Hospitality Industry: Taxation

(asked on 14th May 2025) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking through the tax system to support the hospitality sector.


Answered by
James Murray Portrait
James Murray
Exchequer Secretary (HM Treasury)
This question was answered on 20th May 2025

The hospitality sector plays a vital role in the UK economy, providing jobs and supporting local high streets and communities.

That is why the government announced a range of measures at Autumn Budget to support businesses, including those in the hospitality sector. These include:

  • Extending the retail, hospitality and leisure (RHL) business rate relief for one year at 40% (up to a cash cap of £110,000 per business). This will benefit over 250,000 properties.
  • Freezing the small business multiplier (applied to properties with a rateable value below £51,000) for 2025-26. Taken together with Small Business Rate Relief (SBRR), over a million properties will be protected from inflationary bill increases.
  • Protecting the smallest employers, many of whom are in the hospitality sector, by increasing the Employment Allowance to £10,500.
  • Cutting duty on qualifying draught products – approximately 60% of alcoholic drinks sold in pubs – to cut 1p off the duty on an average strength pint.
  • In addition, the Corporate Tax Roadmap provides the stability needed by businesses to make investments.

We keep all taxes under review and continue to explore ways to support the UK’s vital hospitality sector.

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