Dan Tomlinson MP: speeches

Speeches

• 15 Jul 2026 · Northern Ireland Hospitality Sector · Hansard source

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  rose —

• 15 Jul 2026 · Northern Ireland Hospitality Sector · Hansard source

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• 15 Jul 2026 · Northern Ireland Hospitality Sector · Hansard source

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  Right now, we are engaging in what could be seen as a similar proposal to the one put forward today. We are doing a time-limited reduction in VAT, not for one sector and one part of the country, but for particular leisure and hospitality activities and consumption across the country as a whole. I am sure that His Majesty’s Revenue and Customs and others will conduct thorough evaluations of that, so that we can see the impact that it had. We expect businesses to pass the reduction in VAT on to consumers. Some big organisations, such as Merlin Entertainments, have already done that by setting new ticketing prices for families this summer, and many small businesses have been changing the prices on their menus for children’s meals. I hope that once this Great British summer savings period ends on 1 September, we will review that and look at the impact. Of course, the challenge with any VAT reduction is whether it will be passed on to consumers. To be clear, I do not begrudge businesses having more margin, but the objective of the hon. Member for South Antrim is to see prices fall. When VAT changes have been made in times gone by, the gains have not always flowed entirely to consumers. The Government have been working really hard to ensure that businesses pass on the reduction in the Great British summer savings scheme. As I say, we are really glad that many have done so. I look forward to continuing to discuss this important topic, and to seeing the impact of the temporary and targeted changes that we have made to VAT this summer. Question put and agreed to.

• 14 Jul 2026 · Employees Travelling Outside the UK: Expenses Rate · Hansard source

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  It is a pleasure to speak in this debate with you in the Chair, Sir Christopher. I thank my hon. Friend the Member for Crawley (Peter Lamb) for raising this important issue today and for the work that he and neighbouring MPs, on a cross-party basis, have been doing to highlight the concerns that their constituents have raised with them. I can see that hundreds of people in the Crawley constituency have signed the petition. It is similar in Horsham and people near Heathrow and other major airports have signed it, too. The issue clearly affects many staff who work in the airline industry and, as my hon. Friend points out, particularly affects those who are on lower wages. Yes, they might enjoy and love the travel and going to visit so many different places as part of their work, as well as the benefits that come from a job working in the sky and working for airlines, but there are costs associated with being away from home. It was right to have the overseas scale rates system in place back in 2014, but it is not right at that the system has not been updated since then. The OSRs play an important role in reducing administrative burdens when employees incur subsistence costs while travelling overseas, and the key thing is that they provide a practical alternative to reimbursing and evidencing every single expense. As a result, if they were abolished at any point in the future, that could place a significant burden on airlines, which is certainly something we want to avoid. As my hon. Friend set out, the rates have remained more or less frozen since 2014. I was doing the maths earlier today in preparation for the debate, and I came up with a similar figure to him. If they had been uprated in line with inflation in the UK, they would have increased by 40% since 2014. Of course, inflation rates vary across the globe, but that gives us a sense of the size of the gap that has opened up over the last 12 years. The Government have been listening to representations made by airlines, individuals and Members of Parliament, including my hon. Friend. As we announced just a few short weeks ago, we will review both the OSRs and the benchmark scale rates, which are the domestic equivalents that set out the scale rates for lunches and dinners that employees may have when they are in the UK on business. We will also look not just at uprating the rates but at whether there is scope to simplify the OSRs. We want to engage in detail with businesses on such a proposal, and officials in HMRC have already begun that work. Rather than having hundreds of individual rates for individual countries that need to be updated in a painstaking and administratively costly way, and that are also difficult for businesses to administer, we may find that having buckets or bands works better for employers and employees. That is something we will want to look at as part of this review, so I would really welcome representations from my hon. Friend the Member for Crawley and the hon. Member for Horsham (John Milne) on what changes their constituents would like to see. Let me be clear: we have not taken any decisions on where we would like to go, and our mind is not made up. We are convinced that we want to review the rates to make the system better, but we want to consider the issues carefully and gather evidence from those who are affected before a decision is made. Just last week, I met the CBI, which represents some of the large airlines, and it welcomed the announcement of a review. I look forward to receiving further representations from the private sector. As my hon. Friend pointed out, it is important for the Government to strike the right balance between supporting businesses and maintaining fairness in the tax system, while also protecting the Exchequer to ensure that, in the round, we raise the necessary revenue to fund and put right our public services after the last 14 years, when too many were cut back. We also need to ensure that any administrative arrangements such as these remain straightforward and proportionate. Of course, there is political change in the air, but I hope that this review will conclude in time for the Budget. We do not want to be in a place where, in years to come, we are still waiting for these changes. I hope that we can make swift progress in the coming months, so that my hon. Friend’s constituents, as well as employees of airlines across the country, can see some improvement. I am grateful to my hon. Friend for securing this debate, and I am grateful to the hon. Member for Horsham for his intervention. I will take the strength of feeling in their representations back to the Department, for as long as I will be there. Question put and agreed to.

• 1 Jul 2026 · Taxation (Energy and Vehicles) Bill · Hansard source

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  Today’s debate is progressing rapidly—so rapidly, in fact, that I am yet to turn to the speech in my folder. It is a privilege to close this rapid debate on behalf of the Government, and I thank Members for their contributions, as well as the Economic Secretary to the Treasury for opening the Government’s arguments. She was right to point out that the conflict in the middle east has imposed additional costs on the British people, which is why the Chancellor and the Prime Minister have been careful throughout the conflict—from the beginning, when other parties took a different approach—to tread carefully, be cautious and not rush to entangle ourselves in a foreign conflict, risking national security and potentially further harming our economic security. The measures we are considering are an example of how the Government have responded in a proactive and positive way to the impact of the conflict in the middle east on households, families and businesses. Reasonable people can disagree about how the Government could have best responded to the conflict as it played out. It is this Government’s judgment that we have taken the right approach to ensure that we support those families and businesses that most need it. We have been there for them with the changes in this Bill and others—either already passed or making their way through the House via instruments of some form—such as continuing the freeze in fuel duty. We wanted to ensure that our response was proportionate and targeted so that we could continue on the path that this Government have set out to bring down the deficit and bring down borrowing sustainably over the course of this Parliament. This year, for the first time since the 2000s, we have a lower deficit than the G7 average—something that the Conservatives never managed to achieve, despite all their talk about wanting to manage the public finances well. I will not run through the measures in detail, as my hon. Friend the Economic Secretary to the Treasury has already done so. Instead, I will take the chance to respond to the questions asked by Opposition spokespeople. I can confirm that the consultation on the electricity generator levy will come before the end of this year. It is being worked on at the moment by officials in the Department for Energy Security and Net Zero. We will ensure that we consult on this at the end of the year. Questions such as auction allocation and details of the way the wholesale contracts for difference will work will, I am sure, be raised in the consultation or elsewhere in engagement.

• 1 Jul 2026 · Taxation (Energy and Vehicles) Bill · Hansard source

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  No. If prices are slightly above the threshold set in the electricity generator levy, as they are at the moment, I believe, those taxes will be due now, from 1 July, whether or not businesses make decisions down the line after the consultation, after engagement and after the detail of the wholesale contract for difference policy has been set out by the DESNZ Secretary of State. Both the shadow Exchequer Secretary and the hon. Member for St Albans (Daisy Cooper) asked how much revenue will be raised by this and other measures. It is a good tradition—a tradition set in place, in fact, by the Conservatives and Liberal Democrats—that the Office for Budget Responsibility set out the costings of policy decisions when they are made. That is important. This Government and this Chancellor have been keen to protect the independence and integrity of the OBR, rather than throwing it under the bus and causing market turmoil, as Liz Truss did. At the Budget later this year, the OBR will, in the usual way, confirm the costings of the changes announced by the Chancellor and included in the Bill. The shadow Exchequer Secretary is right that the costings the OBR put out initially on the EGL ended up being very different from the revenue that it has pulled in. That is why it is right that we have an independent forecaster, so that even if things materialise differently than was forecast, we have forecasts that are robust to the information at the time and can be relied on by all. The hon. Gentleman questions whether the Government have provided sufficient support more broadly. I would just mention that we have taken the decision to extend the fuel duty freeze. Going into the general election, the previous Government’s plan, as set out by the OBR, which we have already talked about, was for fuel duty to continue to rise and for the 5p cut to unwind. I believe that motorists would be paying a further 11p of fuel duty if it was not for their choice in 2024 to elect a Labour Government and not go ahead with the plans that the Conservatives set out. A couple more points have been raised. The shadow Minister mentions a review of indexation. We will, of course, keep the mileage rates under review. The Chancellor announced a few weeks back that we will have a review. We have somewhat pre-empted that with this 10p increase, because we wanted to respond to the conflict in the middle east and the impact on households, but that review is still ongoing and will report if further changes are to be made to the policy at the Budget. The Liberal Democrat spokesperson made the important point that many care workers and people who drive for work may be working for an employer who does not provide a mileage rate. It is not compulsory for employers to set the rate at the HMRC rates. We have increased rates from 45p per mile to 55p per mile up to 10,000 miles, and I encourage employers across the country to adopt that higher rate. For employees who work for an employer who does not do so or who persists in having a significantly lower rate, as I am aware that some do, it is possible to claim back marginal tax up to that amount, so 55p per mile now. A basic rate taxpayer can in effect get 20% back on that. It was a pleasure to meet care workers and members of Unison, the trade union, a couple of weeks ago at No. 11 Downing Street. Some questions were raised about whether that process could be made any easier for workers to navigate, and that is something I certainly want to look at with my officials. This is a complex area of policy. I encourage Members to inform care workers and others who drive for work and who do not have mileage rates provided by their employer that they can claim the tax back from HMRC. I hope that responds to many of the points made.

• 1 Jul 2026 · Taxation (Energy and Vehicles) Bill · Hansard source

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  There is a very sensible policy rationale when it comes to the electricity generator levy, which I think is the clause the hon. Member is referring to. We want to ensure that the ending of the EGL and the future decisions made on it are made in the light of the decisions that will be made on the wholesale contracts for difference, which, as I have said, are coming forward. It would not have been the right decision to pick a future end date without considering how it would interact with the decisions that the Government will make and will be consulting on later this year on the detail of the wholesale contracts for difference. I hope that that has responded to many, if not all, of the points that have been raised by Opposition Members. I encourage Members to support the Bill. Question put and agreed to. Bill accordingly read a Second time.

• 1 Jul 2026 · Taxation (Energy and Vehicles) Bill · Hansard source

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  I ask that the House gives the Bill its Third Reading. Question put and agreed to. Bill accordingly read the Third time and passed.

• 1 Jul 2026 · Taxation (Energy and Vehicles) Bill · Hansard source

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  I thank the shadow Exchequer Secretary, the hon. Member for North West Norfolk (James Wild), and the hon. Member for St Albans (Daisy Cooper), for their scrutiny and attention to the measures contained in this short Bill. I am proud that, as the shadow Exchequer Secretary said, we removed three taxes, and I am glad to say that, on a temporary basis at least, one tax is being put down to £1 as a result of the legislative changes that the House is about to vote on. It is a privilege to close this brief debate on behalf of the Government. Let me turn to each amendment. New clause 2 would require a report to the House of Commons on the approved mileage allowance payments system, including the adequacy of the rate for care workers. The hon. Member for St Albans spoke powerfully about the work done by care workers in her constituency, who she has the honour of representing. I think that all Members will know—from personal experience of family members who have either worked in the sector or been cared for by those who work in the sector—just how valuable care workers’ time, effort and care is. I am glad that the hon. Lady is now aware that care workers can claim back the tax. They cannot claim back the whole amount—it is not fully equivalent—but they can claim back the tax relief, as it were, on the amount. I want to look at whether we can make that process simpler and easier to use. As the Department does so, I would be happy to provide further updates—if not at the Budget, then beforehand. We have said that the Government’s review of the rates is not over. We came forward with the 10p increase, and we are continuing the review and will update the House further at the Budget. I therefore urge Members to reject this new clause. New clause 3 would require a report to the House on the impact of haulage costs and consumer prices, including the operating costs for and overall tax burden on goods vehicle operators. As I am sure the shadow Exchequer Secretary and the Liberal Democrat spokesperson will know, the Government have already published a tax impact and information note setting out the expected impact of the measure. The costing for it will be subject to scrutiny by the Office for Budget Responsibility and set out at a future fiscal event. It is therefore the Government’s view that the new clause is unnecessary. New clause 4 would require the Treasury to review the impact of the EGL rate rise, including on investment, electricity prices and energy security, and to report to Parliament by 31 March 2028. The EGL was carefully designed to avoid disincentivising renewable generation, which means that since its introduction in 2023 it has had no adverse effect on energy security or new investment; in fact, we are having record levels of new investment in renewables under this Government. It is worth noting that new investments made since 2023 are exempt from the EGL and will continue to be so. The Government have published a tax information and impact note on this measure, too, which sets out clearly that the Government’s view is that this rate rise is not expected to have an impact on electricity prices or investment in renewable generation going forward. The note also explains the rationale for the new EGL, which we have discussed. I will be consistent in reminding the Committee that, of course, the Government keep all taxes under review and monitor and evaluate tax policy changes on an ongoing basis, and that, unless responding to international conflict, in order to be there for households and businesses, tax policy decisions are usually best made by Chancellors at the Budget in the usual way.

• 1 Jul 2026 · Taxation (Energy and Vehicles) Bill · Hansard source

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  I beg to move, That the Bill be now read the Third time. I am grateful for the discussion that we have had today on a Bill that responds directly to the pressures placed on people and businesses across the UK by the conflict in the middle east. In respect of energy, rising gas prices have driven up electricity prices, and non-gas generators stand to benefit significantly as a result. The electricity generator levy ensures that a share of this exceptional revenue is redirected to the public, and we are increasing that share by raising the rate of the levy from 45% to 55%. As for fuel costs, we are uprating mileage rates for the first time in 15 years, providing relief for millions. We are also introducing a 12-month vehicle excise duty holiday for the majority of heavy goods vehicles, supporting those who drive for work and the transport of goods across the UK. Those three measures are the right measures at the right time, and I commend the Bill to the House.

• 1 Jul 2026 · Taxation (Energy and Vehicles) Bill · Hansard source

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  I will open this debate in Committee of the whole House by reminding the House—though I am sure Members know what is in this Bill—of the purpose of the Bill, which is to respond to increases in costs for families and businesses in the UK because of the conflict in the middle east. Even though we have just completed Second Reading, as we are now in Committee, I will address the clauses of the Bill in turn—Members will be relieved to know that there are only four clauses, so it should not take too long. I will address the amendments that have been tabled in my closing speech, which, with the leave of the House, I intend to make. Clause 1 makes changes to ensure that the electricity generator levy rate will rise from 45% to 55% from today, 1 July. As my hon. Friend the Economic Secretary to the Treasury set out, in the UK the majority of our electricity is generated from renewables. Despite that, when the crisis in the middle east pushed up international gas prices, the cost of electricity, and so the cost of living, rose too, because electricity prices are still largely set by the price of gas. The changes made by this clause will ensure that a greater proportion of any exceptional revenue that many non-gas generators may receive because of the conflict in the middle east is available to Government to support businesses and households where appropriate. As we have discussed, the Government also announced back in April that we are acting to de-link electricity prices from gas prices through new voluntary long-term fixed contracts being offered to existing low-carbon generators. As we have discussed, these are known as wholesale contracts for difference, and the changes made by clause 1, increasing the rate from 45% to 55%, will encourage participation at a competitive price in these WCfDs. Clause 2 makes changes to increase the generosity of mileage rates for 2026-27 for employees and self-employed individuals who use their car or van for work from 45p to 55p for the first 10,000 miles and 25p thereafter, with effect from 6 April 2026. I forgot to respond to the shadow Exchequer Secretary asking me earlier why we have not increased the rates above 10,000 miles. I did respond to that point in the Ways and Means debate last week and think the Government have got the balance right here. We are supporting all drivers, noting that of course for a driver who drives 10,001 miles, almost all of their miles will be covered by the higher rates, and it is still open to employers with employees who drive many more miles to set their own rates if they wish. I would just note that the Conservative party had many opportunities to uprate these mileage rates after 2011, when they did do so, but they demurred from that choice for 13 years in a row, and I am very glad to be part of a Government who have introduced the largest increase in a very long time, if not ever. The changes made by clause 2 will provide immediate support for both employees and the self-employed, and this is on top of the universal support announced in May, including the freeze on fuel duty, which will save motorists 11p per litre compared to previous plans, or £120 for the average car, or £250 for the average van. This clause represents the largest ever increase to these mileage rates, benefiting around 2 million employees and 1 million self-employed individuals, saving over £120 a year for a worker doing 6,000 business miles. Clause 3 reduces the vehicle excise duty liability for the majority of heavy goods vehicles to £1 for 12 months for licences taken out from today until 30 June 2027. The changes made by this clause are in recognition of the key role that the road haulage sector plays in transporting goods across the UK and its disproportionate exposure to fuel costs. Fuel costs make up a substantial proportion of HGV operating costs, and this action will help prevent cost pressures from the conflict in the middle east from spreading across the economy. The shadow Exchequer Secretary is right to point out that this measure on its own is not a silver bullet in helping the haulage sector, but I hope that it will provide some assistance, and it does show very clearly by our reducing this rate down to £1, saving HGVs £600 a year, that this is a sector that we do want to support and see grow and weather the storm from the conflicts in the middle east. We also want to do all we can to reduce costs in the supply chain, to keep prices in the shops for everyday families as low as possible. The decisions taken since the 2024 general election to freeze fuel duty will save the average HGV over £2,000. With that, having taken the Committee through the three clauses, I look forward to hearing the contributions from other Members.

• 1 Jul 2026 · Taxation (Energy and Vehicles) Bill · Hansard source

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  I thank the shadow Exchequer Secretary for that. As I said, we are consulting on that policy before the end of the year. It was the Chancellor’s and this Government’s decision that the better thing to do for the country—for businesses and for households—was to respond to the conflict in the middle east with pace and appropriate responsiveness rather than waiting until the next fiscal event, which is scheduled for the autumn. I turn to new clause 5, which would require a report to the House of Commons on the impact of the measure on UK public finances, the competitiveness of the UK freight and logistics sector and the contribution of the temporary VED rate to efficient supply chains, and whether the measure remains appropriate beyond the next 12 months. As always, taxes and reliefs will be looked at ahead of the next fiscal event in the context of the public finances. Consistent with the Chancellor’s approach, this is a targeted and time-limited intervention in response to the conflict in the middle east, in recognition of the key role that the road haulage sector plays in transporting goods—including food—across the UK and its disproportionate exposure to fuel costs. The Government will continue to monitor the situation and consider further action as and if that may be necessary. As on other measures, the Government have already published a tax impact and information note, and the costing for the measure will be subject to scrutiny by the Office for Budget Responsibility. Finally, the shadow Exchequer Secretary talked of this measure as a short-term fix. I hope he is aware of and has seen the impact of the long-term decisions that the Government have made over our time in office to ensure that we can have higher economic growth, as we have had, and higher living standards—rather than their falling by 2%, as they did in the previous Parliament, they have already risen so far by 2% in this Parliament—in part because we have brought back economic stability and had wages rising faster than inflation in every single month since we took office. That has supported stability in the economy which has delivered six interest rate cuts. We have made sure that we are increasing capital investment and that we work with the private sector to get growth up and to invest in our public services and important infrastructure. We have done that in a way, along with investing in our NHS, that has enabled us to manage the public finances well and get borrowing falling in every year of this forecast, with the deficit lower than the G7 average, which the previous Conservative Government never achieved, despite how much they talked about it. They talked a good game on the public finances, but they were never able to deliver that. I therefore ask the Committee to reject the new clause. For the reasons that I have set out, I urge hon. Members to reject the amendments tabled by the Opposition. I commend the clauses in this short and well-formed Bill to the Committee. Question put and agreed to. Clause 1 accordingly ordered to stand part of the Bill. Clauses 2 to 4 ordered to stand part of the Bill. New Clause 2 Approved mileage allowance payments: review of rate for care workers “(1) Within six months of the passing of this Act, the Chancellor of the Exchequer must lay before the House of Commons a review of the adequacy of the approved mileage allowance payment rate set under section 2 in respect of care workers using a personal vehicle in connection with their employment. (2) The review under subsection (1) must consider— (a) whether the rate of 55 pence per mile adequately reflects the costs incurred by paid care workers when travelling between the homes of those for whom they provide care; (b) the merits of setting a higher approved rate for paid care workers who are required to transport specialist equipment, medication or mobility aids in connection with their caring responsibilities; (c) the merits of setting a higher approved rate for paid care workers who make three or more separate care visits in a single day; and (d) the interaction between mileage reimbursement practices in the social care sector and the effective hourly rate received by paid care workers relative to the National Living Wage. (3) In preparing the review under subsection (1), the Chancellor of the Exchequer must consult— (a) representatives of paid care workers; (b) representatives of employers in the social care sector; and (c) such other persons as the Chancellor considers appropriate. (4) In this section “care worker” means a person employed to provide personal care to individuals in their own homes, whether employed directly or through a domiciliary care agency.” —(Daisy Cooper.) Brought up, and read the First time . Question put, That the clause be read a Second time.

• 24 Jun 2026 · Taxation (Energy and Vehicles) · Hansard source

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  As the shadow Minister will know, all tax rates, thresholds and the design of tax policy are considered in the round in the run-up to Budgets. With the key policy intention of the increase in the rate, and by extension the decision to continue the policy in any form, one of the things that the Government have been considering is the fact that having the rate in the system should change the incentives and encourage electricity generators to partake in the wholesale contracts for difference, which are being developed and which the Energy Secretary will bring forward in the coming months. The shadow Minister asked about investment. It is always difficult to make changes in taxation, particularly outside of the Budget cycle. The Chancellor have been cautious about making changes in response to the conflict in Iran. We wanted to take a measured approach to ensure that we manage the public finances well, but also to ensure that we support businesses and households that have been particularly affected by the impact of the conflict washing up on our shores. It is worth highlighting that new investment is excluded from the electricity generator levy, so a business owner thinking of investing in renewables or nuclear in the UK should note that their new investments will not be affected by the increase in the rate. Turning to the second measure, the Liberal Democrat spokesperson and my hon. Friend the Member for Chesterfield were right to point out that the mileage rates have not been changed since 2011. It is very disappointing that, although we saw plenty of inflation spikes, the previous Government did not take the chance to uprate them.

• 24 Jun 2026 · Taxation (Energy and Vehicles) · Hansard source

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  I beg to move, That provision may be made increasing the rate of the electricity generator levy to 55%.

• 24 Jun 2026 · Taxation (Energy and Vehicles) · Hansard source

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  The Chancellor has committed to doing what she can to support families and businesses to be responsive in a changing world and responsible in the national interest. The measures before the House assist the Government in that objective. The way that the current energy system works means that households and businesses pay more for their electricity when the gas price is high. The electricity generator levy already recoups some of the excess returns made by renewable generators when high gas prices push electricity prices over the current threshold of £82.61 per megawatt-hour. The Government have decided to increase the rate of the levy from 45% to 55% from 1 July. That will do two things: first, it will ensure that a large proportion of any exceptional revenues from high gas prices are passed back to the Government, providing a revenue stream so that money is available to support businesses and families with the impacts of the conflict in the middle east; and secondly, in the longer term it will support the new voluntary contracts for difference scheme, which was announced in April, by encouraging participation in the scheme. In March, the Government announced a review of mileage rates for employees using their own vehicle for work and the self-employed who use the simplified expenses rates. In recognition of the pressures facing drivers as a result of the effects of the Iran war, the Chancellor announced in May the first uprating of mileage rates in 15 years, backdated to April, to provide immediate support to both groups. Mileage rates will increase for 2026-27 from 45p to 55p for the first 10,000 miles, and then 25p thereafter, with effect from 6 April. That represents the largest ever increase to these mileage rates, benefiting around 2 million employees and 1 million self-employed individuals, and saving over £120 a year for a worker doing 6,000 business miles. It was a privilege recently to meet care workers and the Unison general secretary to hear directly about the difference that this uprating will make to those on the frontline. The general secretary said to me and the Chancellor that this measure is good news for people providing essential public services. It was an honour to meet those who work day in, day out looking after people across the country. I am glad that this measure will have a positive impact on those who do such vital work. Looking ahead, beyond 2026-27, the Government have already committed to a review of those rates and will set out further steps at the Budget. The third measure recognises the key role that the road haulage sector plays in transporting goods across the UK and its disproportionate exposure to fuel costs. The Government are introducing a 12-month holiday from vehicle excise duty for the majority of heavy goods vehicles, which will save a typical HGV £600 on top of the savings from fuel duty. Fuel costs make up a substantial proportion of HGV operating costs, and this action will help to prevent cost pressures from the Iran conflict spreading across the economy. The announcements on mileage rates and HGV VED were part of a wider package of measures announced in May, including on fuel duty. In total, the decisions taken since the 2024 general election to freeze fuel duty will save motorists 11p per litre, or £120 for the average car, £250 for the average van and over £2,000 for the average HGV, compared with the plans we inherited from the previous Government. This Government are taking action to support the economy at a time of global economic uncertainty following the Iran conflict. Our approach of targeting support at those groups who are hardest hit by the conflict will ensure that the measures we take are effective, while protecting the economy from the effects of reckless borrowing that took place under the previous Government.

• 24 Jun 2026 · Taxation (Energy and Vehicles) · Hansard source

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  I am not sure. I have been in the Chief Secretary’s office in the Treasury, and there are many pictures on the wall of the countless Chief Secretaries who served under the last Government—especially towards the end, what with all the chopping and changing. However, both the Liberal Democrats and the Conservatives had ample time to make more than the one change that was made in 2011. The hon. Member for North Bedfordshire asked why no change was made in the “above 10,000 miles” rate. We did of course consider that when developing the policy. A very significant proportion of those who drive for work drive less than 10,000 miles. As the hon. Gentleman pointed out, some will drive more, especially if they have long distances to drive or live in rural communities, but we thought that this approach—providing a significant 10p increase in the rate up to 10,000 miles while leaving the 25p rate unchanged—got the balance right between supporting people who need help right now and being fiscally responsible. The hon. Gentleman will know, and drivers will know, that the marginal cost of each extra mile driven will decline over time, because the up-front costs can be spread over more mileage. As for annual indexation, it is not the Government’s policy. I welcome the representation, but, again, that is not a policy that was pursued before. As he rightly observed, it would be a complicated process, given the volatility in petrol prices. I should, of course, mention to the Liberal Democrat spokesperson that I am from Witney, and Chris Hayter Transport, the haulage company, is based just behind the housing estate on which I grew up. It is a very good local business, and I am glad to know that it will benefit from this measure. I take the points raised about the challenges facing the haulage sector, but I hope that our temporary and targeted change will benefit that business and businesses across the country. Question put and agreed to. Income Tax (Mileage Amounts) Resolved , That— (1) In the table in each of— (a) section 230(2) of the Income Tax (Earnings and Pensions) Act 2003 (approved amount for mileage allowance payments), and (b) section 94F(2) of the Income Tax (Trading and Other Income) Act 2005 (appropriate mileage amount), for “45p” substitute “55p”. (2) In consequence of paragraph (1), in section 94F(3) of the Income Tax (Trading and Other Income) Act 2005, for “45p” substitute “55p”. (3) The amendments made by this Resolution have effect for the tax year 2026-27 and subsequent tax years. And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.— ( Dan Tomlinson.) Vehicle Excise Duty (Temporary Rates for Goods Vehicles) Resolved, That— (1) The Vehicle Excise and Registration Act 1994 has effect in relation to vehicle licences, other than trade licences, taken out in the period beginning with 1 July 2026 and ending with 30 June 2027 as follows. (2) Paragraph 9 of Schedule 1 to that Act (rates for rigid goods vehicles exceeding 3,500 kgs revenue weight) has effect in relation to goods vehicles to which sub-paragraph (1), (2)(b) or (3) of that paragraph applies and which are used in the course of a trade as if— (a) in sub-paragraph (1), for “shall be determined in accordance with” to the end there were substituted “and not exceeding 44,000 kgs is £1.”; (b) where sub-paragraph (2) applies in relation to rigid goods vehicles mentioned in paragraph (b) of that sub-paragraph, in that sub-paragraph for “basic goods vehicle rate” there were substituted “£1”; (c) in sub-paragraph (3), for “£1,703” there were substituted “£1”. (3) Paragraph 10 of that Schedule (rates for certain rigid goods vehicles exceeding 11,999 kgs) has effect in relation to goods vehicles to which sub-paragraph (1) of that paragraph applies and which are used in the course of a trade as if— (a) in sub-paragraph (3), for “to be determined in accordance with” to the end there were substituted “£1.”; (b) in sub-paragraph (7), for “£654” there were substituted “£1”. (4) Paragraph 11 of that Schedule (rates for tractive units exceeding 3,500 kgs) has effect in relation to goods vehicles to which sub-paragraph (1), (2)(b) or (3) of that paragraph applies and which are used in the course of a trade as if— (a) in sub-paragraph (1), for “shall be determined in accordance with” to the end there were substituted “and not exceeding 44,000 kgs is £1.”; (b) where sub-paragraph (2) applies in relation to tractive units mentioned in paragraph (b) of that sub-paragraph, in that sub-paragraph for “basic goods vehicle rate” there were substituted “£1”; (c) in sub-paragraph (3), for “£1,703” there were substituted “£1”. (5) Paragraph 11C of that Schedule (rate for certain tractive units exceeding 41,000 kgs but not exceeding 44,000 kgs) has effect in relation to goods vehicles to which that paragraph applies and which are used in the course of a trade as if for “£10” there were substituted “£1”. (6) Where subsection (2) of section 3 of that Act (6 month licences) applies in relation to a vehicle for which any of paragraphs (2) to (4) has effect, that subsection has effect as if, in paragraph (a), for “£50” there were substituted “£0”. (7) Article 3(1)(b) of the Vehicle Licences (Duration of First Licences and Rate of Duty) Order 1986 (S.I. 1986/1428) has effect in relation to vehicle licences, other than trade licences, taken out in the period beginning with 1 July 2026 and ending with 30 June 2027 for vehicles for which any of paragraphs (2) to (5) has effect as if for “£50” there were substituted “£0” And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.— (Dan Tomlinson.) Ordered , That a Bill be brought in upon the foregoing resolutions; That the Chairman of Ways and Means, the Prime Minister, the Chancellor of the Exchequer, Lucy Rigby, Rachel Blake, Dan Tomlinson and Torsten Bell do prepare and bring in the Bill. Taxation (Energy and Vehicles) Bill Presentation and First Reading Dan Tomlinson accordingly presented a Bill to increase the rate of electricity generator levy and mileage amounts relating to income tax and to provide for temporary rates of vehicle excise duty for goods vehicles. Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 103) with explanatory notes (Bill 103 - EN).

• 24 Jun 2026 · Taxation (Energy and Vehicles) · Hansard source

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  I thank all those who have spoken, and I thank my hon. Friend the Member for Chesterfield (Mr Perkins) for his warm remarks. I will respond to the points made by the shadow spokespeople. I assume that this change will appear as a line item, although I would not want to prejudge any future decisions by the OBR on how it scores all these things and presents them in Budgets, as it is a specific tax head. The Conservative and Liberal Democrat spokespeople asked how much this change will raise. It is difficult to know. As the Liberal Democrat spokesperson, the hon. Member for Witney (Charlie Maynard), highlighted, prices are coming down. They are at the moment slightly above the threshold in the system, but prices, as the shadow Energy Secretary will know, are volatile. In the usual way, the independent OBR will set out its estimate at the Budget for how much this change will raise and how much will be raised overall by the electricity generator levy. He is right to note that the levy does not raise billions and billions. It is a relatively targeted policy. We have increased the rate from 45% to 55%, but we have not changed the threshold and the routine uprating that takes place within it. The Opposition spokesperson, the hon. Member for North Bedfordshire (Richard Fuller), asked whether there will be a review and whether this new higher rate is now the rate out into the future. That is something the Government are considering. He is right to highlight that we have not made a definitive announcement on whether that rate will last a short period or will go on into the future, but we will update in due course—it is not something that we want to leave hanging. I would expect that update will be at the Budget, if not before. However, that issue will be reviewed by the Chancellor and the Energy Secretary in the coming weeks.

• 24 Jun 2026 · Taxation (Energy and Vehicles) · Hansard source

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  The hon. Gentleman says it was for covid, but he forgot to mention Liz Truss. This Government’s record shows that despite that instability, our plan is working. UK GDP growth in the past two years was the second fastest in the G7. Real household disposable income per person has grown by more than 2% so far in this Parliament, compared with a fall of more than 2% in the last Parliament. Real wages have increased in every single month since this Government took office, with wages rising faster than inflation. These measures will continue that track record and demonstrate that this Government are committed to supporting working people.

• 23 Jun 2026 · Draft Climate Change Agreements (Administration, Energy-intensive Installations and Eligible Facilities) (Amendment and Revocation) Regulations 2026 · Hansard source

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  I beg to move, That the Committee has considered the draft Climate Change Agreements (Administration, Energy-intensive Installations and Eligible Facilities) (Amendment and Revocation) Regulations 2026. It is a pleasure to serve with you in the Chair, Mr Wishart. The draft regulations expand the eligibility for the climate change agreements scheme to include three new processes—the mechanical recycling of plastic, the packaging of spirits and the production of automotive-grade battery cells—as well as clarifying the existing eligibility and administrative requirements for the scheme and updating the carbon emissions factor figure used in the buy-out fee for the scheme. The climate change levy was introduced in 2001 for the purpose of encouraging energy efficiency across our economy by taxing energy supplies such as electricity or gas. From the outset, the tax has included the CCA scheme, a voluntary scheme that provides eligible energy-intensive businesses access to significant discounts on their CCL bill in exchange for meeting negotiated energy-efficiency or carbon-reduction targets. As a tax designed to drive efficiency, the CCL should accommodate the changing energy landscape. We therefore propose to extend the eligible processes within the CCA scheme to include the three I have already mentioned. Those processes meet the scheme’s established eligibility tests, thereby demonstrating that they are sufficiently energy intensive and, where applicable, subject to competition from imports. Their inclusion is consistent with existing policy and continues to support the Government’s objectives of delivering affordable and secure energy and decarbonisation, while also helping to drive growth. In summary, the regulations give effect to the Government’s decision to extend the eligible processes within the CCA scheme to include the production of automotive-grade battery cells, the packaging of spirits and the mechanical recycling of plastics. I commend the regulations to the Committee.

• 23 Jun 2026 · Draft Climate Change Agreements (Administration, Energy-intensive Installations and Eligible Facilities) (Amendment and Revocation) Regulations 2026 · Hansard source

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  As ever, I thank the shadow Exchequer Secretary and the Liberal Democrat spokesperson for their contributions and questions. I agree with the shadow Exchequer Secretary that lengthy consultations can be a frustration—they are the bane of my life too. Of course, we need to make sure that we engage and listen, but it is always good to be as quick as we possibly can be. There is a gap between now and when the changes will come into effect because the Environment Agency requires numerous administrative processes to be completed before facilities from newly eligible sectors can join a scheme. We of course always look to make sure that we can speed up such administrative processes. I will follow up in writing with details as to why the non-successful processes were not successful; I do not have that information at my fingertips today, but I look forward to reading the letter and sending it to the shadow Exchequer Secretary. I can confirm that the four processes that applied but were not successful were two relating to tire retreading, one relating to the roll turning of plastics and one relating to water. I will write to the hon. Gentleman on those points in due course. The shadow Exchequer Secretary is right that there is a very minor change in a complicated formula from 0.0497 to 0.0498. I am assured that that is about helping to make sure the Government do these things properly, and that the resultant changes will not be significant. The shadow Exchequer Secretary is right to point out that we have high energy costs in this country. We need to bring them down. We are not going to take the approach of the previous Government of saying no to new nuclear power stations over and over again, and we are not going to take the approach of the previous Government of not investing in our energy security. Instead, we are going to get a range of different energy sources into our energy mix so that we can get prices down. The Chancellor proactively made the decision at the last Budget to take £150 off energy bills for families across the country, which was very welcome indeed. The Liberal Democrat spokesperson mentioned how she would like to see the carbon price support removed. I have good news for her: just a few short weeks ago we announced that we are removing it. I am disappointed that she did not hear that exciting news. It is a very niche tax, but it is important that we are removing a tax that had become outdated and was not fit for purpose given the current structure of our energy market. I do like to make sure that we get rid of taxes. I agree with the hon. Lady that we need action and ambition on decarbonising our electricity network. We must take the steps we need to take to get clean power and to make sure that we meet our net zero obligations, not just for ourselves but for future generations and for the world. We owe it to all of humanity to make sure that, in a reasonable and careful way, we make progress towards decarbonising our economy. I commend the regulations to the Committee. Question put and agreed to.

• 23 Jun 2026 · Business Rates · Hansard source

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  I understand my hon. Friend’s point. There are many businesses in rural and coastal communities across the country that we want to see thrive and grow, which is why the Chancellor announced the great British summer savings scheme, which will run until 1 September. On the point about the online giants, we are looking at further ways to raise more revenue by going after those online giants dodging VAT. In the last Budget, the Chancellor changed the multipliers in the business rates system so that the tax rate paid by a small high street business would be 33% lower than that paid by large properties, such as those occupied by online giants.

• 23 Jun 2026 · Business Rates · Hansard source

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  We have a tax on profits in the UK, which is corporation tax. In our corporate tax road map, we have committed to keeping that stable in this Parliament, rather than having it jump around as it did in the last one. It is important to have a broad tax base, so it is reasonable for business rates to continue to be—as they have been since the late 1980s—set in accordance with an estimate of the rents of properties. I do not think it would be right to change that.

• 23 Jun 2026 · Business Rates · Hansard source

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  I have to correct the Liberal Democrat spokesperson—I do not think that this hon. Member has a near certainty of becoming Prime Minister any time soon. [ Laughter. ] It is good that my newly elected right hon. Friend the Member for Makerfield (Andy Burnham) has taken inspiration from the decision that we made in January to cut business rates for pubs, bars and live music venues by 15% so that we can back the great British pub and other hospitality venues.

• 23 Jun 2026 · Business Rates · Hansard source

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  I am very busy today, Mr Speaker, as ever. I thank the hon. Member for asking about business rates. She will know that we have already started the work of reforming the business rates system so that we can put in permanently lower multipliers for high street businesses. As part of tax update day, we will be consulting on ways to collect more of the VAT that online sellers dodge by making online marketplaces liable for VAT on both UK and overseas business sales of goods. We will put every penny of the additional revenue raised into improving the business rates system for high street businesses.

• 23 Jun 2026 · Loan Charge · Hansard source

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  The Government introduced legislation in the Finance Act 2026 to provide for a new settlement offer for those affected by the loan charge. The Government will write off the first £5,000 of liabilities, and that is in addition to the proposals put forward by the independent reviewer, Ray McCann.