To ask His Majesty's Government what steps they are taking to ensure that the new carbon import levy scheduled for 2027 (1) balances the protection of domestic businesses against cheaper imports; and (2) fosters international cooperation to address global emissions.

To ask His Majesty's Government what steps they are taking to ensure that the new carbon import levy scheduled for 2027 (1) balances the protection of domestic businesses against cheaper imports; and (2) fosters international cooperation to address global emissions.

I am happy to write to the hon. Gentleman with the exact numbers, but for people on low incomes—people being paid the lowest legally payable wage—their post-tax real income has gone up by 30% since 2010, because the Conservative party believes in making work pay.

I am happy to write to the hon. Gentleman with the exact numbers, but for people on low incomes—people being paid the lowest legally payable wage—their post-tax real income has gone up by 30% since 2010, because the Conservative party believes in making work pay.

On a point of order, Madam Deputy Speaker. On 22 November, the Chief Secretary to the Treasury, the right hon. Member for Sevenoaks (Laura Trott) said in this Chamber that

“taxes for the average worker have gone down by £1,000.”—[Official Report, 22 November 2023; Vol. 741, c. 360.]

On 30 November, she...

On a point of order, Madam Deputy Speaker. On 22 November, the Chief Secretary to the Treasury, the right hon. Member for Sevenoaks (Laura Trott) said in this Chamber that

“taxes for the average worker have gone down by £1,000.”—[Official Report, 22 November 2023; Vol. 741, c. 360.]

On 30 November, she...

Further to that point of order, Madam Deputy Speaker. It may be helpful to the House if I draw its attention once again to paragraph 3.13 of the autumn statement document, which outlines exactly how that £1,000 tax cut is calculated.

Further to that point of order, Madam Deputy Speaker. It may be helpful to the House if I draw its attention once again to paragraph 3.13 of the autumn statement document, which outlines exactly how that £1,000 tax cut is calculated.

The Government provide a different income tax regime for short-term lets compared with long-term lets if they qualify as furnished holiday lets, for which there are stringent conditions. As with all aspects of the tax system, the Government keep the tax treatment of property landlords under review. Any decisions on future changes will be taken by the Chancellor in the context of wider public finances.

The Government provide a different income tax regime for short-term lets compared with long-term lets if they qualify as furnished holiday lets, for which there are stringent conditions. As with all aspects of the tax system, the Government keep the tax treatment of property landlords under review. Any decisions on future changes will be taken by the Chancellor in the context of wider public finances.

The changes to landlord tax relief, which fully came in during the pandemic, exclude holiday lets. That has contributed to a significant decline in residential landlords in tourist areas like North Devon. The lack of affordable rental properties has priced out workers, particularly in the hospitality sector, resulting in businesses reducing their opening hours and therefore their tax contribution to the Treasury. Can my hon. Friend provide any hope of levelling the tax playing field to encourage long-term landlords back to the market?

The changes to landlord tax relief, which fully came in during the pandemic, exclude holiday lets. That has contributed to a significant decline in residential landlords in tourist areas like North Devon. The lack of affordable rental properties has priced out workers, particularly in the hospitality sector, resulting in businesses reducing their opening hours and therefore their tax contribution to the Treasury. Can my hon. Friend provide any hope of levelling the tax playing field to encourage long-term landlords back to the market?

I thank my hon. Friend for her continued interest in this area on behalf of her constituents. The Government want to ensure a diverse and sustainable visitor accommodation offer while protecting local communities, including ensuring the availability of affordable housing to rent or to buy. That is why we are introducing a registration scheme for short-term lets in England, which will be a vital step towards achieving that aim. The Government keep the tax treatment of property landlords under review, but I would be happy to meet her to discuss these issues further.

I thank my hon. Friend for her continued interest in this area on behalf of her constituents. The Government want to ensure a diverse and sustainable visitor accommodation offer while protecting local communities, including ensuring the availability of affordable housing to rent or to buy. That is why we are introducing a registration scheme for short-term lets in England, which will be a vital step towards achieving that aim. The Government keep the tax treatment of property landlords under review, but I would be happy to meet her to discuss these issues further.

Throughout Westmorland and Lonsdale we see people, particularly in social care, hospitality and tourism, ejected from their communities because of the collapse in the long-term rental market into a short-term rental market, principally through Airbnb. Will the Minister go further on fiscal controls to make sure that we keep homes available for local people to live in? Will he put pressure on ministerial colleagues to change planning law to make short-term lets a separate category of planning use, so that communities in the lakes and the dales can prevent the collapse of their communities into places only for those who can afford to visit?

Throughout Westmorland and Lonsdale we see people, particularly in social care, hospitality and tourism, ejected from their communities because of the collapse in the long-term rental market into a short-term rental market, principally through Airbnb. Will the Minister go further on fiscal controls to make sure that we keep homes available for local people to live in? Will he put pressure on ministerial colleagues to change planning law to make short-term lets a separate category of planning use, so that communities in the lakes and the dales can prevent the collapse of their communities into places only for those who can afford to visit?

I thank the hon. Gentleman for his comments. We have talked about this topic in my previous roles over many years. He is aware that the Department for Levelling Up, Housing and Communities has published a consultation on the introduction of a planning use class for short-term lets. He will also be aware that, through the Levelling Up and Regeneration Act 2023, the Government have introduced a new power to allow councils to apply a council tax premium on second homes. There is progress in this area, but we are always open to new ideas.

I thank the hon. Gentleman for his comments. We have talked about this topic in my previous roles over many years. He is aware that the Department for Levelling Up, Housing and Communities has published a consultation on the introduction of a planning use class for short-term lets. He will also be aware that, through the Levelling Up and Regeneration Act 2023, the Government have introduced a new power to allow councils to apply a council tax premium on second homes. There is progress in this area, but we are always open to new ideas.

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Harriett Baldwin (West Worcestershire) (Con):

Merry Christmas, Mr Speaker, to you, your team and the Treasury team.

Between now and the next Treasury questions, millions of our constituents will be required to file a self-assessment tax return, yet this week we learned that His Majesty’s Revenue and Customs has suddenly shut down its hotline for the majority of people and their advisers. Our most law-abiding citizens are trying to get their taxes right, so what advice can my hon. Friend the Financial Secretary to the Treasury give to them as to how they can contact HMRC?

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Harriett Baldwin (West Worcestershire) (Con):

Merry Christmas, Mr Speaker, to you, your team and the Treasury team.

Between now and the next Treasury questions, millions of our constituents will be required to file a self-assessment tax return, yet this week we learned that His Majesty’s Revenue and Customs has suddenly shut down its hotline for the majority of people and their advisers. Our most law-abiding citizens are trying to get their taxes right, so what advice can my hon. Friend the Financial Secretary to the Treasury give to them as to how they can contact HMRC?

I thank my hon. Friend the Chair of the Treasury Committee for raising this issue with me. We want to ensure that people can be served accurately and effectively through the most efficient channels. Two thirds of calls to the self-assessment line could be resolved online, through other channels—I highly recommend the app, for example. Last year, HMRC received over 3 million calls on three issues—resetting a password, getting a tax code and getting a national insurance number—that could easily be resolved digitally. People will still be able to call in, but we need to redeploy resources away from very simple questions towards those most in need, which will help those who are digitally unaware.

I thank my hon. Friend the Chair of the Treasury Committee for raising this issue with me. We want to ensure that people can be served accurately and effectively through the most efficient channels. Two thirds of calls to the self-assessment line could be resolved online, through other channels—I highly recommend the app, for example. Last year, HMRC received over 3 million calls on three issues—resetting a password, getting a tax code and getting a national insurance number—that could easily be resolved digitally. People will still be able to call in, but we need to redeploy resources away from very simple questions towards those most in need, which will help those who are digitally unaware.

Thanks to the difficult decisions the Government have taken on inflation and debt, the autumn statement this year was able to deliver the biggest package of tax cuts to be scored since 1988.

Thanks to the difficult decisions the Government have taken on inflation and debt, the autumn statement this year was able to deliver the biggest package of tax cuts to be scored since 1988.

I very much welcome the tax cuts recently announced by the Chancellor and hope to see more announced soon, especially a rise in the higher rate threshold. As the Conservatives look to reduce the tax burden on working people, does the Chancellor share my concern that £28 billion-a-year unfunded spending commitments would likely see taxes rise and lead to higher interest rates if Labour were ever in government?

I very much welcome the tax cuts recently announced by the Chancellor and hope to see more announced soon, especially a rise in the higher rate threshold. As the Conservatives look to reduce the tax burden on working people, does the Chancellor share my concern that £28 billion-a-year unfunded spending commitments would likely see taxes rise and lead to higher interest rates if Labour were ever in government?

It is not just me but Paul Johnson of the Institute for Fiscal Studies who, when talking about Labour’s plan, has said that

“additional borrowing…drives up interest rates”,

which is, of course, a back-door tax rise on families with mortgages. But as it is Christmas, perhaps I could explain it this way: if Santa borrowed £28 billion, he might have more toys to give out this year, but he would also have debt interest to pay and fewer toys to give out next year.

It is not just me but Paul Johnson of the Institute for Fiscal Studies who, when talking about Labour’s plan, has said that

“additional borrowing…drives up interest rates”,

which is, of course, a back-door tax rise on families with mortgages. But as it is Christmas, perhaps I could explain it this way: if Santa borrowed £28 billion, he might have more toys to give out this year, but he would also have debt interest to pay and fewer toys to give out next year.

Record funding is going in to support the cost of childcare, to allow more parents to stay in the workforce. This is very welcome, but the tax burden on single-earner households puts the choice to be a stay-at-home parent beyond the reach of too many. Raising the youngest generation must count as a top investment, so may I ask my right hon. Friend the Chancellor what recent analysis has been undertaken on the transferable allowance? At up to £252 per annum, it is currently not designed to facilitate that choice.

Record funding is going in to support the cost of childcare, to allow more parents to stay in the workforce. This is very welcome, but the tax burden on single-earner households puts the choice to be a stay-at-home parent beyond the reach of too many. Raising the youngest generation must count as a top investment, so may I ask my right hon. Friend the Chancellor what recent analysis has been undertaken on the transferable allowance? At up to £252 per annum, it is currently not designed to facilitate that choice.

I thank my hon. Friend for her question. As she knows, the marriage allowance is currently £1,260 per year, and it has been fixed at 10% of the personal allowance since it was introduced in 2015. On this side of the House, we believe it should be a woman’s choice, and we want to make that choice as real as possible for every family. For that reason, we think the best thing we can do is to bring down the taxes paid by working people to put more money into the family budget, and we were happy to make a start on that in the autumn statement.

I thank my hon. Friend for her question. As she knows, the marriage allowance is currently £1,260 per year, and it has been fixed at 10% of the personal allowance since it was introduced in 2015. On this side of the House, we believe it should be a woman’s choice, and we want to make that choice as real as possible for every family. For that reason, we think the best thing we can do is to bring down the taxes paid by working people to put more money into the family budget, and we were happy to make a start on that in the autumn statement.

Like many of us in this place, I am a big supporter of Small Business Saturday, and it is important to remember that small businesses are the backbone of local communities all year round. Many are unlikely to be able to take advantage of the Chancellor’s very generous and welcome expensing package, so what additional measures will he continue to consider to support all businesses great and small, including perhaps even corporation tax reductions?

Like many of us in this place, I am a big supporter of Small Business Saturday, and it is important to remember that small businesses are the backbone of local communities all year round. Many are unlikely to be able to take advantage of the Chancellor’s very generous and welcome expensing package, so what additional measures will he continue to consider to support all businesses great and small, including perhaps even corporation tax reductions?

I thank my right hon. Friend for her question. She will know that 70% of trading businesses only pay the lower corporation tax rate of 19%. That covers the vast majority of small businesses. I used to run my own business; I ran it for 14 years before I came into Parliament. I could not agree with her more: small businesses are the backbone of the British economy, which is why we are tackling the scourge of low payments and we rolled over the 75% discount on retail, hospitality and leisure business rates in the autumn statement.

I thank my right hon. Friend for her question. She will know that 70% of trading businesses only pay the lower corporation tax rate of 19%. That covers the vast majority of small businesses. I used to run my own business; I ran it for 14 years before I came into Parliament. I could not agree with her more: small businesses are the backbone of the British economy, which is why we are tackling the scourge of low payments and we rolled over the 75% discount on retail, hospitality and leisure business rates in the autumn statement.

Will the Chancellor confirm how much higher the tax burden is forecast to be at the end, compared with at the start, of this Parliament?

Will the Chancellor confirm how much higher the tax burden is forecast to be at the end, compared with at the start, of this Parliament?

What I can confirm is that, as a result of the measures I took in the autumn statement, it will be lower at the end of the scorecard period than it would otherwise have been, and a lot lower than it would be under any Labour Government.

What I can confirm is that, as a result of the measures I took in the autumn statement, it will be lower at the end of the scorecard period than it would otherwise have been, and a lot lower than it would be under any Labour Government.