Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to hold discussions with representatives of the brewing and pub sector on how to (a) create growth and (b) reduce barriers to investment, before the Autumn Budget 2025.
The Government is committed to supporting small and local businesses in the hospitality, tourism, and services sectors, which provide a significant contribution to the UK economy and society.
We have launched a licensing taskforce to make recommendations to cut red tape and remove barriers to business growth that exist within the UK’s licensing framework. The industry-led Taskforce has shared its findings with the Government, and we aim to update publicly by the summer.
We have prevented retail, hospitality, and leisure (RHL) business rates 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.
From April 2026, we intend to introduce permanently lower business rates multipliers for RHL properties with rateable values below £500,000. The Treasury has, and will continue to, meet with the RHL sector to discuss these reforms.
At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and increased the relief available on draught products to 13.9%.
We have protected small businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500. This means that 865,000 employers will pay no employer NICs at all this year, and more than half of employers will see no change or will gain overall from this package.
Furthermore, the Department of Business and Trade will soon be publishing its Small Business Strategy, which will announce further measures to support small businesses in the hospitality sector and to revitalise high streets.
Through The Hospitality Support Scheme, the Government is working with Pub is the Hub and providing funds to help community pubs adapt to changing local needs, ensuring these vital social hubs continue delivering for their communities.
Additionally, we have funded a wide range of community assets, including pubs, through the Community Ownership Fund. On 23 December 2024, this Government announced the outcome of Round 4 of the Community Ownership Fund, the largest ever round to date.