Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what fiscal steps her Department is taking to support the growth of small and micro businesses in the hospitality sector.

Small businesses are vital to our high streets and communities. The Government is committed to supporting the hospitality sector and we recognise the significant contribution they make to the UK economy.

The Government will introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27. In the meantime, the Government has prevented RHL relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.

The Government has protected the smallest businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no employer NICs at all next year.

The Government has committed £250m in 25-26 for the British Business Bank’s small business loans programmes, including Start Up Loans and the Growth Guarantee Scheme.

To drive further progress on our manifesto commitments, as part of the growth mission, the Government will bring forward a Small Business Strategy this year.