Asked by: Joshua Reynolds (Liberal Democrat - Maidenhead)
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.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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.
Asked by: Lord Bailey of Paddington (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they plan to reduce value added tax for hospitality and night-time venues to boost recovery, encourage investment and support long-term growth.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.
VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
HMRC estimate that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £13 billion this financial year. If the scope were also to include alcoholic beverages, the cost would be approximately £3 billion greater.
The Government keeps all taxes under review, and the Chancellor makes decisions on tax changes at the Budget, in the context of the overall public finances.
Asked by: Lord Bailey of Paddington (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they plan to extend the business rates relief scheme for the night-time economy sector; and what steps they are taking towards business rates reform for that sector.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
To deliver our manifesto pledge, from 2026/27, we intend to introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000, which will include many properties used by the night-time economy sector. This permanent tax cut will ensure that they benefit from much-needed certainty and support.
Ahead of the new multipliers coming into force, we recognise that businesses will need support in 2025/26. As such, we have extended the RHL business rates relief for one year at 40 per cent up to a cash cap of £110,000 per business. Under the previous Government, RHL relief was due to end entirely in April 2025.
Eligibility for the new RHL multipliers is intended to broadly reflect the scope of the existing RHL relief scheme and will be set out in legislation later this year. Eligibility for the RHL relief scheme is set out in guidance published by the Ministry of Housing, Communities & Local Government and includes many night-time economy businesses.
Asked by: Liz Jarvis (Liberal Democrat - Eastleigh)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps his Department is taking to support the growth of the night-time economy in Eastleigh constituency.
Answered by Blair McDougall - Parliamentary Under Secretary of State (Department for Business and Trade)
The Government recognises the vital role that night-time venues, including those in Eastleigh constituency play in supporting local economies.
In April, the Government established the Licensing Taskforce, bringing together representatives from the hospitality industry to help shape reform. The Government’s response, published on 31 July, set out proposals for a new National Licensing Policy Framework designed to simplify outdated licensing rules and protect long-standing venues from noise complaints, which are particularly relevant to the night-time economy.
Additionally, we are reforming the business rates system to support high street investment, including permanently lower rates for retail, hospitality and leisure properties with a rateable value under £500,000.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what steps his Department is taking to reduce levels of light pollution from large industrial units.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The Government does recognise that good use of artificial light can contribute to preventing accidents; reducing crime and creating safer spaces and promoting the night time economy, benefiting us all in various ways.
The Government has put in place a range of measures to ensure that light pollution is effectively managed through controls in the planning system; the Permitted Development Regime and the Statutory Nuisance Regime.
The Environmental Protection Act requires local authorities to take reasonably practicable steps to investigate complaints of artificial light emitted from premises so as to be prejudicial to human health or a nuisance and they have powers to take action where there is a problem.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what steps her Department is taking to protect long-standing (a) cultural and (b) night-time economy venues from (i) closure and (ii) restrictions due to new residential development.
Answered by Matthew Pennycook - Minister of State (Housing, Communities and Local Government)
The National Planning Policy Framework provides strong protections to ensure that new residential development can be integrated effectively with existing businesses and community facilities.
It sets out that existing businesses and facilities should not have unreasonable restrictions placed on them as a result of development permitted after they were established.
Where the operation of an existing business or community facility could have a significant adverse effect on new development (including changes of use) in its vicinity, the applicant (or ‘agent of change’) should be required to provide suitable mitigation before the development has been completed.
We will consider how we can ensure the most effective implementation of the ‘agent of change’ principle as part of our work to create a new set of national policies for decision making which we will consult on this year.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, pursuant to the Answer of 22 May 2025 to Question 52734 on Night-time Economy, how much funding from the Creative Foundations Fund has been allocated to listed nightclubs.
Answered by Chris Bryant - Minister of State (Department for Business and Trade)
The Creative Foundation Fund (CFF) will support arts and cultural organisations across England to resolve urgent issues with their estates. This is part of this government’s ongoing commitment to ensure arts and culture are fit for the future and to ensure everyone has access to high quality institutions in the places they call home. The fund will support organisations to continue delivering creative or cultural activity, support growth and increase opportunities to develop creative skills and engage in high-quality creative work.
Funding will be distributed to arts and cultural organisations across England following an open application process led by Arts Council England (ACE). All applicants will be notified of the outcome of their full application and funding committed by Arts Council England by 31 March 2026. The fund has been designed to address the varying scales of need being experienced by different organisations, with funding being distributed to ensure maximum impact across the country. We expect the fund to support a mix of projects of varying sizes across the English regions, subject to applications received.
This fund is specifically designed to support not-for-profit arts organisations within the funding remit of Arts Council England. Eligible organisations must be not-for-profit and show that their primary aims are cultural and their activities fall within the remit of ACE. They must have delivered cultural activity in the last 12 months and be able to demonstrate that the investment is business-critical to delivering creative or cultural activity. Full eligibility details in the guidance can be found on ACE’s website.
We understand that there are varying needs across the music sector, and the Creative Foundations Fund is one of the ways that we are supporting music venues. We are continuing to support ACE’s Supporting Grassroots Music Fund by providing £2.5 million funding in 2025-26. This provides grants to grassroots music organisations, including those that host or promote electronic music.
Asked by: Steve Race (Labour - Exeter)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, with reference to the Equality and Human Rights Commission document entitled An interim update on the practical implications of the UK Supreme Court judgment, published on 25 April 2025, what assessment she has made of the potential financial impact of the EHRC's update on the night time economy.
Answered by Chris Bryant - Minister of State (Department for Business and Trade)
We appreciate that any reinterpretation or clarification of the Equality Act 2010 may raise operational considerations for businesses, including in the night time economy. The Equality and Human Rights Commission (EHRC)'s update aims to support understanding and inform future dialogue rather than mandate specific changes. Employers and other duty bearers should continue to follow the law and take appropriate legal advice where necessary.
The EHRC has launched a consultation on their Code of Practice for Services, Public Functions and Associations which closes on 30 June. We encourage stakeholders to engage with the EHRC consultation and make their views heard.
The Government is committed to engaging with both the EHRC and sector stakeholders to ensure that any changes in interpretation or practice are understood and implemented in a proportionate way. The Government will consider the EHRC's updated draft Code of Practice once it has been submitted, to help provide greater clarity for service providers, in line with the Supreme Court ruling.
Asked by: Steve Race (Labour - Exeter)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what recent estimate she has made of the cost to the night-time economy of implementing the Equality and Human Rights Commission's revised code of practice for services, public functions and associations.
Answered by Chris Bryant - Minister of State (Department for Business and Trade)
We appreciate that any reinterpretation or clarification of the Equality Act 2010 may raise operational considerations for businesses, including in the night time economy. The Equality and Human Rights Commission (EHRC)'s update aims to support understanding and inform future dialogue rather than mandate specific changes. Employers and other duty bearers should continue to follow the law and take appropriate legal advice where necessary.
The EHRC has launched a consultation on their Code of Practice for Services, Public Functions and Associations which closes on 30 June. We encourage stakeholders to engage with the EHRC consultation and make their views heard.
The Government is committed to engaging with both the EHRC and sector stakeholders to ensure that any changes in interpretation or practice are understood and implemented in a proportionate way. The Government will consider the EHRC's updated draft Code of Practice once it has been submitted, to help provide greater clarity for service providers, in line with the Supreme Court ruling.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps he is taking to improve night-time public transport to support the night-time economy.
Answered by Simon Lightwood - Parliamentary Under-Secretary (Department for Transport)
The government knows that public transport is vital to keeping communities connected, including at night to support the nighttime economy.
The government introduced the Bus Services (No.2) Bill on 17 December to put the power over local bus services back into the hands of local leaders. In addition, the government has confirmed £955 million for the 2025 to 2026 financial year to support and improve bus services in England outside London. This funding can be used in whichever way local authorities wish to improve services for passengers, including improving nighttime bus services.
Rail services are supported by requirements on train operators to plan services and design timetables to meet both current and future passenger demand, while also ensuring value for money for the taxpayer. The government commitment to public ownership through Great British Railways will also help to deliver a unified system that focuses on reliable, affordable, high-quality, and efficient transport services, whilst also ensuring safety and accessibility. Under public ownership, passenger services can be operated in the interests of passengers, not shareholders, including by helping to improve access to night time services.