Oral Answers to Questions

Paula Barker Excerpts

Tuesday 27th January 2026 Commons Chamber

[Richard Foord (Honiton and Sidmouth) (LD)]

3. What assessment she has made of the potential impact of changes to business rates on the hospitality sector.

[Paula Barker (Liverpool Wavertree) (Lab)]

4. Whether she plans to increase the level of small business rates relief for the hair and beauty sector.

[Sir John Whittingdale (Maldon) (Con)]

9. What fiscal steps she is taking to support the hospitality sector.

--- Later in debate ---

[Dan Tomlinson]

We have considered the challenges that hospitality businesses and businesses on our high streets have been facing. That is why we put in place £4.3 billion of support at the Budget. We recognise that there are concerns as to how hotels are valued for business rates, and that will be one of the items I talk about in the statement later.

[Paula Barker]

I wish your leg a speedy recovery, Mr Speaker.

I recently visited the wonderful Aura salon in my constituency and spoke to the owners Victoria and Janet, who have owned the business for 24 years and are the hub of their local community. They have invested in and trained numerous young hair stylists but now their business rates and VAT are crippling them, meaning that they can no longer take on apprentices. Victoria and Janet told me that the VAT rate that they pay is unbalanced compared with other sectors that claim back VAT. Will the Minister please advise what can be done to help salons like Aura and others that are part of the Save our Salons campaign, and are there any plans for an affordable apprenticeship scheme in the hairdressing sector?

[Dan Tomlinson]

I thank my hon. Friend for the work that she is doing to champion salons and the beauty industry in her constituency and elsewhere. She will know that VAT is a broad-based tax; in fact, it is our third largest revenue raiser, raising £180 billion last year. That is vital revenue that pays for our public services. There are lots of issues in relation to VAT, including the differential treatment depending on how salons decide to set themselves up and pay their employees. Those are important issues, and we will consider tax changes in the usual way in the run-up to future Budgets.

--- Later in debate ---

[Rachel Reeves]

I thank my hon. Friend for that question. He did not mention the beautiful Bournemouth pier, which we visited together in August and where we enjoyed a very nice ice cream, but he did mention J.P. Morgan, which has announced record investment in its Bournemouth campus. It is employing a shedload of apprentices on that campus, helping it to grow its business, and after this year’s Budget, J. P. Morgan has announced a new building in Canary Wharf. [Interruption.] Maybe Opposition Front Benchers do not like apprentices, but this Government do, which is why we are backing them.

[Paula Barker (Liverpool Wavertree) (Lab)]

T1. If she will make a statement on her departmental responsibilities.

[The Chancellor of the Exchequer (Rachel Reeves)]

This Government have a plan to grow the economy and reduce the cost of living, and it is the right plan for Britain. We are cutting the cost of living and the national debt and creating the conditions for growth in all parts of our country. We have had six cuts in interest rates since the general election, reducing typical mortgage costs by £1,200 a year, and have secured record levels of inward investment and trade deals with countries around the world. The FTSE has hit record highs, and while other countries are increasing barriers to trade, I was in Davos talking to allies about how to reduce them. Our economic plan is the right one to build a stronger and more secure Britain, and I am focused on delivering it.

[Paula Barker]

While I am looking forward to the statement a little later from the Exchequer Secretary to the Treasury, I would like to push him, if I may. I recently visited one of my local pubs, the Masonic Arms on Lark Lane—which is a fantastic venue—and met Guy and Amelia. Currently, the overall sector picks up 2.8% of UK business rates nationally, but has only 0.5% of the turnover of UK businesses. This is clearly not a fair tax for pubs; it is the result of a uniquely skewed business rates system that actively penalises many pubs. What long-term steps can the Minister take to help pubs like the Masonic Arms and the wider hospitality sector?

[Rachel Reeves]

As my hon. Friend knows, we have permanently reduced the multiplier for business rates for retail, hospitality and leisure, but my hon. Friend the Exchequer Secretary will set out the support for pubs in more detail later today. We are determined not only to support pubs, which are the lifeblood of so many communities, but also to support the whole of our retail, hospitality and leisure sector. We are putting more money in people’s pockets by cutting energy bills and train fares and getting people back to work, so that they have more money to spend on the things they love, not just on the essentials.