Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential cumulative impact on public houses of business rates, employer National Insurance contributions and recent increases in the National Living Wage.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has assessed the cumulative impacts of measures announced over recent Budgets on businesses and households. Taken together, these measures raise revenue to support the public finances in a fair way, whilst providing targeted support. The Government recognises that recent policy changes will have combined effects on some businesses. Where changes are made, relevant assessments and impact notes are published to inform stakeholders. The Treasury continues to engage with affected sectors to understand the challenges they face and to ensure the UK remains a competitive place to do business. We will continue to monitor the situation closely and keep our policy approach under review, with future tax decisions taken at fiscal events under the normal process.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the change in the level of taxation for the average pub between 2024 and 2029.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the hon. Members to the answer given to UIN 101363.
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 (a) beer and (b) pub sectors ahead of the next Budget.
Answered by James Murray - Chief Secretary to the Treasury
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is recognised in the tax system.
According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were 21,000 people employed in the manufacture of beer and 474,000 people employed in public houses and bars across Great Britain.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief, which ensures eligible products served on draught pay less duty. At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint.
The Chancellor has also confirmed her intention to permanently lower business rates for retail, hospitality, and leisure (RHL) properties, including pubs, with rateable values below £500,000 from April 2026. This will help protect the jobs supported by the pub sector.
There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here: https://www.who.int/europe/publications/i/item/9789289061940. The World Health Organization and other public health bodies are clear that duty rates have a role to play in achieving public health objectives.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.
The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment she has made of beer duty in (a) the UK and (b) other European countries.
Answered by James Murray - Chief Secretary to the Treasury
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is recognised in the tax system.
According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were 21,000 people employed in the manufacture of beer and 474,000 people employed in public houses and bars across Great Britain.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief, which ensures eligible products served on draught pay less duty. At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint.
The Chancellor has also confirmed her intention to permanently lower business rates for retail, hospitality, and leisure (RHL) properties, including pubs, with rateable values below £500,000 from April 2026. This will help protect the jobs supported by the pub sector.
There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here: https://www.who.int/europe/publications/i/item/9789289061940. The World Health Organization and other public health bodies are clear that duty rates have a role to play in achieving public health objectives.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.
The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to reduce beer duty.
Answered by James Murray - Chief Secretary to the Treasury
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is recognised in the tax system.
According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were 21,000 people employed in the manufacture of beer and 474,000 people employed in public houses and bars across Great Britain.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief, which ensures eligible products served on draught pay less duty. At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint.
The Chancellor has also confirmed her intention to permanently lower business rates for retail, hospitality, and leisure (RHL) properties, including pubs, with rateable values below £500,000 from April 2026. This will help protect the jobs supported by the pub sector.
There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here: https://www.who.int/europe/publications/i/item/9789289061940. The World Health Organization and other public health bodies are clear that duty rates have a role to play in achieving public health objectives.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.
The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate her Department has made of the number of jobs supported by the beer and pub sector.
Answered by James Murray - Chief Secretary to the Treasury
Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is recognised in the tax system.
According to the Office for National Statistics' 2023 Business Register and Employment Survey, there were 21,000 people employed in the manufacture of beer and 474,000 people employed in public houses and bars across Great Britain.
The alcohol duty system supports pubs and hospitality businesses through Draught Relief, which ensures eligible products served on draught pay less duty. At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint.
The Chancellor has also confirmed her intention to permanently lower business rates for retail, hospitality, and leisure (RHL) properties, including pubs, with rateable values below £500,000 from April 2026. This will help protect the jobs supported by the pub sector.
There is significant variation in alcohol taxation policy amongst European countries. The World Health Organization recently published a comparison of alcohol taxes across the WHO European Region, which can be found here: https://www.who.int/europe/publications/i/item/9789289061940. The World Health Organization and other public health bodies are clear that duty rates have a role to play in achieving public health objectives.
Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.
The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.
Asked by: Andrew Rosindell (Reform UK - Romford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment she has made of the potential cumulative impact of (a) (i) the extended producer responsibility scheme, (ii) VAT and (iii) beer duty and (b) equivalent taxes in other major European economies on pubs.
Answered by James Murray - Chief Secretary to the Treasury
I refer the hon. member to my answer 41143 on 2 April.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment his Department has made of the potential impact of (a) extended producer responsibility fees and (b) other tax increases on the viability of UK breweries.
Answered by Mary Creagh - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The 2024 pEPR impact assessment can be found here.
The impact assessment estimated the pEPR producer fees would generate over £1 billion annually to support local authority collection and disposal services, including recycling services. We expect Greenhouse Gas Emissions savings of approximately 0.8 million tonnes of carbon dioxide equivalent over the 10-year appraisal period.
Retail, Hospitality and Leisure (RHL) relief would have ended entirely in April 2025, creating a cliff-edge for businesses. Instead, the Government has decided to offer a 40 per cent discount to RHL properties up to a cash cap of £110,0000 per business in 2025-26 and frozen the small business multiplier.
By tapering RHL relief to 40%, rather than letting it end, the Government has saved the average pub, with a rateable value (RV) of £16,800, over £3,300 in 2025.
At Budget, the Government also announced that from 2026-27, it intends to introduce permanently lower tax rates for RHL properties with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on the most valuable properties, which includes the majority of large distribution warehouses, including warehouses used by online giants.
The rates for any new business rate multipliers will be set at Budget 2025 so that the Government can take into account the upcoming revaluation outcomes as well as the economic and fiscal context.
Asked by: James Frith (Labour - Bury North)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential impact of (a) extended producer responsibility fees and (b) other tax increases on the viability of UK breweries.
Answered by Mary Creagh - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The 2024 pEPR impact assessment can be found here.
The impact assessment estimated the pEPR producer fees would generate over £1 billion annually to support local authority collection and disposal services, including recycling services. We expect Greenhouse Gas Emissions savings of approximately 0.8 million tonnes of carbon dioxide equivalent over the 10-year appraisal period.
Retail, Hospitality and Leisure (RHL) relief would have ended entirely in April 2025, creating a cliff-edge for businesses. Instead, the Government has decided to offer a 40 per cent discount to RHL properties up to a cash cap of £110,0000 per business in 2025-26 and frozen the small business multiplier.
By tapering RHL relief to 40%, rather than letting it end, the Government has saved the average pub, with a rateable value (RV) of £16,800, over £3,300 in 2025.
At Budget, the Government also announced that from 2026-27, it intends to introduce permanently lower tax rates for RHL properties with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on the most valuable properties, which includes the majority of large distribution warehouses, including warehouses used by online giants.
The rates for any new business rate multipliers will be set at Budget 2025 so that the Government can take into account the upcoming revaluation outcomes as well as the economic and fiscal context.
Asked by: Alex Norris (Labour (Co-op) - Nottingham North and Kimberley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to help ensure his taxation and fiscal policy supports the pub industry.
Answered by Felicity Buchan
The Government understands the benefits pubs bring to our communities, recognises the pressures currently facing the sector and is taking action.
Businesses in the retail, hospitality and leisure sector will receive a tax cut worth almost £1.7 billion in 2022-23. Eligible properties will receive 50 per cent off their business rates bill, up to a maximum of £110,000 per business.
Combined with Small Business Rates Relief, this means over 90 per cent of retail, hospitality and leisure businesses will receive at least 50 per cent off their rates bills in 2022-23. The Government has also committed to freezing the multiplier for a further year, which is a tax cut worth £4.6 billion to businesses over the next 5 years.
Further, as part of the alcohol duty reform, the government will introduce a new draught relief, giving an approximate 5% duty cut to cider and beer sold in pubs. The government will provide an update on the alcohol duty reforms over the coming weeks.