Written questions by Evans.

Pursuant to WPQ 112096 answered on 23 February 2026 about 'VAT Fraud,' what recent discussions he has had with HMRC about trends in the levels of cases of organised criminals accessing VAT accounts using customers' registration details and claiming VAT refunds.

HMRC has active investigations into organised crime VAT fraud. However, live case information isn’t routinely published, and disclosing the number of ongoing investigations would risk alerting or enabling those seeking to exploit the tax system. Further to answer UIN 112096, HMRC have implemented additional controls over recent months to strengthen its systems and ensure access is limited to legitimate customers. As part of this, HMRC has established the Fraud Prevention Centre (FPC), a multi-functional team led by HMRC's Security directorate, focused on the protection, detection and response to identity-related security threats. The FPC also provides enhanced, direct support to customers and manages fraud in line with industry best practice. HMRC has wide ranging criminal investigation powers, as set out on GOV.UK, and is resourced to investigate serious fraud, deploying compliance and enforcement capability to protect the integrity of the tax system. At Spring Statement 2025, the Government set out plans to expand HMRC's counter-fraud capability, including strengthening its response to organised criminal attacks.

If she will make an assessment of the adequacy of HMRC's (a) investigative powers and (b) human resources to investigate cases of organised criminals accessing VAT accounts using genuine customers' registration details and claiming VAT refunds.

HMRC has active investigations into organised crime VAT fraud. However, live case information isn’t routinely published, and disclosing the number of ongoing investigations would risk alerting or enabling those seeking to exploit the tax system. Further to answer UIN 112096, HMRC have implemented additional controls over recent months to strengthen its systems and ensure access is limited to legitimate customers. As part of this, HMRC has established the Fraud Prevention Centre (FPC), a multi-functional team led by HMRC's Security directorate, focused on the protection, detection and response to identity-related security threats. The FPC also provides enhanced, direct support to customers and manages fraud in line with industry best practice. HMRC has wide ranging criminal investigation powers, as set out on GOV.UK, and is resourced to investigate serious fraud, deploying compliance and enforcement capability to protect the integrity of the tax system. At Spring Statement 2025, the Government set out plans to expand HMRC's counter-fraud capability, including strengthening its response to organised criminal attacks.

What assessment she has made of the potential impact of the 5p cut to fuel duty on levels of social mobility in rural areas.

The Chancellor considers a wide range of impacts when taking decisions on tax policy. At Budget 2025, the Government announced that the 5p cut in fuel duty would be extended until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027. The planned increase in line with inflation for 2026/27 will also not take place, with RPI uprating resuming from 2027/28 onwards. The Government’s decision on fuel duty will save the average car driver £49 in 2026/27. Those driving more than average, which includes drivers in rural communities, will generally experience larger savings. The Rural Fuel Duty Relief Scheme provides a 5p per litre reduction to motorists buying fuel in certain areas. The areas included in the scheme demonstrate certain characteristics such as: pump prices much higher than the UK average; remoteness leading to high fuel transport costs from refinery to filling station; and relatively low sales meaning that retailers cannot benefit from bulk discounts.

What steps she is taking to ensure that national investment strategies in [i] skills [ii] transport and [iii] infrastructure are at comparable levels between mayoral combined authorities and non mayoral combined authorities.

The government recognises the importance of ensuring that all areas have strategies in place, and can drive forward improvements in transport, skills and infrastructure. Areas not part of a combined authority still receive investment in skills, transport and infrastructure, and are required to produce the relevant strategies.In addition, for those areas which want greater devolution without being part of a Combined Authority, the government has invited them to bring forward with their neighbours an expression of interest for a Foundation Strategic Authority.

If she will conduct an assessment of national investment strategies in [i] skills [ii] transport and [iii] infrastructure for Leicestershire, Leicester and Rutland to ensure comparability with mayoral combined authorities.

The government recognises the importance of ensuring that all areas have strategies in place, and can drive forward improvements in transport, skills and infrastructure. Areas not part of a combined authority still receive investment in skills, transport and infrastructure, and are required to produce the relevant strategies.In addition, for those areas which want greater devolution without being part of a Combined Authority, the government has invited them to bring forward with their neighbours an expression of interest for a Foundation Strategic Authority.

Pursuant to the Answer of 28 January 2026 to Question 107755 on Hospitality Industry VAT, if he will make an assessment of the potential implications for his policies of lessons learned from (a) France, (b) Germany, (c) Italy and (d) the Republic of Ireland on introducing hospitality VAT rates.

The Government is aware that some European countries apply reduced VAT rates to hospitality, reflecting different tax systems, policy choices and wider fiscal contexts. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Reduced rates of VAT come at a significant cost to the Exchequer, reduce the revenue available for vital public services, and must represent value for money for the taxpayer. The Government keeps all taxes under review, with decisions on VAT rates taken by the Chancellor at fiscal events.

Pursuant to WPQ 109606 answered on 3 February 2026 on Pensioners: Taxation, what the maximum value is of small amounts of tax.

As stated in answer to WPQ 109606 on 3 February, the government will set out in due course further details on how it will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments.

If she will make it her policy to ensure that pensioners are not required to file self-assessment tax returns for small amounts after the new state pension exceeds the tax-free allowance in 2027.

Pensioners whose sole income is the basic or new State Pension without any increments will not pay income tax in 2026-27.At Budget 2025, the Government announced that it will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28.The Government will set out more detail in due course.

What estimate she has made of the number of pensioners who will be required to pay tax for the first time after 2027.

The majority of pensioners paid tax under the previous Government, with 8.3 million taxpayers over state pension age in 2024/2025. The Chancellor has said that those whose only income is the basic or new State Pension without any increments will not have to pay income tax over this Parliament At the Budget, the Government announced that it will achieve this by easing the administrative burden for pensioners so that they do not have to pay small amounts of tax via Simple Assessment from 2027/28. The Government will set out more details in due course.

If she will make a comparative assessment of the potential impact of levels of [a] standard and [b] hospitality VAT on the sustainability of the hospitality industry in [i] France, [ii] Germany, [iii] Italy and [iv] the Republic of Ireland.

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Providing further VAT relief or introducing new reduced rates would reduce tax revenue and add further complexity to the tax system.Furthermore, HMRC estimates that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £17bn in 2026-27. This would reduce VAT revenue, which pays for public services, by almost 10%.

What assessment she has made of the potential impact of the increase in employer National Insurance contributions on the financial sustainability of opticians and eye care practices.

The Government has protected the smallest businesses and charities from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. That means more than half of businesses with NICs liabilities either gain or see no change this financial year. A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.

What recent assessment she has made of the potential impact of businesses closing and vanishing from high streets on councils seeking payment of business rate liabilities.

Business rates are an important source of funding for services local Government provides. A fair business rates system is one in which everyone pays their shareAs announced at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000 from 2026/27. This permanent tax cut will ensure that eligible RHL properties benefit from much-needed certainty and support. Ahead of the new multipliers being introduced, the Government prevented RHL business rates relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business.

Whether she has made an estimate of the potential annual income from introducing employers’ National Insurance contributions for General Practice partners.

Partners are treated as self-employed for tax purposes and therefore no Employer National Insurance Contributions (NICs) are due on their income.

What assessment she has made of the potential impact of introducing employers’ National Insurance contributions for General Practice partners on retention.

Partners are treated as self-employed for tax purposes and therefore no Employer National Insurance Contributions (NICs) are due on their income.

What estimate she has made of the number of General Practice partners who do not pay employers’ National Insurance contributions due to the partnership funding model.

Partners are treated as self-employed for tax purposes and therefore no Employer National Insurance Contributions (NICs) are due on their income.

What recent assessment she has made of the potential impact of increases in employer National Insurance contributions on the (a) fiscal position and (b) sustainability of independent SMEs.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts. The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO), which sets out a detailed forecast of the economy and public finances.

Whether she plans to replace the business rates system from 2026-27; and whether she plans to hold a consultation to inform the new system.

Over the course of this Parliament, the Government will create a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century. The Government published a Discussion Paper at Autumn Budget 2024 setting out priority areas for reform. This paper invited industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. The Treasury received over 160 written responses to that Discussion Paper and met with over 250 stakeholders. On 17 February, the Government published a ‘forward look’ of the expected timeline for reforms announced at Autumn Budget 2024, and how stakeholders should engage with the Government on business rates reform going forwards. In the summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Budget 2025.

Pursuant to the Answer of 7 May 2025 to Question 46841 on Personal Care Services: Licensing, how many hairdresser and barber businesses has HMRC investigated following evidence suggesting that they may have misclassified individuals for tax purposes in the last five years.

HMRC is committed to ensuring the tax system operates fairly and efficiently, creating a level playing field for all compliant businesses. Businesses providing personal care services, including hairdressers and barbers often operate using the ‘rent-a-chair’ business model. This unique but legitimate business model, unless applied correctly, can result in individuals being wrongly classed as self-employed for employment purposes. HMRC are committed to tackling false self-employment and will investigate evidence that suggests businesses have misclassified individuals for tax purposes. HMRC have worked with trade bodies for this sector to develop new educational material including a YouTube video and have published guidance on GOV.UK to better explain the employment status and tax implications of different business models, including the ‘rent-a-chair’ model. Details can be found at: https://youtu.be/5o3au6PyXG8 & https://www.gov.uk/guidance/check-employment-status-if-you-work-in-hair-and-beauty. HMRC does not segment its data on businesses who have been investigated for misclassification of individuals for tax purposes by sector.

Which representative bodies she intends to meet to hold preparatory discussions with on proposals to reform the business rates system in the 2026-2027 financial year.

HM Treasury releases a quarterly record of Ministers’ meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel At the Autumn Budget, the Government published the Transforming Business Rates Discussion Paper, which sets out priority areas for reform. This paper invited stakeholders to help co-design a fairer business rates system that supports investment and is fit for the 21st century. On 17 February the Government published a ‘forward look’ of the expected timeline for reforms announced at Autumn Budget 2024, and how stakeholders should engage the Government. This will be updated when further information is available. In the summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.

What recent discussions she had had with stakeholders on proposals to reform the business rates system in the 2026-2027 financial year.

HM Treasury releases a quarterly record of Ministers’ meetings with external individuals and organisations. This can be found online: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel At the Autumn Budget, the Government published the Transforming Business Rates Discussion Paper, which sets out priority areas for reform. This paper invited stakeholders to help co-design a fairer business rates system that supports investment and is fit for the 21st century. On 17 February the Government published a ‘forward look’ of the expected timeline for reforms announced at Autumn Budget 2024, and how stakeholders should engage the Government. This will be updated when further information is available. In the summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.