Support For The Night-Time Economy.

Dear constituent,

Thank you for contacting me about support for the night-time economy.

The night-time industries have been hit extremely hard by the pandemic and even now continue to face difficulties and a long road to recovery, alongside rising costs. I therefore appreciate your concerns and agree that the Chancellor should have used the Spring Statement to set out proper support for businesses. As the Night Time Industries Association has said, it is very disappointing that he did not do so.

On business rates, for example, I believe we should cut taxes for businesses by raising the threshold for small business rates relief for a year (from the current threshold of £15,000 to £25,000), to give small and medium-sized businesses a discount on their business rates bill. This would mean the average pub paying £2,600 less per year and the average restaurant paying £2,700 less. In the longer term, I believe we need to scrap business rates and replace them with a fairer system fit for the 21st century.

On the National Insurance increase, meanwhile, I agree that this is the wrong tax, at the wrong time. It is a tax on employment that as well as impacting on working families, young people, those on lower and middle incomes, hits businesses trying to create more jobs. The Chancellor should have used the Spring Statement to properly scrap this tax increase. And on the end to the 12.5% reduced rate of VAT for hospitality, I believe that, given the inflationary costs businesses are facing, the Government needs to be clear about what impact this change will have on jobs and businesses in the sector.

Businesses throughout the country, including in the night-time sector, are facing a tidal wave of extra costs and being held back by tax rises, inflation and the energy crisis. I can therefore assure you that I will continue to support calls for action to ensure firms remain viable and extra costs are not passed onto consumers worsening the cost-of-living crisis. Thank you once again for contacting me.

Yours sincerely,

Peter Dowd MP