Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to support the night-time economy; and what assessment she has made of the potential impact of (a) VAT reductions, (b) business rates reform and (c) National Insurance threshold adjustments on the sustainability of late-night venues.

The Government recognises the importance of the night-time economy and the challenges faced by late-night venues.

At the Autumn Budget, a package of measures was introduced to support the hospitality sector, including those operating at night. The Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities will either gain or see no change this year.

A Tax Information and Impact Note was published alongside changes to employer NICs, and the Office for Budget Responsibility forecasts employment levels to increase over the coming years.

The small business multiplier has been frozen for 2025-26, and retail, hospitality and leisure business rates relief has been extended for one year at 40 per cent, up to a cash cap of £110,000 per business.

The Government intends to introduce permanently lower business rates multipliers for retail, hospitality and leisure properties with rateable values below £500,000 from 2026-27, providing much-needed certainty and support for RHL businesses. The rates for these new multipliers will be set at Budget 2025 so that the Government can take into account the revaluation outcomes, as well as the economic and fiscal context. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.

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.