Asked by: Dean Russell (Conservative - Watford)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps she is taking to provide long term (a) financial and (b) other support to the hospitality sector.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Spring Budget 2023 included an increase in Draught Relief from 1 August to 9.2%, freezing the duty charged on a typical pint of beer in the pub and ensuring this will always be lower than in the supermarket.
The Autumn Statement 2022 included a package of changes to business rates worth £13.6bn over the next 5 years in lower bills. This is in addition to the Energy Bills Discount Scheme; the increased Employment Allowance of £5,000, which takes the smallest 40% of businesses out of paying any National Insurance at all; and setting the Annual Investment Allowance at £1 million permanently.
My department recently published an update on progress towards delivery of the Government’s Hospitality Strategy, with the key ambition of building the sector’s long-term resilience.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what support they are providing to (1) retail, (2) hospitality, and (3) leisure, businesses.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
The Spring Budget 2023 announced a £63m fund for public swimming pool providers to help with immediate cost pressures and make facilities more energy efficient. It has also been announced that there will be an increase in Draught Relief from 1 August to 9.2% to freeze the duty charged on a typical pint of beer in the pub and ensure this will always be lower than in the supermarket.
The Autumn Statement 2022 announced a package of changes to business rates worth £13.6bn over the next 5 years in lower bills. This includes a freeze to the multiplier, scrapping the downward revaluation cap and extending and increasing the generosity of the Retail, Hospitality and Leisure Relief from 50% to 75% in 2023-24, up to £110,000 per business.
This is in addition to the Energy Bills Relief Scheme, which discounts businesses’ energy bills until 31 March 2023; the new Energy Bills Discount Scheme; the increased Employment Allowance of £5,000, which takes the smallest 40% of businesses out of paying any National Insurance at all; and setting the Annual Investment Allowance at £1 million permanently.
Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to reduce beer duty in the context of the cost of living crisis.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
On 19 December 2022, the Government extended the alcohol duty freeze by six months to align with the implementation of the alcohol duty reforms and reduce the impact of the duty changes on businesses.
Alcohol duty reform will commence on 1 August and for the first time our system of alcohol taxation will include a new Draught Relief, enabling differential duty between the On and Off trade. We had previously stated that Draught Relief would be 5% from August 1st but at Spring Budget 2023, the Chancellor announced that this relief would be raised to 9.2% meaning that the duty on the average pint of draught beer will continue to be frozen from 1 August 2023. Differential duty was not possible when we were members of the EU and in the Budget the Chancellor also announced his Brexit Pub Guarantee – confirming that from August 1st draught duty will always be lower compared to the non-draught equivalent, supporting pubs and the wider hospitality sector.
Asked by: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the additional tax revenue that will be generated in (a) 2023-24, (b) 2024-25, (c) 2025-26, (d) 2026-27 and (e) 2027-28 from the August 2023 increase in duty on sprits.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
As announced at Spring Budget 2023, in line with the Government’s plan to manage the UK economy responsibly, the Government is uprating the previously published reform rates and structures by RPI from 1 August 2023.
However, recognising the vital role pubs play in our communities, the Government will ensure the duty on an average draught pint of beer served in a pub does not increase.
Exchequer impacts of this measure are set out in Table 4.1 of Spring Budget 2023 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Spring Budget 2023.
Asked by: Lord McCrea of Magherafelt and Cookstown (Democratic Unionist Party - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask His Majesty's Government what would happen in Northern Ireland under the Windsor Framework if the UK diverged and changed its regulations from those in the EU.
Answered by Lord Ahmad of Wimbledon - Minister of State (Foreign, Commonwealth and Development Office)
The Windsor Framework safeguards the UK internal market and its core principles of market access. It removes constraints on UK-wide policymaking on alcohol duty, enabling NI to benefit from cuts on the duty on a pint of beer. There is a brand new green lane maintaining UK food safety standards, meaning the same food on supermarket shelves in NI and GB. Medicines will be provided across the UK on the basis of licences from UK authorities. Northern Ireland will now be able to take full advantage of the UK's new trade deals around the world and will remain out of the Common Agricultural Policy and Common Fisheries Policy.
Inherent in this new way forward is the prospect of significant divergence between the two distinct economies on the island of Ireland - from food and drink to plants and pets, building on the existing differences in every area of economic and political life such as services, migration, currency and taxation. This will require increased market surveillance North-South in some instances to ensure that there is no abuse of these arrangements to move goods across the international border from Northern Ireland into Ireland, and new requirements on Ireland and other EU Member States to ensure that sensitive products such as food are not moved illegally across that international border.
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 impact on the viability of pubs of the increased rates of alcohol duty after August 2023.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Government is unable to speculate on the content of the Spring Budget, which takes place on 15 March.
Since the beer duty escalator ended in 2012, the beer and pub industry have benefitted from beer duty being cut or frozen for 10 out the last 11 fiscal events. In addition to this, on 19 December the Government extended the current alcohol duty freeze by six months to align with the implementation of the alcohol duty reforms and reduce the impact of the duty changes on businesses. Beer duty is now at its lowest level in real terms since the 1990s.
Further, as previously announced, from 1 August 2023 we will be introducing a new Draught Relief and an improved Small Producer Relief, as well as providing a much lower duty rate for low strength beers up to 3.4% ABV. Eligible pubs will also benefit from 75% business rates relief up to a cap of £110,000 per business in 2023-24, and further energy support until April 2024.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether her Department is taking steps to help support and increase the export of locally produced beer and gin to overseas markets.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Department for Business & Trade provides bespoke export advice and support to our distilleries and breweries across the UK through our network of international trade advisers and dedicated sector resource in Scotland, Northern Ireland and Wales.
The Department has a dedicated workplan of export promotion activities including a strong UK presence at tradeshows such as Prowein in Germany in March, educational webinars and inward buyer visits.
We work in close partnership with trade associations such as the Wine and Spirits Trade Association and the British Beer and Pub Association to help drinks exporters to capitalise on the enormous global demand for British food and drink whilst we work to open new markets for their products.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support (a) pubs and (b) breweries with increases in the cost of living.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
On 19 December, the Government announced a six-month extension of the current alcohol duty freeze to 1 August 2023. Beer duty is now at its lowest level in real terms since the 1990s.
Through the alcohol duty reforms, which will be introduced on 1 August this year, pubs and breweries will benefit from a new Draught Relief, providing a duty discount for draught products under 8.5% ABV sold in pubs. Small to medium sized producers will also benefit from an improved Small Producer Relief, building on the existing Small Brewers Relief which the sector has benefitted from for over 20 years.
Businesses in the retail, hospitality and leisure sectors will receive a tax cut worth over £2 billion in 2023-24. Eligible properties will receive 75% off their business rates bill, up to a cap of £110,000 per business.
Through the new Energy Bills Discount Scheme, all eligible businesses will receive a discount on high energy bills until 31 March 2024. The Government provided an unprecedented package of support through this winter, and we have been clear that such levels of support were time-limited and intended as a bridge to allow businesses to adapt.
Asked by: Simon Jupp (Conservative - East Devon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking through the tax system to help support small cider producers.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Government is introducing comprehensive alcohol duty reforms from 1 August this year, which will support small cider producers through the introduction of the new Small Producer Relief, providing a tapered duty discount which helps small beer and cider producers to grow and thrive.
The Government is also providing a duty discount on draught cider sold in pubs, whilst equalising the treatment of fruit ciders with beer. Further, ciders between 3.5% and 8.5% ABV will continue to benefit from a lower duty rate than other categories of alcohol to support their transition to the new duty system.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to (a) reduce duty charged on draught beer and cider served in pubs and taprooms by 20 per cent from August 2023, (b) introduce a lower business rates multiplier for hospitality businesses in recognition of their community value and (c) increase support with energy bills for beer and pub businesses from April 2023; and if he will make a statement.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
On 19 December, I announced an extension to the current alcohol duty freeze to 1 August 2023, to align any uprating decision with the implementation of the alcohol duty reforms and provide certainty to businesses. The Chancellor will confirm the alcohol duty rates from 1 August 2023 at Spring Budget.
Businesses in the retail, hospitality and leisure sectors will receive a tax cut worth over £2 billion in 2023-24. Eligible properties will receive 75% off their business rates bill, up to a cap of £110,000 per business.
Through the new Energy Bills Discount Scheme, all eligible businesses will receive a discount on high energy bills until 31 March 2024. The Government provided an unprecedented package of support through this winter, and we have been clear that such levels of support were time-limited and intended as a bridge to allow businesses to adapt.