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Hospitality Sector
01 July 2025
Lead MP
Mike Wood
Kingswinford and South Staffordshire
Con
Responding Minister
Gareth Thomas
Tags
EconomyTaxationEmployment
Word Count: 13213
Other Contributors: 18
At a Glance
Mike Wood raised concerns about hospitality sector in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government should provide relief measures for the hospitality sector, addressing non-wage costs, regulatory burdens, and financial assistance to support businesses that are struggling due to recent policy changes.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The Government’s 2024 Budget has added £3.4 billion to the sector’s annual cost base, leading to job losses of over 100,000 in just one month. The hospitality sector employs 3.5 million people and contributes £140 billion in economic activity annually but faces significant challenges from increased employer national insurance contributions and cuts to business rate relief.
Andrew Griffith
Con
Arundel and South Downs
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.
Inverness, Skye and West Ross-shire
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.
Anna Gelderd
Lab
South East Cornwall
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.
Carla Lockhart
DUP
Upper Bann
Supports the reduction of VAT for the hospitality sector to level the playing field with the Republic of Ireland and help businesses thrive.
Damian Hinds
Con
East Hampshire
Acknowledged the concerns raised about the Employment Rights Bill's impact on seasonal businesses.
West Dorset
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.
Gregory Stafford
Con
South East Cornwall
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.
Jamie Stone
LD
Caithness, Sutherland and Easter Ross
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.
Jayne Kirkham
Lab/Co-op
Truro and Falmouth
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.
Jim Shannon
DUP
Strangford
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.
Llinos Medi
PC
Ynys Môn
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.
Mike Wood
Lab
Dudley South
Hospitality businesses are vital for the economy, communities and social mobility. They provide opportunities for young people and those rebuilding their lives.
Orkney and Shetland
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.
Inverness, Skye and West Ross-shire
Questioned whether Scotland would benefit from business rate relief measures applicable to England and Wales.
Sarah Bool
Con
South Northamptonshire
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.
Sarah Olney
LD
Richmond Park
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.
Tim Farron
LD
Westmorland and Lonsdale
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.
Government Response
Gareth Thomas
The Parliamentary Under-Secretary of State for Business and Trade
Government Response
Acknowledged the contributions made during the debate, recognised the economic and social significance of the hospitality sector, and highlighted initiatives such as the new visitor economy strategy to support businesses. Emphasised the role of hospitality in providing opportunities for young people and those seeking a second chance. Discussed measures to support the hospitality sector including business rate reforms, employment allowance increases, licensing taskforce recommendations, and growth guarantee scheme extensions. Announced plans for a long-term SME strategy focusing on economic growth and collaboration with the industry.
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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.