Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent changes to (a) business rates relief, (b) VAT and (c) employer's National Insurance contributions on (i) small and medium-sized hospitality businesses and (ii) independent pubs and restaurants in rural constituencies.

The Government recognises the vital role that all hospitality businesses play in supporting the UK’s economy and communities.

That is why, as set out at Autumn Budget 2024, the Government will introduce permanently lower business rates multipliers for retail, hospitality and leisure (RHL) properties with ratable values below £500,000 from 2026-27. Ahead of the new multipliers being introduced, the Government prevented RHL business rates relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business. By extending the RHL relief, the Government has saved the average pub, with a ratable value of £16,800, over £3,300. Without any Government intervention, the RHL relief would have ended entirely.

To ensure that key amenities are available, and that community assets are protected in rural areas, Rural Rates Relief provides 100% business rates relief for certain properties in eligible rural areas with populations below 3,000, including those that are the only public house, with a RV of up to £12,500.

The Employment Allowance has been more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities, including those in the hospitality sector, will either gain or see no change this year. A Tax Information and Impact Note was published alongside changes to employer NICs, and the Office for Budget Responsibility forecasts employment levels to increase over the coming years.