Businesses in the night-time economy play a vital role in communities and local economies across the UK. They not only support our creative industries, including DJs, musicians and comedians, but also bolster tourism and the daytime economy.
Improving economic growth is this Government’s top priority and ensuring that high streets thrive is an important step towards achieving this. That is why I am pleased to see a cross-departmental approach working toward this goal, ensuring that our high streets are great places for businesses in the night-time economy.
I am aware that, from 2026–27, the Government will introduce permanently lower tax rates for retail, hospitality and leisure properties, which is a pressing concern for the industry. Additionally, I welcome the 40% discount for these types of properties (up to £110,000 per business) in 2025–26, as well as the freezing of the small business multiplier. This package is worth over £1.6 billion in 2025–26 and ensures these businesses avoid the April 2025 cliff edge when temporary business rate reliefs expired. I also back the cut to alcohol duty on draught products, helping to reduce the total duty bill by over £85 million a year.
Through the recently published Small Business Plan, the most significant reform in this area for 25 years, the Government has tackled the pressing issue of late payments, alongside introducing maximum payment terms. It also announced £4 billion of financial support aimed at small businesses, as well as a £3 billion boost to the British Business Bank, helping lenders offer more small business loans through the ENABLE Programme. This programme provides a government-backed guarantee, so that lenders feel more confident funding small businesses, enabling them to offer better loans with lower interest rates.
On the increase to employer National Insurance Contributions, this difficult decision was made due to the financial situation left by the previous Government. However, I welcome the Employment Allowance increasing to £10,500 alongside the removal of the £100,000 eligibility threshold. This means that all eligible employers do benefit, providing small businesses with much-needed support. As a result, more than half of employers will pay the same or less than they did previously, with over 800,000 paying nothing at all in 2025–26.
Thanks to those constituents who have contacted me about this important issue.
Best wishes
Rt Hon Hilary Benn
MP for Leeds South
Secretary of State for Northern Ireland