Commons Sense

House of Commons · Ministers' Questions

Hospitality Businesses

Tuesday 20 June 2023 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 1 Not answered 0

Key points

  • Hospitality businesses will benefit from a business rates support package worth 13.6 billion over the next five years.
  • The government is reviewing VAT matters but has raised VAT for the hospitality sector back to 20% after pandemic relief.
  • The Minister praised Conservative efforts to help businesses through business rates relief and energy support schemes.

Topics (select to filter)

Questions & Answers

Q1 Ben Lake PC Ceredigion Preseli
Economy Brexit Business & Trade
Context

The MP is concerned about the financial challenges faced by local hospitality businesses due to economic pressures and seeks specific fiscal measures.

Question

What fiscal steps he is taking to support hospitality businesses?

Answer from Victoria Atkins

Hospitality businesses play an important role in local communities and the UK economy. They will benefit from business rates support worth £13.6 billion over the next five years, which includes increased generosity from the retail, hospitality and leisure relief scheme from 50% to 75% in 2023-24. There is also our Brexit pub guarantee, which means that the duty on a draught pint in a pub will always be lower than its equivalent in the supermarket.

Answered
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Q2 Ben Lake PC Ceredigion Preseli
Taxation Business & Trade
Context

The MP is aware of calls from the sector to reduce VAT rates in line with European standards and proposes a review of the economic benefits.

Question

Will the Treasury undertake an assessment of the economic benefits of reducing VAT to bring it into line with European equivalents? Will it consider that as part of a package, alongside increasing the threshold for VAT registration from £85,000 to £100,000 to support smaller businesses?

Answer from Victoria Atkins

The hon. Gentleman poses many questions for me, some of which are very complicated. VAT relief for the hospitality sector was important in the aftermath of the pandemic, but it cost us a great deal of money and we have had to raise it back up to 20%. We keep the other VAT matters under review, and I would be delighted to meet him to discuss the complexities behind them.

Partly answered

Not addressed: specific assessment of economic benefits and increasing VAT registration threshold

How: Questions Are Very Complicated, Keeps Under Review

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Q3 Stephen Crabb Con
Taxation Employment Wales
Context

The MP highlights new job opportunities in the tourism and hospitality sector in Pembrokeshire and expresses concern about a proposed tourism tax.

Question

A great many of the new job opportunities and career paths being created in Pembrokeshire are in the tourism and hospitality sector. Does my hon. Friend agree that the very last thing that business people who are creating those growth opportunities need right now is a tourism tax of the kind being brought forward by the Welsh Labour Government in Cardiff, which will hit businesses with new burdens and raise the cost of going on holiday in Wales?

Answer from Victoria Atkins

The sun always shines in my right hon. Friend's corner of Pembrokeshire when he speaks up for it. He is quite right to identify how the Conservatives in Government are trying to help businesses through our business rates relief in England, through our energy support scheme over recent months and, of course, through the Brexit pub guarantee. Welsh Labour, on the other hand, wants to call last orders and have higher taxes for the businesses he is so keen to support.

How: Compares Support In England, Criticizes Welsh Labour

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Q4 Abena Oppong-Asare Lab Erith and Thamesmead
Economy Business & Trade
Context

The MP references the Conservative Party's promise to reform business rates but notes it has not been fulfilled.

Question

The 2019 Conservative manifesto, some three Prime Ministers and four Chancellors ago, promised a fundamental reform of business rates. This is another broken Tory promise. Will the Minister admit that only a Labour Government will end the chaos, scrap business rates and replace them with a fairer system, so that our amazing hospitality sector can thrive and grow faster?

Answer from Victoria Atkins

I have a great deal of respect for the hon. Lady, but I must point out to her gently that we have, in fact, conducted that review. In the autumn statement, we were able to announce a £13.6 billion package of help over the next five years, including a multiplier freeze for all ratepayers, large and small; a transitional relief cap funded by the Exchequer; retail, hospitality and leisure relief; and a small business support scheme, which will help to cap bill increases at £600 per year for any business losing eligibility for some or all small business rate relief or rural rate relief at the 2023 revaluation. We have done that review and are supporting businesses that need help.

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