Topical Questions 2026-01-27

2026-01-27

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Response quality

Questions & Answers

Q1 Partial Answer
Paula Barker Lab
Liverpool Wavertree
Context
The question stems from a visit Paula Barker made to the Masonic Arms pub in Lark Lane, Liverpool, where she observed that pubs bear an unusually high burden of business rates relative to their turnover. She notes the closure of 7,000 pubs under the previous government.
While I am looking forward to the statement a little later from the Exchequer Secretary to the Treasury, I would like to push him, if I may. I recently visited one of my local pubs, the Masonic Arms on Lark Lane—which is a fantastic venue—and met Guy and Amelia. Currently, the overall sector picks up 2.8% of UK business rates nationally, but has only 0.5% of the turnover of UK businesses. This is clearly not a fair tax for pubs; it is the result of a uniquely skewed business rates system that actively penalises many pubs. What long-term steps can the Minister take to help pubs like the Masonic Arms and the wider hospitality sector?
As my hon. Friend knows, we have permanently reduced the multiplier for business rates for retail, hospitality and leisure, but my hon. Friend the Exchequer Secretary will set out the support for pubs in more detail later today. We are determined not only to support pubs, which are the lifeblood of so many communities, but also to support the whole of our retail, hospitality and leisure sector. We are putting more money in people’s pockets by cutting energy bills and train fares and getting people back to work, so that they have more money to spend on the things they love, not just on the essentials.
Assessment & feedback
Did not provide specific long-term measures for alleviating business rates on pubs beyond mentioning a future statement from another minister.
Will Set Out Support Later Not Providing Specifics Now
Response accuracy
Q2 Partial Answer
Mel Stride Con
Central Devon
Context
Sir Mel raises the issue of business rates increases affecting pubs, noting that some have seen over 100% hikes. He criticizes the government for focusing on other areas rather than providing permanent support.
Mr Speaker, I begin by associating Conservative Members with the Chancellor’s comments about your leg—we wish it well. We are waiting with interest to hear the details of the latest U-turn on business rates this afternoon, but if the briefing is to be believed, it will be far too little, too late. The Chancellor simply does not understand the desperate situation so many of our pubs are in. Many pubs are asking why the Chancellor chose to spend billions more on the benefits bill instead of providing proper, permanent business rates support.
Under the previous Government—when the right hon. Gentleman was in government—7,000 pubs closed. We have permanently lowered the tax rate that retail, hospitality and leisure businesses pay. When I became Chancellor of the Exchequer, we faced a situation in which all of the covid support was going to disappear overnight. We have put £4.3 billion of taxpayers’ money into supporting our retail and hospitality sector, including pubs, but we recognise the distinct problems that pubs face. That is why, unlike the previous Conservative Government, we are setting out more support.
Assessment & feedback
Did not address why benefits were prioritized over business rates relief for pubs specifically.
Comparing To Previous Government Mentioning Pandemic Support
Response accuracy
Q3 Direct Answer
Preet Kaur Gill Lab/Co-op
Birmingham Edgbaston
Context
The MP noted concerns about counterfeit goods and financial crimes in her constituency, affecting Hagley Road, Harborne, and Bearwood High Street. She referenced the impact on local businesses and communities.
My constituents are fed up with seeing more and more dodgy Bob Shops on Hagley Road, Harborne and neighbouring Bearwood High Street. Can the Chancellor say what the Government are doing to tackle money laundering and other financial crimes involving the dodgy shops blighting our high streets?
I could not agree more with my hon. Friend, and that is why I announced—on the basis of many representations from colleagues, including her—a comprehensive set of measures at the Budget to crack down on illegal high street activity. We want our high streets to thrive, but we must crack down on these illegal businesses selling counterfeit goods and often harbouring more dangerous criminal activity.
Assessment & feedback
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Q4 Partial Answer
Edward Morello LD
West Dorset
Context
The MP highlighted extensive flooding in his constituency, affecting multiple towns and leading to a shortfall in funding for the local fire service. He mentioned that the area will suffer a £1.2 million shortfall due to incorrect Treasury assumptions.
Vast swathes of Bridport, Beaminster, Maiden Newton, Yetminster and Thornford—whole parts of West Dorset—are under water. Dorset and Wiltshire Fire Service is doing an amazing job of rescuing residents who are trapped either at home or in cars, but unfortunately it will suffer a £1.2 million shortfall in the long-term funding settlement because the Treasury’s underlying assumptions are incorrect. Will the Chancellor meet me, so that we can show her why this is a problem for the service?
Let me start by thanking the emergency services in the hon. Gentleman’s constituency for all their work to ensure that people are kept safe, and to respond to the challenges that people face as a result of flooding. We are determined to support public services across the board, and the decisions taken by my right hon. Friend the Chancellor in past Budgets and in the spending review mean that we have sustainable funding for our public services in all parts of the country.
Assessment & feedback
Support Public Services Across The Board Decisions Taken By My Right Hon. Friend The Chancellor
Response accuracy
Q5 Direct Answer
Nia Griffith Lab
Llanelli
Context
The MP expressed appreciation for economic support from the government but also criticism of Reform, a think tank, welcoming individuals who had previously undermined public services and the economy.
I thank my right hon. Friend the Chancellor for bringing us record investment, financial stability and repeated interest rate cuts, but does she share my astonishment that Reform is not only welcoming treacherous Tories who did so much to wreck our economy and public services, but actually entrusting them with economic policy?
My hon. Friend is absolutely right. The hon. Member for Clacton (Nigel Farage) is warmly welcoming people who spent 14 years undermining public services, who wrecked the economy, who botched Brexit, and who were booted out by the British people in 2024—and Reform’s latest recruit was so bad that she managed to get sacked by Liz Truss.
Assessment & feedback
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Q6 Partial Answer
Wendy Chamberlain LD
North East Fife
Context
The MP raised concerns about the Energy Company Obligation (ECO) scheme, which she believes is not addressing issues adequately. She cited her constituents' dissatisfaction with the vague promises in the warm homes plan.
I heard the Minister’s words to the hon. Member for Shipley (Anna Dixon) about the energy company obligation 4 scheme, but the vague promise in the warm homes plan to put right poor-quality work under ECO4 seems like empty words to my constituents who are affected. Will the Treasury consider the only viable alternative to this disastrous scheme, which is redress?
That is an important question, because too many people have been let down by the scheme that was introduced by the Conservatives. I am sure that the hon. Lady noted the Energy Secretary’s announcement last week about the £15 billion warm homes plan, which will ensure that work to upgrade the quality of British homes continues in the years ahead for all households, but particularly for low-income households. She will also be aware that ongoing remediation work will take place as part of that scheme.
Assessment & feedback
Noting Energy Secretary’S Announcement Referring To Remediation Work
Response accuracy
Q7 Direct Answer
Andy McDonald Lab
Middlesbrough and Thornaby East
Context
The MP highlighted the Ben Houchen’s Teesworks saga, noting the misuse of public funds. He questioned what steps were being taken to ensure that there is meaningful investment for economic growth and development in Teesside.
Ben Houchen’s Teesworks saga has seen more than half a billion pounds of taxpayers’ money funnelled into enriching a few business people, while the opportunity for a sovereign wealth fund investment programme has been squandered. What steps are being taken to ensure that there is meaningful investment for economic growth and development in Teesside?
This Government are backing investment in Teesside to create the good jobs that my hon. Friend’s constituents deserve. I know that Teesside is very well placed to lead for our country across a range of sectors. For example, £4 billion is going into the UK’s first carbon capture, usage and storage cluster in Teesside, including the world’s first at-scale gas power station with CCUS.
Assessment & feedback
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Q8 Partial Answer
Bobby Dean LD
Carshalton and Wallington
Context
The MP discussed the potential conflict between tax rules and recent payouts related to the motor finance scandal, questioning whether banks could apply tax deductions after paying compensation.
Ten years ago, this place introduced legislation preventing banks from applying tax deductions after paying compensation for wrongdoing. Now lenders are set to pay out billions of pounds in connection with the motor finance scandal, but they will be able to reduce their tax bills because most of those companies have channelled their money via subsidiaries. Does the Minister agree that that is not in keeping with the spirit of the law, and will the Government do something about it?
The hon. Member has referred to the motor finance redress situation. As the House would expect, we are monitoring that very closely, and we want to see the issues resolved in an efficient way that provides certainty for consumers and for firms. As the hon. Member knows, seeking to change the rules on corporation tax would mean deviating from our commitment to certainty and predictability in the tax system, as set out in our corporate tax road map.
Assessment & feedback
Monitoring Situation Closely Commitment To Certainty In Tax System
Response accuracy
Q9 Partial Answer
Rupert Lowe Ind
Great Yarmouth
Context
The questioner wrote to the Chancellor on January 8th, supported by 7,000 small businesses across various sectors including pubs. They are concerned about rate re-evaluations and tax rises as well as the cost of implementing the Employment Rights Act 2025.
I wrote to the Chancellor on 8 January, with the support of 7,000 small businesses from across the spectrum—not just pubs. They are concerned about not only rate re-evaluations and the vicious tax rises that they have had to suffer, but also the cost of implementing the Employment Rights Act 2025. When can the 7,001 of us expect a reply?
I regularly reply to letters and parliamentary questions from Members on both sides of the House. In this case, I have received correspondence similar to what was described by the hon. Member and will ensure that a thorough response is provided in due course.
Assessment & feedback
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Q10 Direct Answer
Antonia Bance Lab
Tipton and Wednesbury
Context
The hon. Member highlights the importance of small businesses in advanced manufacturing supply chains within her constituency, emphasising that successfully implementing an industrial strategy is vital to securing growth through these enterprises.
There are many small and medium-sized enterprises in advanced manufacturing supply chains in my bit of the Black Country. Does the Chancellor agree that successfully implementing our industrial strategy is vital to securing the growth, through small businesses, that we need to get British industry back on track?
I thank my hon. Friend for the work she does to champion small businesses and all businesses in the Black Country, particularly those in her constituency. Advanced manufacturing is one of our industrial strategy sectors where we have huge strengths as a country. We are determined to support such businesses in growing and fulfilling their potential.
Assessment & feedback
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Q11 Partial Answer
Edward Argar Con
Melton and Syston
Context
Concerns have been raised about increased administrative burdens and cash-flow pressures for childminders due to changes under the Making Tax Digital framework, specifically regarding wear and tear allowances.
What does the Minister say to childminders in Melton and Syston who are concerned about potentially increased administrative burdens and cash-flow pressures as a result of changes under Making Tax Digital for businesses with a turnover of at least £50,000? It is scrapping the blanket 10% wear and tear allowance, and replacing it with a requirement for line-by-line item accounting, with childminders having to pay up front and claim back later.
This is an important issue that is of concern to childminders. I have replied to correspondence on this topic from Members in this place, and would be happy to talk to Members about it further. The change is proportionate and reasonable, and we have engaged closely with the sector to ensure the burden will be proportionate for those affected by it.
Assessment & feedback
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Q12 Direct Answer
Sarah Coombes Lab
West Bromwich
Context
The hon. Member notes that Sandwell is set to receive £1.5 million from the Government's Pride in Place initiative, and seeks assurance that local communities will have a say in how this money is spent.
Thanks to the policies of the Labour Treasury team, Sandwell will receive £1.5 million to smarten up our towns. Does the Chancellor agree that local people should have a say in how that funding is spent, and will she encourage people in Rowley, West Bromwich and Oldbury to fill in my survey about how we spend this Government cash?
I very much encourage people in my hon. Friend’s constituency to fill in her survey. The Pride in Place money, which we are allocating across some of the most deprived parts of the country, will make a huge difference in regenerating areas left behind by the previous Government. I encourage everyone in all our communities to get involved and shape those plans because they can only be improved by direct contact with the people who stand to benefit from them most.
Assessment & feedback
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Q13 Partial Answer
Dave Doogan SNP
Angus and Perthshire Glens
Context
The MP referenced the restoration of the Alyth hotel in his constituency, highlighting its transformation from near dereliction to a successful venue. He noted that businesses face multiple burdens including VAT, wages, duty increases, energy costs, and reduced spending.
Constituents have restored the Alyth hotel which is now an outstanding dining and drinking venue as well as a hotel but they are smothered by compound burden of VAT rates, wage costs, duty increases, employer national insurance contributions, energy costs and squeeze on spending. There were 8,000 fewer jobs in hospitality in December than in November, and 20,000 fewer than in September. Will the Chancellor consider reducing VAT on hospitality to the 7% it is in Germany, the 9% it is in Ireland, or the 10% it is in Spain and Italy?
I suggest that the people of Scotland ask who was in charge in Scotland for the last two decades, kick them out at the next election, and give Labour a chance.
Assessment & feedback
The specific request to reduce VAT rates for hospitality
Redirecting Blame
Response accuracy