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Pub and Hospitality Sector
22 October 2024
Lead MP
Peter Bedford
Mid Leicestershire
Con
Responding Minister
Gareth Thomas
Tags
UkraineEconomyTaxationEmployment
Word Count: 13612
Other Contributors: 29
At a Glance
Peter Bedford raised concerns about pub and hospitality sector in Westminster Hall. A government minister responded.
Key Requests to Government:
The lead MP asks the Government to support the sector through measures such as continuing business rate relief, considering 20% draught relief for beer, reforming planning and licensing laws, cutting national insurance contributions for lower-paid workers, and promoting apprenticeships. He is particularly concerned about potential increases in alcohol duty and employer National Insurance Contributions.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The pub and hospitality sector has long been vital to the British economy, contributing £140 billion in economic activity and providing employment for 3.5 million people, many of whom are young workers aged 16 to 24. However, the industry faces numerous challenges such as increased input costs due to global events like the Ukraine conflict and a significant decline during the pandemic, with output decreasing by 42% between 2019 and 2020 and 10% of hospitality businesses closing.
Allison Gardner
Lab
Stoke-on-Trent South
Community pubs like the Labour in Vain in Yarnfield are vital for village life, offering social spaces and job opportunities. The right to buy for communities needs support from the Government.
Bayo Alaba
Lab
Southend East and Rochford
The MP, with a background in hospitality, highlighted the challenges faced by operators such as increasing costs, antisocial behaviour, and decreasing footfall. He emphasised the importance of soft skills developed in this sector for future employment opportunities and advocated for support to champion service providers.
Blake Stephenson
Con
Mid Bedfordshire
Pubs and hospitality are central to communities in Mid Bedfordshire, supporting 2,229 jobs and contributing £66 million to the local economy. The speaker urged the Government to support inward investment by Universal Studios and maintain manifesto commitments not to raise national insurance or freeze alcohol duty.
Gosport
Local venues in Gosport are facing increased wage and energy costs alongside the end of business rates relief. The national closure rate is 50 venues per month, with two grassroots music venues closing weekly. Caroline advocates for a time-limited VAT cut to support small independent hospitality venues.
Caroline Voaden
Lib Dem
South Devon
In South Devon, the hospitality industry is crucial to the local economy, employing 12,000 people and contributing over £500 million annually. The MP raised concerns about business rates relief and highlighted the threat of additional costs for long-standing businesses. She urged the Government to extend rate relief and implement reforms to ensure the sector's sustainability.
Chris Murray
Lab
Edinburgh East and Musselburgh
The hospitality sector in Edinburgh generates £7.2 billion annually for the UK economy from whisky tourism alone and employs 45,000 people in Scotland. Pubs play a crucial role in tackling loneliness and developing soft skills among young workers.
Esther McVey
Con
Tatton
In Tatton, 89 pubs support 2,350 jobs. Business rates, beer duty, and employer national insurance are significant concerns. Labour's Employment Rights Bill would cost businesses £4.5 billion annually. The proposed outdoor smoking ban could lead to a drop in footfall of 10% to 30%, threatening pub closures. She asks the Minister to commit to speaking to the Chancellor about business rates before the Budget next week.
Gareth Davies
Con
Grantham and Bourne
Pubs contribute significantly to the economy, generating £54 billion in tax revenue and employing 3.5 million people. The sector is concerned about potential national insurance increases and the Employment Rights Bill's impacts, as well as the outdoor smoking ban.
Gregory Campbell
DUP
East Londonderry
Will the hon. Gentleman give way?
Gregory Stafford
Con
Farnham and Bordon
David Lee from Frensham highlighted that VAT on fresh food is impacting pub margins, leading to a shift towards dry pubs. He urged the Chancellor to consider reducing VAT on fresh food for the hospitality industry.
James McMurdock
Ind
South Basildon and East Thurrock
The speaker called on the Minister to address the closure of pubs in his constituency by advocating against further tax burdens that could lead to pub closures, resulting in less revenue for the Treasury. He emphasized the importance of regulating drinking and smoking areas to ensure safety and proper taxation.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
Eastern European workers have been vital to the hospitality business in the highlands due to depopulation and an ageing population. Jamie urges the Government to facilitate easier entry for these workers to support the hospitality economy. He intervened to draw attention to the high closure rate of pubs in Scotland, noting that Sir Tim Martin criticised the Scottish Government's approach to business rates. He values the Minister's words but reiterates his earlier point about businesses needing to hire eastern European and foreign workers as they did previously.
Jim Shannon
DUP
Strangford
One in five pubs is at risk of closing, affecting Northern Ireland's fourth largest private sector employer with a turnover of £2 billion. The hospitality sector faces challenges such as recruiting and retaining staff, high business rates, and restrictions on growing businesses like small independent breweries.
Joe Morris
Lab
Hexham
The constituency of Hexham is home to 116 pubs, nine breweries, and 2,200 jobs. Pubs are essential for the local economy, tourism sector, and providing entry-level employment opportunities for young people aged between 18 and 24.
John Cooper
Con
Dumfries and Galloway
In Scotland, the rate of hospitality business closures is twice that of England due to minimum unit pricing, leading to a rise in alcohol-related deaths from 1,277 in 2023.
Julie Minns
Lab
Carlisle
The speaker highlighted the unique history of nationalised pubs in Carlisle, noting challenges faced by independent breweries due to large brewery ownership. She urged the Minister to apply the pubs code to ensure more access for independent breweries and suggested increasing draft beer relief to 20%.
Katrina Murray
Lab
Cumbernauld and Kirkintilloch
Pubs serve as community hubs and social centres. The Swan pub in Cumbernauld and Kirkintilloch was reopened by the local community after a threat of closure, raising funds for charity.
Kim Johnson
Lab
Liverpool Riverside
The hospitality sector in Liverpool Riverside has a yearly turnover of £1.7 billion and employs over 31,000 people. The city's cultural landmarks such as The Cavern on Mathew Street are at risk due to challenges like the pandemic and rising costs, leading to an estimated net loss of 300,000 hospitality venues in 2023.
Mike Wood
Con
Kingswinford and South Staffordshire
Pubs and hospitality are a force for good, contributing £120 billion to the UK economy and employing 3.5 million people across various age bands. They face challenges such as high business rates and alcohol duty, which have been alleviated by past Government measures but still need further support from the current administration.
Navendu Mishra
Lab
Stockport
Pubs in Stockport support 1,590 jobs and contribute £57 million to the economy. The sector has struggled with closures; 50 pubs closed each month in the first half of 2024. Business rates relief for hospitality is crucial, and small breweries should receive fairer treatment compared to large multinational firms.
Patrick Spencer
Ind
Central Suffolk and North Ipswich
The hospitality industry in Central Suffolk and North Ipswich supports about 250,000 jobs and contributes £2.5 billion to the economy annually. The speaker highlighted that pubs are important for both economic value and social aspects such as supporting elderly individuals who lack social connections.
Richard Foord
Lib Dem
Honiton and Sidmouth
The South-West region has the highest number of pubs per capita. The closure of a community hub like the George Inn in Chardstock highlights the need for reforming the Localism Act 2011 to enhance local authorities' powers over community assets.
Richard Holden
Con
Basildon and Billericay
Draught beer relief has 97% UK-made input, benefitting farmers and the Exchequer, and urged continued push for greater relief in this area.
Robbie Moore
Con
Keighley and Ilkley
In Keighley and Ilkley, pubs are vital community hubs that provide socialisation opportunities and help address loneliness. The MP praised local pubs through a best pub award and expressed concern over the potential reduction of the VAT threshold and proposed measures in the Employment Rights Bill. He is keen to understand specifics of what the Minister does in his role regarding conversations with the Chancellor on issues like business rates relief, VAT threshold, VAT duty, and concerns raised by UKHospitality.
Sarah Bool
Con
South Northamptonshire
Pubs in South Northamptonshire support 1,950 jobs and generate £26 million in tax. They are vital for employment opportunities in rural areas, such as taking on local people with disabilities who would otherwise struggle to find work.
Sarah Gibson
Lib Dem
Chippenham
She expressed concerns about the impact of rising energy costs, supply chain issues, and staff shortages on local pubs. She highlighted that British pubs overpay their rate bills by approximately £500 million annually according to CAMRA data. She urged the Government to abolish business rates for small hospitality businesses and replace them with a commercial landowner levy.
Steffan Aquarone
Lib Dem
North Norfolk
He is grateful to the Minister for his points on employment generated by the sector and asks if greater training opportunities are vital in areas like North Norfolk, where hospitality industry plays a significant role.
Tom Hayes
Lab
Bournemouth East
The hospitality sector in Bournemouth is diverse and vibrant, with numerous independent businesses contributing to the local economy. Issues such as council licensing complaints have been addressed through community efforts.
Wendy Chamberlain
Lib Dem
North East Fife
Dean Banks from St Andrews highlighted that energy costs are a challenge, with direct debits keeping companies' money in energy firms, making it difficult to manage cash flow.
Government Response
Gareth Thomas
Government Response
Recognised the importance of pubs and hospitality venues for local economies, employment and community cohesion. Addressed concerns about business rates and pledged reforms in the upcoming Budget to support growth and reduce unfairness on businesses. Emphasized the government's commitment to making work pay through measures such as the Employment Rights Bill. Highlighted plans to reform the apprenticeship levy and introduce Skills England for more flexible training opportunities.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.