Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact on employment and job creation in the hospitality sector of extending employer National Insurance contribution relief to (a) employees aged under 25 and (b) individuals returning to work from welfare.

The government is committed to tackling the rise in youth unemployment and inactivity, which has been growing since the last Parliament. That is why we are delivering a Youth Guarantee to ensure that every young person can access the support they need to earn or learn. This includes a new Jobs Guarantee, which will provide a six-month paid work placement for every eligible 18- to 21-year-old who has been on Universal Credit and looking for work for 18 months – helping young people take that crucial first step into sustained employment. Details on the wider Youth Guarantee will be announced shortly.

The government is increasing funding for employment support to more than £3.75 billion per year by 2028-29, helping people to access the skills they need to progress, tackling inactivity and ensuring more people are in better jobs.

There are a wide range of factors to take into consideration when introducing a tax relief. These include how effective the relief would be at achieving the policy intent, how targeted support would be, whether it adds complexity to the tax system, and the cost.

The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way.