Public Houses: Taxation
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential impact of (a) extended producer responsibility fees and (b) other tax increases on the viability of UK breweries.
Answered by Mary Creagh
The 2024 pEPR impact assessment can be found here.
The impact assessment estimated the pEPR producer fees would generate over £1 billion annually to support local authority collection and disposal services, including recycling services. We expect Greenhouse Gas Emissions savings of approximately 0.8 million tonnes of carbon dioxide equivalent over the 10-year appraisal period.
Retail, Hospitality and Leisure (RHL) relief would have ended entirely in April 2025, creating a cliff-edge for businesses. Instead, the Government has decided to offer a 40 per cent discount to RHL properties up to a cash cap of £110,0000 per business in 2025-26 and frozen the small business multiplier.
By tapering RHL relief to 40%, rather than letting it end, the Government has saved the average pub, with a rateable value (RV) of £16,800, over £3,300 in 2025.
At Budget, the Government also announced that from 2026-27, it intends to introduce permanently lower tax rates for RHL properties with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support. The Government intends to fund this by introducing a higher multiplier on the most valuable properties, which includes the majority of large distribution warehouses, including warehouses used by online giants.
The rates for any new business rate multipliers will be set at Budget 2025 so that the Government can take into account the upcoming revaluation outcomes as well as the economic and fiscal context.
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