Hospitality Sector: Fiscal Support

Debate between Priti Patel and Nigel Huddleston

Wednesday 31st January 2024 Westminster Hall

[Priti Patel]

The Minister mentioned UKHospitality and Kate Nicholls and the way they have come together. Clearly, there are problems with labour markets in the hospitality sector, and there have been for many years—it is not a new phenomenon. What are the barriers to UKHospitality and the Treasury working together to create a labour market strategy for the hospitality sector?

[Nigel Huddleston]

Again, these are ongoing conversations across multiple Government Departments. In my former capacity as tourism Minister, I certainly had extensive conversations. There were sub-working groups at UKHospitality identifying areas for further work. That has had some impact, including through apprenticeship schemes. My right hon. Friend was absolutely right to highlight this issue. We have debated Brexit, which probably goes slightly beyond the current remit, although I understand the impact—and, by the way, the opportunities that come from that. My right hon. Friend is right that we need to focus on the domestic skills agenda. The hospitality and leisure sector contributes to one in five new jobs, so it is absolutely pivotal to that.

If hon. Members will forgive me, I will try to get through some of my speech—and not try your patience too much, Ms Bardell—because I am not even on page 1 yet.

Draft Local Government Finance Act 1988 (Prescription of Non-Domestic Rating Multipliers) (England) Regulations 2023

Debate between Priti Patel and Nigel Huddleston

Wednesday 24th January 2024 General Committees

[Nigel Huddleston]

My hon. Friend has embarrassed me, because he just summarised my eight pages of notes in one paragraph. He is absolutely correct. If we do not do this, hundreds of thousands of businesses across the country—those with a rateable value of between £15,000 and £51,000—would effectively have to pay far higher rates than they otherwise would, and that is the core purpose of the discussion today. I should probably sit down there, but I will carry on just a little bit for the edification of others who probably do not get the principles as keenly, enthusiastically and quickly as my hon. Friend.

The secondary purpose of the regulations is to extend the scope of the small business multiplier to include unoccupied properties, charities and properties on the central list—which I will explain in a moment—with a rateable value below £51,000 and which do not currently receive full rates relief. This will level the playing field for all types of properties, promoting consistency in the system; in other words, it is a simplification. Those properties that move to the small business multiplier for the first time will also receive a tax cut worth around £5 million in total per year.

Hon. Members may appreciate a very brief reminder of the business rates multiplier and what it is. The multiplier is the tax rate used to calculate business rates. The relevant multiplier is multiplied by the yearly rental value of a property, known as rateable value, to calculate its business rates bill before any reliefs are applied. As I have mentioned, there are two multipliers in operation—the small business multiplier and the standard multiplier. The legislative default is for both multipliers to rise by consumer price index inflation each year, but the Government took action at autumn statement 2023 to freeze the small business multiplier for the fourth consecutive year, protecting over 1 million ratepayers from an increase in bills.

The regulations must be made as a result of the passing of the Non-Domestic Rating Act 2023 in October.

[Priti Patel (Witham) (Con)]

Would my hon. Friend acknowledge that these regulations, and the overarching principle on business rates that he is leading, are helping to secure more jobs in our communities, particularly in constituencies like Witham, where small and medium-sized businesses are at the forefront, with a presence on the high streets, recruiting and employing people? That is, of course, vital to our economic health and wellbeing.

[Nigel Huddleston]

I thank my right hon. Friend for her comments. I know, and have experienced in many debates, what a champion she has been for small businesses, including in her constituency. She is absolutely right: we want to ensure that the tax level is appropriate but not overly burdensome. Some reliefs that we have given in retail, hospitality and leisure over the past years have been precisely to ensure that such businesses can operate on a level playing field, operate efficiently, and create jobs, economic activity and the all-important tax revenues that we need for a sustainable economy. At the heart of the matter is business success and jobs—my right hon. Friend is absolutely right—and that is what this Government are laser-focused on delivering.

The Non-Domestic Rating Act implemented important reforms to the business rates system, which were announced following the 2020 business rates review. The headline measure of the Act was more frequent revaluations. It also introduced a new improvement relief for those who raise the value of their properties through qualifying improvements and several other measures. Most relevant to this debate, the Act made a series of changes to the administration of the business rates multiplier to streamline and improve the system. One such change granted the Government the power to set the threshold for which properties pay which multiplier in secondary legislation; and as these new reforms will come into force from the 2024-25 financial year, the Government must bring forward these regulations in order to maintain the threshold for which properties pay which multiplier at its existing level: £51,000 rateable value.

If the regulations were not passed, the small business multiplier would instead only apply to businesses in receipt of small business rates relief, which would constitute a tax hike for hundreds of thousands of businesses whose properties have a rateable value of between £15,000 and £51,000—exactly the point made by my hon. Friend the Member for Torbay.

The regulations also widen the eligibility for the small business multiplier, including unoccupied properties, charities and central list properties within its scope for the first time. That brings those properties in line with occupied properties, maintaining consistency across the entire system. The proposal to bring unoccupied properties and charities within the small business multiplier was initially made in the technical consultation following the business rates review, and the Government committed to the change in the summary of responses to that document in March 2023. To promote consistency, we have decided to bring properties on the central list—the centrally managed list of properties that span multiple local authorities areas, including, for example, utilities pipelines—within the scope of the small business multiplier. There are a relatively small number of such properties, but we believe this point of consistency is important.

What this instrument does therefore is very simple: the regulations continue and extend Government policy, setting the threshold for which all property types pay the small business rates multiplier at below £51,000, unless they are subject to full relief. Properties of £51,000 or above will be subject to the standard multiplier. In short, the regulations will largely maintain the status quo for the vast majority of ratepayers. The £51,000 threshold will remain where it has been for the past six years. The regulations will ensure continuity under the legislative reforms made by the Non-Domestic Rating Act 2023, and I therefore commend them to the Committee.

Oral Answers to Questions

Debate between Priti Patel and Nigel Huddleston

Wednesday 29th March 2017 Commons Chamber

[Nigel Huddleston (Mid Worcestershire) (Con)]

1. What steps her Department is taking to use research, innovation and technology to tackle extreme poverty in developing countries.

[The Secretary of State for International Development (Priti Patel)]

The UK’s investment in cutting-edge research on new technology to tackle extreme poverty is more important than ever before. DFID spends 3% of its budget on supporting research and development, and we are demonstrating leadership on this issue.

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[Nigel Huddleston]

Evenproducts is a small and innovative company based in my constituency that makes water tanks and sanitation equipment used throughout the developing world. It is also part of DFID’s rapid response group. What is the Department doing to encourage even more small businesses and charities to engage with this work?

[Priti Patel]

Thank you for your very kind birthday wishes, Mr Speaker.

My hon. Friend is absolutely right about small businesses in his constituency and, indeed, in all our constituencies. I congratulate the company he mentioned on the outstanding work that it does in development. I am leading a review of our suppliers in DFID right now. We are changing the way in which we procure. We will ensure that more UK firms, in particular, have the opportunity to support UK aid around the world and deliver on our development objectives.

Oral Answers to Questions

Debate between Priti Patel and Nigel Huddleston

Wednesday 22nd February 2017 Commons Chamber

[Nigel Huddleston (Mid Worcestershire) (Con)]

T2. Action on Poverty, a charity based in my constituency, is doing great work in Sierra Leone, empowering women by providing loans for businesses. In the run-up to International Women’s Day, what work is the Department doing on gender inequality in the developing world?

[Priti Patel]

The UK has much to celebrate when it comes to global leadership on gender equality. Of course, International Women’s Day will be another strong example of that. We not only continue to champion the rights of women and girls but, importantly, support them in their own economic development and empowerment prospects.

Oral Answers to Questions

Debate between Priti Patel and Nigel Huddleston

Monday 7th September 2015 Commons Chamber

[Nigel Huddleston (Mid Worcestershire) (Con)]

14. What support his Department provides to young people seeking work.

[The Minister for Employment (Priti Patel)]

Tackling youth unemployment is a priority for this Government. We are determined that young people should not slip into a life on benefits. The Department for Work and Pensions provides a broad range of additional support for young people over and above the standard Jobcentre Plus offer, and that support is tailored to their needs.

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[Priti Patel]

I am fully aware of the excellent work that Leonard Cheshire Disability, along with many other organisations, does to help young disabled people take up employment. The Under-Secretary of State for Work and Pensions, my hon. Friend the Member for North Swindon (Justin Tomlinson), has discussed with many organisations, including the Shaw Trust and Whizz-Kidz, how they plan to do more in that area. It is right that we should all do more to support young disabled people to secure employment.

[Nigel Huddleston]

I have been approached by several young people in my constituency who have learning and reading difficulties, and they tell me that they find the process of applying for benefit, and the form-filling involved in seeking jobs, very complex. What specific actions is the Department taking to assist young people in these challenges?

[Priti Patel]

My hon. Friend is right. For a start, all young people are screened at the beginning of their claim process to identify any barriers and the kind of support they need. Importantly, we provide options other than online and paper-based ones, such as telephone support or face-to-face interviews. If he would like me to look at any specific cases, I will be happy to discuss them with him.