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Coastal Tourism and Hospitality: Fiscal Support

22 February 2024

Lead MP

Selaine Saxby

Responding Minister

Nigel Huddleston

Tags

EconomyTaxationEmploymentCulture, Media & SportBusiness & TradeLocal Government
Word Count: 11236
Other Contributors: 9

At a Glance

Selaine Saxby raised concerns about coastal tourism and hospitality: fiscal support in Westminster Hall. A government minister responded.

Key Requests to Government:

The Minister is asked to consider reducing VAT for hospitality businesses to 12.5%, cut employer national insurance contributions to 10%, increase the VAT threshold to reduce closures, introduce a cap on business rates increases at 3% in line with inflation, and permanently freeze alcohol duty.

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 in coastal areas like North Devon faces significant challenges, including high VAT thresholds leading to business closures, a £8 billion bank debt burden from the pandemic, and a 17% increase in staffing costs due to the national living wage hike. The sector employs over 8,000 people in North Devon alone and contributes more than £400 million annually to the local economy.

Government Response

Nigel Huddleston
Government Response
The Government have provided over £1 billion through the levelling-up fund to projects in coastal areas, with more than £400 million from the UK shared prosperity fund. Additionally, there is a long-term plan for towns providing over £1 billion of support, including £20 million per decade for each town. The sector received over £37 billion during the pandemic and continues to benefit from tax cuts and business rates relief schemes. VAT thresholds are also under review but no clear option has emerged recently.
Assessment & feedback
Summary accuracy

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.