Commons Sense

House of Commons · Ministers' Questions

Supporting SMEs, Retail, and Hospitality and Tourism

Tuesday 21 January 2025 · 3 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Minister ruled out comprehensive business rates reform, suggesting fundamental change for retail, hospitality and leisure businesses starting April 2026.
  • Minister highlighted retention of small business rate relief and freezing of the small business multiplier to support independent businesses.
  • Minister noted details of decision to increase national insurance contributions and introduced employment allowance benefit for small businesses and charities.

Topics (select to filter)

Questions & Answers

Q1 Bobby Dean Lib Dem Carshalton and Wallington
Economy Business & Trade
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.

Question

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?

Answer from James Murray (Exchequer Secretary to the Treasury)

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.

Partly answered

Not addressed: 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.

How: Rephrasing The Question To Focus On Different Aspects, Reference To A Discussion Paper

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Q2 Michael Wheeler Lab Worsley and Eccles
Economy Taxation Business & Trade
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.

Question

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?

Answer from James Murray (Exchequer Secretary to the Treasury)

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.

Partly answered

Not addressed: The Minister did not provide specific measures for supporting Wandering Palate directly but outlined broader government policies supporting retail businesses.

How: Generalizing The Answer To Include All Small Business Owners

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Q3 Steve Darling Lib Dem Torbay
Taxation Employment
Context

Seasonal tourism businesses such as Paignton zoo and Splashdown are facing challenges due to national insurance hikes.

Question

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.

Answer from James Murray (Exchequer Secretary to the Treasury)

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.

Partly answered

Not addressed: The Minister did not confirm or deny whether exemptions would be given; instead, he focused on the necessity of the national insurance changes.

How: Highlighting The Necessity Of The Decision

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