Middle East: Economic Response

Daisy Cooper Excerpts

Thursday 21st May 2026 Commons Chamber

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

I feel as though we are slightly through the looking glass. For six months, we Liberal Democrats have been calling for an emergency temporary VAT cut for hospitality, leisure and attractions, and our pledge was fully funded. For weeks, we have been calling for an emergency transport package, fully funded using the additional revenue from higher VAT rates and the EPL. All that time, we were told repeatedly that it was impossible to do those things and there was no additional money. Somehow, with the prospect of a by-election in Makerfield and the Prime Minister’s political life being on the line, the money has been found.

Let me ask the Chancellor two questions. First, I genuinely welcome the Government’s focus on the cost of food, which is of huge concern to the constituents of Members of all political parties. However, is there any risk that short-term gain might result in long-term pain? In looking at the tariffs, has the Chancellor had any conversations with the food manufacturing industry about whether it can remain competitive? Does removing the tariffs inadvertently risk undermining our food manufacturing sector? If there is a risk, will she look at our plans for a good food Bill and for promoting nature-friendly farming? I ask that question in the spirit of constructive opposition.

Secondly, the Chancellor and her Ministers will know that we are due to have a very hot summer. That means huge demand for outdoor attractions, because children will want to be outside in the hot weather. Indoor attractions, such as soft play centres, will not benefit so much, because there will not be much demand for them in the summer months, but there will be in the winter months. Will the Chancellor look carefully at the differences within the sector? Children are priced out of play when they need to go indoors in the winter months, but not so much in the summer months.

[Rachel Reeves]

I thank the hon. Lady for those questions. I am not sure whether she welcomes the changes around the foreign branch exemption, which is what will pay for the policies announced today by ensuring that companies pay their fair share of tax in the UK. Unless we can say where the money will come from, all that results is higher inflation and interest rates in the future. That is why I have always been clear that everything I will announce will be fully costed and fully funded.

On food, the hon. Lady cannot both say that she welcomes help with the cost of living, and then be a bit uncertain about tariff reductions. We have focused the tariff reductions on food products and agrifoods that we do not produce in significant quantities in the UK. We work very closely with the Department for Business and Trade in identifying those sectors.

On indoor and outdoor summer activities, I have had enough family holidays in the UK to know that there are plenty of days when it rains. I am sure that the leader of the Liberal Democrats, the right hon. Member for Kingston and Surbiton (Ed Davey), will be visiting a soft play centre soon.

Costs for Motorists

Daisy Cooper Excerpts

Thursday 21st May 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

Like so many Labour Government announcements, the announcement to extend fuel duty relief later this year is too little, too late. When we look around the world, we see other countries acting now. Other countries are cutting fuel duty now. Other countries are cutting public transport costs now. That is why we Liberal Democrats continue to call on the Government to cut fuel duty and public transport costs now. What message does the Minister think it sends to people that the Government will take action later in the year when people are feeling the pain in their pockets right now?

On farmers, the Government will be aware that the cost of fertiliser is going through the roof; world prices are up 44%. The Minister says that there will be a further cut in duty on red diesel, but what assessment have the Government made of the cumulative impact of the war in Iran on farmers? It is clear to me that the cut in red diesel duty will not touch the sides when the cost of fertiliser is rocketing through the roof.

[Lucy Rigby]

The hon. Member makes a really important point about the cost that farmers are facing, but that is exactly why we are taking steps to cut the duty on red diesel by more than a third to its lowest rate in over 20 years. As I said, that will help not just farmers, but other sectors, too, including in relation to freight. I am afraid that, as so often, we hear suggestions from the Liberal Democrats, “Cut this”, “Cut that”, “Try to bring things down”—[Interruption.]—but they are never funded. We manage the public finances—[Interruption.]

Oral Answers to Questions

Daisy Cooper Excerpts

Tuesday 28th April 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

Australia, Italy, India and more have all slashed fuel duty in response to Trump’s idiotic war in Iran. We Liberal Democrats are calling for fuel duty to be cut by 12p per litre here. Last week, the Chancellor claimed that anyone calling for a cut in fuel duty was “economically illiterate”, because it would push up inflation. According to the Office for Budget Responsibility, the current 5p fuel duty cut has led to a 0.2% reduction in the rate of inflation. Does the Chancellor think that the OBR and all these other countries that are helping their citizens are economically illiterate, or does she accept that her Government might be in the wrong and that it is time to act?

[Rachel Reeves]

Last time she stood up in the Chamber, the hon. Lady said that she wanted a 10p cut in fuel duty; now it is a 12p cut. What she has failed to explain is how on earth she is going to pay for any of those policies. As a former Chancellor, the right hon. Member for Godalming and Ash (Sir Jeremy Hunt), has just explained, untargeted support will result in higher inflation, higher interest rates and higher taxes, which would hurt people in St Albans and around the country rather than helping them with the cost of living.

I support what the Liberal Democrats say about opposing the war in Iran—that is our policy—but they appear to be the only people on the planet who think that a war in the middle east is somehow good for the Treasury coffers. I would not be surprised if in their next manifesto they said they would commit themselves to closing the strait of Hormuz for good. It is not good economic policy, and I am afraid that that says a lot about the Liberal Democrats’ policies.

--- Later in debate ---

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

Business rates bills have been landing on doormats over the last few weeks, and some small businesses in St Albans and beyond tell me that the future looks bleak, with some taking the crushing decision to close their doors. Will the Chancellor please look again at the eye-watering revaluations and release the full 20p discount for small businesses, which the Government legislated to do, to save our high streets?

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

On business rates, the hon. Member will know that this Government inherited the plans that were set in train for an independent revaluation of properties to take place for the first time since the pandemic. It would not have been the right thing to do to delay that independent revaluation for those businesses who have seen their rates fall since the pandemic, so we went ahead with it, and we then put in £4.3 billion of support to limit the increases in bills that businesses would pay. Of course we keep all taxes under review, but we have for the first time put in a differential within the business rates system so that high street businesses face a lower tax rate—a lower multiplier—than the largest online giants.

Middle East: Economic Update

Daisy Cooper Excerpts

Tuesday 21st April 2026 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

I thank the Chancellor for advance sight of her statement.

The Chancellor should have come here today to explain how she was going to use the £20 million extra that the Treasury is pulling in every single day through higher VAT, a higher energy profits levy and other taxes, to tackle the immediate cost of fuel crisis that is facing families and businesses today. The Chancellor is fundamentally wrong when she says that a knee-jerk response would have put household finances at risk through higher inflation and higher interest rates. We need just to look at what other countries are doing. The Government could have used that £20 million to drive down prices—the price of petrol at the pump, the price of train and bus fares, and the price of home-charging electric vehicles. Slashing those prices could have helped the Chancellor to control inflation and higher interest rates. That is what other countries are doing, and what we Liberal Democrats are calling for.

The Liberal Democrats were the only political party to have in our manifesto a commitment to break the link between gas and electricity prices, so we are glad that 18 months on, the Government have finally listened.

In addition to the measures outlined today, may I ask the Chancellor about two specific things? First, has she spoken to any banks about rolling out low-interest loans for householders who want to do the right thing and adopt energy-saving measures, but are struggling with the up-front costs? Secondly, I met the Competition and Markets Authority on Monday. The CMA and Ofgem both agree that there is a case to answer about the broken energy market and why hospitality and small businesses are being blocked. Will the Chancellor join me in writing to Ofgem and asking it finally to investigate, without any further delay, a broken energy market that is blocking hospitality and small businesses from accessing the best deals?

[Rachel Reeves]

I welcome the fact that the hon. Lady and her party opposed the war and did not want the UK to become involved, unlike the Conservatives and Reform. However, I find what she has just set out fundamentally economically illiterate. The idea that a great fiscal policy is to close the strait of Hormuz! Why did we not think of that when we came to office? If we close the strait of Hormuz, all our problems will be over because we can get in all this money—that is what the hon. Lady is suggesting; that we will get some great windfall from a tax. The truth is that the IMF and every other forecaster are clear that tax revenues will be lower, not higher, because of the conflict in the middle east. The money that the hon. Lady wants us to spend simply does not exist. I am afraid she is falling into the failed economic policies of the Conservatives, who delivered untargeted, unfunded support that resulted in higher interest rates, higher inflation and higher taxes. She is suggesting an untargeted approach, but that is what got us into the mess we are in today.

I welcome the fact that the hon. Lady supports us on decoupling, which is the right thing to do with our gas and electricity prices. I regret that she and her party did not support the Planning and Infrastructure Act 2025, which enables us to build the homes and energy infrastructure that we need. On working with banks, the Department for Energy Security and Net Zero is working with every high street lender and energy company to help people who are struggling with their bills.

Middle East: Economic Update

Daisy Cooper Excerpts

Tuesday 24th March 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

I thank the Chancellor for advance sight of her statement. Our thoughts are with our brave armed forces at this time.

I agree that the last Government’s failure to invest in energy was a failure to protect our country. Today we face the stark reality that we cannot guarantee our national security, our energy security or our food security. When the Liberal Democrats were in government, we launched the auction for onshore wind and established the Green Investment Bank, helping to drive down costs and quadruple renewable energy. The Conservatives’ decision to scrap the Green Investment Bank has left our energy system more exposed, and should be worn as a badge of shame.

To shore up our energy security and to tackle the energy crisis, we Liberal Democrats have consistently argued for a three-pronged approach: first, to reduce energy demand by incentivising households and businesses to invest in energy efficiency, without the tax penalties built into the business rates system or prohibitive up-front costs; secondly, to fix the broken energy market that is unfairly inflating prices, especially for small businesses on our high streets; and thirdly, to provide targeted support for the most vulnerable and for those with the highest energy needs. I urge the Chancellor to consider our proposals to create an energy security bank that can offer low-interest loans for energy-saving improvements for households and small businesses, to reverse the cuts to home insulation programmes, and to exempt business investment in energy efficiency from business rates calculations.

Although the action from the Competition and Markets Authority is welcome, it is not enough. Small businesses have been blocked from the best energy deals for years—well before Donald Trump started bombing Iran—yet there has still been no CMA investigation into suppliers blocking access to those fair deals. I ask the Chancellor again: will she please instruct the CMA to do that investigation without delay?

On targeted support, families are fearful. Will the Chancellor consider zero-rating VAT on heating oil and liquefied petroleum gas and introducing a price cap mechanism for off-grid fuels? Will she commit to halving energy bills over the next decade by reforming pricing structures? If bills rise to more than £400 a year, as some are warning, will the Chancellor commit to coming back to this House and outlining a broader support package so that many struggling households do not face a crippling hit of that scale?

[Rachel Reeves]

I thank the hon. Lady for her questions. Nick Clegg once said that it would take 10 years to get nuclear power up and running so there was no point in doing it, as it would come on stream only in the 2020s. Imagine if that Deputy Prime Minister had not blocked investment in nuclear energy then—we would have the benefits of it today. The Liberal Democrats had a chance when they were in government, and they did absolutely nothing. The Conservatives opposed onshore wind, which is also helping to bring down bills.

In terms of supporting investment in renewables and energy security, we have created the National Wealth Fund, which is prioritising investment in defence and energy security, including in critical minerals in Cornwall, carbon capture and storage and the roll-out of chargers for electric vehicles. We have also put £14 billion into the warm homes plan to subsidise and support people to make energy improvements in their homes in order to reduce their energy consumption and therefore their bills, alongside doubling the number of people eligible for the warm home discount. We are looking at improvement relief through the business rates consultation to ensure that if people do make improvements, including on energy efficiency, they will not then be whacked with higher business rates.

The hon. Lady said that we should cut VAT on heating oil. When the Liberal Democrats were in government, they increased VAT on everything, so it is a bit rich to say that they want to cut it now. We have asked the Competition and Markets Authority to do a review into heating oil, which I set out today, in addition to the £53 million of support we have put in.

There seems to be a slight contradiction in what the hon. Lady is saying—does she want targeted support or blanket support? I argue that the progressive, universal approach that we are taking is the right one. It means £150 off everyone’s energy bills, but also targeted support for those who need it most. We cannot repeat what happened when Liz Truss was Prime Minister—we are still paying the price for the cheque that was written then with higher interest rates, inflation and taxes than we would otherwise have had.

Oral Answers to Questions

Daisy Cooper Excerpts

Tuesday 10th March 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

Small businesses are the backbone of our economy, but the Federation of Small Businesses is warning that they will face a cost cliff edge in April because of the cumulative impact of all the new taxes and responsibilities put on them at the same time. During the course of the Finance Bill, we Liberal Democrats have repeatedly called for an assessment of the cumulative impact of taxes on hospitality and small businesses, including business rates. When the Government bring forward their high streets strategy, will it include an assessment of the cumulative impact of all tax changes—yes or no?

[Dan Tomlinson]

When we bring forward the high streets strategy, it will look in the round at what more we can do on regulation, licensing and the decisions that are made in the Treasury to continue to support small businesses and those on our high streets. That is incredibly important, and we will continue to look at that closely.

--- Later in debate ---

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

In times of crisis, the UK Government have often had to spend more on energy support for households and small businesses than other comparable countries, because our energy market is so broken. Hospitality and small businesses tell me that some suppliers simply refuse to supply hospitality businesses at all. If the Government are determined to refuse Liberal Democrat calls for an emergency VAT cut, can I please ask them whether, at the very least, they will consider our call to instruct the Competition and Markets Authority to investigate bad practices in the energy market affecting hospitality and small businesses, so that we can drive down bills through greater competition?

[The Parliamentary Secretary to the Treasury (Torsten Bell)]

The hon. Lady is right to talk about the long-term answer here, which is more domestic energy security. That is why we are getting on with building nuclear power—whether it is in Wylfa, Suffolk or Somerset. On her specific question, the Chancellor and Ministers have been very clear with the CMA that, particularly at times such as these, we need to ensure that no companies are taking advantage of customers—whether they are customers filling up their domestic heating oil or hospitality businesses.

Middle East: Economic Update

Daisy Cooper Excerpts

Monday 9th March 2026 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

I am grateful to the Chancellor for advance sight of her statement, but it does not include a single concrete announcement, and in itself will not provide the reassurance that householders and businesses are looking for as they hear reports that energy bills are about to escalate. Last week, the Liberal Democrats asked the Chancellor whether she would consider scrapping the planned 1p increase in fuel duty, due in September. Will she confirm that that option is still on the table and has not been ruled out?

Last autumn, we Liberal Democrats called for a new energy security bank to roll out low-interest loans to households and small and medium-sized enterprises. We welcomed the Government’s warm homes plan in January, but will the Chancellor confirm that it could be extended from five to 10 years and that it will have a greater emphasis on home insulation? Could small businesses’ investment in energy-saving measures be excluded from business rates calculations?

In the long term, we need energy market reform. I urge the Chancellor and her Government to intervene to stop these unpredictable fluctuations in the gas market. We need urgently to develop a plan to delink gas and electricity prices, and move expensive old renewable subsidies from the renewables obligation to the much better and cheaper contracts for difference model.

I am glad that the Chancellor has written to the Competition and Markets Authority about keeping an eye on petrol pump prices, but last autumn I wrote to the Secretary of State for Business and Trade and asked him to instruct the CMA to investigate bad practices in the energy market that affect hospitality businesses and small businesses. The Federation of Small Businesses and UKHospitality have also asked for that investigation but, six months on, it still has not happened. Will the Chancellor please confirm that she will speak to the Secretary of State for Business and Trade?

Finally, on rural homes, we know that off-grid homes rely on oil, and they are already seeing prices go up as panic buying spreads. I am grateful that the Chancellor indicated that there will be a meeting on Wednesday. Will she confirm that an announcement will be forthcoming by the end of this week?

[Rachel Reeves]

The hon. Lady talks about energy security, but she has never once acknowledged her party’s failure when they were in government. In 2010, her then party leader Nick Clegg justified opposing new nuclear energy on the grounds that it would take until 2022 to become operational. Well, 2022 has been and gone, but what is here is another example of Britain paying a high price today for the choices of the Opposition parties.

I turn to the hon. Lady’s specific questions. We announced at the Budget that we will take £150 off bills—that will come in in April and continue until June—by taking the failed energy company obligation levy, over which the last Government presided, off bills. People on heating oil also use electricity in their homes and will benefit from reductions in their energy bills from April. As I said, the Financial Secretary to the Treasury will meet relevant MPs this week.

The hon. Lady walked with her colleagues through the Lobby to oppose the Budget measures, which included freezing fuel duties, so it is a bit rich of her now to say that she wants us to cut fuel duty. On ensuring that homes are properly insulated, at the spending review last year I announced £15 billion for the warm homes plan, which is focused on lower-income families.

The hon. Lady is absolutely right that contracts for difference are crucial in weaning ourselves off imported oil and gas. We are in a better place because of the CfD auctions we have been holding and the energy infrastructure we have been building, and which we can build because of the Planning and Infrastructure Act 2025, which Opposition parties opposed.

Finally, as I said in my statement, the Competition and Markets Authority has an important role in ensuring that markets are functioning properly on heating oil, on petrol forecourts and for small businesses. We will ensure that it fulfils that role so that people are not overcharged for the energy they use.

Spring Forecast

Daisy Cooper Excerpts

Tuesday 3rd March 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

The country is paying the price for two anti-growth Labour Budgets. Growth has flatlined, youth unemployment is up, and the cost of living crisis grinds on, pushing people and businesses to the brink. So we plead with the Chancellor: please, for the sake of our country, put a laser-like focus on getting a better trade and defence deal with Europe so that we can protect our country, get Britain growing again and end the cost of living crisis.

The Chancellor said that she will make an announcement about trade relationships in a couple of weeks, but the Government are already 18 months in. The Chancellor could have used today’s spring statement to announce the Government’s intention to negotiate a new UK-EU customs union to kick-start growth, cut red tape for business and build ties with our reliable allies in the face of Trump’s chaos. Why didn’t she?

The spring statement comes at a critical time for our national and economic security. OBR projections will soon be out of date. Trump’s illegal actions in Iran this weekend will be felt in people’s pockets right here in Britain, with the cost of fuel and food set to rise. The Chancellor could have used today’s spring statement to scrap the fuel duty hike, which is due this September. Why didn’t she?

Young people are angry and fed up. The next generation of young people could always expect that they would have a better life than the generation before, but that promise for today’s young people has been ripped away. Almost 1 million young people—the highest in more than 10 years—are now unemployed. We are facing a youth unemployment crisis. The Chancellor’s youth guarantee is simply a sticking plaster for the damage that has been done by the jobs tax. The Chancellor could have used today’s spring statement to reverse the jobs tax changes that have undermined job opportunities for young people and part-time workers. Why didn’t she?

Graduates are being ripped off. They have studied hard—[Interruption.] Graduates are being ripped off—[Interruption.] They have studied hard, they have done everything they were told to do, but they are facing eye-watering repayment costs and they are struggling to get on in life. On this issue, it is a plague on all our houses—partisan point scoring does no favours to those young people. We have set out what we would do. The Chancellor could have used today’s spring statement to end the repayment threshold freeze, putting £100 back in graduates’ pockets in the first year, rising to £210 in the third. Why didn’t she?

With great instability and conflict around the world and a move away from the rules-based system to great power politics, we must look urgently at building our national energy, defence and food security. In so doing, we can and must turn the necessity of building national resilience into strategic opportunities for economic growth. We welcome the fact that the Government have done a deal for helicopters with Leonardo, as a result of the calls from these Liberal Democrat Benches, especially hon. Friends from the south-west, who have raised this issue week in, week out. The Chancellor could have used today’s spring statement to launch a new defence bonds programme as part of a plan to spend 3% of GDP on defence by 2030. Why didn’t she?

Finally, I will come full circle. I said that the country has paid the price for two anti-growth Labour budgets. The OBR today is clear: the downgrade in growth in 2026 is bigger than the upgrade in the next two years combined. We have to stop the cycle of short-term Treasury tax grabs over long-term growth. Our United Kingdom is an amazing country and has enormous potential, but we cannot take that for granted. We must accept that we are stuck in a rut, in a doom loop of low economic growth, and that is a big problem. I urge the Chancellor to take the measures that I have outlined to protect our country, to get Britain growing again and to end the cost of living crisis.

[Rachel Reeves]

The hon. Member gives less an economic programme and more a wish list of things that she would like to see, without any means at all of paying for them. She seems oblivious to the things that the Government are doing. She says that we should have a closer relationship with Europe, and I agree—I said it in my speech—yet she omitted to mention that that is exactly what the Government are doing. We have taken action, as the hon. Lady knows, with a sanitary and phytosanitary deal to back British agriculture and on Erasmus, and it is this Labour Government who are working with our EU neighbours to tackle illegal gangs and to improve our security.

The hon. Member calls for a big cut in taxes, but VAT at 20% as the standard rate is the rate the Liberal Democrats introduced when they were part of the coalition Government, and it has been ever since. We have provided £4.3 billion of support in business rates and further support for pubs and live music venues. If the Liberal Democrats want to deliver on this enormous unfunded promise, perhaps the hon. Lady would like to tell us which public services they would like to cut this time. They cut enough public services when they had a chance and were in office, but they are too scared to tell us which ones they would cut today. Is it the NHS? Is it schools? Is it investment in our regional transport infrastructure? Who knows? She will not tell us.

It is quite extraordinary to hear the Liberal Democrats having the nerve to raise student finance when they trebled tuition fees when they were in government and created the plan 2 scheme. In fact, it was a Liberal Democrat Secretary of State who oversaw that policy, and the leader of the Liberal Democrats, the right hon. Member for Kingston and Surbiton (Ed Davey), was in that Cabinet meeting when they signed off that decision. We will take no lectures from them about how to support our young people.

The hon. Lady says that they have set out what they would do on student finance. Is that a bit like what they did in 2010, when they set out what they were going to do on student finance? In 2010, what was it that they were going to do with tuition fees? I think I remember. That’s it: they were going to abolish tuition fees. But that is not what they did, is it? What did they do? Oh, they tripled them. Why should we believe a word that the hon. Lady says now on student finance?

Some of us have not forgotten that they teamed up with the Tories to cut our police, cut local government and cut our armed forces spending. We are dealing with the consequences. This is why we are investing in our public services: to fix the damage that they did with the Conservatives. What have they been doing? They are opposing our investment in the NHS, because that is what it means when they say they want to reverse the tax changes that we have brought in. The only reason we have £29 billion more a year to spend in the NHS is because of the tax changes that we made. The Liberal Democrats need to understand that they cannot have one without the other. They oppose our plans to build more homes. They oppose our plans to make work pay. They opposed VAT on private schools to help the 93% of kids in our state schools. They are simply not serious.

Business Rates

Daisy Cooper Excerpts

Tuesday 27th January 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

If the Government are serious about saving the high street, then these measures can only be the start. Since the Government’s first Budget, we Liberal Democrats have been warning that high streets were at risk if the Government did not make the various changes that they have made over the past 18 months.

A number of questions arise from today’s statement. There are 11 pubs in my constituency, not all of which could be described as large, that have a rateable value of more than £100,000 because of the ridiculous valuation system, and they will still see their rates bills go up. There will be such pubs across the country, but is it correct that they will get only half of the percentage relief? Pubs can already have 50 temporary event notices a year, so extending that is simply a soundbite solution without a problem.

I am glad that the Government are looking at hotels, but what is the timeframe? The Samuel Ryder hotel in my constituency tells me that its bill is going up by 157% in the first year alone, and it will not be the only such hotel. Will the new formula for hotels be in place in April, or will they be left in limbo?

The statement still offers nothing for the rest of the retail, hospitality and leisure sectors—the restaurants, soft play centres and high street shops that made business, investment and hiring decisions based on the expectation of the full 20p discount. I welcome the announcement of a high street strategy, which we Liberal Democrats will engage constructively with, but will the Minister start now by heeding our calls to direct the Competition and Markets Authority to look at the energy market, which is blocking hospitality businesses and other sectors from getting the best energy deals? Will he also look at our fully funded proposal to slash VAT until April 2027, to give our high streets a boost?

Over the past few weeks and months, getting answers and data from the Government has been like getting blood from a stone. Just 90 minutes ago, I asked the Minister if he would tell us what he knew and when; he said he would, but he has not.

Finally, on the methodology for pubs, the use of fair maintainable trade—turnover—has long had its day, but may I urge the Minister to allow for parliamentary scrutiny? None of the current legislation relating to pubs or business rates allows for any scrutiny in this House or the other place. I asked the Government about the valuation methodology back in July 2024; it was one of my first written questions after the general election, but it has taken 18 months for the Government to listen. Will they please allow this House to scrutinise their plans so that we can get a long-term fix to save our pubs?

[Dan Tomlinson]

The 15% reduction will apply to all pubs. As the hon. Member knows, there are different caps for pubs depending on their size, but if bills had been frozen, no bill would have fallen next year. Instead, because we have decided to apply the 15% reduction, around 75% of pubs will see their bills either stay the same or fall. I acknowledge what she says about the very largest pubs, but we will still significantly reduce the increase that they would have expected this year. Their bills will then be frozen in full in years two and three of the period before the revaluation review—I am glad that the hon. Member is able to welcome that review. Its results will be implemented for future revaluations.

The hon. Member mentioned temporary event notices. We are trying to implement the recommendations of the licensing review, which was carried out in conjunction with pubs and other businesses in the sector, so although she may think that changes such as these do not touch the sides or make a difference, pubs themselves told us that—in addition to ensuring that we could support them in the right way fiscally—such changes would be welcome. I hope that pubs that are able to make use of them will do so.

The hon. Member also asked about the 20p multiplier. She is right that we legislated for a reduction of up to 20p, but we have to see these things in the balance. The decision to reduce the multiplier by 5p came with a £900 million price tag; reducing it by the full 20p would cost significantly more. Taken in the round, our package of support has a lower tax rate within the system—a lower multiplier—but also steps in with caps to support businesses if they are experiencing increases in their values or having to adjust to the slow unwinding of the pandemic relief.

The hon. Member asked about VAT. All I will say—she will expect this—is that when the Liberal Democrats had the chance in government, they put VAT up; now, they seem to be calling for it to go down.

Finally, on the question of what I knew and when, as the VOA set out, Ministers were provided with details of the increases in the valuations. However, at that time, we did not foresee—I did not foresee—that after the changes in the rateable values that were published at the Budget, pubs and their representative bodies would want to withdraw their support for the independently and previously agreed methodology. Given that and the Government’s judgment that there are issues, to which the hon. Member has referred, we thought it was right to pause, review the methodology and ensure that it is fit for the future for pubs and hotels.

Oral Answers to Questions

Daisy Cooper Excerpts

Tuesday 27th January 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

Thank you, Mr Speaker, and I wish you a speedy recovery.

We know that pubs have been badly hit by these business rates changes, but businesses right across retail, hospitality and leisure have made investment and hiring decisions based on the expectation raised by this Government that they would get a full 20p discount on their business rate multiplier. Those businesses—music venues, restaurants, soft play centres and hotels—are the high street shops that communities most love. Do Ministers accept that anything less than the full 20p discount for retail, hospitality and leisure will leave the three-to-five-year business plans of those high street businesses in total disarray?

[Dan Tomlinson]

We announced a 5p reduction in the multiplier on top of the 7p or thereabouts reduction that was taking place as a result of the revaluation more broadly. That is a £900 million transfer of underlying rates liability away from the smallest high street businesses towards the online giants and the largest properties. When the Liberal Democrats and the Conservatives had the chance, they kept the tax rates the same. We have introduced significant reform, and we started the work of that reform at the Budget. Of course we will continue our conversations in the months ahead.

[Daisy Cooper]

Businesses up and down the country know that the Government raised their expectations and then dashed them. This whole sorry saga has been an absolute shambles. The question remains: why were Ministers so blindsided, when the VOA has confirmed that it was providing data drops over a period of 12 months? Will Ministers use the opportunity in 90 minutes’ time to answer all the questions that Opposition MPs have asked and to explain what they knew and when?

[Dan Tomlinson]

Yes, happily.