Oral Answers to Questions

James Murray Excerpts

Tuesday 8th September 2026 Commons Chamber

[Will Stone (Swindon North) (Lab)]

23. What discussions he has had with representatives of the hospitality sector on the potential impact of business rates relief on that sector.

[The Financial Secretary to the Treasury and Paymaster General (James Murray)]

We love our pubs, so to support them the Prime Minister announced in his first week after taking office a 20% cut in business rates for them, as well as for social clubs and live music venues, from April 2027. That is building on the 15% reduction earlier this year. I and other Ministers have regular discussions with representatives from the pubs and hospitality sector to understand the impact of business rates support.

[Claire Hazelgrove]

My first job was as a pot washer and waitress in a pub at the age of 14. Today, pubs help me to bring fellow residents together for my pub politics events across the constituency. I know how much our pubs mean to us locally, and I warmly welcome further support for them. Will the Minister set out how that support will help to give pubs and the wider sector the certainty they need so that they and the great jobs they provide are here for generations to come?

[James Murray]

I know my hon. Friend is a great champion of pubs in her constituency. In fact, she has brought together people for her pub politics events, including at the Willy Wicket, the Beaufort Arms, the Baileys Court Inn—which I have been to—and the White Lion, where people come to talk about issues that matter to them. The support we are providing for pubs will be worth nearly £250 million next year. That will benefit around 32,000 venues, which helps to ensure that they and the jobs they provide will be there for the future.

[Peter Swallow]

I recently stopped by the wonderful Koh-I-Noor Indian restaurant in Priestwood to meet its owner, Kamran, and to speak about the realities of running a family-owned restaurant. He told me how rising costs were making it challenging for him to invest and grow his business. I genuinely welcome the Chancellor’s action on cutting business rates for pubs and music venues ahead of the Budget, but will the Minister look at what more he can do to support the hospitality and retail businesses at the heart of our local communities?

[James Murray]

I thank my hon. Friend for highlighting the contribution that businesses such as Koh-I-Noor provide to local communities and economies. As he set out, the Government are helping pubs right now, because of the important community assets that they are and the real pressures that they face. I assure him that we will continue to look at what more we can do to support high street businesses more widely to help them to invest and grow.

[Gill German]

Like our new Prime Minister, many of us on the north Wales coast love the pubs and music venues of the north-west. The boost to them from business rates relief is really welcome, but we love our pubs and venues too. Pubs such as the Bay Hop and the Mayquay face the same challenges as our north-west neighbours, and we want to attract more live music to north Wales too. Decisions on business rates in Wales are of course the responsibility of the Welsh Government, but does the Minister agree that the need for support does not stop at the border, and that a 20% cut to business rates in Wales would be a welcome boost for us too?

[James Murray]

I very much agree with my hon. Friend about the vital role that pubs and clubs play in local communities on either side of the border. As she rightly points out, business rates decisions in Wales are a decision for the Welsh Government. In England, we have taken action to support community venues and high streets, including the targeted business rates support for pubs. I urge the Welsh Government to consider doing the same.

[Will Stone]

Pubs across Swindon, such as Arkell’s, contacted me regularly about the reduction in business rates, so I thank the Minister for that. However, can he outline whether there will be any further business rates reductions for the wider hospitality sector?

[James Murray]

My hon. Friend is a great champion for pubs and other hospitality venues in his constituency, including Arkell’s brewery, which I know supplies pubs across Swindon and Wiltshire. As he rightly points out, we have provided support for pubs and community venues, which the Prime Minister announced soon after taking office. We will consider all options for what we can do to further support them in the Budget.

[Nigel Huddleston (Droitwich and Evesham) (Con)]

That is some brass neck, Mr Speaker. I am astounded that the Minister can stand at the Dispatch Box and expect credit and gratitude for giving a little bit of support to a sector that his own policies have undermined and destroyed—two pubs a day closing down, and 100,000 jobs lost in hospitality and tourism. Will he instead adopt the Conservative policy of 100% business rates relief and actually support these sectors, rather than giving hypocritical warm words?

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[Mr Speaker]

No problem. I call the Minister.

[James Murray]

The hon. Gentleman has some cheek, given the number of pubs that closed when his party was in government. The Labour party is making sure that the business rates system is set right for the future. Not only have we announced a 20% cut in business rates for pubs as a result of the new Prime Minister taking office, but I was pleased to announce a review of the way in which pubs and hotels are valued for the future, following concerns raised by the sector. That review will report in time for decisions taken on the basis of it to be in place for the next revaluation.

[Mr Joshua Reynolds (Maidenhead) (LD)]

Pubs, cafés and restaurants are among the largest employers of young people across the country, but the sector has seen 100,000 job losses as a result of the Government’s jobs tax. Business rates relief might have some impact, but the hospitality sector is telling us that what it needs is a cut in VAT to really help people get back into hospitality venues. Have the Government looked at what a cut in VAT would be able to do for both growth and new jobs?

[James Murray]

The hon. Gentleman is right to point out the important role that pubs and hospitality play in providing jobs, including jobs for young people. However, I gently say to him that one of the issues with the Lib Dems is that they welcome extra investment in our NHS and public services, but they never want to pay for it. When it comes to hard decisions on the economy, all they offer is soft politics.

[Wera Hobhouse (Bath) (LD)]

The 20% rate cut for music venues and pubs is of course very welcome, but what my high street in Bath really needs is an overhaul of the business rates system, which the Labour Government promised. Rather than accuse us of not having ideas, will the Minister do the bold thing, which is to get rid of business rates and replace them with a commercial landowner levy?

[James Murray]

As the Prime Minister made clear when he took office, we are giving pubs and community venues real breathing space through the 20% cut to their business rates, but our reform of business rates and our support for the high street does not end there. We are considering every possible opportunity to support retail, hospitality and leisure businesses on the high street, so that high streets in all our communities across the country can thrive.

[Mr Tom Morrison (Cheadle) (LD)]

I recently visited the Station House in Cheadle Hulme, one of the Almond family’s five pubs in Stockport, and spoke to the owner, Doug, about how hard it was for him to run his business. Like many pub owners across the country, the Almonds welcome the 20% cut in business rates, but they are contending with a system that penalises hospitality. The Minister dodged the question from my hon. Friend the Member for Bath (Wera Hobhouse), so may I ask him to commit himself now? Will the Government overhaul the business rates system so that community pubs such as the Station House can help our high streets to thrive?

[James Murray]

I thank the hon. Gentleman for talking about the Station House in his constituency; I am sure we all have pubs in our own neighbourhoods that we feel are at the heart of the local communities that we represent.

The 20% business rates cut that we announced was a down payment on further reform. We will continue to look into what we can do to support pubs, hospitality and other high street uses, because we know how much they matter to everyone in this Chamber and all the people whom we represent.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

As the Member of Parliament for the constituency with more pubs per square mile than anywhere else in Britain, I have been campaigning to reform the broken business rates system for longer than I have been an MP. My understanding is that the Government’s review will look at the fair maintainable trade criterion, which sees pubs singled out to be valued on the basis of what they could earn rather than what they actually earn; but, as pointed out by my hon. Friends the Members for Bath (Wera Hobhouse) and for Cheadle (Mr Morrison), the review falls far short of the Labour party manifesto, which pledged to overhaul the entire business rates system. May I ask Ministers whether that pledge still stands? If so, will they overhaul the business rates system before the next general election?

[James Murray]

I wonder whether any other Members might say that they have the most pubs in their constituency, or whether the hon. Lady has done her research. [Interruption.] I hear her saying that hers are the best pubs, a claim that even more Members may challenge in the Chamber.

Although the hon. Lady and I have some differences, I think that we share a desire to see a fairer business rates system. I know that the 20% cut for pubs and community venues was widely welcomed, and the Prime Minister and the Chancellor have made it clear that we want to go on looking at what we can do to support our hospitality venues, pubs and other high street uses. This is not a question of taking one policy announcement from July and thinking that that is the end of the story, because we know how important high streets are to communities across the country, and we want to see them thrive.

[Mr Connor Rand (Altrincham and Sale West) (Lab)]

4. What fiscal steps he is taking to support the renewal of high streets.

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[Greg Smith (Mid Buckinghamshire) (Con)]

22. What estimate he has made of the average annual cost to motorists of discontinuing the 5p fuel duty reduction from December 2026.

[The Financial Secretary to the Treasury and Paymaster General (James Murray)]

As part of the £600 million package the Government announced in May, there will be no rise in fuel duty this year. This means that the temporary 5p cut will be extended till the end of the year, providing certainty to motorists. In total, the decisions taken since the 2024 general election to freeze fuel duty save motorists 11p per litre, or £120 per year for the average car, compared with the plans inherited from the previous Government.

[Christine Jardine]

I appreciate what the Minister has said about the fuel duty freeze, but the Liberal Democrats have called for an emergency cut of 10p per litre, which would make a difference of 12 per litre at the pump for ordinary families. For my hard-pressed constituents in Edinburgh West this winter, that could make a big difference not only to their travel costs, but to the cost of food and other services. Will the Government consider that emergency cut in the forthcoming Budget?

[James Murray]

I agree with the hon. Lady about the importance of providing breathing space for families, which is a priority for us as a Government, and she mentioned her plans. I have set out what we have done since the general election to reduce fuel prices by 11p per litre compared with what they would have been otherwise. As I set out in my earlier remarks, the 5p cut has been extended to the end of the year, and as she would expect, any future decisions will be taken at the Budget by the Chancellor.

[Greg Smith]

I cannot believe the Minister just said he wanted to give families breathing space when the RAC Foundation has found that, since fuel prices increased due to international issues earlier this year, the Treasury has raked in £1 billion extra from the VAT on fuel. How can it possibly be fair on motorists or give them any breathing space whatsoever to carry on with another fuel duty hike in January?

[James Murray]

The hon. Gentleman is right to point to the fact that international events have an impact on prices here at home. We did not want to get involved in that conflict, unlike the Conservative party. None the less, we are impacted by it, and the right thing for us to do as a Government is to make sure we are providing breathing space for families as we weather international events.

[Danny Beales (Uxbridge and South Ruislip) (Lab)]

I welcome the Government’s commitment to the cut on fuel duty, although motorists are being not only squeezed at the pumps but ripped off by unfair monthly insurance charges. Does the Minister agree that insurance companies should not be charging unfair and unjustified additional costs for monthly insurance, when that is what most people can afford? Will he meet me to discuss the Which? research, which has found that people paying monthly for insurance are paying hundreds of pounds in additional costs?

[James Murray]

Although my hon. Friend is right that fuel duty is one cost that families face, they also face a number of other costs, including through insurance. He is a formidable campaigner on a range of issues, so I would be happy to meet him to discuss this issue, or to ask my colleague, my right hon. and learned Friend the Member for Northampton North (Lucy Rigby), to do so, if she is better placed to respond.

[Euan Stainbank (Falkirk) (Lab)]

I welcome the Government’s fuel duty freeze for working families, alongside the road tax holiday for hauliers and the diesel fuel duty cut. Fuel costs for businesses in my constituency, such as Northfield quarry near Dunipace, have nearly tripled due to the Iran war and the previous Government’s tightening of eligibility for red diesel. In the Budget, will the Chancellor consider extending fuel duty reductions for industries such as quarrying, which is essential for house construction and provides good local jobs for working families?

[James Murray]

I thank my hon. Friend for his request of the Chancellor at the Budget. As the Chancellor set out earlier, he will take those decisions at the Budget in the normal way, but my hon. Friend has made a powerful case for his constituents and used this opportunity to ensure that all of us on the Treasury Front-Bench team have heard what he has to say.

[Mr Speaker]

I call the shadow Minister.

[James Murray]

I think the hon. Gentleman’s point is that the price of fuel is linked to international events, which, as I said earlier, I very much agree with. That is why it is important that we de-escalate the situation in the strait of Hormuz, which is the best way to bring down the cost of fuel. Meanwhile, the Government are determined to give families across the country breathing space—extending the 5p cut until the end of the year, a £2 cap on bus fares, and removing VAT from electricity bills—as we weather the impact of international events.

[Sir Jeremy Hunt (Godalming and Ash) (Con)]

7. What steps he is taking to improve public sector productivity.

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[Catherine Fookes (Monmouthshire) (Lab)]

T6. I applaud the Prime Minister’s rates cut for English pubs, but the Plaid Cymru Government in Wales have done nothing to help Welsh pubs. That is why I am supporting the “VAT’s the Problem” campaign, which seeks a much-needed cut in VAT to 10% for our struggling hospitality businesses, which is the rate in some EU countries. Will Treasury Ministers look at the campaign and help us to help our hospitality businesses in Monmouthshire?

[The Financial Secretary to the Treasury and Paymaster General (James Murray)]

Fiscal decisions are taken at the Budget, but I join my hon. Friend in urging the Welsh Government to consider extending the support that we have given to English pubs to pubs in Wales.

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

T5. Following the summer, recovery will be at the forefront for communities in my constituency and others who have been impacted by devastating wildfires. Many businesses in these communities are in the hospitality sector, the pressures on which are well documented. A reduction in VAT would provide a much-needed boost, enable reinvestment by these businesses and support economic growth. Will the Chancellor therefore consider cutting VAT for hospitality?

[James Murray]

As I said a moment ago, decisions on fiscal matters are taken at the Budget, but I urge the hon. Gentleman to urge the Scottish Government to follow the UK Government’s example by providing support to pubs in Scotland, too.

[Adam Thompson (Erewash) (Lab)]

T10. The Chancellor will no doubt be aware that this month marks the fourth anniversary of the disastrous Liz Truss mini-Budget, which risked my constituents’ pensions and locked thousands out of home ownership. Last week we saw Liz Truss’s Financial Secretary, the hon. Member for Arundel and South Downs (Andrew Griffith), made shadow Chancellor. Does my right hon. Friend have any advice for the shadow Chancellor on how he might learn from his mistakes?

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[Amanda Hack (North West Leicestershire) (Lab)]

When CoalWorks in my constituency fundraised for a defib, the charity London Hearts reached out to it. Because it is a charitable organisation, there was no VAT on the purchase, meaning that CoalWorks could afford to buy two. However, when the Kings Arms in Coleorton recently fundraised, it had to pay VAT because it did not go via a charity partner. Will the Minister make an assessment of the potential impact of removing VAT on defibs for community-based purchases?

[James Murray]

I congratulate the organisation in my hon. Friend’s constituency for successfully fundraising for two defibrillators. As she knows, decisions on fiscal matters are taken at the Budget. She makes a powerful case, but we have to evaluate whether VAT reliefs are passed on in full to consumers. That is one of the key considerations when taking decisions of this sort.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

T9. Nearly 100,000 hospitality jobs have disappeared in two years. Pubs, hotels and restaurants across the Scottish Borders are struggling with higher employment costs. When will the Labour Government cut their tax on jobs?

[James Murray]

We are providing a 20% cut in business rates for pubs in England. I urge the Scottish Government to do the same for Scottish pubs.

[Imogen Walker (Hamilton and Clyde Valley) (Lab)]

When the Bank of Scotland closed its Larkhall branch, it left the town with no high street bank. It is a problem not only for Larkhall but for nearby villages including Ashgill and Netherburn. I am grateful to Treasury Ministers for engaging with me on this issue over the last few months. What can the Government do to support towns like Larkhall and protect face-to-face banking services in rural communities?

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[Rosie Wrighting (Kettering) (Lab)]

In recent weeks, the fast fashion online retailer Shein has been valued at a fraction of its price when it listed in Hong Kong, in part due to the treatment of low-value imports in the US and Europe. With that in mind, I welcome the Government’s decision to end the £135 de minimis relief by October 2028, but what more can be done before then to level the playing field for British retailers?

[James Murray]

My hon. Friend is right to highlight the importance of removing the low-value imports relief and levelling the playing field with high streets. As she will know, my predecessor announced in June that we are bringing forward the implementation of the measure to October 2028 to benefit high streets across the country as quickly as possible.