Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to reduce the tax burden on the hospitality, tourism and leisure sector.

The Government is committed to supporting the hospitality, tourism and leisure sector, which is largely made up of small businesses.

At the Autumn Budget, a range of measures were announced to reduce the tax burden on these sectors. 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.

The Small Profits Rate of Corporation Tax and marginal relief have been maintained at current rates and thresholds. The £1 million Annual Investment Allowance has been retained to support investment.

Duty on qualifying draught products has been reduced, supporting pubs and smaller brewers.

The Government intends to introduce permanently lower business rates multipliers for retail, hospitality and leisure (RHL) properties with rateable values below £500,000 from 2026-27. Until these new multipliers come into force, business rates RHL relief has been extended for one year at 40% up to a cash cap of £110,000 per business.

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.