The prosecutions and convictions referenced in the answer I gave on 20 December 2023 to PQ HL1133 relate to all HMRC compliance related offences irrespective of tax head.

HMRC’s aim is for everyone to pay the tax that is legally due, no matter who they are. It has achieved a long-term reduction in the UK’s tax gap from 7.5% in 2005-06 to 4.8% in 2021-22.

HMRC tailors compliance activity, including allocation of resources, depending on the level of risk in each tax head, but also on customer behaviours and capability. This allows the Department to identify compliance risks and customer needs, and adapt its approach where necessary – to offer more support to help people get their tax right, or to take targeted action against avoidance, evasion and criminal attacks.

The most effective way it can ensure the right tax is paid is through the overall design of the tax system – improving processes to remove opportunities for error and fraud, and taking preventative action to educate and help customers get their taxes right first time.

Criminal investigation, with a view to prosecution, is an important part of HMRC’s overall compliance strategy. HMRC will conduct criminal investigations and seek criminal prosecutions where the behaviour displayed is such that only a criminal sanction is appropriate, or where a criminal prosecution will act as a strong deterrent.

The rules are the same for everyone, but tailoring the approach helps HMRC to respond in the most targeted, proportionate and effective way.

The resource available for HMRC and its compliance work is agreed with ministers at Spending Reviews and Fiscal Events. The agreed level is shaped by economic factors and enables HMRC to carry out the compliance activity required to maintain a stable tax gap over the medium term.

DfT is responsible for decisions relating to the capacity of rail services. When proposals require HM Treasury ministers’ approval, they consider a range of factors, including revenue and cost (i.e. the impact on the taxpayer).

As referenced in the answer I gave on 22 November 2023 to PQ HL210 the Government is committed to creating a level playing field for all sectors by ensuring that everyone pays the right amount of tax at the right time. Like all other businesses, those which exclusively accept cash must meet their tax obligations. HMRC use a range of interventions, including civil and criminal investigations, to tackle non-compliance.

HMRC reserves complete discretion to conduct a criminal investigation in any case and to carry out these investigations across a range of offences and in all the areas for which the Commissioners of HMRC have responsibility. In 2022/23, 240 prosecutions were brought by the relevant prosecuting authority as a result of HMRC criminal investigations, securing 218 convictions for a range of offences.

The specific data requested – detailing prosecution numbers for businesses which advertise their services on a cash-only basis – is not available as HMRC systems do not segment data in a way that would allow the required analysis, and therefore this information would only be available at disproportionate cost.

Further information on HMRC’s approach to tackling fraud, including other performance information, can be found at HMRC performance update: April to June 2023 – GOV.UK (www.gov.uk)

The Government is committed to creating a level playing field for all sectors by ensuring that everyone pays the right amount of tax at the right time. Like all other businesses, those which exclusively accept cash must meet their tax obligations.

HMRC’s approach to tax evasion aims to tackle current non-compliance and change future behaviours. Their activities include national campaigns and specialist task forces that incorporate intensive bursts of activity in targeted high risk trade sectors (including the retail and service industry) and locations across the UK. HMRC also works with customer groups and third parties, such as other local and central Government agencies, to reduce error and fraud within these sectors. This includes providing customer education highlighting the importance of keeping accurate records.

HMRC uses a range of data and intelligence sources, including compliance visits, when necessary, to ensure businesses are complying with their tax obligations but also aren’t engaged in any other illicit activity like money laundering. If suspicions of money laundering are identified, and it is appropriate for HMRC to investigate, the department works with the appropriate prosecuting authority to pursue a criminal prosecution for money laundering.

HMRC take any report of suspected tax evasion seriously and operate a confidential Fraud Telephone Hotline and an online reporting tool available on GOV.UK.

There are no current plans to introduce a pilot scheme to abolish peak time railway fares in England. Peak and off-peak fares are an important tool to manage demand and alleviate crowding on peak time services by encouraging those who can travel off-peak to do so.

In recent years, we have introduced several initiatives to support passengers and improve affordability of rail. We have successfully launched flexible season tickets to support commuters’ return to the rail following the pandemic. We have also saved a generation of passengers a third off their fares through the 16-17 and 26-30 Railcards and went even further in November 2020 by extending these savings to former servicemen and women through a new Veterans Railcard.

We are now rolling out single leg pricing to most of London North Eastern Railway’s (LNER’s) network following a successful trial. We will carefully consider the impacts of expanding single leg pricing to most of LNER’s network before taking decisions on any wider extension.

There are currently no plans to negotiate any variations to the Intercity Express Programme’s contracts with Agility to extend the incentive regime. The contracted arrangements for instances where full service provision is not offered are contained in the existing contracts, as articulated in previous responses.

The business case for Worcestershire Parkway forecasted a range of demand scenarios to account for uncertainty around the modelling. These included different assumptions on external events, expectations for housing growth and level of abstraction from surrounding stations. We are due to receive a report on the station’s performance from Worcester County Council. We will work through the findings on the differences between the forecasted demand and actual performance and use this to help inform future stations appraisals.

The Transport Analysis Guidance continues to be recommended best practice for transport appraisal. We recognise the analytical challenges associated with forecasting demand for new stations, and valuing the benefits they bring. Following research carried out by Leeds ITS for Rail Safety and Standards Board (RSSB), published on their websites research catalogue as "Rail Openings Appraisal (COF-ECO-ROA)", we are reviewing our guidance in this area and plan to bring forward improvements to it in future.

The Intercity Express Programme contracts requires the daily provision of trains of the correct formation to operate the planned timetable.

As there has been full transfer of delivery risk passed to the train supplier, when a train provided that is shorter than that planned there is a reduction in the lease charge.

The effect of this is that Hitachi will suffer the financial impact of these circumstances arising from the loss of income.

The Intercity Express Programme contracts requires the daily provision of train sets sufficient to operate the planned timetable.

As there has been full transfer of delivery risk passed to the train supplier, when a train is not provided there is no charge.

The effect of this is that Hitachi will suffer the financial impact of these circumstances arising from the loss of income.

CrossCountry has increased the number of services on this route as part of its timetable re-organisation in May 2023, although some trains have become busier as a result.

We expect CrossCountry to monitor this and seek opportunities to mitigate it in future. The Department is working on a new contract for CrossCountry. Subject to demonstrating an appropriate business case, the intention is that this will facilitate increased capacity on CrossCountry routes in future.

Domestic and international rail freight services are private operations run on a commercial basis. The Government provides some limited support in specific areas.

The Government incentivises modal shift from road to rail through the £20 million per year Mode Shift Revenue Support scheme.

The Government provided £2.155 million to rail freight projects through the First of a kind competition for cutting edge ideas to help transform the railway. These projects include rail freight express parcel delivery.

DfT also contributes to some of the Operations, Maintenance and Renewals Charges (OMRC) charges for international freight trains using the Channel Tunnel under the terms of the commercial agreements which established the Channel Tunnel. This amount is variable but is approximately £13m per year.

For the Strategic Road Network, funding for enhancements, which includes junction improvements and widening schemes as well as new roads has been allocated as follows as part of the Road Investment Strategy.

For local roads funding varies depending on progress with individual local authority schemes and the amount would vary from year to year. In some cases schemes do not progress to construction due to low or poor value for money. The current forecast spend from 2023/24 onwards is as per the table below but these are liable to change as various schemes update their financial information.

The total amount of funding requested by Local Transport Authorities for Bus Service Improvement Plans was £13.02bn. This figure includes all schemes, including those beyond the BSIP funding period.

The Department does not have this information available.

We are in the process of reviewing the report and its findings. It is too early to say whether we have any plans to adopt the recommendations.

Rail fares are influenced by multiple different factors, and there are a range of Advance fares available for many long-distance journeys that are priced highly competitively.

We have been clear in the Plan for Rail that we want to simplify the current mass of complicated fares and tickets, whilst protecting affordable turn up and go tickets and season tickets.

As part of this we will extend the single leg pricing trial to the rest of LNER’s network, making fares more flexible for passengers, and trial demand-based pricing on some LNER services.

Officials across the Department for Transport are reviewing the stock of Retained EU Law relevant to road transport. As a part of this process, road transport law that is in scope of the Retained EU Law Bill is being reviewed to ensure that it is effective and fit for purpose. The Department will share more information on individual pieces of regulation in due course, whilst also ensuring it provides the information to keep the public Retained EU Law dashboard updated.

The Government has made available nearly £2 billion since March 2020, through emergency and recovery grants, to mitigate the impacts of the pandemic on the bus sector. This support is currently in place until the end of March 2023. The Department is actively considering its support for the bus sector from April 2023 and will set out further details shortly.

We are actively engaging with operators, local authorities, and the Office of the Traffic Commissioner to ensure they are aware of this and that they receive sufficient notice. We welcome the recent statement published by Traffic Commissioners that they will seek to support operations with the notice period for changes to registrations.

We have paused the rollout of new smart motorways to collect more safety and economic data to make informed decisions on next steps.

There were an estimated 128,209 reported road casualties of all severities in Great Britain in 2021. This was an increase of 11 per cent compared to 2020, but 16 per cent lower than in 2019.

Recent trends in road casualties have been affected by the COVID-19 pandemic. In 2021, they showed signs of a return to pre-pandemic levels, increasing compared to 2020 when casualty numbers were low, largely as a result of periods of lockdown resulting in a reduction in road traffic.