobacco market, reducing the tobacco duty tax gap from 21.7% in 2005/6 to 13.8% in 2023/24.

What assessment she has made of the potential impact of planned double duty increases on tobacco products on inflation.

Forecasting the economy, including the effect of Government policy decisions on inflation, is the responsibility of the independent Office for Budget Responsibility (OBR). The OBR set out the impact of policy measures on inflation in its Autumn Budget 2025 forecast, including the rise in tobacco duty. The OBR have not adjusted their inflation forecast for the rise in tobacco duty. The Chancellor asked departments to prioritise reducing inflation when developing policies for the Autumn Budget, ensuring decisions support stability and long-term growth. Considering all policies, the OBR expect budget measures to reduce CPI inflation by 0.4pp in 2026/27.

For what reason tobacco duty increased above the rate of inflation in the Autumn Budget 2025.

At Autumn Budget 2024, the Government renewed the commitment to a tobacco duty escalator, which increases duty by 2 percent above RPI inflation at each Budget, until the end of the current Parliament. At Autumn Budget 2025, the duty on all tobacco products was increased in line with this commitment. The government also confirmed further increases of 2% above RPI plus an additional £2.20 per 100 cigarettes and per 50g of other tobacco products to take effect from 1 October 2026, alongside the introduction of Vaping Duty. This is part of the Government’s focus on health prevention and to continue our drive to reduce smoking prevalence.

What assessment she has made of the potential merits of registering people involved in the distribution and sale of excise goods in a national scheme administered by HMRC.

The existing excise regime is already well regulated, with HMRC operating several registration and approval schemes for those who deal in excise goods, for example the Alcohol Wholesaler Registration Scheme (AWRS), the Tobacco Trace and Trace system and the Registered Dealers in Controlled Oils (RDCO) scheme.

What steps she has taken to tackle the trade of illegal tobacco.

I refer the hon. Member to the response to UIN 77749.

If she will ensure that betting duty on greyhound racing (a) online, (b) in betting shops and (c) on course remains the same as for bets on horseracing.

We consulted on measures to simplify gambling duty and improve compliance. The consultation closed on 21 July and all responses are being carefully considered. The Chancellor makes decisions on tax at fiscal events and will set out our response to the consultation at the Budget.

What fiscal steps she has taken to support the pub sector in (a) England and (b) Romford constituency.

The Government recognises the vital role that hospitality businesses such as restaurants and pubs play in supporting the UK’s economy and communities, including in Romford. As announced at Autumn Budget 2024, the Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with ratable values (RVs) below £500,000 from 2026/27. This permanent tax cut will ensure that small hospitality businesses benefit from much-needed certainty and support.In addition, weincreased the Employment Allowance to £10,500 which should benefit small Romford pubs and restaurants;established the Licensing Taskforce and issued a call for evidence on a National Licensing Policy Framework which will set out national direction for licensing authorities to consider economic growth and cultural value,introduced the English Devolution Bill, which will protect hospitality businesses from upward only rent clauses, and;are introducing a strong new ‘Community Right to Buy’ to help communities safeguard valued community assets – such as pubs.

If she will take steps to increase the Government contribution to savings in Lifetime ISAs.

On the Government LISA contribution, LISA holders can receive a generous 25% government bonus on contributions up to £4,000 per year. This means an individual who made the full contribution would receive a £1,000 bonus from the Government. On the age limits, the LISA is designed to encourage younger people to get into the habit of saving for the longer-term. Individuals who did not open a LISA before the age of 40 are still able to save in another ISA type and benefit from the annual subscription limit of £20,000. They can also contribute to a pension, where their contributions will generally receive significant tax relief from the Government. Those who opened a LISA before their 40th birthday can continue to subscribe until they are 50 and can continue managing their account beyond that date. This includes transferring the account to another LISA manager and changing their investment profile from cash to stocks and shares or vice versa. The Government keeps all aspects of savings tax policy under review, and considers all representations made carefully, with any changes made as part of the Budget process.

If she will take steps to increase the age cap on the opening of Lifetime ISAs.

On the Government LISA contribution, LISA holders can receive a generous 25% government bonus on contributions up to £4,000 per year. This means an individual who made the full contribution would receive a £1,000 bonus from the Government. On the age limits, the LISA is designed to encourage younger people to get into the habit of saving for the longer-term. Individuals who did not open a LISA before the age of 40 are still able to save in another ISA type and benefit from the annual subscription limit of £20,000. They can also contribute to a pension, where their contributions will generally receive significant tax relief from the Government. Those who opened a LISA before their 40th birthday can continue to subscribe until they are 50 and can continue managing their account beyond that date. This includes transferring the account to another LISA manager and changing their investment profile from cash to stocks and shares or vice versa. The Government keeps all aspects of savings tax policy under review, and considers all representations made carefully, with any changes made as part of the Budget process.

What fiscal steps she has taken to support the restaurant sector in (a) England and (b) Romford constituency.

The Government recognises the vital role that hospitality businesses such as restaurants and pubs play in supporting the UK’s economy and communities, including in Romford. As announced at Autumn Budget 2024, the Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with ratable values (RVs) below £500,000 from 2026/27. This permanent tax cut will ensure that small hospitality businesses benefit from much-needed certainty and support.In addition, weincreased the Employment Allowance to £10,500 which should benefit small Romford pubs and restaurants;established the Licensing Taskforce and issued a call for evidence on a National Licensing Policy Framework which will set out national direction for licensing authorities to consider economic growth and cultural value,introduced the English Devolution Bill, which will protect hospitality businesses from upward only rent clauses, and;are introducing a strong new ‘Community Right to Buy’ to help communities safeguard valued community assets – such as pubs.

Whether she has made an assessment of the potential impact of a 20p reduction in the business rates multipliers on trends in the level of pub closures over the next five years.

The Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000 from 2026/27. This permanent tax cut will ensure that pubs benefit from much-needed certainty and support. These new multipliers cannot be lower than 20p less than the small business multiplier. These legislative minimum rates should not be taken as the intended rates for the new multipliers. Rather, they provide flexibility to adapt to the outcomes of the 2026 revaluation. The Government is carefully considering the impact of the new business rates multipliers on different RHL businesses. The rates will be set at Budget 2025 so that the Government can take the revaluation into account, as well as the economic and fiscal context.

What discussions she has had with the Secretary of State for Culture, Media and Sport on the potential merits of exempting (a) category C and (b) category D gaming machines in pubs from any increase in the Machine Games Duty.

The Chancellor discusses a variety of issues with Ministers from other government departments throughout the year.

What assessment her Department has made of the potential impact of the tobacco duty escalator on inflation.

The independent Office for Budget Responsibility (OBR) is responsible for estimating the impact of Government policies on inflation. The OBR did not include an assessment on the contribution of tobacco excise duty to inflation in either the October 2024 or March 2025 Economic and Fiscal Outlook.

If she will make an assessment of the potential impact of tobacco excise duty on smoking prevalence.

Tobacco duty aims to both raise revenue and reduce harm to public health by discouraging smoking. High duty rates, making tobacco less affordable, are a proven way to reduce smoking prevalence and have helped reduce the percentage of adult smokers in the UK from 26% in 2000 to 11.9% in 2023. As set out in the ONS survey on adult smoking habits 2023. Adult smoking habits in the UK - Office for National Statistics The commitment to a tobacco duty escalator which increases duty at RPI+2% inflation at each Budget was renewed at Autumn Budget 2024 until the end of the current Parliament. A Tax Information and Impact Note was published alongside the Budget setting out the impacts Changes to tobacco duty rates from 30 October 2024 - GOV.UK

What assessment her Department has made of the effectiveness of tobacco excise in reducing smoking prevalence.

Tobacco duty aims to both raise revenue and reduce harm to public health by discouraging smoking. High duty rates, making tobacco less affordable, are a proven way to reduce smoking prevalence and have helped reduce the percentage of adult smokers in the UK from 26% in 2000 to 11.9% in 2023. As set out in the ONS survey on adult smoking habits 2023. Adult smoking habits in the UK - Office for National Statistics The commitment to a tobacco duty escalator which increases duty at RPI+2% inflation at each Budget was renewed at Autumn Budget 2024 until the end of the current Parliament. A Tax Information and Impact Note was published alongside the Budget setting out the impacts Changes to tobacco duty rates from 30 October 2024 - GOV.UK

What recent steps she has taken through the tax system to support small to medium-sized enterprises in the hospitality industry.

The Government recognises the vital role that small and medium-sized enterprises in the hospitality sector play in supporting the UK’s economy and high streets. At the Autumn Budget, a range of measures were announced to support these businesses. The Employment Allowance was more than doubled to £10,500, meaning that over half of businesses with National Insurance liabilities will either gain or see no change this year. The business rates small business multiplier has been frozen for 2025-26, protecting SMEs from inflationary increases in business rates. Retail, hospitality and leisure business rates relief has also been extended for one year at 40 per cent, up to a cash cap of £110,000 per business. In addition, the Small Profits Rate of Corporation Tax and marginal relief have been maintained at their current rates and thresholds. The £1 million Annual Investment Allowance has also been retained to support investment in plant and machinery. Duty on qualifying draught products has been reduced, supporting pubs and small brewers. Over a third of properties pay no business rates due to Small Business Rate Relief, with thousands more benefiting from tapered relief. The Government keeps all areas of the tax system under review and changes to the tax system are made at fiscal events, in line with usual practice.

If she will make a comparative assessment of (a) the data in UCL’s report entitled Trends in smoking prevalence and socio-economic inequalities across regions in England: A population study, 2006 to 2024, published on 18 March 2025 with (b) the decrease in HMRC’s tobacco duty receipts in the Tobacco Bulletin in (i) 2023-24 and (ii) 2024-2025.

Tobacco duty receipts reported in HMRC’s Tobacco Duty Bulletin fell 10% between 2023/24 and 2024/25. This publication reports on receipts collected at the UK level. UCL’s “Trends in smoking prevalence and socio-economic inequalities across regions in England: A population study, 2006 to 2024” report discusses a range of issues and suggests that smoking prevalence in England declined from 25.3% in 2006 to 16.5% in 2024. This report looks at English smoking prevalence only and so is not directly comparable with the UK receipts published in HMRC’s Tobacco Bulletin.

If she will make a comparative assessment of (a) the recent HMRC tax gap estimates for tobacco excise duty with (b) the data in UCL’s report entitled Trends in smoking prevalence and socio-economic inequalities across regions in England: A population study, 2006 to 2024, published on 18 March 2025, on smoking prevalence in (i) 2023-24 and (ii) 2024-25.

HM Revenue and Customs (HMRC) estimates the size of the UK tax gap, which is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. The tax gap statistics and details of the estimate methodologies are published annually and are available at: Measuring tax gaps 2025 edition: tax gap estimates for 2023 to 2024 - GOV.UK HMRC have a continuous programme of development to improve and strengthen tax gap estimates. Tax gap estimates adhere to the values, principles and protocols set out in the UK Statistics Authority’s Code of Practice for Statistics. Tax gap estimates are reviewed each year and take into account the availability of more up-to-date data and more recent years’ information. ‘Measuring tax gaps 2026 edition: tax gaps estimates for 2024 to 2025’ is scheduled for June 2026.