Hospitality Sector 2025-07-17
2025-07-17
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The MP expressed concerns about the challenges faced by local hospitality businesses, including increased employer National Insurance Contributions (NICs), rising energy costs, and other pressures.
I regularly meet the Harrogate business improvement district and the chamber of commerce, and we have a thriving hospitality and tourism sector in Harrogate and Knaresborough. I recently met Alison, a constituent who runs a number of local bars and restaurants, and she is worried that with the increase in employer NICs, rising energy costs and the other pressures that this Government are not getting to grips with, businesses like hers will not be there to see the benefits of business rates reform. What is the Minister doing with Treasury colleagues to support local hospitality?
One of the most important measures that will help the hospitality sector is business rates reform. We have set out our commitment to do that, and we are working with all the different parts of the business community, including the hospitality sector, to get our reform proposals right. As I alluded to in a previous answer, we will publish an interim report giving more detail of our thinking on business rates reform, and the Chancellor of the Exchequer will confirm our plans in the Budget later this year.
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Assessment & feedback
Did not address specific concerns about increased NICs and energy costs.
Business Rates Reform
Response accuracy
Q2
Partial Answer
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Context
The MP highlighted the economic value of the hospitality industry in her constituency and noted that businesses are suffering due to national insurance changes, Brexit impacts, and the lack of benefit from business rates reform.
I hope the Minister will join me in thanking all the hard-working hospitality staff who are about to have a very busy summer, particularly in Edinburgh West, where they are about to be immersed in the Edinburgh international festival. We are very hospitable in Edinburgh. The hospitality industry is worth £198 million to my constituency, but businesses are suffering because of the national insurance changes, and in Scotland we will not benefit from business rates reform. With the national insurance changes and the impacts of Brexit and covid, it is a very uncertain time. What else will the Minister do to help businesses across Scotland that will not have the benefit of business rates reform?
I thank the hon. Lady for her kind invitation. It is possible that I will be darkening the door of businesses in her constituency this summer. We are determined to continue working with hospitality businesses, whether in Scotland or in the rest of the country. As I said in an earlier answer, we have set out plans for a licensing taskforce to look at what else we can do to lower the cost of red tape and regulation. As the hon. Lady rightly says, we are taking measures to reform business rates, and perhaps the Scottish Government might like to follow our example.
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Assessment & feedback
Did not provide specific support beyond mentioning licensing taskforce and inviting Scotland to follow UK's lead on business rates reform.
Licensing Taskforce
Encouragement For Scottish Government
Response accuracy
Q3
Partial Answer
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Context
The MP discussed the challenges faced by high streets due to parking scheme cuts and other issues, asking about support in the small business strategy.
Despite public transport linking people from the Braes, Bonnybridge, Bainsford and beyond to Falkirk, the high street has been dwindling over the past 20 years. SNP and Tory councillors decided to cut the “free after 3” parking scheme for Falkirk town centre businesses and further drive footfall away from our high street restaurants, cafés and pubs. In the forthcoming small business strategy, will the Minister consider looking at how this Labour Government can support accessible and cheap parking in Scottish town centres?
I very much sympathise with my hon. Friend’s frustration about what both the SNP and the Conservatives have done to free parking in his constituency. I sympathise because the Tory-run council in my constituency has taken similar steps to curtail free parking, which has undoubtedly had an impact on the town centre. I hope that the concerns my hon. Friend has articulated today will be heard loud and clear in his constituency, and that action will be taken. Our SME strategy will set out a range of steps that we are determined to take to back small businesses and help entrepreneurs across Britain.
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Assessment & feedback
Did not address specific parking support measures for Scottish town centres.
Sympathy With Concerns
Mention Of Sme Strategy
Response accuracy