Asked by: Suella Braverman (Reform UK - Fareham and Waterlooville)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will meet with representatives from small hospitality businesses to discuss (a) VAT reform and (b) the introduction of sector-specific reliefs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government values the significant contribution made by hospitality and tourism businesses to economic growth and social life in the UK.
The Chancellor welcomes representations from hospitality businesses and meets with a variety of businesses, including those in the hospitality sector, as part of her role.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment her Department has made of the potential impact of labour shortages on the (a) tourism and (b) hospitality sectors in coastal areas.
Answered by Gareth Thomas
The Government recognises that labour market pressures, particularly in seasonal roles, can affect tourism and hospitality businesses in coastal areas.
We work closely with industry bodies, local partners and other Government departments to monitor workforce trends and to understand regional impacts, including through the Visitor Economy Advisory Council and Hospitality Sector Council.
The Government remains committed to ongoing collaboration across Government and industry, helping to mitigate impacts and build a more sustainable, skilled workforce to support the long‑term success of tourism and hospitality in our coastal areas.
Asked by: Joe Robertson (Conservative - Isle of Wight East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the potential impact of the standard 20% VAT rate on the international competitiveness of the (a) tourism and (b) hospitality sectors.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the significant contribution made by hospitality and tourism businesses to economic growth and social life in the UK.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. The UK’s VAT rate of 20 per cent is close to the OECD average of 19.3 per cent. The UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD, at £90,000. This keeps the majority of businesses out of the VAT regime altogether.
Asked by: Tom Hayes (Labour - Bournemouth East)
Question to the Home Office:
To ask the Secretary of State for the Home Department, what assessment she has made of the potential impact of the use of hotels as accommodation for asylum seekers on the (a) hospitality and (b) tourism sectors.
Answered by Angela Eagle - Minister of State (Department for Environment, Food and Rural Affairs)
The Home Office works closely with local authorities and other key stakeholders across the UK to ensure that any asylum accommodation is successfully and securely managed and that the impact upon the local community is minimised.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to hold discussions with representatives of the brewing and pub sector on how to (a) create growth and (b) reduce barriers to investment, before the Autumn Budget 2025.
Answered by James Murray - Chief Secretary to the Treasury
The Government is committed to supporting small and local businesses in the hospitality, tourism, and services sectors, which provide a significant contribution to the UK economy and society.
We have launched a licensing taskforce to make recommendations to cut red tape and remove barriers to business growth that exist within the UK’s licensing framework. The industry-led Taskforce has shared its findings with the Government, and we aim to update publicly by the summer.
We have prevented retail, hospitality, and leisure (RHL) business rates relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
From April 2026, we intend to introduce permanently lower business rates multipliers for RHL properties with rateable values below £500,000. The Treasury has, and will continue to, meet with the RHL sector to discuss these reforms.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and increased the relief available on draught products to 13.9%.
We have protected small businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. This means that 865,000 employers will pay no employer NICs at all this year, and more than half of employers will see no change or will gain overall from this package.
Furthermore, the Department of Business and Trade will soon be publishing its Small Business Strategy, which will announce further measures to support small businesses in the hospitality sector and to revitalise high streets.
Through The Hospitality Support Scheme, the Government is working with Pub is the Hub and providing funds to help community pubs adapt to changing local needs, ensuring these vital social hubs continue delivering for their communities.
Additionally, we have funded a wide range of community assets, including pubs, through the Community Ownership Fund. On 23 December 2024, this Government announced the outcome of Round 4 of the Community Ownership Fund, the largest ever round to date.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential merits of pubs in (a) supporting community wellbeing and (b) tackling social isolation.
Answered by James Murray - Chief Secretary to the Treasury
The Government is committed to supporting small and local businesses in the hospitality, tourism, and services sectors, which provide a significant contribution to the UK economy and society.
We have launched a licensing taskforce to make recommendations to cut red tape and remove barriers to business growth that exist within the UK’s licensing framework. The industry-led Taskforce has shared its findings with the Government, and we aim to update publicly by the summer.
We have prevented retail, hospitality, and leisure (RHL) business rates relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
From April 2026, we intend to introduce permanently lower business rates multipliers for RHL properties with rateable values below £500,000. The Treasury has, and will continue to, meet with the RHL sector to discuss these reforms.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and increased the relief available on draught products to 13.9%.
We have protected small businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. This means that 865,000 employers will pay no employer NICs at all this year, and more than half of employers will see no change or will gain overall from this package.
Furthermore, the Department of Business and Trade will soon be publishing its Small Business Strategy, which will announce further measures to support small businesses in the hospitality sector and to revitalise high streets.
Through The Hospitality Support Scheme, the Government is working with Pub is the Hub and providing funds to help community pubs adapt to changing local needs, ensuring these vital social hubs continue delivering for their communities.
Additionally, we have funded a wide range of community assets, including pubs, through the Community Ownership Fund. On 23 December 2024, this Government announced the outcome of Round 4 of the Community Ownership Fund, the largest ever round to date.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to consult representatives from the beer and pub sector ahead of the Autumn Budget 2025.
Answered by James Murray - Chief Secretary to the Treasury
The Government is committed to supporting small and local businesses in the hospitality, tourism, and services sectors, which provide a significant contribution to the UK economy and society.
We have launched a licensing taskforce to make recommendations to cut red tape and remove barriers to business growth that exist within the UK’s licensing framework. The industry-led Taskforce has shared its findings with the Government, and we aim to update publicly by the summer.
We have prevented retail, hospitality, and leisure (RHL) business rates relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
From April 2026, we intend to introduce permanently lower business rates multipliers for RHL properties with rateable values below £500,000. The Treasury has, and will continue to, meet with the RHL sector to discuss these reforms.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and increased the relief available on draught products to 13.9%.
We have protected small businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. This means that 865,000 employers will pay no employer NICs at all this year, and more than half of employers will see no change or will gain overall from this package.
Furthermore, the Department of Business and Trade will soon be publishing its Small Business Strategy, which will announce further measures to support small businesses in the hospitality sector and to revitalise high streets.
Through The Hospitality Support Scheme, the Government is working with Pub is the Hub and providing funds to help community pubs adapt to changing local needs, ensuring these vital social hubs continue delivering for their communities.
Additionally, we have funded a wide range of community assets, including pubs, through the Community Ownership Fund. On 23 December 2024, this Government announced the outcome of Round 4 of the Community Ownership Fund, the largest ever round to date.
Asked by: Josh Babarinde (Liberal Democrat - Eastbourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to help support economic growth in the hospitality sector in coastal towns.
Answered by James Murray - Chief Secretary to the Treasury
The Government is committed to supporting small and local businesses in the hospitality, tourism, and services sectors, which provide a significant contribution to the UK economy and society.
We have launched a licensing taskforce to make recommendations to cut red tape and remove barriers to business growth that exist within the UK’s licensing framework. The industry-led Taskforce has shared its findings with the Government, and we aim to update publicly by the summer.
We have prevented retail, hospitality, and leisure (RHL) business rates relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
From April 2026, we intend to introduce permanently lower business rates multipliers for RHL properties with rateable values below £500,000. The Treasury has, and will continue to, meet with the RHL sector to discuss these reforms.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and increased the relief available on draught products to 13.9%.
We have protected small businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. This means that 865,000 employers will pay no employer NICs at all this year, and more than half of employers will see no change or will gain overall from this package.
Furthermore, the Department of Business and Trade will soon be publishing its Small Business Strategy, which will announce further measures to support small businesses in the hospitality sector and to revitalise high streets.
Through The Hospitality Support Scheme, the Government is working with Pub is the Hub and providing funds to help community pubs adapt to changing local needs, ensuring these vital social hubs continue delivering for their communities.
Additionally, we have funded a wide range of community assets, including pubs, through the Community Ownership Fund. On 23 December 2024, this Government announced the outcome of Round 4 of the Community Ownership Fund, the largest ever round to date.
Asked by: Joe Robertson (Conservative - Isle of Wight East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment she has made of the total effective tax payable by (a) the hospitality sector and (b) other sectors.
Answered by James Murray - Chief Secretary to the Treasury
HM Revenue & Customs (HMRC) has not performed a comparative analysis of the total effective tax payable from the hospitality sector and other sectors.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps her Department is taking to support seasonal businesses in Fylde constituency.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the important role that seasonal businesses play in Fylde, particularly those in the tourism and hospitality sectors.
At the Budget the Government implemented a range of fiscal measures that benefit businesses in Fylde. These included:
Looking forward on business rates, we intend to introduce permanently lower tax rates for retail, hospitality & leisure properties with rateable values under £500,000, from April 2026.