Business Rates: Hospitality Sector

3. What discussions he has had with representatives of pubs on the potential impact of business rates relief on the hospitality sector.

18. What discussions he has had with representatives of hospitality businesses on the potential impact of business rates relief on the sector.

20. What discussions he has had with representatives of hospitality businesses on the potential impact of business rates relief on the sector.

23. What discussions he has had with representatives of the hospitality sector on the potential impact of business rates relief on that sector.

We love our pubs, so to support them the Prime Minister announced in his first week after taking office a 20% cut in business rates for them, as well as for social clubs and live music venues, from April 2027. That is building on the 15% reduction earlier this year. I and other Ministers have regular discussions with representatives from the pubs and hospitality sector to understand the impact of business rates support.

My first job was as a pot washer and waitress in a pub at the age of 14. Today, pubs help me to bring fellow residents together for my pub politics events across the constituency. I know how much our pubs mean to us locally, and I warmly welcome further support for them. Will the Minister set out how that support will help to give pubs and the wider sector the certainty they need so that they and the great jobs they provide are here for generations to come?

I know my hon. Friend is a great champion of pubs in her constituency. In fact, she has brought together people for her pub politics events, including at the Willy Wicket, the Beaufort Arms, the Baileys Court Inn—which I have been to—and the White Lion, where people come to talk about issues that matter to them. The support we are providing for pubs will be worth nearly £250 million next year. That will benefit around 32,000 venues, which helps to ensure that they and the jobs they provide will be there for the future.

I recently stopped by the wonderful Koh-I-Noor Indian restaurant in Priestwood to meet its owner, Kamran, and to speak about the realities of running a family-owned restaurant. He told me how rising costs were making it challenging for him to invest and grow his business. I genuinely welcome the Chancellor’s action on cutting business rates for pubs and music venues ahead of the Budget, but will the Minister look at what more he can do to support the hospitality and retail businesses at the heart of our local communities?

I thank my hon. Friend for highlighting the contribution that businesses such as Koh-I-Noor provide to local communities and economies. As he set out, the Government are helping pubs right now, because of the important community assets that they are and the real pressures that they face. I assure him that we will continue to look at what more we can do to support high street businesses more widely to help them to invest and grow.

Like our new Prime Minister, many of us on the north Wales coast love the pubs and music venues of the north-west. The boost to them from business rates relief is really welcome, but we love our pubs and venues too. Pubs such as the Bay Hop and the Mayquay face the same challenges as our north-west neighbours, and we want to attract more live music to north Wales too. Decisions on business rates in Wales are of course the responsibility of the Welsh Government, but does the Minister agree that the need for support does not stop at the border, and that a 20% cut to business rates in Wales would be a welcome boost for us too?

I very much agree with my hon. Friend about the vital role that pubs and clubs play in local communities on either side of the border. As she rightly points out, business rates decisions in Wales are a decision for the Welsh Government. In England, we have taken action to support community venues and high streets, including the targeted business rates support for pubs. I urge the Welsh Government to consider doing the same.

Pubs across Swindon, such as Arkell’s, contacted me regularly about the reduction in business rates, so I thank the Minister for that. However, can he outline whether there will be any further business rates reductions for the wider hospitality sector?

My hon. Friend is a great champion for pubs and other hospitality venues in his constituency, including Arkell’s brewery, which I know supplies pubs across Swindon and Wiltshire. As he rightly points out, we have provided support for pubs and community venues, which the Prime Minister announced soon after taking office. We will consider all options for what we can do to further support them in the Budget.

That is some brass neck, Mr Speaker. I am astounded that the Minister can stand at the Dispatch Box and expect credit and gratitude for giving a little bit of support to a sector that his own policies have undermined and destroyed—two pubs a day closing down, and 100,000 jobs lost in hospitality and tourism. Will he instead adopt the Conservative policy of 100% business rates relief and actually support these sectors, rather than giving hypocritical warm words?

Order. I do not like the word “hypocritical”.

I apologise, and take it back.

No problem. I call the Minister.

The hon. Gentleman has some cheek, given the number of pubs that closed when his party was in government. The Labour party is making sure that the business rates system is set right for the future. Not only have we announced a 20% cut in business rates for pubs as a result of the new Prime Minister taking office, but I was pleased to announce a review of the way in which pubs and hotels are valued for the future, following concerns raised by the sector. That review will report in time for decisions taken on the basis of it to be in place for the next revaluation.

Pubs, cafés and restaurants are among the largest employers of young people across the country, but the sector has seen 100,000 job losses as a result of the Government’s jobs tax. Business rates relief might have some impact, but the hospitality sector is telling us that what it needs is a cut in VAT to really help people get back into hospitality venues. Have the Government looked at what a cut in VAT would be able to do for both growth and new jobs?

The hon. Gentleman is right to point out the important role that pubs and hospitality play in providing jobs, including jobs for young people. However, I gently say to him that one of the issues with the Lib Dems is that they welcome extra investment in our NHS and public services, but they never want to pay for it. When it comes to hard decisions on the economy, all they offer is soft politics.

The 20% rate cut for music venues and pubs is of course very welcome, but what my high street in Bath really needs is an overhaul of the business rates system, which the Labour Government promised. Rather than accuse us of not having ideas, will the Minister do the bold thing, which is to get rid of business rates and replace them with a commercial landowner levy?

As the Prime Minister made clear when he took office, we are giving pubs and community venues real breathing space through the 20% cut to their business rates, but our reform of business rates and our support for the high street does not end there. We are considering every possible opportunity to support retail, hospitality and leisure businesses on the high street, so that high streets in all our communities across the country can thrive.

I recently visited the Station House in Cheadle Hulme, one of the Almond family’s five pubs in Stockport, and spoke to the owner, Doug, about how hard it was for him to run his business. Like many pub owners across the country, the Almonds welcome the 20% cut in business rates, but they are contending with a system that penalises hospitality. The Minister dodged the question from my hon. Friend the Member for Bath (Wera Hobhouse), so may I ask him to commit himself now? Will the Government overhaul the business rates system so that community pubs such as the Station House can help our high streets to thrive?

I thank the hon. Gentleman for talking about the Station House in his constituency; I am sure we all have pubs in our own neighbourhoods that we feel are at the heart of the local communities that we represent. The 20% business rates cut that we announced was a down payment on further reform. We will continue to look into what we can do to support pubs, hospitality and other high street uses, because we know how much they matter to everyone in this Chamber and all the people whom we represent.

I call the Liberal Democrat spokesperson.

As the Member of Parliament for the constituency with more pubs per square mile than anywhere else in Britain, I have been campaigning to reform the broken business rates system for longer than I have been an MP. My understanding is that the Government’s review will look at the fair maintainable trade criterion, which sees pubs singled out to be valued on the basis of what they could earn rather than what they actually earn; but, as pointed out by my hon. Friends the Members for Bath (Wera Hobhouse) and for Cheadle (Mr Morrison), the review falls far short of the Labour party manifesto, which pledged to overhaul the entire business rates system. May I ask Ministers whether that pledge still stands? If so, will they overhaul the business rates system before the next general election?

I wonder whether any other Members might say that they have the most pubs in their constituency, or whether the hon. Lady has done her research. [Interruption.] I hear her saying that hers are the best pubs, a claim that even more Members may challenge in the Chamber. Although the hon. Lady and I have some differences, I think that we share a desire to see a fairer business rates system. I know that the 20% cut for pubs and community venues was widely welcomed, and the Prime Minister and the Chancellor have made it clear that we want to go on looking at what we can do to support our hospitality venues, pubs and other high street uses. This is not a question of taking one policy announcement from July and thinking that that is the end of the story, because we know how important high streets are to communities across the country, and we want to see them thrive.