Asked by: Cameron Thomas (Liberal Democrat - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to support the (a) hospitality and (b) pub sector in rural areas.
Answered by James Murray - Exchequer Secretary (HM Treasury)
On 4 April 2025, the Government announced the Licensing Policy Taskforce, which is currently working intensely with the industry to ensure licensing conditions for businesses within the sector – such as pubs, restaurants, and music venues – are proportional. The Taskforce is sharing its findings with the Government and aims to update publicly by the summer.
Delivering on our manifesto pledge, we will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27. In the meantime, we have prevented RHL relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
At Autumn Budget 2024, the Chancellor also announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year. This reduction increased the relief available on draught products to 13.9%.
The hospitality sector is predominately made up of smaller businesses. The Government has protected the smallest businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no employer NICs at all next year. More than half of employers will see no change or will gain overall from this package and eligible employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs.
The Government has funded a wide range of community assets, including pubs, through the Community Ownership Fund. On 23 December 2024, this Government announced the outcome of Round 4 of the Community Ownership Fund, the largest ever round to date. The Government also provides 100 per cent business rates relief for properties that are based in eligible rural areas with populations below 3,000. To be eligible, the business must be the only public house and have a rateable value of up to £12,500.
Asked by: Cameron Thomas (Liberal Democrat - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the adequacy of the (a) availability and (b) accessibility of banking hubs in Gloucestershire.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government understands the importance of face-to-face banking to communities and high streets in Gloucestershire and across the UK, and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 230 hubs have been announced so far, and over 160 are already open.
The location of these hubs is determined independently by LINK, the industry coordinating body responsible for making access to cash assessments. When a cash service such as a bank branch closes, or if LINK receives a request directly from a community, LINK assesses a community’s access to cash needs. This assessment may lead to a recommendation for the establishment of a banking hub in that community. When assessing, LINK takes account of how accessible remaining cash services (e.g. bank branches) are by public transport, including journey times and cost.
A banking hub has been recommended for Thornbury in South Gloucestershire and a property search is currently underway.
Asked by: Cameron Thomas (Liberal Democrat - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of lowering the National Insurance contribution threshold to £5,000 on small businesses that employ part time employees.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has taken a number of difficult but necessary decisions on tax, welfare, and spending to fix the public finances.
One of the toughest decisions we took was to raise the rate of employer National Insurance contributions (NICs) from 13.8% to 15%, whilst reducing the per-employee threshold at which employers start to pay National Insurance (the Secondary Threshold) from £9,100 to £5,000.
The Government decided to protect the smallest businesses from these changes by increasing the Employment Allowance from £5,000 to £10,500. This means that next year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change.
A Tax Information and Impact Note (TIIN) was published alongside the introduction of Bill containing the changes to employer NICs, setting out the impact of the policy.
Asked by: Cameron Thomas (Liberal Democrat - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason the Government has increased vehicle excise duty for (a) electric and (b) low emission vehicles; and whether she has made an assessment of the potential impact of this on trends in the level of consumers switching from (i) petrol and (ii) diesel vehicles to electric vehicles.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Vehicle Excise Duty (VED) is a tax on car ownership from which electric vehicles are currently exempt. As announced by the previous Government at Autumn Statement 2022, from April 2025, electric and hybrid cars, vans and motorcycles will begin to pay VED alongside petrol and diesel vehicles.
The Policy Costings document published alongside Autumn Statement 2022 when the change was announced estimates the impact on electric vehicle take-up to be “negligible”.
The Government is committed to supporting the transition to Zero Emission Vehicles and announced a number of measures at Budget to support EV take-up. VED First Year Rates are changing from 2025-26, with higher rates for polluting hybrid, petrol and diesel vehicles. In addition the Government maintained incentives for the purchase of EVs within the Company Car Tax and Salary Sacrifice regimes, and extended the 100% First Year Allowances for businesses purchasing zero emission cars and installing chargepoint infrastructure.
Revenue from motoring taxes helps ensure we can continue to fund the vital public services and infrastructure that people and families across the UK expect.
Asked by: Cameron Thomas (Liberal Democrat - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of proposed changes to inheritance tax on (a) small family farm closures and (b) internal food production security.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (including those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms.
The UK has robust domestic food production, and these reforms will only affect a small number of estates. The small number of landowners affected will not necessarily need to sell the land and, if they choose to, then it does not necessarily mean the land would stop being used for food production. At Autumn Budget 2024, the Government announced the largest ever investment in sustainable food production in England.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.