Business of the House

I will put before the House the facts of a specific case relating to hospitality. In my constituency, the Bay Horse Inn is a great country pub that sits on the outskirts of Hereford. It supports local people and serves my constituents. From April, its business rates are scheduled to rise from £31,000 to over £51,000 a year—a 67% increase. The landlord Neil tells me that energy costs have also risen to £5,500 a month. Unlike households, there is no price cap for commercial energy. Indeed, pubs are charged risk premiums and are locked into prices of nearly 40p a unit, while domestic customers pay around 28p.

The pub already pays above the minimum wage. Neil estimates that the rise in the national living wage will add £18,000 a year to his costs. Meanwhile, monthly national insurance contributions have risen by nearly 170%, and that is made worse because the higher employer contributions now exhaust the employment allowance more quickly. That is a direct tax on employing people, especially young people, and it lands hardest on small, labour-intensive businesses such as pubs. Neil has a few guest rooms at the Bay Horse, so he does not even know if he will be helped by the latest rumoured U-turn on rates support.

That is the reality of the Government’s unwillingness or inability to join up policy in relation to a key set of sectors in the economy that affect hospitality. All those increases are the result of current ministerial decisions. Every Member of the House—including every Government Member—will have pubs and hospitality businesses in their constituency in the same situation.

The Bay Horse is not just a business: it has raised over £60,000 for the Hereford Lions club; it installed a defibrillator at the landlord’s expense; it provides a place for supervised, responsible drinking; and it supports schools, the hospice and local causes year after year, yet Government policy treats it as expendable. When will Ministers start talking to each other? When will they put away the rhetoric of helping and actually get on with assisting small businesses? Can we have a debate in the House that goes into not just the specific issue of hospitality, but the generality of all the different Government policies across different Departments that make life so difficult for these hard-working, struggling local businesses?

In terms of joined-up policy across Government, of course the Government are joining up our approach, especially on the economy. The House may have noticed this morning that performance statistics show that waiting lists are down by 312,000, and more people are being treated within 18 weeks. November saw the second biggest monthly drop in waiting lists in 15 years. The Government also announced this week that we will deliver Northern Powerhouse Rail, a multibillion pound investment that will create a turn-up-and-go railway across the northern growth corridor of Liverpool, Manchester, Bradford, Leeds, Sheffield and York. We have also launched the first ever town of culture competition, which will boost local pride and celebrate the unique stories of our towns, not just in urban areas but in rural areas. Today is national pothole day—although the Leader of the Opposition may think it is national dig-yourself-into-a-hole day—and the Government have provided a record £7.3 billion of funding for local roads, announced in the Budget, allowing councils to get on and fix our roads. That demonstrates that this Government are getting on with the job.