Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the 2024 changes to Employer National Insurance Contributions on job creation and retention in the hospitality sector.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.

The hospitality sector makes significant contribution the exchequer, the UK economy, and society and we are determined to support hospitality businesses to succeed.

The Government protected the smallest hospitality businesses from the recent changes to employer National Insurance by increasing the Employment Allowance to £10,500.

We have also taken a number of other steps to support the hospitality industry. This includes:

• Introducing a permanently lower business rates multiplier for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000 from 2026-27. Ahead of the new multipliers being introduced, the government 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.
• Establishing the Licensing Taskforce and issuing 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,
• Protecting hospitality businesses from upward only rent clauses through the English Devolution Bill, and;
• Introducing a strong new ‘Community Right to Buy’ to help communities safeguard valued community assets – such as pubs.