Question to the Scotland Office:

To ask the Secretary of State for Scotland, with reference to paragraph 2.40 of the Autumn Budget 2024, HC 295, published on 30 October 2024, what assessment he has made of the potential impact of an increase in the rate of employers' National Insurance Contributions on (a) pubs and (b) small restaurants in Scotland.

This Government inherited a £22 billion black hole in the nation’s finances. The action we are taking in this Budget restores economic stability so we can invest in the future.

The government recognises the need to protect the smallest businesses, including small restaurants, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of businesses with NICs liabilities either gain or see no change next year.

In addition, we are making business rates in England fairer to protect the high street. The Government will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values less than £500,000, alongside 40% relief next year for RHL properties up to a cash cap of £110,000 per business. Business rates are devolved and the Scottish Government could support Scotland;s high streets by using some of the record budget settlement it received to match these reforms.

Also, to recognise the economic and cultural importance of pubs, and commitment to supporting smaller brewers, the government is cutting alcohol duty on draught products from February next year.