Public Houses: Fiscal Policy
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential implications for her policies of trends in the number of pub closures in the last 12 months; and what fiscal measures she plans to take to support that sector.
Answered by Dan Tomlinson
The Government recognises the important role pubs play on our high streets and in community spaces and we want to see them thrive. That’s why the Government is investing £440,000 with Pub is The Hub to help rural pubs diversify, aiming to support rural communities, create new jobs and services.
In recognition of the economic and cultural importance of pubs, as well as the wider hospitality sector, at Autumn Budget 2024 the Government cut alcohol duty on qualifying draught products by 1.7% in cash terms. This duty reduction, worth over £85m a year, covers approximately 60% of the alcoholic drinks sold in pubs and is equivalent to a 1p duty reduction on a typical pint.
As announced at Autumn Budget 2024, the Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure properties with ratable values below £500,000 from 2026/27. This permanent tax cut will ensure that small hospitality businesses, such as pubs, benefit from much-needed certainty and support.
The Government keeps all areas of the tax system under review. Any changes to the tax system are announced as part of the annual Budget process.
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