Asked by: Abena Oppong-Asare (Labour - Erith and Thamesmead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential impact of the level of alcohol duty on the financial viability of pubs.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government publishes tax information and impact notes (TIINs) for tax policy changes when the policy is final or near final. The summary of impacts from the latest changes to alcohol duty at Spring Budget 2023 can be found here: https://www.gov.uk/government/publications/increase-in-alcohol-duty-rates/alcohol-duty-uprating
Asked by: Andrea Jenkyns (Conservative - Morley and Outwood)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what role public houses have in his Department's leveling up policies; and what steps his Department is taking to utilise them.
Answered by Jacob Young - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
The Community Ownership Fund has awarded funding to protect a wide range of community assets that are important to communities, including £8 million for 33 Pubs.
We recognise that Pubs can help to form vital parts of our social fabric and boost pride in place by bringing people together and help to tackle loneliness and social isolation.
Pubs provide a range of services for the communities they serve, and the Community Ownership Fund helps local groups to secure the futures of pubs in their communities.
Asked by: Neil Hudson (Conservative - Penrith and The Border)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent steps they have taken to support hospitality and tourism in rural areas.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government believes that pubs make an important contribution to our culture, fostering a sense of place and community, and to the UK economy.
The Government is aware that the high street faces long-term challenges and is committed to supporting the businesses that make our high streets and town centres successful. Therefore, at Autumn Statement 2022, the Government announced a package of support worth £13.6 billion over the next five years, including:
Furthermore, to support pubs, our 'Brexit Pubs Guarantee,' confirms that the duty on a draught pint will always be lower than its equivalent in a supermarket. And the new alcohol duty system implemented in August of this year included a new Draught Relief that provides a significant duty discount on beers below 8.5% alcohol by volume (ABV) sold in containers of 20 litres or more in the on-trade.
The Community Ownership Fund has awarded £49.3 million to 195 projects across the UK, including rural pubs, with £35 million allocated to 131 projects across England, £6.2 million allocated to 28 projects in Scotland, £4 million to 18 projects in Wales and £4.1 million to 18 projects in Northern Ireland.
The Government keeps all taxes under review.
Asked by: Neil Hudson (Conservative - Penrith and The Border)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the level of fiscal support his Department is providing to pubs.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government believes that pubs make an important contribution to our culture, fostering a sense of place and community, and to the UK economy.
The Government is aware that the high street faces long-term challenges and is committed to supporting the businesses that make our high streets and town centres successful. Therefore, at Autumn Statement 2022, the Government announced a package of support worth £13.6 billion over the next five years, including:
Furthermore, to support pubs, our 'Brexit Pubs Guarantee,' confirms that the duty on a draught pint will always be lower than its equivalent in a supermarket. And the new alcohol duty system implemented in August of this year included a new Draught Relief that provides a significant duty discount on beers below 8.5% alcohol by volume (ABV) sold in containers of 20 litres or more in the on-trade.
The Community Ownership Fund has awarded £49.3 million to 195 projects across the UK, including rural pubs, with £35 million allocated to 131 projects across England, £6.2 million allocated to 28 projects in Scotland, £4 million to 18 projects in Wales and £4.1 million to 18 projects in Northern Ireland.
The Government keeps all taxes under review.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking to help support small businesses in the hospitality industry; and whether he has made a recent assessment of the potential merits of reviewing the VAT threshold for those businesses.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government understands the vital role the hospitality industry plays in the UK economy. This is why, for example, the Government announced a package of business rates support at Autumn Statement 2022 which means businesses in the retail, hospitality and leisure sectors, including pubs, will receive a tax cut worth over £2 billion in 2023-24. Eligible properties will receive 75 per cent off their business rates bill, up to a cap of £110,000 per business.
The Government recognises that accounting for VAT can be a burden on small businesses. At £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD. This keeps the majority of UK businesses out of VAT altogether. Views on the VAT registration threshold are divided and the case for change has been regularly reviewed over the years. While some businesses have argued that a higher threshold would reduce administrative and financial burdens, others contend that a lower threshold would provide a fairer competitive environment.
The Government continues to keep all taxes under review.
Asked by: Abena Oppong-Asare (Labour - Erith and Thamesmead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent steps his Department has taken to help support pubs with increases in the cost of living.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government believes that pubs make an important contribution to our culture, fostering a sense of place and community, and the UK economy. And we understand the challenges pubs are facing.
That is why the new alcohol duty system implemented on 1 August 2023 included a new Draught Relief that provides a significant duty discount on alcohol sold in containers of 20 litres or more in pubs and other on-trade venues. As well as this, the Government’s ‘Brexit Pubs Guarantee,’ confirms that the duty on a draught pint will always be lower than its equivalent in a supermarket.
Pubs also benefit from a broader package of business rates support worth £13.6bn over the next five years, including a Retail, Hospitality and Leisure (RHL) relief scheme which increased from 50% to 75% relief in 2023-24. And community assets have benefitted from the Community Ownership Fund, which has allocated £49.3m to 195 projects across the UK, including pubs.
Asked by: Ruth Jones (Labour - Newport West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the number of pubs that have been (a) demolished, (b) converted and (c) sold in England and Wales in each of the last five years.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government does not hold data at this granular level. We do believe that pubs make an important contribution to our culture, fostering a sense of place and community, and the UK economy. And we understand the challenges pubs are facing.
That is why the alcohol duty system, implemented in August, included a new Draught Relief that provides a significant duty discount on alcohol sold in containers of 20 litres or more in the on-trade. As well as this, the Government’s ‘Brexit Pubs Guarantee,’ confirms that the duty on a draught pint will always be lower than its equivalent in a supermarket.
Pubs also benefit from a broader package of business rates support worth £13.6bn over the next five years, including a Retail, Hospitality and Leisure (RHL) relief scheme which increased from 50% to 75% relief in 2023-24.
Asked by: Abena Oppong-Asare (Labour - Erith and Thamesmead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of the VAT charged on alcohol supplied by (a) pubs and (b) supermarkets on the level of competition between those sectors.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services, including alcohol sold at both pubs and supermarkets. Exceptions to the standard rate have always been limited by both legal and fiscal considerations.
The Government understands the vital role the hospitality industry plays in the UK economy. We have implemented a new alcohol duty system on 1 August, which also has many benefits for pubs. The new Draught Relief provides a significant duty discount on alcohol sold in containers of 20 litres or more, in pubs and other on-trade venues. As well as this, the Government’s ‘Brexit Pubs Guarantee,’ confirms that the duty on a draught pint will always be lower than its equivalent in a supermarket.
The Government continues to keep all taxes under review.
Asked by: Navendu Mishra (Labour - Stockport)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps her Department is taking to support pubs.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
We understand the many challenges pubs are facing. The Government is supporting pubs with business rates relief, the Brexit Pubs Guarantee, and help with energy costs. We are also working across Government to identify opportunities to ease regulatory and licensing burdens.
We continue to work with businesses, including members of the Hospitality Sector Council, to deliver our 2021 Hospitality Strategy, which aims to support the sector's recovery from COVID-19 and improve longer term resilience.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 18 September 2023 to Question 198559 on Energy: Hospitality Industry, whether she has received representations from (a) UK Hospitality, (b) the British Beer and Pub Association, or (c) hospitality businesses about energy companies refusing to supply (i) pubs, (ii) restaurants and (iii) other hospitality premises.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
The Department regularly answers correspondence on issues related to the retail energy market, including those raised by representatives from the hospitality industry. The Department regularly meets with stakeholders from this industry. On 12th September, I met again with the UK Hospitality CEO, Kate Nicholls, where we discussed UK Hospitality’s views on the Ofgem review into the non-domestic energy market.