The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK. The potential impacts of changes on this sector are carefully considered as part of policy development.

Where changes are made, relevant impact notes and assessments are published at fiscal events and otherwise as necessary, in line with the Government’s usual practice. The Treasury also engages regularly with the hospitality sector to understand the challenges they face.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26.   Exceptions to the standard rate have always been limited and balanced against affordability considerations.  

HMRC estimates that the cost of changing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services to the Reduced Rate of 5 per cent would be around £17 billion in 2026-27, rising to £19.5 billion in 2030-31.

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK. The potential impacts of changes on this sector are carefully considered as part of policy development.

Where changes are made, relevant impact notes and assessments are published at fiscal events and otherwise as necessary, in line with the Government’s usual practice. The Treasury also engages regularly with the hospitality sector to understand the challenges they face.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26.   Exceptions to the standard rate have always been limited and balanced against affordability considerations.  

HMRC estimates that the cost of changing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services to the Reduced Rate of 5 per cent would be around £17 billion in 2026-27, rising to £19.5 billion in 2030-31.

The Government has introduced permanently lower multipliers for eligible retail, hospitality and leisure (RHL) properties. These provide nearly £1 billion per year of support to the RHL sector and benefit over 750,000 properties. High street businesses also continue to benefit from the Government's £4.3 billion support package announced at Budget 2025 to protect ratepayers seeing large overnight increases in bills due to the 2026 revaluation.

The Government is continuing to review the wider business rates system to ensure it better supports high streets, local economies and small businesses, and further decisions on business rates reform will be set out in the normal way at the Budget.

Extended Producer Responsibility for packaging makes producers responsible for costs of managing household packaging when it becomes waste. Obligations are therefore determined by turnover and packaging tonnage, rather than an organisation’s business model or use of profits.

Registered charities are exempt from disposal fees. The Government has no plans to extend this exemption to social enterprises. Businesses with turnover below £2 million and placing less than 50 tonnes of packaging on the market are exempt from disposal fee and recycling obligations.

Defra continues to engage with social enterprises, and their feedback informs its review of the impacts of the scheme.

Extended Producer Responsibility for packaging makes producers responsible for costs of managing household packaging when it becomes waste. Obligations are therefore determined by turnover and packaging tonnage, rather than an organisation’s business model or use of profits.

Registered charities are exempt from disposal fees. The Government has no plans to extend this exemption to social enterprises. Businesses with turnover below £2 million and placing less than 50 tonnes of packaging on the market are exempt from disposal fee and recycling obligations.

Defra continues to engage with social enterprises, and their feedback informs its review of the impacts of the scheme.

The Government, in consultation with Counter Terrorism Policing (CTP), has assessed that existing reporting channels, including 101 and 999, are the most widely known and easily accessible means of contacting the police, allowing trained professionals to assess reports and refer potential cases of transnational repression (TNR) and foreign interference to specialist teams where appropriate.

Since July 2024, over 55,000 officers and staff from police forces across the UK and Northern Ireland have completed Foreign Interference training modules, and over 23,000 have completed an online module on powers available under the National Security Act 2023. This training supports officers and staff to identify indicators of foreign interference and state-directed activity and understand the actions that can be taken when such activity is identified. The content is kept under regular review, including updates following the introduction of new offences under the National Security (State Threats) Act 2026.

The Government, in consultation with Counter Terrorism Policing (CTP), has assessed that existing reporting channels, including 101 and 999, are the most widely known and easily accessible means of contacting the police, allowing trained professionals to assess reports and refer potential cases of transnational repression (TNR) and foreign interference to specialist teams where appropriate.

Since July 2024, over 55,000 officers and staff from police forces across the UK and Northern Ireland have completed Foreign Interference training modules, and over 23,000 have completed an online module on powers available under the National Security Act 2023. This training supports officers and staff to identify indicators of foreign interference and state-directed activity and understand the actions that can be taken when such activity is identified. The content is kept under regular review, including updates following the introduction of new offences under the National Security (State Threats) Act 2026.

Under the Money Laundering Regulations (MLRs), regulated firms and businesses must establish policies, controls and procedures to mitigate the risks of money laundering and terrorist financing, considering relevant risk factors relating to customers, transactions and the countries and geographical areas in which they operate. Regulated firms and businesses take a risk-based approach to these obligations, and must apply enhanced due diligence (EDD) measures when a customer or transaction is identified as high risk.

The MLRs require EDD in certain high risk circumstances, including for business relationships or transactions with countries identified as high risk countries subject to a call to action by the Financial Action Task Force. Hong Kong is not currently on that list.

Under existing UK legislation, businesses must only place safe batteries, chargers and conversion kits on the market, including where sold online. Despite this we recognise that too many unsafe products remain available to consumers online.

My department has recently consulted on reforms to the product safety legislative framework, including risks associated with lithium-ion batteries and e-bikes; proposals for clear duties on online marketplaces to take proactive steps to identify, prevent and remove unsafe products from their marketplaces; and considerations for additional requirements in relation to high-risk products. We are considering feedback and will set out our response in due course.

I refer the hon. Member to the answer given to Question UIN 13906 on 20 July 2026.

The Ministry of Justice is working with the Ministry of Housing, Communities and Local Government and HM Courts and Tribunals Service to ensure that the courts and tribunals have the resources and capacity they need to handle the additional workload housing reforms will generate. This includes developing a new Digital Possession Service.

No consideration has been given to the establishment of Nightingale style courts. There is no national backlog for possession cases at this time. Possession cases are dealt with in the County Court. The Civil Procedure Rules state that standard possession claims should have their first hearing between four and eight weeks from issue of the claim. The most recent quarterly data (January to March 2026) from Mortgage and Landlord Possession Statistics - Mortgage and landlord possession statistics - GOV.UK show that the national median timeliness from possession claim to order is eight weeks.

In relation to the First tier Tribunal (Property Chamber), which deals with most residential property matters outside of possession, the Government has recruited additional administrative staff, established a centralised operational hub and updated operational processes to improve efficiency. We have also ensured the availability of suitable estates capacity for hearings and enhanced technology systems. The most recent publication of Tribunal Statistics Quarterly provides statistics on outcomes in the Property Chamber and covers the period up to March 2026.

The Ministry of Justice is working with the Ministry of Housing, Communities and Local Government and HM Courts and Tribunals Service to ensure that the courts and tribunals have the resources and capacity they need to handle the additional workload housing reforms will generate. This includes developing a new Digital Possession Service.

No consideration has been given to the establishment of Nightingale style courts. There is no national backlog for possession cases at this time. Possession cases are dealt with in the County Court. The Civil Procedure Rules state that standard possession claims should have their first hearing between four and eight weeks from issue of the claim. The most recent quarterly data (January to March 2026) from Mortgage and Landlord Possession Statistics - Mortgage and landlord possession statistics - GOV.UK show that the national median timeliness from possession claim to order is eight weeks.

In relation to the First tier Tribunal (Property Chamber), which deals with most residential property matters outside of possession, the Government has recruited additional administrative staff, established a centralised operational hub and updated operational processes to improve efficiency. We have also ensured the availability of suitable estates capacity for hearings and enhanced technology systems. The most recent publication of Tribunal Statistics Quarterly provides statistics on outcomes in the Property Chamber and covers the period up to March 2026.

The Government has not made an assessment of the total monetary value of insurance company deductions from business interruption insurance payouts.

The Supreme Court published its final judgment in the FCA’s Business Interruption Insurance test case in 2021. At the time of the judgment, the FCA set out its expectation that insurers should communicate to all impacted policyholders what the judgment meant for their claim and should move quickly to resolve claims as determined by the judgment.

The FCA court case did not cover all potential issues with business interruption policies. The FCA has been clear that, in the event of further court rulings, insurers will need to consider carefully how the rulings impact claims they have already decided.

The FCA is continuing to supervise firms to ensure they are meeting their expectations and has robust powers to take action where necessary.

Abolishing Police and Crime Commissioners (PCCs) is expected to save the taxpayer around £100m in this Parliament. Savings from cancelling future PCC elections will be retained by the Exchequer with the remainder reinvested back into policing.

Funding for Community Safety Partnerships (CSP) is provided locally by partners. We are working closely with other government departments to consider how existing partnership arrangements, including CSPs, should operate within the new police governance system.

The Licensing Act 2003 provides the legal framework for the sale and supply of alcohol in England and Wales. It is already an offence under the Act to knowingly sell or attempt to sell alcohol to a person who is drunk or underage.

Consumer alcohol purchasing habits have evolved in recent years, particularly with a notable growth in sales made via online platforms and rapid delivery services. The Department for Health and Social Care, which has responsibility for policy on health harms, and the Home Office are looking at how current licensing rules apply to these services to ensure these are effective.

This includes seeking the views of experts, those with lived experience and other stakeholders and evaluating emerging evidence on the impact this may be having on people’s health and the upholding of the licensing objectives. I chaired a roundtable last month on this issue, jointly with the Minister for Public Health and Prevention, and we are now determining our next steps, including engagement with delivery companies.