Asked by: Matt Western (Labour - Warwick and Leamington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of (a) reducing VAT rates on hospitality businesses during the covid-19 pandemic on that sector and (b) reducing VAT to 12.5% on the hospitality sector on the economy.
Answered by James Murray - Chief Secretary to the Treasury
VAT is the UK’s third largest tax. It is forecast to raise £180 billion in 2025/26, which funds public services. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
The exceptional VAT relief for tourism and hospitality during the Covid-19 pandemic cost over £8 billion. The Covid Inquiry is investigating the UK’s response to and impact of the Covid-19 pandemic. The Government is cooperating fully with the Inquiry in its extensive and detailed work.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of increased NICs on the financial viability of Oakwood Theme Park in Pembrokeshire.
Answered by James Murray - Chief Secretary to the Treasury
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer National Insurance contributions (NICs). The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.
The Government decided to protect the smallest businesses from these changes by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change.
While retail, hospitality and leisure are devolved responsibilities, the UK Government is committed to supporting the Welsh tourism and hospitality sectors. In February, the Government announced a £15 million investment for Venue Cymru and the Newport Transporter Bridge. These are two key projects that will help boost the tourism and culture sectors in Wales.
Asked by: John Whitby (Labour - Derbyshire Dales)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what steps her Department is taking to encourage more (a) domestic and (b) inbound tourists to visit National Parks.
Answered by Chris Bryant - Minister of State (Department for Business and Trade)
National Parks are vital assets for tourism, attracting millions of domestic and international visitors each year and supporting local economies through recreation, hospitality, and cultural heritage. To encourage more visitors, the Government has led a once-in-a-generation reform of regional and local destination management: 41 Local Visitor Economy Partnerships have now been accredited across England, creating a high-performing network across the Visitor Economy working with local authorities and businesses at a local level - encouraging new levels of collaboration between regions and empowering domestic tourism for places of tourist interest such as National Parks.
DCMS continues to work with VisitBritain to champion visits to the British countryside to a worldwide audience. VisitBritain’s new GREAT-funded international marketing campaign, ‘Starring GREAT Britain’, uses the hook of Britain’s rich film and television history to encourage more international visitors to explore across Britain, including many rural destinations, landmarks and National Parks.
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, what recent assessment her Department has made of the potential impact of the pub sector on tourism to the UK.
Answered by Chris Bryant - Minister of State (Department for Business and Trade)
DCMS recognises that pubs are an integral part of the UK’s cultural heritage and tourism offer. While no recent assessment has been made, pubs supports local economies particularly in rural and historic areas, by encouraging longer stays and increased visitor spending. In the Autumn Budget in October 2024, the Government announced an extension of the business rate relief scheme for retail, hospitality, and leisure worth over £1.5 billion in 2025/26. DCMS continues to work closely with the industry to ensure support for such an important part of our nation's history.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what assessment she has made of the potential impact of the beer and pub sector on UK culture and tourism.
Answered by Chris Bryant - Minister of State (Department for Business and Trade)
The Pub and beer sector hold a special place in British culture, as well as being a core attraction for tourists and local people alike. They are an essential part of the visitor economy and found in every single community across England. They are a place for social gatherings, entertainment, food and drink as well as overnight accommodation.
According to research published by The British Beer and Pub Association when asked about their go-to spots during UK holidays, 6 in 10 respondents said they visit pubs, placing them just behind restaurants (73%) and on par with historic landmarks (63%).
The Government remains dedicated to ongoing collaboration with the DBT who oversees policy for hospitality to ensure stakeholder views are represented. This commitment will help ensure the UK has an attractive and competitive hospitality offer for both domestic and international visitors.
Asked by: Dan Aldridge (Labour - Weston-super-Mare)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to reduce the rate of VAT for the hospitality and tourism sector.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.
Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations. The exceptional VAT relief for tourism and hospitality during the Covid-19 pandemic cost over £8 billion. The Government has no current plans to change the VAT rate for the hospitality and tourism sector.
Asked by: Seamus Logan (Scottish National Party - Aberdeenshire North and Moray East)
Question to the Home Office:
To ask the Secretary of State for the Home Department, whether her Department has had discussions with the Scottish government's economy directorates on the staffing needs of the (a) hospitality and (b) tourism sector in the context of the skilled worker visa since 31 January 2020.
Answered by Seema Malhotra - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
The Home Office and Ministers meet regularly with Scottish Government Ministers and officials to discuss all aspects of Home Office business, including immigration and our work linking skills and visa policy to ensure our immigration system works in the interests of the whole of the UK.
Asked by: Stuart Anderson (Conservative - South Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will reduce the level of VAT on food and hot beverages in the hospitality sector.
Answered by James Murray - Chief Secretary to the Treasury
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
The exceptional VAT relief for tourism and hospitality during the Covid-19 pandemic cost over £8 billion. Reintroducing a similar relief would come at a significant further cost.
Delivering on its manifesto pledge, the Government will introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27. In the meantime, the Government has prevented RHL 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.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the Scotland Office:
To ask the Secretary of State for Scotland, what discussions he is having with the Scottish Government on support for the hospitality and tourism industry in Scotland.
Answered by Kirsty McNeill - Parliamentary Under-Secretary (Scotland Office)
Hospitality and tourism play a huge role in the cultural and economic well-being of Scotland. Indeed, the Secretary of State was a publican himself. The Scotland Office has regular engagement with key stakeholders in the sector, such as the Scottish Tourism Alliance and Scottish Hospitality Group.
I continue to engage with counterparts in the Scottish Government on a range of issues, including support for these vital industries, and we remain committed to working collaboratively to ensure the sector can thrive now and in the future.
Asked by: Mims Davies (Conservative - East Grinstead and Uckfield)
Question to the Wales Office:
To ask the Secretary of State for Wales, what discussions she has had with Cabinet colleagues on the (a) closure of Oakwood theme park and (b) potential impact of changes to employer National Insurance contributions on the (i) hospitality and (ii) tourism sectors in Wales.
Answered by Jo Stevens - Secretary of State for Wales
I have regular discussions with Cabinet colleagues on a range of matters, including those affecting the Welsh economy.
I was saddened to hear about the closure of Oakwood Theme Park. I understand this will be a concerning time for workers at the park and their families. However, Wales's tourism and hospitality offering continues to be among the best in the world, and both the UK and Welsh Governments are committed to supporting these sectors.
Regarding the impact of changes to National Insurance contributions on the sector, the UK Government has protected the smallest businesses by more than doubling the Employment Allowance to £10,500, ensuring over half of small and micro businesses pay less or no national insurance contributions. Small and Medium sized enterprises account for 99.3% of total enterprises in Wales.
The UK Government is committed to supporting the Welsh tourism and hospitality sectors. In February, we announced a £15 million investment for Venue Cymru and the Newport Transporter Bridge. These are two key projects that will help boost the tourism and culture sectors in Wales.