Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has considered introducing a reduced or tiered VAT rate for pubs and restaurants.
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. Introducing reduced or tiered VAT rates would reduce tax revenue and add complexity to the tax system.
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. This would reduce VAT revenue, which pays for public services, by almost 10% in 2025/26.
The Government is aware that some European countries apply reduced VAT rates to hospitality.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the answer of 5 January to question 101570 Tax Yields: Hemsby, if she will make an estimate of the total annual tax receipts generated by economic activity in Hemsby, Norfolk, including (a) income tax, (b) National Insurance contributions, (c) VAT, and (d) business rates.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HM Revenue and Customs cannot make an estimate of the total annual tax receipts generated by economic activity in Hemsby, Norfolk, including (a) income tax, (b) National Insurance contributions, (c) VAT as this would exceed the cost limits, and (d) business rates as these are not administered by HMRC.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the April 2026 business rates revaluation on small and medium-sized enterprises operating from physical premises.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties.
To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years, including to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Government support also means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the potential impact of business rates liabilities on the number of business closures since the last revaluation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties.
To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years, including to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Government support also means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of commercial properties she estimates will see an increase in rateable value following the forthcoming revaluation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties.
To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years, including to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Government support also means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Secretary of State for Housing, Communities and Local Government on the potential impacts of the April revaluation on town centres.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties.
To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years, including to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Government support also means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether transitional relief arrangements will fully offset increases in business rates for small businesses following the April revaluation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties.
To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years, including to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Government support also means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to employer National Insurance contributions on labour-intensive hospitality businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.
The Government protected the smallest hospitality businesses from recent changes to employer National Insurance by increasing the Employment Allowance to £10,500.
We are determined to support hospitality businesses and help them succeed. The National Licensing Policy Framework for England and Wales set a new strategic direction for licensing authorities to have more regard for growth. We are exploring planning reforms to help pubs and hospitality expand and will appoint a Retail and Hospitality Envoy in the coming weeks to champion the sector. Furthermore, the Hospitality Support Fund has helped pubs in rural areas to diversify, ensuring they can continue in their role as vital community hubs. We have also introduced a new Community Right to Buy, the English Devolution Bill will ban upward only rent reviews, and the Pride in Place programme will provide up to £5bn over 10 years to support our high streets.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential cumulative impact of business rates, VAT, alcohol duty and employer National Insurance contributions on levels of profitability in the hospitality sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has assessed the cumulative impacts of measures announced over recent Budgets on businesses and households. Taken together, these measures raise revenue to support the public finances in a fair way, whilst providing targeted support. The Government recognises that recent policy changes will have combined effects on some businesses. Where changes are made, relevant assessments and impact notes are published to inform stakeholders. The Treasury continues to engage with affected sectors to understand the challenges they face and to ensure the UK remains a competitive place to do business. We will continue to monitor the situation closely and keep our policy approach under review, with future tax decisions taken at fiscal events under the normal process.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made of the potential impact of increases in business rates on employment levels in labour-intensive sectors.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties.
To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years, including to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Government support also means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, while ensuring that warehouses used by online giants will pay more. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid.
Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.