Middle East: Economic Response

Debate between Emma Lewell and Rachel Reeves

Thursday 21st May 2026 Commons Chamber

[Rachel Reeves]

Closing tax loopholes has been a feature of the first two Budgets I have delivered as Chancellor—for example, the loophole whereby private schools did not pay VAT or business rates. I increased the energy profits levy and the tax on private jets, and there has been a range of other measures to ensure that those with the broadest shoulders pay their fair share of tax. The Competition and Markets Authority is already, at my behest, carrying out a review of heating oil to make sure that customers using heating oil are treated fairly. We are introducing the fuel finder to ensure that customers can always get the best deal when filling up their car with petrol.

[Emma Lewell (South Shields) (Lab)]

I thank my right hon. Friend for the package of support she has announced today. She knows at first hand that hospitality is what my little town does best. My hospitality industry, fairground and constituents will be very happy today. Can she clarify, as I am not sure, whether the 15% VAT cut applies to all restaurants, café, pubs, bars and hotels serving children’s meals? Will she please keep under review the possibility of extending this welcome VAT cut to the hospitality industry as a whole?

[Rachel Reeves]

I have happy memories of having fish and chips with my hon. Friend in her constituency several years ago. I can confirm that the VAT for children’s meals, be they in a pub, hotel, restaurant or café, will be cut from 20% to 5% between 25 June and 1 September. We will monitor the impact of that on tax revenues, and the number of people going out for dinner. We envisage that this measure will have a cost to the taxpayer, which is why we are funding it by ending the tax loophole whereby some companies were using losses overseas to offset their corporation tax here in Britain.

Oral Answers to Questions

Debate between Emma Lewell and Rachel Reeves

Tuesday 21st January 2025 Commons Chamber

[Rachel Reeves]

The Culture Secretary was pleased that the creative industries were one of the sectors included in our industrial strategy. She hosted an event with members of the creative industries taskforce in Newcastle just last week to emphasise the importance of having good cultural offers and art and museums in local communities. I am happy to sort out a meeting for my hon. Friend with the relevant Minister to discuss access to the arts and culture in Mid Derbyshire.

[Mrs Lewell-Buck]

As my right hon. Friend knows, South Shields is a gorgeous coastal tourist town. We pride ourselves on our small businesses and our strong hospitality industry, but she will also know they are struggling after years of neglect by the Conservatives. To help those businesses, will she outline what consideration she has given to reducing VAT on our hospitality, leisure and tourism sectors?