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Seasonal Hospitality Businesses in Coastal Areas
03 June 2026
Lead MP
Joe Robertson
Responding Minister
Kate Dearden
Tags
EconomyTaxationCulture, Media & SportBusiness & Trade
Word Count: 9182
Other Contributors: 23
At a Glance
Joe Robertson raised concerns about seasonal hospitality businesses in coastal areas in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government should scrap plans for an overnight visitor levy, introduce a national insurance holiday for young people and those not in education or employment, permanently remove business rates for hospitality businesses, urgently publish the promised visitor economy growth strategy, and disapply the Emissions Trading Scheme tax on car ferry travel to the Isle of Wight.
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 industry provides a significant portion of jobs and economic activity in coastal communities, particularly on the Isle of Wight where it accounts for 38% of economic activity. Coastal areas face challenges such as cheap competition from holidays abroad, changing holiday preferences, high travel costs, aging demographics, fewer job opportunities, and lack of infrastructure investment. The sector has lost over 100,000 jobs since the 2024 Budget due to a £3.4 billion annual cost increase. Pub closures are on the rise, with businesses blaming government tax policies for their difficulties.
Expressed concern over a potential tourism tax impacting coastal areas negatively.
Alan Mak
Con
Havant
Called for a specific fund to support coastal areas like Hayling Island, which previously benefited from the coastal communities fund under the previous government.
Welcomed the Chancellor's announcement of VAT slashed from 20% to 5% on activities, children's meals, and attractions as part of the great British summer savings initiative.
Andrew George
Lib Dem
St Ives
Agreed with the hon. Member's point and expressed concern about the existential crisis facing hospitality businesses in west Cornwall and the Isles of Scilly due to VAT and business rates burdens.
Coastal hospitality businesses are crucial for South East Cornwall, accounting for around 16.7% of employment and facing challenges like workforce retention and seasonal income fluctuations.
Ben Lake
PC
Ceredigion
Invited the Minister to visit Ceredigion Preseli coastline and suggested considering a reduction in VAT rate for hospitality businesses to aid their survival and investment.
Described the challenges faced by hospitality businesses in his constituency, including high business rates and VAT, and called for long-term government support such as a 5% VAT cut.
Argued that hospitality should be considered a cornerstone profession in coastal communities and urged the government to boost employment rather than imposing additional burdens like national insurance contributions, high VAT, and visitor levies.
Chris Webb
Con
Blackpool North and FY
Chris Webb praised the efforts of local partners in Blackpool to build a year-round visitor economy. He called for government investment, including a world-class arena to attract large-scale events and boost hospitality businesses, creating jobs and increasing footfall during traditionally quieter periods.
Edward Morello
Lib Dem
West Dorset
He discussed the economic importance of tourism to West Dorset, generating £320 million annually. He raised concerns about business rates increases and their impact on local hospitality businesses, citing an example where a pub's rates bill increased from £8,000 to £27,000 in one year.
Inquired about the youth guarantee scheme's potential to match young people with jobs in hospitality businesses.
Jim Shannon
DUP
Strangford
Jim Shannon intervened to share Northern Ireland's hospitality challenges, noting that cost increases have forced 90% of businesses to operate below capacity and led to workforce reductions. He agreed with the need for government intervention to support the sector across all parts of the UK. Called for encouragement of home holidays within the UK to boost tourism in coastal areas.
Jonathan Brash
Ind
Hartlepool
He highlighted the challenges faced by family-run hospitality businesses in Hartlepool, such as the Marine Hotel, due to rising costs including £30,000 in additional expenses. He stressed that hospitality is a significant industry for Hartlepool, contributing over £95 million in turnover and supporting 3,400 jobs.
Asked the Minister to meet regarding a local economic growth plan developed with coastal community businesses.
Pauline Latham
Con
Stoke-on-Trent North
Acknowledged the points raised by Joe Robertson, emphasizing the need for both long-term support and immediate relief. Urged his colleague to encourage ministerial colleagues to improve conditions for young people.
Rachel Gilmour
Con
Exmoor
She highlighted the significant economic impact of tourism in Exmoor, noting that turnover for local businesses like Eduardo's pizzeria and café has dropped by 50% due to rising costs and fewer visitors. She mentioned an antique dealer facing a 70% decrease in business due to reduced tourist footfall and expressed concerns about the potential negative effects of an overnight visitor levy on seasonal hospitality businesses. Rachel also drew attention to the closure of the B3191 at Cleeve Hill, which is critical for two coastal towns, and called on the Government to use the Department for Transport structures fund to address this issue.
Rebecca Paul
Con
Hertford and Stevenage
Hospitality businesses in coastal areas are crucial to local economies but face significant challenges due to seasonal nature, employment regulations, national insurance rises, and business rate cuts. The Government's policies are hitting these businesses hard.
The prospect of a visitor levy or tourist tax is concerning for the hospitality industry in east Devon, which relies on summer revenues to sustain year-round operations.
Seamus Logan
SNP
Aberdeenshire North
He criticised the impact of national insurance hikes introduced by the Labour Government, which have led businesses in his constituency to cut hiring and reduce employee benefits. Seamus also highlighted that Scotland received less than 8% of the coastal growth fund despite representing over 50% of UK's coastal industry. He requested the Minister to undertake representations to the Home Secretary regarding a bespoke Scottish visa for Scottish businesses, and advocated for an immediate reduction in VAT until the cost-of-living crisis is resolved.
Steffan Aquarone
Con
Maldon
Steffan Aquarone highlighted challenges faced by coastal hospitality businesses, including high costs and staffing shortages. He called for better training opportunities and affordable public transport to support growth in the sector.
Torbay
Steve Darling highlighted the importance of enhancing rail transport for coastal communities, citing unfinished infrastructure projects and Lumo's plans to run additional trains. He expressed concerns about business rates, high energy costs, and the impact of national insurance hikes on seasonal employment. Additionally, he called for an investigation into commercial landowners' levies and VAT cuts for hospitality businesses.
Agreed that a visitor levy and VAT should be cut, arguing for a competitive 5% effective VAT rate compared to other countries like Ireland and Germany.
Tony Vaughan
Con
Cardiff North
Tony Vaughan intervened to discuss skills shortages in the hospitality sector and suggested that youth mobility schemes could help address these issues.
Government Response
Kate Dearden
Government Response
Conceded that hospitality businesses are crucial in coastal areas as they provide jobs, drive tourism, and support local economies. Acknowledged government initiatives such as lower business rates multipliers for eligible retail, hospitality and leisure properties, VAT cuts for family-focused businesses, funding to enhance high streets, and a visitor economy growth strategy worth £150 million over the next three years. Stressed the need for co-ordinated action from multiple departments to ensure the prosperity of British seaside communities.
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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.