Hospitality Sector

Argues that the hospitality sector forms a cornerstone of society, providing employment opportunities and flexibility. Criticises the Government for imposing an extra £3.4 billion cost on employers, particularly affecting small businesses.

At the autumn Budget, the Government increased NIC rates by 8.7%, resulting in a payroll increase of 12.4% for hospitality businesses, which is four times the rate of inflation. The sector faces additional challenges like high energy costs and environmental tariffs on renewable energy.

In South East Cornwall, hospitality supports many local families but often involves seasonal work with unsociable hours. We need more first homes for local families and improvements in employment rights through the Employment Rights Bill.

Supports the reduction of VAT for the hospitality sector to level the playing field with the Republic of Ireland and help businesses thrive.

Acknowledged the concerns raised about the Employment Rights Bill's impact on seasonal businesses.

In West Dorset, 85% of local businesses are micro-enterprises that support thousands of jobs. Rising costs and infrastructure issues threaten the survival of these businesses. The George in West Bay saw its business rates increase from £8,000 to £27,000 a year.

Hoped for a change in approach from the Scottish Government regarding extending hospitality relief.

The Budget changes have been worse than the impact of covid for pub and hospitality businesses in his constituency, as there was no relief provided unlike during previous lockdowns. Describes a pub in Farnham using zero-hours contracts to accommodate staff who work part-time between shifts, citing flexibility as the main benefit.

Discussed accommodation shortages in remote parts of Scotland and the need for action by the SNP Government. Without adequate housing for workers, hospitality businesses are in real trouble. The issue is not just rural; it affects many parts of the UK, including the west country. Asked the Scottish Government to extend hospitality relief fully in light of highland depopulation concerns.

Emphasised the importance of hospitality to Cornwall's economy, discussed challenges such as rising costs and staff shortages, and supported steps taken by the Government. Responds to Damian Hinds' remarks on zero-hours contracts, noting that employees have a choice and can opt out after four weeks if they prefer.

Northern Ireland's hospitality sector supports 77,500 jobs and contributes £1.9 billion to the economy, with four out of five tourism-related jobs in this sector.

Highlights the economic contribution of tourism and hospitality to Wales and calls for support from both UK and Welsh Governments, including reviewing business rates to benefit local businesses over chains. Discussed the importance of fair funding for Cornwall and its visitor economy.

Hospitality businesses are vital for the economy, communities and social mobility. They provide opportunities for young people and those rebuilding their lives.

In Orkney and Shetland, the food and drink sector is integral to the local economy but is not part of the Government’s industrial strategy. The right hon Gentleman agrees that including these sectors would prevent regulatory overburden.

Questioned whether Scotland would benefit from business rate relief measures applicable to England and Wales.

Emphasises the importance of small hospitality businesses in South Northamptonshire, which employ around 3,000 people, and highlights upcoming events like the Silverstone grand prix.

The Government have cut funding for efforts to promote domestic tourism and imposed an extra £3.4 billion in annual costs through changes to employer NICs, national living wage increases, and reductions in business rates relief.

Hospitality and tourism is the largest employer in Cumbria with 60,000 people earning their living through it. National insurance rises have negatively impacted 73% of Cumbrian tourism businesses, and business rates changes have led to a doubling in real terms for some businesses.