Thank you for contacting me about support for pubs and breweries.
Pubs up and down the country play a vital role not only in the economy but in our local areas, supporting a sense of community and pride of place.
I led the initial campaign in 2020 to cut VAT to 5 per cent for the Tourism and Hospitality sector, and am now launching a new campaign to reduce VAT permanently for these sectors. I will continue to fight for this vibrant industry which is so important to our local economy. I appreciate concerns across the hospitality sector about the impact of inflation on businesses in the context of global supply chain pressures.
I know the Government is committed to supporting our pubs.
The new Energy Bill Relief Scheme, will be applied until 31 March 2023, running for an initial six-month period for all non-domestic energy users. The Government will publish a review into the operation of the scheme in three months to inform decisions on future support after March 2023. The review will focus in particular on identifying the most vulnerable non-domestic customers and how the Government will continue assisting them with energy costs.
In April, there will be a Treasury-led review into how customers should be supported with their energy bills in the future. The review’s objective is to design a new approach that will cost the taxpayer significantly less than planned while ensuring enough support for those in need, and that the new approach will better incentivise energy efficiency.
There is a great deal of interest in changes to the business rates system. This was clearly an area of UK tax policy which required re-examination to ensure that it minimises the burden on businesses as far as possible. I therefore welcome that, alongside a 2023 revaluation to accurately reflect the impact of Covid-19, the Government initiated a fundamental review into the business rates system as a whole.