Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business, Innovation, Science and Trade, what steps his Department is taking to support the hospitality sector in the context of rising operating and employment costs; and what assessment he has made of the case for targeted employer National Insurance relief for under-25s in qualifying entry-level roles in that sector.

The Government recognises the pressures facing hospitality businesses from rising operating and employment costs. Hospitality businesses play a vital role in communities, high streets and local economies across the UK, and we are taking action to support them. From April 2026, eligible retail, hospitality and leisure properties benefit from permanently lower business rates multipliers. We have also increased the Employment Allowance from £5,000 to £10,500, reducing employer National Insurance costs for many eligible businesses.

Businesses can also claim employer National Insurance reliefs, including those for under-21s and under-25 apprentices. This means employers pay no employer National Insurance contributions for apprentices under 25 or employees under 21 on earnings up to £50,270. These reliefs were estimated to be worth around £2.5 billion in 2025/26.

The Government keeps all taxes under review and carefully considers the impact, cost and complexity of any proposed new tax reliefs as part of the policy-making process.