Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she had with representatives of the hospitality sector ahead of the Autumn Budget 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Ahead of the Budget Government Ministers and Senior Officials met with businesses and business representation organisations from a range of sectors, including those from the hospitality sector. These meetings provided an opportunity for the Government to hear the views of the business community to aid in the formation of policy, including fiscal policy. Such engagements are ongoing and will continue to be so.
I, and the rest of HM Treasury, am deeply committed to engaging with the business community across the country. We believe that maintaining a regular and open dialogue with the business community is essential for understanding levels of business confidence and for shaping government policy to support growth and investment.
These engagements are central to the Government’s ambition to foster a pro-growth, pro-investment environment throughout the UK. By listening directly to businesses, the Government is better able to respond to emerging challenges, seize new opportunities, and deliver policies that help businesses to thrive.
Further information on meetings held by HM Treasury Ministers can be found on the gov.uk website via this link: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to betting and gaming levies on illegal gambling operations in the UK.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Estimates suggest the illegal market is relatively small in the UK, between 2 – 9% of legal online market stakes. The Gambling Commission is already tackling this risk and protecting consumers, but we recognise that modern technology makes it easier for illegal websites to target consumers. To further secure the legitimate market and protect consumers from illegal sites, at Budget 2025, the government announced an additional £26 million of funding over the next three years for the Gambling Commission to strengthen enforcement and tackle illegal gambling.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate has she made of the number of people that will reduce their working hours following the introduction of National Insurance contribution on any salary sacrifice scheme exceeding £2,000.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has considered the potential merits of cutting VAT for food and drink served in pubs, social clubs and brewery taprooms.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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. VAT is the UK's second largest tax, forecast to raise £180 billion in 2025/26. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
Where pubs incur VAT in producing the food they sell, this can be claimed back in the normal way, provided that they are registered for VAT. Businesses with a turnover below the £90,000 per year threshold may choose not to register for VAT, in which case they do not charge VAT on their sales and cannot reclaim it on their input costs.
HMRC estimate that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £13 billion this financial year. If the scope were also to include alcoholic beverages, the cost would be approximately £3 billion greater.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has considered the potential merits of cutting duty on draught beer and cider served in pubs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the government cut alcohol duty rates on draught products by 1.7%, which applies to approximately 60% of the alcoholic drinks sold in pubs. This took a penny of duty off a typical strength pint at a cost to the Exchequer of over £85m a year. Draught beer and cider now pay 13.9% less in duty than their packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%.
The Chancellor makes decisions on tax policy at fiscal events.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her Department will make an assessment of the potential merits of abolishing business rates for pubs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In April 2026, the Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure properties with ratable values below £500,000. This permanent tax cut will ensure that eligible hospitality businesses, including pubs, 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.
Business rates are a vital source of Local Government funding and support critical local services, including children's and adult social care. As such, the Government has no plans to abolish business rates for pubs.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to help businesses mitigate increases in levels of food inflation.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government prioritises sound public finances, which are essential to economic and financial stability, and delivering economic growth. We are living within our means, reducing our levels of borrowing in the years ahead and supporting the Bank of England to get inflation down. We have already made progress towards this, with five interest rate cuts delivered this since the election.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the British Retail Consortium's analysis entitled 400 of Britain's largest shops at risk, published on 12 September 2025, what assessment she has made of the potential implications for her policies of those findings.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
From April 2026, the Government intends to introduce permanently lower tax rates for retail, hospitality and leisure (RHL) properties with rateable values below £500,000. This permanent tax cut will ensure that eligible RHL properties benefit from much-needed certainty and support.
This tax cut must be sustainably funded, and so the Government is introducing a higher rate on the most valuable properties in 2026/27 - those with RVs of £500,000 and above.
The Government recognises that, ahead of the new multipliers being introduced, RHL businesses need support in 2025-26. So, the Government has prevented RHL relief from ending by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
The final design, including the rates, for the new business rates multipliers will be announced at Budget 2025, so that the revaluation outcomes and broader economic and fiscal context can be factored into decision-making. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Secretary of State for Business and Trade on the actuarial regulation elements of the Government’s planned Audit Reform and Corporate Governance Bill.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government will bring forward Audit Reform and Corporate Governance legislation when Parliamentary time allows. The government will set out further details in the autumn.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Transport Department on switching road tax to be on a per mile basis.
Answered by James Murray - Chief Secretary to the Treasury
Treasury Ministers have regular discussions with other government departments on a range of matters.
Vehicle Excise Duty (VED) applies to vehicles used or kept on public roads, which does not vary by miles driven. However, fuel duty applies to the petrol or diesel used by motorists driving internal combustion engine vehicles; the greater the miles driven, the more fuel duty incurred.