Hospitality Sector 2026-01-29
2026-01-29
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question is prompted by concerns about the impact of government policies on the hospitality industry, including business rates and employment challenges. Joe Robertson highlights that there are 100,000 fewer people working in hospitality since the current government came to power.
What steps his Department is taking to support the hospitality sector. What the Minister does not say is that the Government have also taxed those businesses and made it harder to employ people, which is why there are 100,000 fewer people working in hospitality since her Government came to power. Hospitality businesses in my constituency are hanging on to one thread of hope: the vague assertion that the Government will look again at valuations. Will the Minister look again right now, scrap business rates for hospitality and back our high streets?
Every high street in every corner of our country is supported by our hospitality industry. They are absolutely vital to our economy, supporting over 2 million jobs. The sector is really personal to me; my first job was in the hospitality industry, and I know that many Members across this House also have that personal connection. We are reversing the damage that Conservative Members did to our economy, and businesses still do not thank them for it. Nor do people whose wages under the previous Government simply did not give them the disposable income to spend in their local pubs, spend in their high streets and support restaurants. That is why we are reversing that, ensuring that people see a rise in their living standards, cutting costs for households and raising wages to boost and support our high streets. That is what we are absolutely focused on doing: rebalancing our economy so that it works for working people and businesses alike.
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Assessment & feedback
Did not address the specific ask about reassessing business rate valuations or scrapping business rates for hospitality
Changing Subject To Past Government Policies
Response accuracy
Q2
Partial Answer
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Context
Christine Jardine raises the issue of devolved business rates in Scotland and Wales, noting that the change does not help hospitality businesses in every part of the UK due to regional variations.
What steps he is taking to support hospitality businesses. The Minister referred to there being hospitality businesses in every corner of this country. Unfortunately, the change in business rates does not help hospitality businesses in every corner of this country because business rates are devolved in Scotland and Wales, and the businesses in my constituency of Edinburgh West are struggling. Hospitality is absolutely vital to the Scottish economy, and so far the SNP Government have proved completely ineffectual at dealing with the issue. The Minister speaks about the strategy coming later in the year. In it, might it be useful for VAT to be reduced for businesses in this sector across the UK, so that every corner of the United Kingdom can benefit?
All the devolved Governments have full control over the structure and level of business rates within their jurisdiction. As the hon. Lady mentioned, the new relief applies to England only; however, the devolved Governments have additional funding to allocate according to their priorities. We call on the SNP to decide whether to match the support for pubs and music venues that we have decided this week to provide. It is up to them to decide how to spend their money; we have made it clear this week what our priorities are and how we would do it.
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Assessment & feedback
Did not directly address the specific ask about VAT reduction for hospitality businesses across the UK
Pointing To Devolved Government Responsibilities
Response accuracy
Q3
Partial Answer
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Context
Jo Platt raises the issue of markets being a vital part of local identity and economy, highlighting the need to support both market traders and hospitality businesses.
A lot of the hospitality small and medium-sized enterprises in my constituency start out as market traders. As we know, our markets are a vital part of our identity and central to our local ecosystem, giving businesses the space to start, test and grow. Does the Minister agree that markets and hospitality are key to reviving our high streets, and will she meet me to discuss a national traders strategy to secure a strong pipeline for future success?
I thank my hon. Friend for her question, and for championing the brilliant hospitality sector, businesses and markets in her constituency—I have the wonderful Halifax borough market in my constituency, so I know the importance of thriving traders to our high streets and local economies. I would be more than happy to meet my hon. Friend and hear her thoughts on how we can work together to restore pride in our high streets; our traders are vital to that, which is why our high streets strategy this year will be so important. It will look at all those areas, directly investing in our communities to ensure local businesses can thrive, high streets bustle and pride is restored to our high streets and communities.
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Assessment & feedback
Did not address the specific ask about a national traders strategy directly, instead agreeing to meet
Promising Future Meetings
Response accuracy
Q4
Partial Answer
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Context
Chris Webb highlights the struggle of hospitality businesses in his constituency due to previous government cuts and proposes a new tourism enterprise zone.
Hospitality in Blackpool is struggling. The cuts under the previous Government made Blackpool the most deprived coastal community and town in the country, but it has a solution: a new Blackpool tourism enterprise zone that expands our current enterprise zone along the promenade into the hospitality and tourism businesses. Will the Minister meet me and the managing director of Blackpool Tourism Ltd, Kate Shane, to discuss her idea to create jobs and unlock growth and investment in Blackpool?
I thank my hon. Friend for his question, and for all his work on behalf of his constituency and businesses in Blackpool. He makes an excellent point, and I would be keen to hear more about his work and discuss it further. Through the hospitality zones that we are looking to create, there is a real opportunity to drive investment and ensure that businesses and people alike benefit across our country.
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Assessment & feedback
Did not address the specific ask about meeting Chris Webb and Kate Shane directly
Promising Future Discussions
Response accuracy
Q5
Partial Answer
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Context
Victoria Collins highlights the plight of many pubs and restaurants in her constituency that are closing due to business rates, national insurance costs, and minimum wage issues.
Hospitality is on its knees, and it is already too late for many of the pubs and restaurants in Harpenden and Berkhamsted that are closing down. The small café Nook in Markyate is a real lifeline for that village, but Helen, the owner, talks about business rates, national insurance costs and the minimum wage. The Liberal Democrats have long been crying out, alongside the hospitality sector, for Government help for the sector. Although we welcome the U-turn, I call on the Minister and the Government to hear that cry before the next one, when it will be too late for the next swathe of hospitality businesses that will have closed down.
Over the longer term, we have committed to reviewing the methodology used for business rates purposes. If necessary, we will make changes to ensure that the next revaluation accurately reflects the rental market for these properties. We will be conducting that expert review, working closely with the hotel and pub sectors. We want to see our high streets thrive, and hospitality is key to that, in the hon. Lady’s constituency and across our whole economy. That is what I want to see, and it is what we are committed to work towards.
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Assessment & feedback
Did not address the specific ask for immediate action before more businesses close down
Promising Future Reviews
Response accuracy
Q6
Partial Answer
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Context
Kim Johnson noted that Liverpool’s small businesses, including independent shops and cafes, are facing soaring business rates. She stated these increases far exceed what businesses can absorb, especially considering rising energy and supply costs.
Liverpool’s hospitality sector and its small businesses continue to tell me that soaring business rates are pushing them to the brink. Many independent shops, cafés and community venues—pillars of our local high streets—are now facing increases far above what they can absorb, especially in energy and supply costs. These are businesses that create local jobs, drive footfall and keep our high streets alive, so can the Minister explain what immediate steps the Government will take to reform the business rates system so that it no longer disproportionately penalises areas such as Liverpool, and will she commit to meet affected business owners in my constituency to hear directly about the pressures they are facing and the urgent support they need to survive?
We are introducing new, permanently lower tax rates for eligible retail, hospitality and leisure properties worth nearly £1 billion per year, which will benefit over 750,000 properties. Next year, the rate for small RHL properties will be the lowest since business rates were introduced more than 30 years ago. This is paid for through higher rates on the 1% most expensive properties, which includes many large distribution warehouses such as those used by online giants—that high value multiplier is 33% more than the multiplier for small RHL properties. That is what we committed to in our manifesto. Creating a new, sustainable system with permanently lower multipliers for eligible retail, hospitality and leisure properties will make a massive difference for people. We will be publishing a call for evidence in September, exploring potential longer-term reforms, and I urge my hon. Friend to get involved in that call for evidence and to share it, too.
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Assessment & feedback
The Minister did not commit to meet with affected business owners directly.
General Statement On Reform
Call For Involvement
Response accuracy
Q7
Partial Answer
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Context
The Minister had just heard pleas to support the hospitality industry, especially pubs.
The Minister has just heard from across the House continuing pleas to support the hospitality industry. It is always a good day when the Government U-turn and provide more support for pubs, so we welcome that. However, unless the Minister can explain to us when a pub becomes a gastropub, when a gastropub becomes a restaurant, and when a restaurant with rooms becomes a hotel and descends down that wormhole, will she make representations to the Chancellor to extend the same measures for pubs that she U-turned on this week across the whole retail, hospitality and leisure sector? The truth of the matter is that 90% of that sector will not benefit from this week’s U-turn.
Good morning to the shadow Secretary of State. I am sure he had a stiff drink after his performance at Prime Minister’s questions yesterday. All pubs and live music venues that meet the definition set out in the guidance qualify for the support, and he will be able to see that clearly online. We will be working with local authorities to ensure that the definition includes establishments open to wide sections of local communities. I have already discussed valuations for pubs, how we take turnover into account and how we will work closely with the wider sector on valuations going forward. This is a Government who are working closely with the sector and are committed to listening. That is being a responsible Government, and we are doing the right thing.
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Assessment & feedback
The Minister did not commit to extend support measures across the entire sector.
Clarification On Definitions
Commitment To Work With Local Authorities
Response accuracy
Q8
Partial Answer
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Context
The Minister was questioned about the impact of national insurance contributions rise, energy costs, and business rates on the hospitality sector.
The heavy burden of Labour’s national insurance contributions rise, compounded by high energy costs and the business rates increase, has raised alarm about the affordability of hospitality businesses’ monthly employment costs. Some 84,000 jobs in the hospitality sector alone have been lost since the NICs rise was introduced, and that is particularly damaging to young people, many of whom have traditionally found their first jobs in the hospitality sector, including the Minister, as she just said at the Dispatch Box. With the sector struggling to employ new workers, damage is being done to the career prospects of our young people, and it will be detrimental to the broader economy in the long term. Business confidence is down, job vacancies are down and unemployment is up, so what steps will the Department take to tackle high unemployment costs, support businesses and bring down those increasingly high levels of unemployment?
A decade of stagnant growth and living standards will not be turned around in 18 months, but there are signs of progress. The Conservatives left one in eight young people out of education, employment and training, and we are working relentlessly to turn around that disgraceful figure. We recognise the challenges that businesses have to work through as a result of the actions undertaken by the previous Government. On youth unemployment, we have announced an £828 million funding package to give a generation of young people a brighter future. Over the next three years, 1 million young people on universal credit across the country will benefit from support designed to get them into employment and learning, and that includes what we are doing with small businesses on apprenticeships, which we are partly funding. That will be significant, especially for the hospitality sector, in encouraging more jobs. Those jobs are a key lifeline for people to get into the employment market. That is something I recognise, as the hon. Lady noted. We know the importance of this issue, and we want to work closely with the sector and with councils in the significant wider work we are doing on the strategy.
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Assessment & feedback
The Minister did not specify immediate steps to tackle unemployment costs and support businesses directly.
General Statement On Progress
Commitment To Funding Package
Response accuracy