Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing VAT to 5 per cent for hospitably businesses for (a) tourism and (b) hospitality.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Since the start of the pandemic, over £37 billion has been provided to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks.
VAT is the UK's third largest tax forecast to raise £161 billion in 2023/2024, helping to fund key spending priorities such as important public services, including the NHS, education and defence. The previous VAT relief for tourism and hospitality cost over £8 billion and reintroducing it would come at a significant further cost.
While there are no plans to reduce the rate of VAT paid by hospitality businesses, the Government keeps all taxes under review.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing VAT for the hospitality sector.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Since the start of the pandemic, over £37 billion has been provided to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks.
VAT is the UK's third largest tax forecast to raise £161 billion in 2023/2024, helping to fund key spending priorities such as important public services, including the NHS, education and defence. The previous VAT relief for tourism and hospitality cost over £8 billion and reintroducing it would come at a significant further cost.
While there are no plans to reduce the rate of VAT paid by hospitality businesses, the Government keeps all taxes under review.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central)
Question to the Department for Education:
To ask the Secretary of State for Education, for what reason level 3 travel and tourism qualifications will not be funded after 2025; and what assessment her Department has made of the potential impact of this decision on (a) the North East and (b) Newcastle.
Answered by Robert Halfon
The department has embarked on a technical education reform programme. The changes to post-16 qualifications at level 3 and below are designed to ensure that our qualifications system provides opportunity for young people from all backgrounds. We want as many people as possible to undertake world class A levels and T Levels, as evidence shows these qualifications provide the best foundation from which to progress either into higher education (HE), or skilled employment.
Data shows that, in the following year, of the approximately 3,100 16-18 students who completed a level 3 qualification in Travel and Tourism in 2018/19:
This shows mixed progression outcomes for these qualifications. Specifying that newly developed travel and tourism-related qualifications must be based on employer-designed, approved occupational standards at level 3 will ensure that students gain the knowledge, skills, and behaviours employers in the travel and tourism industries need, leading to better and more consistent progression outcomes for young people.
The department will continue to fund travel and tourism qualifications at level 3 beyond 2025. Existing travel and tourism qualifications will remain funded until 31 July 2026, after which qualifications approved for funding in travel and tourism will need to be mapped against one of the relevant occupational standards at level 3 for technical qualifications. Further information can be accessed at: https://occupational-maps.instituteforapprenticeships.org/.
For future qualifications, the department is encouraging awarding organisations to work with schools, colleges and employers to develop new travel and tourism focused technical qualifications at level 3 which support young people to enter employment or further technical study.
Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what steps she is taking to promote (a) viable, (b) long-term and (c) year-round careers in the heritage and tourism sector to (i) young people and (ii) lifelong learners.
Answered by John Whittingdale
The diverse range of jobs in the heritage and tourism sectors can bring fulfilment and enjoyment to those who perform them as well as helping to share our rich heritage and fantastic destinations with the widest possible audience, and preserve them for the benefit of future generations.
The Government’s arm’s-length bodies play a valuable role in delivering initiatives and projects to promote and develop sustainable careers in tourism and heritage to both young people and life-long learners.
Since 1994, The National Lottery Heritage Fund has invested in a range of projects to develop training and career opportunities in the heritage sector for people of all backgrounds.
Historic England’s approach to skills and employability in heritage is a tiered set of initiatives for both young people and lifelong learners. Programmes delivered across these tiers include the Heritage Schools programme, work experience and and T-Level industry placements, and specialist skills development programmes, including developing future leadership capacity within the heritage sector.
The Tourism Recovery Plan sets out our ambition for a more productive, innovative, and resilient industry, employing more UK nationals in year-round quality jobs. As part of this, the Government is investing £2.5 billion in the National Skills Fund until 2025 to help people gain skills to improve their job prospects, including in sectors such as hospitality.
The Hospitality & Tourism Skills Board will continue to pursue an employer-led, coordinated and proactive approach towards recruitment, retention and upskilling.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made with Cabinet colleagues of the impact of energy price increases on the hospitality sector; and if he will make an assessment of the potential merits of reducing VAT on that sector.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The new Energy Bills Discount Scheme (EBDS) provides all eligible businesses and other non-domestic energy users including hospitality, with a discount on high energy bills for 12 months from 1 April 2023 until 31 March 2024.
Wholesale gas prices have now fallen to levels before Putin’s invasion. The new EBDS therefore strikes a balance between supporting businesses for a further 12 months, from April 2023 to March 2024, and limiting taxpayer’s exposure to volatile energy markets. This provides long-term certainty for businesses and reflects how the scale of the challenge has changed since September last year.
Businesses in the retail, hospitality and leisure sectors will also receive a tax cut worth over £2 billion in 2023-2024. Eligible properties will receive 75 per cent off their business rates bill, up to a cap of £110,000 per business with 80 per cent of retail, hospitality and leisure properties seeing their bills falling or staying the same from April 2023.
The Government has been clear that the reduced rate of VAT for tourism and hospitality was a temporary measure designed to support the cash flow and viability of sectors that were severely affected by COVID-19.
The previous VAT relief cost over £8 billion. Reintroducing it would come at a significant further cost, reducing the money available to help fund key spending priorities, including important public services, such as the NHS, education and defence.
Asked by: Dean Russell (Conservative - Watford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment his Department has made f the impact of the level of VAT on the hospitality sector.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Since the start of the pandemic, over £37 billion has been provided to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks.
VAT is the UK's third largest tax forecast to raise £161 billion in 2023/2024, helping to fund key spending priorities such as important public services, including the NHS, education and defence. The previous VAT relief for tourism and hospitality cost over £8 billion and reintroducing it would come at a significant further cost.
While there are no plans to reduce the rate of VAT paid by hospitality businesses, the Government keeps all taxes under review.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps her Department is taking to encourage young people to (a) enter the hospitality and tourism industry and (b) undertake a degree apprenticeship in tourism.
Answered by Robert Halfon
The department is introducing T Levels in a phased approach, with a strong emphasis on quality, both of the qualification itself and its delivery. We can only assess the impact on an industry of the introduction of T Level once we’re able to assess the positive impact the T Level makes.
The department communicated the decision to defer the T Level in Catering in March 2023, and providers have subsequently supported students interested in this T Level to find alternate learning programmes to suit their needs, with existing qualifications still funded and available until after the Catering T Level is rolled out.
The Institute for Apprenticeships and Technical Education regularly reviews its occupational standards across all sectors. It is currently in the process of engaging with a wide range of stakeholders in catering and hospitality, to ensure that the occupational standards in this sector which underpin apprenticeships and T Level technical qualifications are up to date, and fully meet the needs of employers.
There is no T Level specifically in travel and tourism, but T Levels in business and administration are well placed to develop the skills that are relevant to many occupations in this area. Students will then be able to tailor their programme by undertaking their industry placement with a relevant employer in the sector.
A range of other provision is available to those young people who want to gain skills in the Hospitality and Travel and Tourism Sectors.
There are 137 Level 2 and Level 3 qualifications in the Hospitality and catering sector for 16-19 year olds that are approved for funding in 2023/2024, and 73 Level 2 and Level 3 qualifications in the Travel and tourism sector for 16-19 year olds approved for funding in 2023/2024. Existing travel and tourism qualifications are still in receipt of funding until 2026.
The department is encouraging awarding organisations to develop travel and tourism-focused technical qualifications at Level 3, working with employers, colleges, and schools to design new qualifications that support young people to enter employment or further technical study where that is what they want to do.
Apprenticeships provide people of all ages with the opportunity to earn and learn the skills needed to start, or progress in, an exciting career in the hospitality and tourism sector. Employers in this sector can access a range of high-quality apprenticeship standards to meet their skills needs, including the Level 3 Travel Consultant, Level 4 Hospitality Manager and Level 4 Senior Culinary Chef. We want to see more young people from all backgrounds undertaking degree apprenticeships, that provide people with high-quality training and are important in supporting productivity, social mobility and widening participation in higher education and employment. Over the next two years the department is making up to £40 million available to higher education providers through the Strategic Priorities Grant, to grow their degree apprenticeship provision and form new employer partnerships.
Young people can also benefit from the Free Courses for Jobs offer of a free Level 3 qualification in Hospitality and Catering delivered by a range of providers in England. This offer was extended to include Hospitality and Catering due to a significant skills shortage in the sector following the lifting of lockdown, and robust labour market analysis showing the opportunities in this field.
All young people and learners have access to impartial, lifelong careers advice and guidance which empowers them to progress into work or the next stage of their career. This will include advice on a range of options for training in areas such as Hospitality and Travel and Tourism.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the Department for Education:
To ask the Secretary of State for Education, what estimate he has made of how many students would have taken the T level in Catering and Hospitality this year.
Answered by Robert Halfon
The department is introducing T Levels in a phased approach, with a strong emphasis on quality, both of the qualification itself and its delivery. We can only assess the impact on an industry of the introduction of T Level once we’re able to assess the positive impact the T Level makes.
The department communicated the decision to defer the T Level in Catering in March 2023, and providers have subsequently supported students interested in this T Level to find alternate learning programmes to suit their needs, with existing qualifications still funded and available until after the Catering T Level is rolled out.
The Institute for Apprenticeships and Technical Education regularly reviews its occupational standards across all sectors. It is currently in the process of engaging with a wide range of stakeholders in catering and hospitality, to ensure that the occupational standards in this sector which underpin apprenticeships and T Level technical qualifications are up to date, and fully meet the needs of employers.
There is no T Level specifically in travel and tourism, but T Levels in business and administration are well placed to develop the skills that are relevant to many occupations in this area. Students will then be able to tailor their programme by undertaking their industry placement with a relevant employer in the sector.
A range of other provision is available to those young people who want to gain skills in the Hospitality and Travel and Tourism Sectors.
There are 137 Level 2 and Level 3 qualifications in the Hospitality and catering sector for 16-19 year olds that are approved for funding in 2023/2024, and 73 Level 2 and Level 3 qualifications in the Travel and tourism sector for 16-19 year olds approved for funding in 2023/2024. Existing travel and tourism qualifications are still in receipt of funding until 2026.
The department is encouraging awarding organisations to develop travel and tourism-focused technical qualifications at Level 3, working with employers, colleges, and schools to design new qualifications that support young people to enter employment or further technical study where that is what they want to do.
Apprenticeships provide people of all ages with the opportunity to earn and learn the skills needed to start, or progress in, an exciting career in the hospitality and tourism sector. Employers in this sector can access a range of high-quality apprenticeship standards to meet their skills needs, including the Level 3 Travel Consultant, Level 4 Hospitality Manager and Level 4 Senior Culinary Chef. We want to see more young people from all backgrounds undertaking degree apprenticeships, that provide people with high-quality training and are important in supporting productivity, social mobility and widening participation in higher education and employment. Over the next two years the department is making up to £40 million available to higher education providers through the Strategic Priorities Grant, to grow their degree apprenticeship provision and form new employer partnerships.
Young people can also benefit from the Free Courses for Jobs offer of a free Level 3 qualification in Hospitality and Catering delivered by a range of providers in England. This offer was extended to include Hospitality and Catering due to a significant skills shortage in the sector following the lifting of lockdown, and robust labour market analysis showing the opportunities in this field.
All young people and learners have access to impartial, lifelong careers advice and guidance which empowers them to progress into work or the next stage of their career. This will include advice on a range of options for training in areas such as Hospitality and Travel and Tourism.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment his Department has made on the impact on the hospitality industry of postponing the T level in Catering and Hospitality.
Answered by Robert Halfon
The department is introducing T Levels in a phased approach, with a strong emphasis on quality, both of the qualification itself and its delivery. We can only assess the impact on an industry of the introduction of T Level once we’re able to assess the positive impact the T Level makes.
The department communicated the decision to defer the T Level in Catering in March 2023, and providers have subsequently supported students interested in this T Level to find alternate learning programmes to suit their needs, with existing qualifications still funded and available until after the Catering T Level is rolled out.
The Institute for Apprenticeships and Technical Education regularly reviews its occupational standards across all sectors. It is currently in the process of engaging with a wide range of stakeholders in catering and hospitality, to ensure that the occupational standards in this sector which underpin apprenticeships and T Level technical qualifications are up to date, and fully meet the needs of employers.
There is no T Level specifically in travel and tourism, but T Levels in business and administration are well placed to develop the skills that are relevant to many occupations in this area. Students will then be able to tailor their programme by undertaking their industry placement with a relevant employer in the sector.
A range of other provision is available to those young people who want to gain skills in the Hospitality and Travel and Tourism Sectors.
There are 137 Level 2 and Level 3 qualifications in the Hospitality and catering sector for 16-19 year olds that are approved for funding in 2023/2024, and 73 Level 2 and Level 3 qualifications in the Travel and tourism sector for 16-19 year olds approved for funding in 2023/2024. Existing travel and tourism qualifications are still in receipt of funding until 2026.
The department is encouraging awarding organisations to develop travel and tourism-focused technical qualifications at Level 3, working with employers, colleges, and schools to design new qualifications that support young people to enter employment or further technical study where that is what they want to do.
Apprenticeships provide people of all ages with the opportunity to earn and learn the skills needed to start, or progress in, an exciting career in the hospitality and tourism sector. Employers in this sector can access a range of high-quality apprenticeship standards to meet their skills needs, including the Level 3 Travel Consultant, Level 4 Hospitality Manager and Level 4 Senior Culinary Chef. We want to see more young people from all backgrounds undertaking degree apprenticeships, that provide people with high-quality training and are important in supporting productivity, social mobility and widening participation in higher education and employment. Over the next two years the department is making up to £40 million available to higher education providers through the Strategic Priorities Grant, to grow their degree apprenticeship provision and form new employer partnerships.
Young people can also benefit from the Free Courses for Jobs offer of a free Level 3 qualification in Hospitality and Catering delivered by a range of providers in England. This offer was extended to include Hospitality and Catering due to a significant skills shortage in the sector following the lifting of lockdown, and robust labour market analysis showing the opportunities in this field.
All young people and learners have access to impartial, lifelong careers advice and guidance which empowers them to progress into work or the next stage of their career. This will include advice on a range of options for training in areas such as Hospitality and Travel and Tourism.
Asked by: Dean Russell (Conservative - Watford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent comparative assessment his Department has made of the impact of the level of VAT rates on the hospitality sector in (a) the UK and (b) the EU.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Since the start of the pandemic, over £37 billion has been provided to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks.
At £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD, which keeps the majority of UK businesses out of VAT. VAT reliefs in the UK are among the highest in the OECD and mean that 45 per cent of economic activity is not subject to VAT.