Pub and Hospitality Sector

I beg to move,

That this House has considered support for pubs and the hospitality sector.

It is a pleasure to serve under your chairmanship, Ms Vaz. I apologise for my hoarse voice; I can assure hon. Members that it is not as a result of the overuse of pubs and similar venues in my constituency over the weekend.

Over recent months, I have had the privilege of visiting several hospitality venues in my constituency. I think particularly of the Curzon Arms in Woodhouse Eaves, which I reopened over the summer recess; the Forge Inn in Glenfield; the Stamford Arms in Groby; and the Coach and Horses in Markfield, which I have got to know over many years as the local councillor. I thank the many hon. Members who have turned up this morning; the debate is clearly of great interest.

The pub and hospitality sector has long been at the heart of the British economy. From the small countryside pub to big inner-city restaurants, the sector provides countless social and economic benefits for the United Kingdom. It is essential that we understand the challenges faced by the industry and do our utmost to support it to flourish.

The sector provides countless economic benefits to the UK as a whole. It contributes £140 billion in economic activity and provides £54 billion in tax receipts to the Exchequer. In fact, pubs and breweries contribute a whopping £18 billion in taxes to the UK economy.

Will the hon. Gentleman give way?

If the hon. Gentleman could give me a few moments, I will carry on. The success of UK plc is intrinsically linked to the success of the leisure and hospitality sector. The hospitality sector is a key employer throughout the UK, employing 3.5 million people, many with flexible working arrangements. It is vital for our younger people. As of this year, 51% of 16 to 24-year-olds are employed in the sector, and that plays a crucial role in developing their careers.

In my maiden speech, I stated that social mobility, particularly through apprenticeships, is key to creating a fairer and more just society. Many businesses in this sector offer apprenticeship schemes. Is it not great that someone can start as a trainee, a pot washer, and end up running an entire business? I think that should be applauded.

The sector also provides many social benefits. Hospitality businesses play a crucial role in encouraging socialising. In a country where many, particularly the elderly, often feel isolated and alone, community pubs often provide a place for people to come and feel part of broader society.

I have spoken with local independent brewers in Leicestershire, in particular Everards, and we should also recognise the significant charitable contributions of community pubs. In Leicestershire, 153 independently-run pubs raise more than £1.5 million locally for local charities, which is reinvested in local communities to make them even greater places to live and work. That is invariably why 72% of British adults believe that pubs have a positive impact on the communities that they serve. I take the opportunity to celebrate the positive impact that the hospitality sector has in my constituency. In Mid Leicestershire, our 41 pubs cumulatively support more than 2,000 jobs and contribute £19 million to the Treasury.

However, as we are all aware, the industry has faced many challenges over recent years. What makes the sector so successful is its incredible resilience. There have been many challenges: the covid-19 pandemic, the conflict in Ukraine and various geopolitical challenges have sent input costs spiralling high. The pandemic saw the hospitality industry suffer the biggest economic decline of all sectors. Economic output in the sector between 2019 and 2020 decreased by 42%, and we lost 10% of hospitality businesses during the pandemic. However, industry experts recognise the support that the last Conservative Government offered the industry through the eat out to help out scheme, a temporary cut to VAT and furloughing more than 2.1 million jobs, which limited the impact of the pandemic.

The hon. Gentleman talked about the war in Ukraine and the cost of living. Dean Banks, who runs the Haar restaurant in St Andrews, told me that energy costs are a challenge. One of the problems is that energy companies use direct debits to keep hold of companies’ money, so they cannot manage their cash flow. Does the hon. Gentleman agree that that is a real issue?