Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of (a) increasing employers' National Insurance contributions, (b) increasing minimum wage and (c) cutting the business rates relief for retail, hospitality, and leisure on the hospitality sector.

An assessment of the changes to Employers’ National Insurance has been published by HMRC in their Tax Information and Impact Note, including impacts on the exchequer, the economy, individuals, households and families, equalities, and businesses including civil society organisations, alongside details on monitoring and evaluation.

The National Minimum Wage (NMW) and National Living Wage (NLW) rates are set based on recommendations by the independent and expert Low Pay Commission (LPC). The government has asked the LPC to monitor the effects of the NLW and has given them a clear mandate to recommend a change of course where necessary.

On business rates, for 2025-26, the government will provide a 40 per cent discount to Retail, Hospitality and Leisure (RHL) properties up to a cash cap of £110,0000 per business and has frozen the small business multiplier. This will save the average pub, with a rateable value (RV) of £16,800, over £3,300 in 2025.

From 2026-27, the government intends to introduce permanently lower tax rates for RHL properties with an RV below £500,000. To sustainably fund this tax cut, the government intends to introduce a higher rate on the most valuable properties in 2026-27 - those with an RV of £500,000 and above. These represent less than one per cent of all properties.