Supporting SMEs, Retail, and Hospitality and Tourism 2025-01-21
2025-01-21
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The Labour manifesto committed to replacing the business rates system. However, there was a perception that the Government's approach might only involve minor adjustments rather than comprehensive reform.
The Labour manifesto committed to replacing the business rates system. However, last week at the Treasury Committee, the Minister seemed to rule out the kind of comprehensive reform that the Liberal Democrats and others have been campaigning for, and indicated that there might only be a tinkering around the edges of rates and reliefs. Can the Minister confirm today whether the Government still intend to replace the business rates system, or will they just be tinkering around the edges of this broken system?
I think that retail, hospitality and leisure businesses, which are the backbone of our high street, might object to the idea of permanently lower tax rates as “tinkering around the edges”. That is a fundamental change that we want to bring in from April 2026 to make sure they have stability, certainty and permanently lower rates. Alongside it are our wider ambitions in the “Transforming Business Rates” discussion paper, which I invited the hon. Gentleman to read and respond to at last week’s Treasury Committee.
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Assessment & feedback
The Minister avoided directly confirming or ruling out comprehensive reform of the business rates system, focusing instead on plans for lower tax rates in specific sectors.
Rephrasing The Question To Focus On Different Aspects
Reference To A Discussion Paper
Response accuracy
Q2
Partial Answer
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Context
Retail is an important part of the economy in Michael Wheeler's constituency, and he has received a letter from Will who runs Wandering Palate about challenges faced by small business owners.
I draw Members’ attention to my declaration in the register of interests. Retail is an important part of the economy in my constituency, which includes many wonderful independent businesses. Will, who runs the excellent Wandering Palate in Monton, wrote to me about the challenges he is facing. Will the Minister outline the measures the Government are taking to support small business owners like Will in my constituency and across the country to enable our high streets to thrive?
I thank my hon. Friend for his question and for referencing Wonderful Palate, the business in his constituency. I do not know the details of the rateable value of that property, but I point the owner to the fact that we are retaining small business rate relief, freezing the small business multiplier next year and extending the retail, hospitality and leisure relief in 2025-26. I also point the owner of that business and other businesses to our future plan, as I mentioned, to have permanently lower tax rates for retail, hospitality and leisure businesses with values of below £500,000, as well as to consider reforms to small business rate relief to better support businesses that want to expand into a second premises.
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Assessment & feedback
The Minister did not provide specific measures for supporting Wandering Palate directly but outlined broader government policies supporting retail businesses.
Generalizing The Answer To Include All Small Business Owners
Response accuracy
Q3
Partial Answer
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Context
Seasonal tourism businesses such as Paignton zoo and Splashdown are facing challenges due to national insurance hikes.
What consideration have Ministers given to exempting the seasonal tourism industry from the national insurance hikes set to kick in this summer? That would benefit Paignton zoo and Splashdown in the Torbay constituency.
We set out the details of our decision to increase the rate of national insurance contributions from employers and to reduce the threshold, and we have added the different benefit we will give, particularly to small businesses and charities, by more than doubling the employment allowance. The employer national insurance contribution changes were among the toughest we took in the Budget, but they were necessary to repair the public finances and deliver the economic stability that is so crucial for investment and growth.
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Assessment & feedback
The Minister did not confirm or deny whether exemptions would be given; instead, he focused on the necessity of the national insurance changes.
Highlighting The Necessity Of The Decision
Response accuracy