Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to paragraph 2.40 of the Autumn Budget 2024, HC 295, published on 30 October 2024, if she will make an assessment of the potential impact of (a) the increase in the rate of employers' National Insurance Contributions and (b) the VAT rate on the viability of businesses in the hospitality sector.

The Government recognises that the significant contribution made by hospitality businesses to economic growth. At Autumn Budget 2024, the government took tough decisions on tax, spending and welfare to restore economic stability and invest in public services.

A Tax Information and Impact Note that covers the employer NICs changes was published by HMRC on 13 November, outlining the impact on business, that can be found here:

https://www.gov.uk/government/publications/changes-to-the-class-1-national-insurance-contributions-secondary-threshold-the-secondary-class-1-national-insurance-contributions-rate-and-the-empl/changes-to-the-class-1-national-insurance-contributions-secondary-threshold-the-secondary-class-1-national-insurance-contributions-rate-and-the-empl.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. The Government currently has no plans to introduce a different VAT rate for the hospitality sector.

However, the Government keeps all taxes under review, including consideration of impacts.