Oral Answers to Questions

Mike Reader Excerpts

Thursday 2nd July 2026 Commons Chamber

[Kate Dearden]

Unfortunately, we inherited an absolutely dire situation from the Conservatives when they left office. They left deep scars on our economy from a decade of stagnant growth. We know that hospitality thrives when our economy grows, wages rise and people have money to spend, which is why we are absolutely committed to supporting businesses and working closely with them. The hon. Member will know that the Government need to consider a wide range of factors when introducing new tax reliefs, such as whether they support wider Government objectives. He will also know that the Government keep all taxes under review as part of the policymaking process, and the Chancellor will announce any changes to the tax system at fiscal events in the usual way.

[Mike Reader (Northampton South) (Lab)]

The Northampton-based McManus Pub Company runs 18 pubs and employs 370 people. I spoke to Tom McManus yesterday, who told me that successive Governments have ignored hospitality and that in the past five years business costs have made it harder for him to turn a profit. Tom has asked me to lobby the Government to cut VAT to 10%. What message does the Minister have for family businesses such as Tom’s?

[Kate Dearden]

I thank my hon. Friend for his question, for raising the preferences of businesses in his constituency and for his continued engagement on this issue on behalf of his constituents. He will know of the recent announcements on the temporary great British summer savings scheme, which will reduce VAT from 20% to 5% on selected hospitality activities between June and September. He will also know that we keep all taxes under review. He should say to his constituents, and particularly to his businesses and pubs, that we are absolutely committed to working with the industry and the sector to support them to thrive. They are vital to our local communities, people and jobs, and I know that he knows that too.