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Covid-19: Hospitality Industry
24 March 2021
Lead MP
Selaine Saxby
Debate Type
General Debate
Tags
EconomyAgriculture & Rural Affairs
Other Contributors: 37
At a Glance
Selaine Saxby raised concerns about covid-19: hospitality industry 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 hospitality sector, which contributed £59.3 billion to the UK economy in 2019, has been severely impacted by the pandemic. With an estimated loss of £86 billion in revenue and a debt burden of over £2 billion, there is a need for continued support from the Government beyond current measures. The debate emphasises the importance of pubs and other hospitality businesses to rural communities and suggests targeted support such as a draught beer duty reduction to help these establishments recover.
Jeff Smith
Lab
Manchester Withington
The night-time hospitality sector, which has been closed for over a year, requires urgent support due to amassed commercial debts and limited ability to reopen fully. Specific measures include shared burden approaches for debt restructuring, extending the job retention scheme until summer 2021, expanding access to the culture recovery fund, accelerating test events through the events research programme, ensuring security personnel availability, and establishing a Government-backed insurance scheme for event cancellations.
Kate Griffiths
Lab
Burton and Uttoxeter
I thank my hon. Friend the Member for North Devon (Selaine Saxby) for securing this important debate, and I agree with the many important points that she made. The unprecedented support that this Government have provided to hospitality businesses over the past year has undoubtedly saved many jobs and livelihoods across my constituency of Burton and Uttoxeter. However, there is still much more that can be done to help this industry recover from the biggest crisis that it has ever suffered. Over the past few years, we have seen the slow decline of our high streets, as habits have changed and online shopping has taken over. We must not allow the same thing to happen to our community pubs and the breweries that support them. Pubs play a huge role in all our constituencies. They provide significant employment opportunities for young adults and are at the centre of our towns and villages. In Burton, pubs and breweries take centre stage in our town’s heritage. Over the past year, they have been working tirelessly to ensure that they keep customers safe, and so many have gone beyond their usual remit to support their communities throughout the pandemic.
Adam Holloway
Con
West Bromwich West
I congratulate my hon. Friend the Member for North Devon (Selaine Saxby) on securing this important debate. I will make just a couple of points, on dates and on data. Earlier this afternoon, I rang a friend who runs the Griffin Inn in Sussex to ask about this, and he said that dates are vital. We must stick to any dates that we have. Over Christmas, of course, many establishments lost enormous amounts of money buying in stock that they then could not use. In his case, it was £25,000-worth of stuff. On data, some people are having a very good time of it. Supermarkets are making a fortune. Pubs and hospitality have been amazingly supported by the Government, but we must not forget the point made by Ian Eldridge, who runs a restaurant in my constituency called Bartellas, that they still have enormous costs. They have employer contributions, lease purchase deals and lots of monthly contracts, and of course they also have maintenance.
Ben Lake
PC
Ceredigion Preseli
Like others, I congratulate the hon. Member for North Devon (Selaine Saxby) on securing this very important debate. Despite the unprecedented support from every level of government, including the Welsh Government and local authorities, yesterday’s Office for National Statistics data offered quite a sobering reminder of the devastating impact that the pandemic continues to have on businesses and employment in Wales. A year into lockdown, the Welsh unemployment rate has risen by 1.1%, while Wales’s perennially high economic inactivity rate has reached 24.4%, meaning that a quarter of the Welsh workforce is either not in employment or not seeking employment. I hope this debate will be a helpful reminder to Government of the importance of the hospitality sector both as an opportunity for jobs and for the way in which it helps particular regions, particularly coastal and rural areas, where other opportunities are sadly fewer and further between.
North Lincolnshire
I thank my hon. Friend the Member for North Devon (Selaine Saxby) for securing this debate. There is no doubt that it is thanks to the Government’s support schemes that we have been able to prevent many local hospitality businesses from being lost. Having worked with hundreds of them, I know that local businesses always have their employees and our community at heart. In turn, we in North Lincs value them and their ties with the community, with places like Mulligans Sports Bar sponsoring local darts, snooker and pool teams. Many of my local hospitality businesses did not let a pandemic stand in the way of their helping people. I could list many examples our area can be proud of. For example, the hospital’s sports and social club opened up space for NHS staff to use for meetings. The Shires and many, many other pubs have provided hot food options for those at home. Pubs such as the Queen’s Head in Kirton have provided lunch for volunteers and health workers in our vaccination centre.
The hospitality industry is in the midst of an intense cash crisis with grants and loans exhausted. Proprietors are being forced to defer bills and mortgage payments, many businesses have just three months' cash reserves, and many find themselves burdened with unmanageable levels of debt that could sink our economic recovery. Labour calls for a comprehensive package of support to give owners and workers security and peace of mind in the challenging months ahead, including an ambitious high streets fightback fund, allowing businesses to start repaying Government loans only when they begin to grow again, converting debts into employee ownership trusts, creating conditions that allow local shops to compete with online retailers on a more equal footing, giving local authorities powers to fill empty units as a means of revitalising neglected high streets, and tackling low pay and insecure work.
Consumers have moved from out-of-home to in-home consumption during the pandemic. Suppliers to the hospitality industry face challenges such as losing stock through it going out of date or being wasted, seasonal stocks, high-volume low-margin businesses with high fixed costs, and customers unable to pay. The best outcome for suppliers is for their customers, and the hospitality sector, to get trading again. Hospitality businesses are ready to reopen safely from 12 April onwards but will be more significant on 17 May when indoor hospitality opens, and all restrictions should lift by 21 June.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
Thanked Selaine Saxby for securing the debate. Highlighted local businesses such as Platform 1864 in Tain and Mackays Hotel in Wick. Emphasised the importance of supporting the tourism industry and expressed gratitude towards the reduced VAT rate, asking for clarity on reopening rules, a capital investment package, and training programmes.
Simon Jupp
Con
East Devon
Congratulated Selaine Saxby on securing the debate. Highlighted the importance of hospitality in East Devon and praised government support measures such as restart grants and VAT cuts. Emphasised the need for continued financial support, better recruitment and retention strategies, and a fairer immigration system.
Ruth Cadbury
Lab
Brentford and Isleworth
Acknowledged Selaine Saxby's opening speech and highlighted the critical role of hospitality in communities. Discussed challenges faced by low-paid workers, under-25s, and businesses dependent on tourism and international travel. Praised Hounslow Council for its efforts to support local businesses.
Jane Stevenson
Con
Wolverhampton South East
Congratulated Selaine Saxby for securing the debate. Praised the hospitality sector's adaptability and community spirit, citing examples such as Kevin Ward’s food bank initiative at Ashmore Inn. Acknowledged various government support schemes but asked for dialogue with industry bodies to identify further needs.
Salford
Pre-COVID, Greater Manchester's night-time economy employed 414,000 people or 33% of the workforce. With limited financial support post-lockdown, half of businesses do not expect to break even until the end of 2021 and insolvency risk is at its highest since April 2020. UKHospitality warns that failure to act now could lead to thousands of hospitality business failures across the UK.
The Government's rapid response schemes were efficient, but hospitality and non-essential retail closures may have been too quick given how businesses operated in a COVID-friendly manner during summer. Calls for data-driven decisions to speed up opening of hospitality sector as vaccination programme progresses.
Clacton's economy relies heavily on tourism and hospitality, with 20% of local businesses in the sector according to a survey. Businesses have benefited from support schemes but need help to open safely for expected influx of domestic visitors this summer.
Hospitality is Northern Ireland's fourth largest private sector employer with £2 billion turnover, purchasing one-third of agrifood productivity. Debt has stacked up over £1 million daily and losses total £1.4 billion so far; calls for fixed date of opening, flexible furlough support, loan scheme to consolidate debts, flexibility in local government spending.
Patricia Gibson
SNP
North Ayrshire and Arran
The hospitality sector, a critical part of the UK economy, faces dire challenges due to the pandemic. There's an urgent need for extending VAT cuts until at least the end of the year to support businesses in island communities like Arran that face unique difficulties under varying restriction levels compared to mainland areas.
Mary Robinson
Con
Cheadle
The hospitality sector, especially wedding venues, has endured significant hardship during local restrictions and tiered lockdowns. While government support schemes have been lifelines for many businesses, more needs to be done to aid recovery. One potential solution is encouraging early weekday weddings with Government support.
Grahame Morris
Lab
Easington
The hospitality sector has suffered immensely due to the pandemic and three national lockdowns, leading to significant job losses. Grahame Morris urged for contrition from the Government and emphasised the importance of extending VAT reduction beyond September 2021 to aid recovery. He also highlighted the threat to small brewing businesses from proposed changes to small brewers relief.
Paul Howell
Con
Sedgefield
The hospitality industry has been hit hard by pandemic restrictions. It is essential to lift the ban on takeaway sales of alcohol, extend VAT relief for alcohol sales, and provide sector-specific financial aid beyond September to support businesses such as pubs, hotels, brewers, and wedding suppliers.
Mary Foy
Lab
City of Durham
The hospitality sector requires sector-specific support from the Government to protect both businesses and workers. This includes extending the job retention scheme with worker protections and addressing the cashflow crisis faced by many businesses since taking on massive amounts of debt.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
The hospitality sector needs continued support post-June, including extending financial aid and revaluating business rates. Addressing the cash crisis through fair taxation and supporting businesses' ability to pay back loans only when they can afford it would be beneficial.
Jane Hunt
Con
Loughborough
The hospitality industry is vital for Loughborough, employing over 3,000 people and providing diverse services. The author appreciates the Government's financial support measures and recent road map to reopen, which has provided certainty to businesses. She advocates for continued government support through testing and emphasises the importance of public adherence to social distancing guidelines.
Pontypridd
The hospitality industry in Pontypridd is severely impacted, with many businesses relying on furlough and struggling due to lack of future planning from the Government. The Chancellor's stop-start approach to economic support has harmed high streets and caused distress among businesses and workers. Davies-Jones urges for long-term financial assistance beyond the crisis and calls for a jobs guarantee for young people.
Virginia Crosbie
Con
Ynys Môn
The hospitality industry is crucial to Ynys Môn's economy, employing nearly one-fifth of the island’s population. The first national lockdown in March 2020 caused significant economic impact, with many businesses depending on support initiatives such as furlough and small business grants. Despite challenges, businesses complied with safety measures during reopening phases, and there is hope for recovery as vaccinations progress.
Justin Madders
Lab
Ellesmere Port and Bromborough
The hospitality sector has faced significant challenges due to the pandemic, with pubs closing for long periods and reopening under stringent conditions. The constant changes in regulations have added financial burdens, exemplified by the failure of Test and Trace check-ins. Pubs without outdoor facilities may struggle even after April 12th when venues are set to reopen, necessitating government support to bridge these gaps until full recovery is possible.
The hospitality industry has seen a 54% revenue drop and 600,000 job losses in 2020. Coastal communities reliant on tourism are particularly affected, with young people disproportionately impacted. The sector is interconnected with suppliers like food manufacturers and event service providers who also face hardships. There's urgency for certainty regarding future reopening plans and support measures, such as extending the reduced VAT rate, adjusting business rates, and providing more financial aid.
The hospitality sector is intertwined with live events, shopping, tourism, and cultural venues. The Asian wedding industry in Glasgow has suffered from event cancellations and diversification efforts have not been enough to compensate for losses. Lockdown measures were ineffective at times due to late implementation or premature lifting, resulting in job losses primarily affecting young workers. A continued reduction of VAT to 5% is requested along with careful consideration of support needed post-furlough.
Neil Parish
Con
Tiverton and Honiton
The hospitality industry is crucial to the west country's economy, supporting over 3000 businesses in Devon. During the pandemic, many of these businesses struggled as supply chains were disrupted. Farmers and food suppliers faced significant losses, but some sectors continued to struggle despite government support. Neil Parish emphasised the need for targeted support for small and medium-sized food-and-drink businesses that rely on hospitality venues, including those involved in weddings and events. He also stressed the importance of continuous engagement with the sector and the need for a combination of tax cuts, cash grants, and relaxed planning laws to help businesses recover.
Alistair Carmichael
Lib Dem
Orkney and Shetland
The hospitality industry is vital in Orkney and Shetland's visitor economy. Despite the belief that they would emerge from six quiet months, businesses are facing another year of uncertainty. Self-catering businesses saw a quick recovery but bed and breakfasts and hotels struggled more. The hospitality crisis has also affected premium producers of beef, lamb, fish, and shellfish due to closed restaurants. Carmichael called for a continued support system like the furlough scheme with gradual tapering-off based on sector and region needs. He emphasised that reducing VAT rates for hospitality businesses was crucial and advocated for its permanence.
Greg Smith
Con
Mid Buckinghamshire
The closure of pubs would be devastating, as only 34% of publicans believe they can survive until summer. The Chancellor's support in the form of additional grants and a reduced VAT rate is welcomed but more needs to be done. Greg Smith backed calls for takeaway alcohol sales, indoor trade from April 12th, and a cut to beer duty to support local pubs and breweries. He highlighted the importance of reversing proposed changes to small brewery relief to prevent further closures and job losses in the industry.
Wendy Chamberlain
Lib Dem
North East Fife
Described the profound impact of closures on North East Fife's hospitality industry, mentioning specific businesses. Emphasised the challenges ahead with social distancing and travel restrictions. Called for continued support from both UK and Scottish Governments to help these businesses thrive.
Warrington North
Highlighted the existential threat pubs face due to the past year's events, urging clearer support measures. Acknowledged grants but stated they are insufficient according to industry experts. Noted the impact on brewers supplying pubs and called for compensation and support until full reopening.
Stephen Flynn
SNP
Aberdeen South
Complimented the hon. Member for North Devon on securing the debate, reflecting on the importance of city centre retail alongside hospitality. Highlighted challenges ahead including shattered consumer confidence and called for VAT extension until end of year. Mentioned Scotland's 100% rates relief support.
Lucy Powell
Lab Co-op
Manchester Central
The Government have a moral duty, as well as an economic imperative, to ensure that as many shuttered businesses as possible are able to reopen viably. Companies have taken the loans, deferrals and moratoriums, but as trade slowly restarts and the debts are called in, businesses will go bust. This is an issue for the larger chains as well. There are also many measures that Ministers have got wrong, making a bad situation worse. The hospitality industry is vital to the recovery. It drove growth after the global financial crisis and, with the right help, it could do so again.
Paul Scully
Con
Eddisbury
Congratulates Selaine Saxby on securing the debate and highlights the importance of the hospitality sector for local economies, job creation, and community wellbeing. He outlines the government's support measures including job retention schemes, VAT cuts, business rates relief, and grants to help businesses reopen safely post-pandemic.
Selaine Saxby
Con
North Devon
Thanks Paul Scully for his response and invites all Members to visit North Devon when it is safe to do so. She expresses her passion for supporting the hospitality sector in North Devon and across the country.
Eleanor Laing
Con
Epping Forest
Asks for an enthusiastic response regarding pubs opening, but does not provide a detailed speech or position on the topic.
Government Response
Discussed various support measures provided by the government to help hospitality businesses during the pandemic and outlined steps for safe reopening under the road map.
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Assessment & feedback
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