Written questions by Vickers.

What recent assessment she has made of the potential impact of the reduced rate of beer duty for draught products on the (a) on-trade and (b) off-trade sectors.

Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system. The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings. At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far. The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget. Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL

What recent discussions she has had with representatives of the (a) brewing and (b) pub sectors on beer duty rates.

Pubs and brewers make a significant contribution to our economy and society, including through supporting jobs, and this is reflected in the tax system. The alcohol duty system supports pubs and hospitality businesses through Draught Relief (DR), which ensures eligible products served on draught pay less duty. This recognises the cultural importance of pubs and other on-trade venues as community hubs that play a role in encouraging responsible drinking in supervised settings. At Autumn Budget 2024, the Chancellor announced a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This is the equivalent to a 1p reduction on a typical pint, and means draught beer now pays 13.9% less in duty than its packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%. The Tax Information and Impact Note (TIIN) on this measure is published here:https://www.gov.uk/government/publications/changes-to-the-rates-of-alcohol-duty/alcohol-duty-uprating HMRC plans to evaluate the impact of the 2023 alcohol duty reforms, including DR, three years after the changes took effect on 1 August 2023. This allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far. The Chancellor makes decisions on tax policy at fiscal events, and, as with all taxes, the Government keeps alcohol duty under review as part of its Budget process. The Government welcomes representations from the beer and pub sectors in advance of the Budget. Treasury ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-traveL

What assessment she has made of the potential impact of beer duty reforms on the growth of (a) microbreweries and (b) regional brewing clusters.

A new duty structure for alcoholic products was introduced in August 2023. This included a new Small Producer Relief (SPR) which replaced and extended the previous Small Brewers Relief. SPR provides vital support to smaller producers making 4500 hectolitres or less of alcohol per year by providing reduced rates of duty on all alcoholic products below 8.5 per cent ABV. HMRC plans to evaluate the impact of the new alcohol duty rates and structures, including SPR, three years after the changes took effect on 1 August 2023. Three years allows time for HMRC to gather a broad range of data to properly evaluate the impacts. The Government welcomes evidence from industry on the impact of the changes so far.

What assessment she has made on the potential impact of changes to alcohol duty reforms on the (a) pub and (b) hospitality sector.

Following public consultation, a new duty structure for alcohol products was introduced in August 2023. The alcohol duty system taxes all alcohol products according to their strength, so the duty owed increases with alcohol content. The system is also progressive, ensuring that higher strength products pay proportionately more tax The 2023 reforms significantly reduced previous inconsistencies in treatment between different types of alcohol product and introduced two new reliefs: Draught Relief (DR); and Small Producer Relief (SPR). DR enables products served on draught below 8.5 per cent alcohol by volume (ABV) to pay less duty. This relief provides support to pubs and other hospitality venues, as well as helping producers of eligible products. At Autumn Budget 2024, the Chancellor made DR more generous by cutting draught rates by 1.7%, taking a penny of duty off a typical strength pint. SPR replaced and extended the previous Small Brewers Relief. SPR supports SMEs and new entrants by permitting smaller producers who make 4,500 hectolitres or less of alcohol per year to pay reduced duty rates on all products below 8.5 per cent ABV. HMRC plans to evaluate the new rates and structures three years after the changes took effect on 1 August 2023.  This will allow time for HMRC to gather a broad range of data. The Government welcomes evidence from industry on the impact of the changes so far.

Whether she plans to extend VAT relief for hospitality businesses.

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. HMRC estimate that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £13 billion this financial year. If the scope were also to include alcoholic beverages, the cost would be approximately £3 billion greater.

What assessment she has made of the potential long-term fiscal impact of closures in the hospitality sector on local economies.

The Government values the significant contribution made by hospitality businesses to economic growth and social life in the UK. The Government closely monitors the health of different sectors across the UK economy and regularly engages with the hospitality sector. The recent Spending Review set out our new long-term local growth programmes to invest in communities across the UK, including to support local high streets and their hospitality businesses. The hospitality sector makes significant contribution the exchequer, the UK economy, and society. We are determined to support hospitality businesses to succeed. We will introduce a permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000 from 2026-27. Ahead of the new multipliers being introduced, we extended the RHL relief for 2025-26 at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier. In addition, we:increased the Employment Allowance to £10,500;established the Licensing Taskforce and issued a call for evidence on a National Licensing Policy Framework which will set out national direction for licensing authorities to consider economic growth and cultural value,introduced the English Devolution Bill, which will protect hospitality businesses from upward only rent clauses, and;are introducing a strong new ‘Community Right to Buy’ to help communities safeguard valued community assets – such as pubs. We will continue to work with the hospitality sector to help drive economic growth, regenerate our high streets, and support vibrant and healthy communities across the UK.

What recent assessment she has made of the financial contribution of the hospitality sector to the Exchequer.

The Government values the significant contribution made by hospitality businesses to economic growth and social life in the UK. HMRC does not hold aggregated data on the financial contribution of the hospitality sector to the Exchequer, but sectoral breakdowns for individual taxes can be found on gov.UK.

What assessment she has made of the potential impact of small business rate relief on the viability of small hospitality businesses.

The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century. As set out at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality and leisure (RHL) properties with ratable values (RVs) below £500,000 from 2026-27. Over a third of properties (more than 700,000) already pay no business rates as they receive 100 per cent Small Business Rate Relief (SBRR), with an additional c.60,000 benefiting from reduced bills as this relief tapers. The Transforming Business Rates: Interim Report, published on 11 September, brings together extensive feedback from a broad range of stakeholders and outlines the Government’s next steps to deliver a fairer business rates system, that supports investment and is fit for the 21st century. This includes exploring a number of reforms to incentivise investment and improve the operation of the business rates system, including how SBRR could be enhanced to more effectively support investment and expansion among small businesses. The Government will provide a further update at the Budget. Transforming the business rates system is a multi-year process. The Government will consider reforms beyond Budget 2025, and any reforms taken forward will be phased over the course of the Parliament.

What discussions she has had with industry representatives on ensuring fair access to finance for hospitality businesses.

The Government is committed to supporting the hospitality sector and officials in the Treasury and the Department of Business and Trade engage regularly with stakeholders in the sector to understand their views. We are dedicated to ensuring that businesses across the UK, including those in the hospitality sector, can access the capital they need to grow.While the provision of financial services to companies is largely a commercial matter, the Government believes all customers should be treated fairly. The UK has a diverse and competitive financial services sector and businesses should consider a range of providers for their finance needs, as this encourages competition, improves choice, and helps keep prices competitive.Working with the British Business Bank (BBB), we are delivering a range of targeted interventions for businesses, including those in the hospitality sector, such as loan guarantee programmes and equity investments, designed to address regional funding gaps and unlock investment opportunities.The recent Spending Review settlement has increased the BBB’s total financial capacity to £25.6 billion, a two-thirds uplift compared to previous years, enabling the Bank to back tens of billions of pounds’ worth of additional lending and investment to SMEs and scale-ups.

What fiscal steps she is taking to support hospitality businesses with energy costs.

By building a diverse low carbon energy system, the government is taking the long term decisions that will make the most of our abundant natural resources to protect businesses from future price shocks. To support businesses now, the government is offering free carbon foot printing and energy-saving support to 615 small and medium-sized hospitality businesses as part of a 12-month trial. More broadly, we are determined to support retail businesses to succeed against a difficult economic backdrop. We will introduce a permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000 from 2026-27. Ahead of this being introduced, we extended the RHL relief for 2025-26 at 40 per cent up to a cash cap of £110,000 per business and froze the small business multiplier. In addition, we: increased the Employment Allowance to £10,500; shielding the smallest retail businesses the from the impact of the increase to employer National Insurance;established the Licensing Taskforce and issued a call for evidence on a National Licensing Policy Framework which will set out national direction for licensing authorities to consider economic growth and cultural value;introduced the English Devolution Bill, which will protect hospitality businesses from upward only rent clauses, and;are introducing a strong new ‘Community Right to Buy’ to help communities safeguard valued community assets – such as pubs.

What assessment she has made of the potential impact of corporation tax rises on small and medium-sized hospitality businesses.

Businesses in our retail, hospitality and leisure sectors are foundational to our economy and our high streets, and we are supporting them to succeed.The Government published its Corporate Tax Roadmap at Autumn Budget 2024, which commits to maintaining a competitive and sustainable main rate by capping corporation tax at 25 per cent for the duration of this Parliament. The Roadmap also confirms that the small profits rate will be maintained, so companies with profits of £50,000 or less will continue to pay 19 per cent.The marginal relief for companies with profits of between £50,000 and £250,000 means only around 6 per cent of actively trading companies pay the full main rate. This structure means that most small and medium-sized businesses, including those in the hospitality sector, do not pay the full rate.In addition, the Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.As set out at Autumn Budget 2024, the Government will introduce permanently lower tax rates for retail, hospitality, and leisure properties with ratable values below £500,000 from 2026-27. This permanent tax cut will ensure they benefit from much-needed certainty and support.Ahead of these new multipliers being introduced, the Government prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business. We have also frozen the small business multiplier.

What assessment she has made of the potential impact of increased business rates on the viability of large-format retail stores.

We are creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century. From 2026-27, the Government intends to introduce permanently lower tax rates for retail, hospitality and leisure properties with rateable values (RVs) under £500,000. The Government intends to fund this by introducing a higher multiplier on properties with RVs of £500,000 or more. These high-value properties cover the majority of large distribution warehouses, including those used by the online giants. The final design of the new multipliers, including the rates, will be set at Budget 2025 so that we can take into account the upcoming revaluation outcomes, as well as the economic and fiscal context. When the new multipliers are set at Budget 2025, we intend to publish analysis of the effects of the new multiplier arrangements.

Whether she has made an assessment of the potential merits of introducing a separate personal allowance for pensioners.

This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement. The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast. The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax. The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025. From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk: Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.

What estimate she has made of the additional annual revenue received from taxing state pensions from April 2026.

This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement. The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast. The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax. The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025. From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk: Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.

What recent assessment she has made of the potential impact of (a) the withdrawal of winter fuel payments, (b) frozen tax thresholds and (c) state pension taxation on pensioner households.

This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement. The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast. The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax. The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025. From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk: Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.

What assessment she has made of the potential impact of freezing the personal allowance on pensioners whose sole income is the state pension.

This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement. The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast. The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax. The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025. From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk: Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.

What discussions she has had with the Chancellor of the Exchequer on ensuring that pensioners with no other income do not pay income tax on the state pension.

This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement. The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast. The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax. The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025. From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk: Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.

What estimate she has made of the number of pensioners brought into paying income tax in the next financial year as a result of the state pension exceeding the personal allowance.

This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement. The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast. The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax. The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025. From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk: Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.

What recent discussions she has had with relevant stakeholders on exempting the state pension from income tax.

This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement. The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast. The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax. The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025. From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk: Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.

What assessment she has made of the potential impact of the Bank of England's decision to retain interest rates at 4.25 per cent on the cost of public sector borrowing.

The Treasury does not publish forecasts of the economy or public finances; the Office for Budget Responsibility (OBR) is the UK’s official forecaster and provides independent analysis of the UK’s public finances. In March 2025 it was forecast by the OBR that debt interest spending would reach £111.2bn in 2025-26. At the Budget last Autumn, the government set out a clear fiscal strategy to stabilise the public finances and underpin growth. The fiscal rules, which provide stability, help to keep interest rates low and prioritise investment to support long-term growth, are non-negotiable. This is the responsible choice – to reduce our levels of borrowing in the years ahead, so we can spend more on our public services, more on the priorities of working people and less on servicing debt. The OBR will publish an updated forecast later this year.