Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the implications for her policies of UK hospitality's press release entitled, One third of hospitality businesses now operating at a loss, published 2 June 2025.

The Government is committed to supporting the hospitality sector. That is why we have launched a licensing taskforce to make recommendations to cut red tape and remove barriers to business growth that exist within the UK’s licensing framework. The industry-led Taskforce has shared its findings with the Government, and we aim to update publicly by the summer.

The Government is also creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century. 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 the hospitality sector benefit from much-needed certainty and support.

The rates for these new business rate multipliers will be set at Budget 2025 so that the Government can take into account the upcoming revaluation outcomes as well as the economic and fiscal context.

We also recognise that RHL businesses will need support during the interim period for 2025/26, and so we are providing 40 per cent relief to RHL properties up to a cash cap of £110,000 per business. Without any government intervention, RHL relief would have ended entirely in April 2025, creating a cliff-edge for businesses.