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Hospitality Sector 2025-09-03
03 September 2025
Lead MP
Andrew Griffith
Debate Type
General Debate
Tags
EconomyTaxationEmployment
Other Contributors: 89
At a Glance
Andrew Griffith raised concerns about hospitality sector 2025-09-03 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The motion regrets the combination of catastrophic choices made by the Government, leading to closures and downsizing of pubs, restaurants, hotels, and hospitality businesses with an estimated 84,000 job losses over the last year. The hon. Member also criticises policies such as omitting the hospitality sector from the industrial strategy, increasing costs for pavement licences, reducing retail, hospitality and leisure business rates relief, raising employers’ National Insurance contributions to 15%, and measures in the Employment Rights Bill that will make employers liable for customer behaviour.
Graham Stuart
Con
Beverley and Holderness
Supports the motion and emphasises the opportunity provided by the hospitality sector to people coming into or returning to the labour market.
Richard Quigley
Lab
Isle of Wight West
Argues that under the Tories, a pub closed every 14 hours. He criticises the Conservative party for not being trusted with the economy.
Gosport
Highlights over 1,000 pubs and restaurants closing since the autumn Budget, leading to 84,000 hospitality workers losing their jobs. She emphasises that the Government needs to stop holding the hospitality sector responsible for local economy issues.
Luke Evans
Con
Hinckley and Bosworth
Notes that businesses are reducing man-hours due to taxes, impacting the growth of the country. He agrees with his hon. Friend's comments on the toxic concoction of legislation and tax.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Agrees that unless the Government start listening to concerns about job losses in hospitality, businesses will go over a cliff edge. He highlights the impact of policies on tourism.
Moray West, Nairn and Strathspey
Acknowledges the issue with employer National Insurance contributions but attributes much of the blame to Brexit's immigration policy affecting recruitment in highland hoteliers.
Sorcha Eastwood
Alliance
Lagan Valley
Raises concerns about tax increases and VAT cuts impacting hospitality businesses negatively, citing her personal experience in the sector.
Catherine Fookes
Lab
Monmouthshire
Celebrates a reopened pub in her constituency as an example of successful business reopening under current policies. Acknowledges the community ownership fund's role but notes its loss under the current government.
IKEA
Business
Harlow
Welcomed the Employment Rights Bill and expressed excitement about it.
Agreed with support for foreign investment in the UK. Emphasised that the Government has taken necessary decisions on tax, welfare, and spending to fix public finances. Pointed out that the hospitality sector consists predominantly of smaller businesses and that the employment allowance was increased from £5,000 to £10,500 to protect small employers.
Welcomed the increase in national insurance contributions and improvements in workers’ rights as they are good for employees, businesses, and customers. Criticised Tories for racing to the bottom instead of giving workers a leg up.
Chris Bryant
Minister
Supported increases in national minimum wage to ensure people can put food on the table, pay mortgages, and give children opportunities. Cited previous support for introducing the national minimum wage. Rejected claims that increased taxes would harm the hospitality sector.
Saqib Bhatti
Con
Meriden and Solihull East
Criticised Government's actions towards hospitality businesses as detrimental to job creation and economic growth.
Rejected claims of taxing hospitality out of existence. Emphasised that the previous approach led to increased mortgage rates, making it difficult for people to survive economically. Rejected suggestion that bar staff should police inappropriate comments on social media.
Julian Lewis
Con
New Forest East
Questioned whether it is a good idea for bar staff to police public house users' comments, suggesting this would divert police resources from more pressing issues.
Defended changes to employment conditions for bar staff while acknowledging concerns about diversion of police resources. Emphasised the importance and diversity of UK hospitality industry.
Stratford-on-Avon
Highlighted that in Stratford-upon-Avon, hospitality is crucial for the visitor economy and every closure affects jobs, high streets, and community life.
Agreed with Perteghella's point about hospitality being vital to the visitor economy. Emphasised interconnectedness of hospitality, tourism, and creative industries in Stratford-upon-Avon and across UK.
Orkney and Shetland
Asked Minister to consider reducing VAT for hospitality sector as it may increase tax revenue. Highlighted importance of island tourism.
Rejected calls for specific VAT cuts, citing Chancellor's responsibility and need for broad economic considerations. Emphasised the importance of addressing challenges in coastal areas and islands through tourism strategy.
Uma Kumaran
Lab
Stratford and Bow
Supported Government’s backing for 2029 world athletics championship bid in London's Stratford and Bow. Asked how visitor economy growth strategy will spread tourism beyond London to benefit all regions.
Announced target of reaching 50 million international visitors by 2030, emphasising need for balanced distribution of accommodation across UK. Discussed challenges like short-term lets and seasonal variations in tourist visits.
Luke Evans
Con
Hinckley and Bosworth
Asked if the Government plans to introduce a tourism tax, citing examples from other regions like Manchester, Scotland, and Wales.
Chris Law
SNP
Dundee Central
Highlighted the significant contribution of hospitality in Scotland and criticised national insurance contributions for reducing staff numbers and opening hours in venues. Emphasised that 200,000 jobs depend on this sector.
Sarah Olney
LD
Richmond Park
Criticised the Government's policies as exacerbating challenges in the hospitality sector due to unfair taxes and soaring energy bills. Urged for exemptions for hospitality businesses from national insurance increases.
John Milne
LD
Horsham
Shared a letter from an independent coffee shop manager highlighting difficulties in hiring new staff and increasing business costs due to recent policies. Advocated for the Chancellor to meet with such businesses before finalizing the Budget.
Esher and Walton
Concurred that cutting hours disproportionately affects part-time workers, particularly those who work flexibly due to caring responsibilities or other demands. Criticised the impact of national insurance increases on social mobility.
Sarah Olney
LD
Barnet and Camden
The hospitality sector faces significant challenges due to staff shortages, higher energy costs, and an outdated business rates system. The Liberal Democrats propose a youth mobility scheme, increased apprenticeships, investment in skills training, energy market reform, and fairer business rate reforms.
Inverness, Skye and West Ross-shire
Acknowledges the challenges faced by hospitality businesses, particularly regarding high energy costs and lack of business rates relief in Scotland. Emphasises the need for government action to support these businesses.
Olivia Bailey
Lab
Reading West and Mid Berkshire
Highlights visits to multiple small hospitality businesses during a summer roadshow, emphasising their importance to communities. Supports the Government's efforts in addressing business rates, simplifying licensing, expanding access to start-up loans, and cutting red tape.
Sean Woodcock
Lab
Banbury
Supports his party's position on economic stability and challenges opposition parties for ignoring contributions made during their time in government. Emphasises the need for positive measures to support local hospitality businesses.
Charlie Dewhirst
Con
Bridlington and The Wolds
Acknowledges the importance of the hospitality industry in every community and its current challenges, calling for timely actions to support it.
Charlie Dewhirst
Con
Bridlington and The Wolds
The hospitality industry is vital in Bridlington and Hornsea, with millions of visitors annually. Local businesses face serious pressure due to the Employment Rights Bill, national insurance contributions, and VAT rates that squeeze profits despite successful operations.
Tom Hayes
Lab
Bournemouth East
Bournemouth's hospitality sector generates £162.8 million in revenue and employs 3,700 people across 30 venues. The industry is a critical community space that brings people together and creates social infrastructure. Labour aims to support this vital sector by addressing its challenges.
Fred Thomas
Lab
Plymouth Moor View
Plymouth's hospitality businesses, especially pubs, are important community spaces. The previous Conservative Government’s mismanagement during the pandemic has left a lasting impact on these communities. Labour is committed to supporting coastal and hospitality sectors.
Chichester
Local businesses in Bracklesham, Chichester, are facing challenges due to increased taxes and business rates, hindering their ability to drive growth. The Government's policies hamper these efforts.
Euan Stainbank
Lab
Falkirk
The hon. Member for Falkirk supports the measures introduced by the Government, particularly those that will benefit his constituents if Scotland votes next year for a Scottish Labour Government.
James Wild
Con
North West Norfolk
The hon. Member for North West Norfolk criticises the impact of increased national insurance rates and business rates on hospitality businesses, highlighting job losses and decreased business confidence. He calls for relief measures such as a higher rateable value threshold and protection from zero-hours contracts.
Andrew Lewin
Lab
Welwyn Hatfield
The hon. Member for Welwyn Hatfield highlights the positive impact of Labour's policies on business confidence, citing examples like increased headcount plans among firms and rising consumer confidence. He supports day-one workplace protections and improved rights for hospitality workers.
Brian Mathew
LD
Melksham and Devizes
The hon. Member for Melksham and Devizes emphasises the role of village pubs in rural communities, highlighting their importance as social hubs that contribute to mental health and community well-being.
Matt Rodda
Con
Crewe and Nantwich
The hon. Member supported the importance of pubs in communities, questioning whether the measures announced by the Deputy Prime Minister would help community pub schemes.
Brian Mathew
Con
Wantage
Acknowledged but disagreed with the need for more than just supportive measures from the Government to preserve rural life and stressed that profitable businesses contribute taxes whereas closed ones do not.
Deirdre Costigan
Lab
Ealing Southall
The hon. Member criticised the Conservative motion, arguing it neglects support for young workers by opposing Labour's Employment Rights Bill which aims to protect employees from unfair dismissal and zero-hours contract exploitation.
Sam Rushworth
Lab
Bishop Auckland
Supported his colleague’s stance that fair employment rights would benefit both workers and businesses, highlighting the importance of levelling the playing field for good employers.
Saqib Bhatti
Con
Meriden and Solihull East
The hon. Member argued against Labour's Employment Rights Bill, citing potential costs to businesses which could lead to job cuts, especially affecting young workers.
Michael Payne
Lab
Gedling
The hospitality businesses in Gedling are crucial for the community and local economy, providing livelihoods and supporting families. Mr Payne highlights specific examples of small businesses that he has met with and their contributions to the community. He criticises previous Conservative policies and supports Labour's business rate relief measures, employment growth, and economic support initiatives.
Chris McDonald
Lab
Stockton North
Agrees with Michael Payne on the importance of small hospitality businesses beyond their economic value, citing a local pub in his constituency that supports an inclusive basketball team and raises significant funds for charity. He congratulates the Golden Smog pub.
Aphra Brandreth
Con
Chester South and Eddisbury
The hospitality sector is vital to Cheshire's economy, contributing jobs and revenue but currently facing higher taxes and regulations under current policies. She cites local business owners expressing concerns about the impact of recent budget measures on their ability to create new jobs and maintain operations.
Gideon Amos
LD
Taunton and Wellington
Amos highlighted the struggles faced by hospitality businesses due to unsustainable policy effects, such as significant increases in business rates. He cited examples of a pub paying double its lease costs in business rates and an iconic hotel facing a £30,000 increase in annual rates. Amos emphasised the need for fair taxes and investment in public services like policing, which are crucial for business confidence.
Tom Gordon
LD
Harrogate and Knaresborough
Gordon supported hospitality businesses facing risks by reopening closed pubs through projects like Jeopardy Hospitality. He called for help for these efforts rather than penalties, agreeing with Amos's points on fair treatment.
Joe Morris
Lab
Hexham
Morris discussed the importance of hospitality businesses in his large constituency and highlighted challenges such as poor investment in road infrastructure and public transport, impacting worker access. He mentioned the role of pubs in defining communities and urged for better communication from local councils regarding road resurfacing to avoid business losses.
Mike Wood
Con
Kingswinford and South Staffordshire
Mr. Wood emphasised the importance of hospitality to local economies, highlighting support from previous Conservative governments such as scrapping Labour’s beer duty escalator, implementing business rate relief for hospitality businesses, and providing pandemic support. He noted that despite this support, many businesses are still struggling due to increased taxes and higher costs under the current government's policies. He cited statistics indicating eight in 10 operators have been forced to raise their prices since April, with 69% of businesses running below required capacity. Mr. Wood called for reforms such as fixing national insurance contributions by raising the threshold, introducing exemptions for young people and returners to work, and reconsidering plans to add further burdens on small businesses next year.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
Ms. Hopkins acknowledged the hospitality sector’s contribution as the third-largest employer in the country and highlighted local venues such as restaurants, cafés, pubs, hotels, and high streets. She noted support for a private Member’s Bill to regulate fireworks use more strictly. She also praised her government's investment in expanding London Luton airport and approving plans for Universal Studios theme park in Bedfordshire. Ms. Hopkins emphasised the Labour Government’s commitment to revitalising high streets through permanent cuts in business rates, tackling late payments, banning upward-only rent review clauses, and expanding start-up loans.
Peter Fortune
Con
Bromley and Biggin Hill
Mr. Fortune highlighted the hospitality sector's struggles due to Labour’s tax hikes, particularly the increase in employer’s national insurance contributions and reduction of business rates relief for retail, hospitality, and leisure businesses. He cited a local independent pub's added £20,000 to its tax bill as an example. Mr. Fortune noted that these policies are exacerbating inflation and increasing costs, leading to job losses and closing of local businesses. He called on the government to change course before high streets become shuttered.
Euan Stainbank
Lab
Falkirk
Mr. Stainbank highlighted his personal experience in the hospitality sector, noting it is a hard but rewarding job. He criticised the opposition's motion for treating hospitality as a secondary occupation and called out its proposal to amend the Employment Rights Bill to protect seasonal and flexible employment practices.
Tewkesbury
The hospitality sector is struggling due to beer duty and national insurance increases, which are putting venues under strain. Dale and Holly's 'Great British Pub Crawl' highlights the importance of pubs in communities and their current challenges.
Katrina Murray
Lab
Cumbernauld and Kirkintilloch
Businesses in Scotland are facing more fundamental issues than national insurance increases, such as business rates, planning processes, and the closure of hospitality businesses at twice the rate compared to other regions. The sector needs certainty and improvements in planning.
Peter Bedford
Con
Mid Leicestershire
The Government's actions are harming the hospitality sector by slashing rates relief, increasing employer national insurance contributions, and pushing damaging employment Bills through Parliament. This has led to job losses and businesses struggling to stay afloat.
It does not have to be this way. If the Government would only listen to industry experts such as UKHospitality and the British Beer and Pub Association, or to brewers such as Punch Pubs and Everards, we could actually help the industry rather than hinder it. I urge the Government to act boldly and continue to cut business rate reliefs for the hospitality sector, reduce duty on draught beer and lower VAT on products sold in hospitality settings, just as many of our European neighbours do.
Antonia Bance
Lab
Tipton and Wednesbury
The Employment Rights Bill is written with the hospitality sector in mind. The extension of day one rights is a policy tailor-made for the hospitality sector; as 50% of all hospitality workers do not have two years’ service, they can be hired and fired at will. We will ban zero-hours contracts that affect 18% of hospitality workers and ensure sick pay entitlements for those earning below the lower earnings limit.
Damian Hinds
Con
East Hampshire
The hospitality sector is incredibly important, employing around 2,000 people in his constituency. It is fundamental to employment and tourism which brings export earnings. The Employment Rights Bill should reflect the needs of part-time workers who have suffered from increased business rates and national insurance contributions.
Chris Kane
Lab
Stirling and Strathallan
In his constituency, hospitality businesses are thriving despite challenges. He is proud of the Government’s Employment Rights Bill which supports fair wages and employment rights for hospitality workers.
South Devon
The hospitality sector is overlooked although it is a vital employer offering skills to young people entering the workforce. The local pub is crucial not just as a place to eat or drink but also as a community space and first step into employment.
Catherine Fookes
Lab
Monmouthshire
Welcomes government support for hospitality and highlights local success stories in Monmouthshire. Advocates for cutting tax on pints and easing red tape.
Rebecca Smith
Con
South West Devon
Expresses concern over increased costs and business rates, highlighting the vital role of hospitality in tourism and community life. Calls out Labour for ignoring the issues faced by the sector.
Calder Valley
Supports government measures to reduce business rates and tackle late payments, while highlighting past failures under previous administrations.
Robbie Moore
Con
Keighley and Ilkley
Critiques Labour policies for causing financial strain on pubs, leading to potential closures. Raises concerns over council tax increases impacting local businesses.
Paul Maynard
LD
Blackpool North and Heywood
He expressed concern over the impact of increased overheads on pubs in his constituency, particularly from the employers’ national insurance increase. He mentioned that these measures are hurting young people who want to start working and making it difficult for hospitality sector to recruit young individuals.
Amanda Martin
Lab
Portsmouth North
She argued against the Conservative claims, highlighting the importance of the hospitality sector and its support by the Labour Government. She mentioned new initiatives like cutting red tape, supporting al fresco dining, permanently lower business rates for hospitality in 2026, and a strategy for small and medium-sized enterprises.
Gregory Stafford
Con
Farnham and Bordon
He criticised the Labour Government's policies, highlighting the closure of pubs due to high taxes and operational costs. He announced that four pubs in his constituency had closed since May, and he argued for more support from local authorities.
Julie Minns
Lab
Carlisle
She suggested extending the pubs code by introducing a guest beer agreement to help the pub industry thrive. She also questioned whether Lucy Minns would agree with nationalisation of pubs, which was a historical feature in Carlisle.
He reiterated his criticism against Labour's policies and highlighted local examples like Borelli’s Wine Bar and Grill struggling under the current economic conditions.
John Cooper
Con
Dumfries and Galloway
He discussed the negative impact of increased employer national insurance contributions on hospitality businesses in Scotland. He also mentioned that the SNP was not passing on funds for business rate relief and criticised their multiple unit pricing alcohol regime.
Vikki Slade
LD
Mid Dorset and North Poole
She spoke about her personal experience working in hospitality and its importance to communities. She highlighted the high number of job losses since the Budget due to increased costs and uncertain revaluations.
Tonia Antoniazzi
Lab
Brent North
Expressed concerns about tax changes affecting hospitality businesses, highlighting specific examples of increased costs and job losses. Emphasised the need for government support to prevent further closures and investment cuts.
Llinos Medi
PC
Ynys Môn
Described the significant economic value of the hospitality sector in Wales, noting a reduction in Gross Value Added due to changes in business property relief. Mentioned job losses and impacts on family-run businesses. Called for rethinking increases to employer’s national insurance contributions.
Matt Vickers
Con
Stockton West
Stressed the importance of hospitality to local communities, highlighting specific local business examples. Criticised Labour's tax policies as detrimental to job creation and employment opportunities in his constituency.
John Lamont
Con
Coatbridge, Chryston and Bellshill
Inquired about the impact of Labour’s tax policy on job losses in Stockton West and supported Matt Vickers' speech by providing additional statistics.
Edinburgh West
Discussed the economic importance of hospitality to Edinburgh, mentioning its contribution to £400 million annually. Criticised Conservative policy as exacerbating long-standing issues faced by businesses and families dependent on them.
Scott Arthur
Lab
Edinburgh South West
Arthur supported his colleague's concerns about the government policies but wanted to address another part of the motion. He discussed the importance of hospitality businesses in communities and mentioned local examples where small independent businesses were facing job losses.
Torbay
Darling, who grew up in a guest house in Torquay, spoke about the economic impact of national insurance hikes on hospitality jobs. He highlighted that there are 84,000 fewer jobs and a quarter fewer vacancies in Devon and Cornwall due to these policies.
Liz Jarvis
LD
Eastleigh
Jarvis provided detailed examples from Eastleigh where local businesses were struggling with increased payroll burdens. She mentioned how national insurance hikes have led to reduced hiring capacity for small breweries and other hospitality venues.
Mike Wood
Con
Kingswinford and South Staffordshire
Emphasised the Conservative government's support for the sector during the pandemic, including measures like the furlough scheme, VAT reduction on tourism, culture recovery fund, and sport survival fund.
Damian Hinds
Con
East Hampshire
Highlighted that the hospitality sector is almost completely absent from the Government’s industrial strategy despite its importance.
Bedford
Con
Mid Leicestershire
Stressed the need to talk to industry and then credibly to the Treasury, with statistics and information. Believes that DCMS is not doing this effectively.
Matt Vickers
Lab
Stockton West
Invited everyone for a pint, suggesting hospitality sector support.
Cameron Thomas
Con
Tewkesbury
Did not provide specific position in the provided text but mentioned as having invited to drinks previously.
Conservative Member
not specified
Critiques the opposition's lack of strategy for supporting the hospitality sector and calls on the House to reject a motion related to this issue.
Dave Doogan
SNP
Angus and Perthshire Glens
Raises a point of order regarding the Prime Minister’s incorrect statement about the First Minister of Scotland welcoming an investment deal in the defence sector. Points out that the First Minister did welcome the announcement, indicating a falsehood from the Prime Minister.
Government Response
Defends the government’s approach to hospitality, including tax measures and business rates relief. Criticises the opposition for not providing alternative funding sources and suggests that their policies would lead to economic instability. Supported increases in national minimum wage to ensure proper pay for workers. Defended decisions on tax, welfare, and spending as necessary to fix public finances. Emphasised protection of small employers through increased employment allowance and rejected claims that increased taxes would harm the hospitality sector. Stressed that despite challenges inherited from previous governments, the current Labour Government has introduced measures such as sector-based work academy programmes and extended destination hospitality SWAPs to support job growth. The Minister also mentioned plans for a visitor economy growth strategy and urged MPs to support businesses in their constituencies. Defended government policies and highlighted support measures for hospitality businesses, including a review of business rates system and reduction in regulatory burdens. Emphasised positive economic indicators such as job creation and interest rate cuts under the current government.
Shadow Response
None
Shadow Response
Critiqued the Government's policies as worsening conditions for small hospitality businesses due to increased taxes, energy costs, and business rates. Urged for exemptions from national insurance increases and highlighted the adverse impact on social mobility. Huddleston criticised the government's policies, emphasising the significant job losses in hospitality since Labour came to power. He mentioned that nearly half of all jobs lost were in hospitality due to unexpected national insurance increases. He also highlighted how these decisions are affecting tourism and leisure sectors.
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