Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Government has considered the impact of rising costs on growth in the hospitality sector, including (a) constraints on existing businesses expanding and (b) deterrence of new entrants, in its projections of tax revenues under current VAT levels.

The Government recognises the hospitality sector’s vital contribution to jobs, communities, and local economies across the UK. Given the sector’s seasonal and flexible nature, changes in trading patterns may reflect wider economic conditions and consumer demand. The Government monitors the sector closely, engages regularly with businesses, and considers potential economic impacts during policy development, publishing Tax Information and Impact Notes where appropriate.

The Government has announced a range of measures to support employment in hospitality businesses. It is investing £2.5 billion over three years in the Youth Guarantee and Growth and Skills Levy, helping deliver up to 500,000 opportunities to earn and learn. The Employment Allowance was increased to £10,500 and businesses can claim employer NICs reliefs for under-21s and under-25 apprentices.