Hospitality Industry: VAT

Baroness Kramer Excerpts

Monday 14th September 2026 Lords Chamber

[Lord Pitt-Watson (Lab)]

I cannot comment about changes in taxation, particularly in the run-up to the Budget, but if I might just correct the noble Lord, the point I made in my first Answer was that there has been support given, particularly to pubs and music venues. Support has been given particularly to smaller businesses—750,000 properties—and in reductions in national insurance to 900,000 people who work for smaller businesses. The corporation tax here in the UK is the lowest in the G7 and it is reduced for small businesses, so I reject the thought that no help has been given.

[Baroness Kramer (LD)]

My Lords, back in November 2025 my party called for a 5% cut in VAT on hospitality because the situation was so dire, with at least a third of the industry operating at a loss. Will the Minister now look again at the VAT cut? Will he also follow through on those other issues where small businesses need help, such as a different regime for NICs for part-time workers? Will he look at their energy costs, because most of them cannot access the attractive energy packages as they are not available to the small firms? The change in business rates favours the corporate chains but actually disadvantages most of the small independents. They are the backbone and they are the employers, especially of our young people.

[Lord Pitt-Watson (Lab)]

I entirely echo the noble Baroness’s congratulations to the hospitality industry. I will be more than happy to answer the questions she has asked after the Budget, but I think most of them anticipate changes in tax, which it would be inappropriate for me to discuss at this point.