Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential long-term fiscal impact of closures in the hospitality sector on local economies.

The Government values the significant contribution made by hospitality businesses to economic growth and social life in the UK.

The Government closely monitors the health of different sectors across the UK economy and regularly engages with the hospitality sector. The recent Spending Review set out our new long-term local growth programmes to invest in communities across the UK, including to support local high streets and their hospitality businesses.

The hospitality sector makes significant contribution the exchequer, the UK economy, and society. We are determined to support hospitality businesses to succeed. We will introduce a permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000 from 2026-27. Ahead of the new multipliers being introduced, we extended the RHL relief for 2025-26 at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.

In addition, we:

• increased the Employment Allowance to £10,500;
• established the Licensing Taskforce and issued a call for evidence on a National Licensing Policy Framework which will set out national direction for licensing authorities to consider economic growth and cultural value,
• introduced the English Devolution Bill, which will protect hospitality businesses from upward only rent clauses, and;
• are introducing a strong new ‘Community Right to Buy’ to help communities safeguard valued community assets – such as pubs.

We will continue to work with the hospitality sector to help drive economic growth, regenerate our high streets, and support vibrant and healthy communities across the UK.