I beg to move,
That this House has considered Government support for the hospitality sector.
I draw Members’ attention to my entry in the Register of Members’ Financial Interests; I have also received hospitality from UKHospitality and from the British Beer and Pub Association that falls below the registrable threshold.
I am pleased to open this debate on a subject of national and local importance: the future of our hospitality sector. From pubs and restaurants to hotels and leisure centres, hospitality is more than just a convenience; it is the beating heart of our communities. It provides first jobs, second chances, career ladders and gathering places. It employs 3.5 million people and contributes £140 billion in economic activity and £54 billion in tax receipts to the Exchequer each year. Yet the sector faces an existential threat—not from a lack of demand, but from deliberate political choices made in last autumn’s Budget and the spring statement.
Those choices have hit hospitality harder than any other part of the economy. The Government’s 2024 Budget, far from being fair or progressive, has dealt a brutal blow to our high streets and local economies. The cumulative effect of increased employer national insurance contributions and cuts to business rate relief, alongside the increases in the national living wage, has added £3.4 billion to the sector’s annual cost base. Let us be clear: those numbers are not abstract. They represent shifts that businesses feel every single week and to which they are taking action in response.
Early Government figures show that 100,000 jobs were lost in just one month. That is not a warning sign —that is a siren. Part-time and entry-level workers have been the hardest hit; not highly paid City graduates, but bar staff, kitchen porters and hotel receptionists in every village, town and city across our country. The problem is even more damaging because it flies in the face of the Government’s own stated missions. The Government claim to want regional growth and better living standards across the UK, but the Budget has cancelled investment, reduced hours and led to closures in exactly the communities that need regeneration the most. The hospitality sector has outgrown the wider economy in recent years, yet it barely even features in the Government’s new industrial strategy. There are just three mentions of hospitality in the whole strategy, and one of those was because the Government had mis-spelled “hospitals”.
Hospitality is a proven route to social mobility and opportunity, accessible to everyone, not just a privileged few. Yet the Government’s actions directly contradict their levelling-up agenda. They talk about growth, but strangle the sectors that deliver it. They talk about fairness, but penalise the poorest workers. They talk about opportunity, but crush the businesses that provide it. They have forgotten that enterprise is not just about spreadsheets—it is about people, purpose and pride.
Even before the Budget, hospitality businesses were paying twice as much tax as financial services relative to their profits. That is an astonishing imbalance. Of course, hospitality was particularly hard hit by the pandemic and by lockdowns. Many hospitality businesses are still carrying the burden of covid debts, with repayments that have taken them from being thriving businesses to ones that barely break even.