Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent steps she has taken through the tax system to support small to medium-sized enterprises in the hospitality industry.

The Government recognises the vital role that small and medium-sized enterprises in the hospitality sector play in supporting the UK’s economy and high streets.

At the Autumn Budget, a range of measures were announced to support these businesses. The Employment Allowance was more than doubled to £10,500, meaning that over half of businesses with National Insurance liabilities will either gain or see no change this year.

The business rates small business multiplier has been frozen for 2025-26, protecting SMEs from inflationary increases in business rates. Retail, hospitality and leisure business rates relief has also been extended for one year at 40 per cent, up to a cash cap of £110,000 per business.

In addition, the Small Profits Rate of Corporation Tax and marginal relief have been maintained at their current rates and thresholds. The £1 million Annual Investment Allowance has also been retained to support investment in plant and machinery.

Duty on qualifying draught products has been reduced, supporting pubs and small brewers. Over a third of properties pay no business rates due to Small Business Rate Relief, with thousands more benefiting from tapered relief.

The Government keeps all areas of the tax system under review and changes to the tax system are made at fiscal events, in line with usual practice.