Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the (a) revaluation of pubs’ rateable values and (b) ending of the 40% business rates relief on (i) the financial viability of pubs and breweries and (iii) the wider economic and social contribution of those businesses; and if she will make an assessment of the potential merits of introducing a targeted, pub-specific relief.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down next year. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without this support, pubs would have faced a 45% increase in the total bills they pay next year. However, because of the support the Government has put in place, this has fallen to just 4%.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.
The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
The Government is paying for this tax cut through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
The Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has had discussions with the Valuation Office Agency on mitigating business rates increases for pubs and breweries; and what steps she is taking to prevent sudden increases in bills for those businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down next year. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without this support, pubs would have faced a 45% increase in the total bills they pay next year. However, because of the support the Government has put in place, this has fallen to just 4%.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.
The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
The Government is paying for this tax cut through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.
The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
The Call for Evidence, published at Budget, focuses on how reform of the business rates system can be used to incentivise and secure more investment by Britain’s businesses. This Call for Evidence builds on the findings of the Transforming Business Rates: Discussion Paper and asks stakeholders for more detailed evidence on how the business rates system influences investment decisions.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps his Department is taking to review the cumulative effect of operating costs, including energy, staffing, compliance, and taxation, on the viability of hospitality businesses; and what consultations he is having with industry representatives on those matters.
Answered by Kate Dearden - Parliamentary Under Secretary of State (Department for Business and Trade)
My department works closely with hospitality businesses to assess impact of rising operating costs across energy, staffing, compliance and taxation.
This includes regular engagement with the sector, including through the Hospitality Sector Council which provides a formal forum to co-create solutions to pressures facing the industry.
We also maintain regular engagement with trade bodies such as UKHospitality and the British Beer and Pub Association, as well as colleagues across government, to ensure that policy decisions are informed by the latest evidence and genuinely support the sector’s long-term stability.
Asked by: John Milne (Liberal Democrat - Horsham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with the Valuation Office Agency on the application of business rates to pubs and breweries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I have regular discussions with the Valuation Office Agency (VOA), who are responsible for independently valuing properties.
Asked by: Joshua Reynolds (Liberal Democrat - Maidenhead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the (a) reduction in business rates relief, (b) 2026 rates revaluation and (c) increase in employer National Insurance contributions announced in the 2024 Autumn Budget on pubs and breweries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.
The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
The National Insurance Contributions (NICs) 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.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she has make an assessment of the potential impact of reforming business rates on small pubs and breweries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In April 2026, the Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000. This permanent tax cut will ensure that eligible properties, including pubs, benefit from much-needed certainty and support. Breweries that are wholly or mainly open to visiting members of the public (for instance, mainly used as a bar or for providing tours to the public) will also benefit from the lower multipliers.
The final design, including the rates, for the new business rates multipliers will be announced at Budget 2025, so that the Government can factor the revaluation outcomes, as well as the broader economic and fiscal context, into decision-making. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.
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. Under the previous Government, RHL relief was due to end entirely in April 2025, and so by extending it, the Government has saved the average pub, with a ratable value of £16,800, over £3,300.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she has made an assessment of the impact of reducing beer duty by 5% across (a) draught, (b) packaged and (c) lower-strength beer on (i) growth and (ii) investment in the sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2025 the Chancellor confirmed that alcohol duty will be uprated by Retail Price Index (RPI) on 1 February 2026 to main its current real-terms value.
The government considers uprating to be a prudent decision for the public finances that balances the important contribution of alcohol producers, pubs and the wider hospitality sector, with the tax’s role in supporting public health.
The Chancellor heard a range of perspectives ahead of the Budget, including from beer producers, and considered the impact of alcohol duty rates on all affected groups. An assessment of these impacts is published within the Tax Impact and Information Note (TIIN), available here: https://www.gov.uk/government/publications/alcohol-duty-rates-change/alcohol-duty-uprating#summary-of-impacts
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, pursuant to the answer of 28 July 2025, to Question 66478, on Innovation: Beer and Public Houses, whether the Government intends to involve amend the Licensing Act 2003 to prohibit the sale of alcohol-free drinks to under 18s in pubs.
Answered by Ashley Dalton - Parliamentary Under-Secretary (Department of Health and Social Care)
A non-alcoholic product differs from a soft drink as it is a beverage intentionally crafted to mimic traditional alcoholic drinks like beer, wine, or spirits. This is a newly emerging area, but there is some evidence to suggest that exposure to alcohol like products, even if low or zero alcohol, can normalize drinking, and become a gateway to alcohol consumption. Earlier alcohol use initiation is linked to a higher risk of harmful drinking patterns later in life.
The Department continues to monitor the emerging evidence on the impact of no and low alcohol (NoLo) products on children and young people. A large multi-year National Institute for Health and Care Research study is underway to examine the public health impacts of NoLo products, and we look forward to the findings of that being available in the coming year.
The Government is still considering options to restrict access to NoLo products, including banning sales to under 18 year-olds. as committed to in the In Fit for the Future: 10-Year Health Plan for England. We will share an update with stakeholders in due course.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, pursuant to the answer of 28 July 2025, to Question 66478, on Innovation: Beer and Public Houses, on what evidential basis no- and low-alcohol drinks can cause harm to 16 and 17 year olds.
Answered by Ashley Dalton - Parliamentary Under-Secretary (Department of Health and Social Care)
A non-alcoholic product differs from a soft drink as it is a beverage intentionally crafted to mimic traditional alcoholic drinks like beer, wine, or spirits. This is a newly emerging area, but there is some evidence to suggest that exposure to alcohol like products, even if low or zero alcohol, can normalize drinking, and become a gateway to alcohol consumption. Earlier alcohol use initiation is linked to a higher risk of harmful drinking patterns later in life.
The Department continues to monitor the emerging evidence on the impact of no and low alcohol (NoLo) products on children and young people. A large multi-year National Institute for Health and Care Research study is underway to examine the public health impacts of NoLo products, and we look forward to the findings of that being available in the coming year.
The Government is still considering options to restrict access to NoLo products, including banning sales to under 18 year-olds. as committed to in the In Fit for the Future: 10-Year Health Plan for England. We will share an update with stakeholders in due course.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has considered the potential merits of cutting duty on draught beer and cider served in pubs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the government cut alcohol duty rates on draught products by 1.7%, which applies to approximately 60% of the alcoholic drinks sold in pubs. This took a penny of duty off a typical strength pint at a cost to the Exchequer of over £85m a year. Draught beer and cider now pay 13.9% less in duty than their packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%.
The Chancellor makes decisions on tax policy at fiscal events.