Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment she has made of the potential impact of the level of VAT on the hospitality sector in (a) the UK and (b) comparable European countries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Introducing reduced or tiered VAT rates would reduce tax revenue and add complexity to the tax system.
HMRC estimate that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £13 billion this financial year. If the scope were also to include alcoholic beverages, the cost would be approximately £3 billion greater. This would reduce VAT revenue, which pays for public services, by almost 10% in 2025/26.
The Government is aware that some European countries apply reduced VAT rates to hospitality.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has considered introducing a reduced or tiered VAT rate for pubs and restaurants.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Introducing reduced or tiered VAT rates would reduce tax revenue and add complexity to the tax system.
HMRC estimate that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £13 billion this financial year. If the scope were also to include alcoholic beverages, the cost would be approximately £3 billion greater. This would reduce VAT revenue, which pays for public services, by almost 10% in 2025/26.
The Government is aware that some European countries apply reduced VAT rates to hospitality.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has produced on modelling on the potential effect of the April 2026 business rates revaluation on small, independent pubs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the hon. Member to the answer given to UIN 101363.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of business rates liabilities on trends in levels of pub closures since 2010.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the hon. Member to the answer given to UIN 101363.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has considered reinstating higher levels of business rates relief for pubs and hospitality venues.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the hon. Member to the answer given to UIN 101363.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the Home Office:
To ask the Secretary of State for the Home Department, how many individuals convicted of terrorism-related offences are currently present in the UK following completion of their custodial sentences.
Answered by Dan Jarvis - Minister of State (Cabinet Office)
The Home Office does not centrally record the data as requested. However, the department does publish data on the numbers of terrorist offenders released from prison in Great Britain. This includes offenders released at the end of their sentence, as well as those released on licence. This is part of the official statistics publication on the Operation of Police Powers under the Terrorism Acts, which are published quarterly on gov.uk. A total of 41 terrorist prisoners were released from custody in Great Britain in the year ending 30 June 2025.
The UK has one of the strongest counter-terrorism frameworks in the world, including a range of powers to support the management of terrorist offenders upon their release. For example, terrorist offenders can be subject to strict licence conditions and must comply with notification requirements upon release, which allows the police and other authorities to monitor and manage any ongoing risk that they pose.
This legislative framework has been strengthened over recent years and we keep it under continuous review to ensure operational partners have the tools they need to manage the risk posed by terrorist offenders.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has considered raising the employer National Insurance threshold for hospitality businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government increased the Employment Allowance for National Insurance contributions (NICs) from £5,000 to £10,500. Furthermore, businesses can claim employer NICs reliefs for employees under-21s and under-25 apprentices on earnings up to £50,270.
There are a wide range of factors to take into consideration when introducing or expanding a tax relief. These include how effective the relief would be at achieving the policy intent, how targeted support would be, whether it adds complexity to the tax system, and the cost.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the Home Office:
To ask the Secretary of State for the Home Department, what assessment her Department has made of the adequacy of licensing laws for supporting rural and community pubs.
Answered by Sarah Jones - Minister of State (Home Office)
Hospitality businesses are vital to our communities, both in town centres and in rural areas. As well as providing local jobs and supporting local supply chains, they help create places where people want to live, work, visit and invest.
No assessment has been made specifically of the link between licensing laws and supporting rural and community pubs, however a wider reform programme is underway following the report of a Licensing Taskforce and consultation with stakeholders over the past year. The Government aims to support all hospitality businesses, by developing reforms which lead to a more responsive and enabling licensing system for hospitality and leisure businesses that also protects and safeguards communities.
As part of the licensing reforms programme a Call for Evidence closed in November with over 2,000 responses to a range of questions about changes that could be made to the licensing regime. Following that we published a new National Licensing Policy Framework (NLPF) for the hospitality sector, which set how the Licensing Act should be applied to support the growth of hospitality businesses and highlights examples of good practice.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of alcohol duty levels on the financial sustainability of community pubs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2025 the Chancellor announced that alcohol duty would be kept constant in real terms by uprating it in line with by Retail Price Index (RPI) on 1 February 2026. This decision balances the important contribution of alcohol producers and the hospitality sector to the UK’s culture and economy, with the duty’s role in reducing alcohol harm.
An assessment of the impacts of this Budget decision is published within the Tax Impact and Information Note (TIIN) here: https://www.gov.uk/government/publications/alcohol-duty-rates-change/alcohol-duty-uprating#summary-of-impacts
This Government is proud to have been able to expand the generosity of Draught Relief, which enables products served on draught below 8.5% alcohol by volume (ABV) to pay less duty. The Chancellor’s draught rate cut at Autumn Budget 2024 applied to approximately 60% of the alcoholic drinks sold in pubs. This took a penny of duty off a typical strength pint at a cost to the Exchequer of over £85m a year, providing vital support to pubs and other venues, and helping other producers that supply eligible products.
Asked by: Rupert Lowe (Independent - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has considered freezing or reforming alcohol duty on draught products sold in pubs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2025 the Chancellor announced that alcohol duty would be kept constant in real terms by uprating it in line with by Retail Price Index (RPI) on 1 February 2026. This decision balances the important contribution of alcohol producers and the hospitality sector to the UK’s culture and economy, with the duty’s role in reducing alcohol harm.
An assessment of the impacts of this Budget decision is published within the Tax Impact and Information Note (TIIN) here: https://www.gov.uk/government/publications/alcohol-duty-rates-change/alcohol-duty-uprating#summary-of-impacts
This Government is proud to have been able to expand the generosity of Draught Relief, which enables products served on draught below 8.5% alcohol by volume (ABV) to pay less duty. The Chancellor’s draught rate cut at Autumn Budget 2024 applied to approximately 60% of the alcoholic drinks sold in pubs. This took a penny of duty off a typical strength pint at a cost to the Exchequer of over £85m a year, providing vital support to pubs and other venues, and helping other producers that supply eligible products.