Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking to support coastal communities with tourism industries in summer 2024.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government recognises the central role of our coastal communities in the tourism sector.
This is why on Heritage Day in March, the Department for Culture, Media and Sport announced that it will be launching a dedicated fund to support enhancements to our seaside heritage, to help protect and rejuvenate coastal assets which are in need of further support.
At the Autumn Statement 2023, the Government also announced an extension to the 75% business rate relief for eligible retail, hospitality and leisure properties for 2024-25.
We have also supported coastal communities to level up through dedicated funding under the Coastal Communities Fund, while the Levelling Up Fund has provided around £1 billion to projects in coastal areas. Over £400 million from the UK Shared Prosperity Fund is going to lead local authorities within or serving coastal areas.
Across this Spending Review period, the Government has allocated over £100m to the British Tourist Authority to support VisitBritain and VisitEngland with marketing activity that includes championing visiting Britain’s coastline.
Asked by: Gregory Campbell (Democratic Unionist Party - East Londonderry)
Question to the Northern Ireland Office:
To ask the Secretary of State for Northern Ireland, with reference to the Answer of 19 July 2023 to Question 194133 on Golf: Portrush, whether he is taking steps with the Northern Ireland Executive to help increase economic opportunities during the Open Championship in Royal Portrush in 2025.
Answered by Steve Baker - Minister of State (Northern Ireland Office)
The Open Championship at Royal Portrush in 2025 is an outstanding opportunity to showcase Northern Ireland’s exceptional tourism offering, stunning scenery and state-of-the-art golfing facilities. These are just a few of the many reasons that Northern Ireland is a great place to live, work and invest.
Economic growth, sport and tourism are all devolved to the Northern Ireland Executive. The Secretary of State, Lord Caine and I continue to work closely with the Ministers for the Economy and Communities to ensure that Northern Ireland is well placed to maximise the plethora of opportunities that the Championship, and other sporting spectacles, will bring to Northern Ireland’s hospitality and tourism sectors.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent fiscal steps his Department has taken to help support small and local businesses in the (a) seasonal tourism and (b) service industries.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government is committed to supporting small and local businesses in the hospitality, tourism, and services sectors, which provide a significant contribution to the UK economy and society.
At the Autumn Statement 2023, the Government announced an extension to the 75% business rate relief for eligible retail, hospitality and leisure properties for 2024-25, a tax cut worth £2.4 billion.
Spring Budget 2024 goes further to support SMEs by increasing the VAT registration threshold from £85,000 to £90,000 which means the UK now has the joint highest VAT registration threshold in the OECD. This keeps the majority of UK businesses out.
Our Small Business Rates Relief means one-third of business properties in England already pay no Business Rates. We provide other tax reliefs benefiting SMEs such as the Annual Investment Allowance and Employment Allowance, and support investment in SMEs through British Business Bank programmes.
Furthermore, over this Spending Review period – the Government has allocated over £100m to the British Tourist Authority to support VisitBritain and VisitEngland with marketing activity to promote Britain as a destination.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what consideration they have given to reinstating VAT-free shopping for international visitors; and what assessment they have made of the impact that this would have on (1) tourism, (2) retail, (3) the hospitality sector, and (4) the overall economy.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Government analysis conducted in 2022 found that introducing a worldwide scheme could come at a fiscal cost of around £2 billion each year.
The government’s costings calculate the direct cost of the policy to the exchequer, taking into account behavioural effects. The wider economic impacts of the policy are considered by the OBR through the indirect effects process.
Asked by: Neil Hudson (Conservative - Penrith and The Border)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps his Department is taking to support the hospitality and tourism sectors.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government is committed to supporting the hospitality and tourism sectors, which provide a significant contribution to the UK economy and society. Since the start of the Covid-19 pandemic, over £37 billion has been provided to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks.
At Autumn Statement 2023, the government announced it will extend the business rates Retail, Hospitality and Leisure relief scheme at 75 per cent, up to a cash cap of £110,000 per business for 2024-25. Around 230,000 retail, hospitality and leisure properties will be eligible for this relief, a tax cut worth nearly £2.4 billion.
Over this Spending Review period – the Government has allocated over £100m to the British Tourist Authority to support VisitBritain and VisitEngland with marketing activity to promote Britain as a destination.
Asked by: Marquess of Lothian (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to assist the hospitality industry in the UK, following both the coronavirus pandemic and cost of living crisis; and what consideration they have given to reducing VAT to 10 per cent for the hospitality industry.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
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.
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. The UK also has a higher VAT registration threshold than any EU Member State and the second highest in the OECD, which keeps most businesses out of the VAT system altogether.
VAT is the UK's third largest tax forecast to raise £161 billion in 2023/24, 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.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of reducing VAT for the hospitality industry.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
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.
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. The UK also has a higher VAT registration threshold than any EU Member State and the second highest in the OECD, which keeps most businesses out of the VAT system altogether.
VAT is the UK's third largest tax forecast to raise £161 billion in 2023/24, 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.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support the hospitality industry; and if he will make an assessment of the potential merits of reducing VAT for that industry.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
At Autumn Statement 2023, the Government announced a package of business rates changes and tax cuts, including extending the Retail, Hospitality and Leisure relief scheme at 75 per cent, up to a cash cap of £110,000 per business for 2024-2025. This is tax cut worth almost £2.4 billion for around 230,000 properties.
VAT is the UK's third largest tax forecast to raise £173 billion in 2023/24, 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: Rachael Maskell (Labour (Co-op) - York Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of reducing VAT for the hospitality sector.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
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.
While there are no plans to reduce the rate of VAT paid by hospitality businesses, 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 steps his Department is taking to support the hospitality and tourism sectors.
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.