Oral Answers to Questions
(2 days, 20 hours ago)
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Calum Miller (Bicester and Woodstock) (LD)
The Parliamentary Under-Secretary of State for Justice (Alex Davies-Jones)
The Government are absolutely committed to tackling the scourge of domestic abuse and halving violence against women and girls in a decade. We are implementing a domestic abuse identifier at sentencing to ensure consistent recognition of domestic abuse offenders across the whole justice system. That will strengthen victim protection and offender management, delivering on a recommendation made by the independent sentencing review.
Calum Miller
I am sickened by the frequency with which I hear from victims and survivors of domestic abuse about the ways in which the criminal justice system has aggravated their trauma. One constituent recently told me that she was living in fear after her abuser was released early and the Probation Service failed to enforce probation conditions. Another has seen the charges against her ex-partner scheduled for criminal trial in two years’ time, and in the meantime he continues to exert control through the family courts. Will the Minister meet me to review what has gone wrong in those two cases and what lessons can be learned about how to use identifiers of aggravation to give victims and survivors more protection?
Alex Davies-Jones
I thank the hon. Gentleman for that question and for all his work to amplify the voices of victims and survivors. Like him, I am sickened by the treatment of the majority of women and girls who go through this in our criminal justice system. He will know that we inherited a criminal justice system in absolute crisis. That is why we conducted a once-in-a-generation review of our courts process—the Leveson review—which the Government will respond to shortly, and a once-in-a-generation sentencing review, to consider exactly the issues that he is talking about. I will happily meet him to discuss this further.
Ms Julie Minns (Carlisle) (Lab)
My constituent, who had been the victim of historical domestic abuse by both her partner and her children, recently raised with me the need for a clearer understanding and definition of child-to-parent abuse. At the time of her abuse, she did not know that what her children were doing could be classified as domestic abuse, and both the police and social services failed to understand that she was the victim, not her children. Will the Minister provide an update on the work to reach a legal definition of child-to-parent abuse.
Alex Davies-Jones
I thank my hon. Friend for raising that vital point. She will, like me, be horrified by the results of the Femicide Census report this week, which show a rise in mothers being killed by their sons. We must tackle that as a society. She will be pleased to know that what she is talking about will be in the upcoming violence against women and girls strategy.
Ian Sollom (St Neots and Mid Cambridgeshire) (LD)
The Minister for Women and Equalities (Bridget Phillipson)
Trans people deserve dignity and respect. The Government are upholding the legal protections that Labour’s Equality Act 2010 put in place, ensuring that trans people can live free from discrimination and harassment. Work is already under way to fulfil our manifesto commitments, including the delivery of a full trans-inclusive ban on conversion practices, the equalisation of all strands of hate crime, and a review of health services to ensure that trans people receive appropriate and high-quality care.
Ian Sollom
The Minister will be aware that many trans people with gender recognition certificates followed all the legal processes in good faith, often over many years, and made legally binding commitments to live in their required gender for life. Yet now that they find themselves legally bound to live in one gender, they are at the same time being denied access to services and facilities aligned with that gender. How does the Minister plan to resolve those contradictory legal obligations, and what will she do to provide immediate support to the trans community?
Bridget Phillipson
I recognise the importance of gender recognition certificates. Let me be absolutely clear to this House, as I have been on many occasions: no one, including trans people, should suffer indignity or a lack of respect. They must of course have access to safe provisions and appropriate services. However, the Supreme Court ruling was clear that biological sex is the means by which single-sex provision will be delivered.
Catherine Fookes (Monmouthshire) (Lab)
I am really pleased that the Government are committed to delivering a full trans-inclusive ban on conversion therapy. When will that legislation be introduced to bring that abusive practice to an end?
Bridget Phillipson
We are committed to bringing forward a draft Bill to ensure that we deliver on our manifesto commitment to a full trans-inclusive ban on conversion practices, which are abhorrent and have no place in our society.
Rebecca Paul (Reigate) (Con)
The European Court of Human Rights has confirmed that at least 19 public bodies, including organisations across the policing, education and health sectors, are misrepresenting the law on single-sex spaces. That is a breach of the Equality Act 2010, as confirmed by the recent Supreme Court ruling. Has the Minister been told which bodies they are, and how can women and girls have any confidence in them if they are knowingly and deliberately breaking the law?
Bridget Phillipson
The results of the previous Government’s call for input showed that, although the law was being followed in the majority of cases, a small number of examples were identified that seemed to have misinterpreted how the single-sex exemptions of the Equality Act operate. As the hon. Lady will appreciate, it is for the independent regulator, the Equality and Human Rights Commission, to follow up on these issues through the appropriate processes. It is doing so in more detail and will work with organisations to put that right.
Lisa Smart (Hazel Grove) (LD)
My constituent Charlie is from Offerton. He has a gender recognition certificate that states that he is male; he has a birth certificate that states that he is male; and he has a resplendent ginger beard. The interim EHRC guidance, however, states that he should use the ladies’ loo. That is clearly crackers, and Charlie tells me that he has had stick in the past when using the ladies.
It is in the interest of the whole of society for trans people to be able to leave the house and for there to be a loo that they can use in peace when they do so, while they contribute fully to our society. Does the Secretary of State agree that when the final guidance is published, which we expect soon, parliamentary scrutiny would be a good thing to ensure that the guidance is as good as it can possibly be, so that trans people can live their lives to the full with the clarity and security that they need?
Bridget Phillipson
I agree that trans people and women deserve appropriate access to safe spaces and the right level of accommodation and that we must ensure that provision is there, so that no one feels that their safety is at risk. To be clear to the House, the Government did not receive advance sight or notice of the interim update from the EHRC. The EHRC has now consulted on its proposed changes to the draft updated code following the ruling. I have yet to receive that code from the EHRC. Once that happens, we will ensure that, as a Government, we consider it fully, as the House would expect.
Mr Will Forster (Woking) (LD)
The Parliamentary Under-Secretary of State for the Home Department (Jess Phillips)
We are committed to halving violence against women and girls within the next decade. We are working tirelessly to deliver that ambitious plan to tackle these heinous acts through our violence against women and girls strategy. Ministers across Government meet regularly to drive progress through the violence against women and girls ministerial group.
Mr Forster
The murder of 10-year-old Sara Sharif in my constituency was a harrowing example of violence against women and girls in the home. Social services play a vital role in protecting vulnerable girls, yet we often hear that they are overwhelmed and under-resourced. Will the Minister please confirm what steps this Government are taking to ensure that local authority social services are able to protect vulnerable children and stop tragedies such as Sara’s ever happening again?
Jess Phillips
I am sure that the whole House has sympathy for the case that the hon. Gentleman has outlined. I understand that the inquest is ongoing, but to answer the substantive point of his question, children’s and adult social care have historically not always been what victims felt they could rely on, with many cases to demonstrate that over the years. Without doubt—as I sit next to the Secretary of State for Education—the work with my office, with the Ministry of Justice and with her office to ensure that that is handled in the violence against women and girls strategy, and more broadly, is at the top of the agenda for all of us.
Ms Polly Billington (East Thanet) (Lab)
Will my hon. Friend use this opportunity to remind the House how many women and girls are vulnerable to people they know, as distinct from people they do not know? Will she also use this opportunity to condemn elected politicians who peddle misinformation about who is most at risk and where the targets really are?
Jess Phillips
I do not have in front of me the exact data that my hon. Friend has requested—I am not entirely sure that exact data exists—but what I can say, based on decades of experience, is that women and girls in our country are far more at risk from people who know our names, and whose names we know, and who we work among and live alongside. The idea of “stranger danger” is one that most women do not recognise; the people they fear are people they know.
Sir Julian Smith (Skipton and Ripon) (Con)
The Parole Board is extremely concerned about the impact on domestic abuse victims of the Sentencing Bill that is now before the House. I urge her to keep in close discussion with members of the Parole Board and with the Justice Secretary as the Bill progresses.
Jess Phillips
I absolutely make that commitment here today. Throughout the progress of any such sentencing changes, the Home Office, the Minister with responsibility for victims and I have been heavily involved, and we will continue to be ensure that, despite the difficult situation that we were left, every possible safeguard is in place.
Joani Reid (East Kilbride and Strathaven) (Lab)
The Minister will know that the rise of platforms such as OnlyFans has led to the mainstream commercialisation of women’s bodies. Does she agree that if we are to tackle violence against women and girls, we must look at pornography prostitution? Will she commit to working with colleagues in the Department for Science, Innovation and Technology to ensure that that is included in the violence against women and girls strategy?
Jess Phillips
My hon. Friend is absolutely right; a strategy on violence against women and girls that did not include the online elements that she highlights, as well as others, would not be worth its salt. I commit to continue to work with DSIT colleagues on those issues.
Mohammad Yasin (Bedford) (Lab)
The Minister for Care (Stephen Kinnock)
It is unacceptable that women are experiencing poor maternity care. An investigation has been launched to understand the underlying systemic issues and develop national recommendations so that women receive the care that they deserve. We are also taking immediate action to improve accountability and better identify safety concerns. That includes rolling out a programme to tackle discrimination and racism.
Mohammad Yasin
Sadly, Bedford hospital’s maternity services were downgraded to “inadequate” last year, and its gold standard home birth service has recently been reduced. Will the Minister ensure that the review examines why choices for birthing services are still being cut? Will he guarantee improved outcomes in maternity and perinatal care, so that all women can access safe, personalised, high-quality care?
Stephen Kinnock
My hon. Friend is a strong campaigner on this issue for his constituents. The Care Quality Commission has committed to monitoring maternity services at Bedford hospitals closely, including through further inspections, to ensure that people receive safe care while improvements are implemented. The investigation will seek to understand the systemic issues behind why so many women, babies and families experience unacceptable care. The chair is working with families to finalise the terms of reference for the investigations and those will be published shortly.
Alison Bennett (Mid Sussex) (LD)
Does the Minister agree that listening to the voices of bereaved families who have lost their babies is of essential importance? If he does, will he listen to the calls of Sussex families to appoint Donna Ockenden to lead their review?
Stephen Kinnock
I agree that it is vital to listen to those voices; it will not be possible to get to the bottom of why care is not of an acceptable standard without hearing those voices. I have heard what the hon. Lady has said about Donna Ockenden and I will certainly take that away to discuss with ministerial colleagues.
Sarah Owen (Luton North) (Lab)
Trauma during childbirth can have lifelong and debilitating impacts. Failing maternity services are felt by all, but especially by families from low-income and ethnic minority backgrounds. In my constituency, where too many already experience health inequalities, Luton and Dunstable hospital’s maternity unit has recently been downgraded to “inadequate” by the Care Quality Commission. Does the Minister agree with me that mothers and babies deserve better? What cross-departmental work is taking place to ensure that NHS trusts across the country improve maternity care?
Stephen Kinnock
My hon. Friend is campaigning strongly for her constituents on this issue. We are establishing the maternity and neonatal national taskforce, which will develop a national plan to drive improvements across maternity and neonatal care. It will be chaired by my right hon. Friend the Secretary of State for Health and Social Care and made up of a panel of experts, and family, charity and staff representatives. I was pleased to learn that my hon. Friend met Baroness Merron in June to discuss maternity care in Luton North.
Tessa Munt (Wells and Mendip Hills) (LD)
Post maternity, many women suffer female pelvic prolapse, but I am unable to get any answers on the matter of surgical mesh implants. Will the Minister please work with his counterparts at the Department of Health and Social Care to get a realistic update on exactly what has happened as a result of the Hughes report, and give me the information about meetings between the Department and the Patient Safety Commissioner about progress on those recommendations?
Stephen Kinnock
I will absolutely raise the issue with colleagues in the Department and we will write to the hon. Lady urgently with the answers she is looking for.
Mims Davies (East Grinstead and Uckfield) (Con)
Once again, this Labour Government have failed women and girls through their inaction and blinkered mindset on safety in their communities and their slow action on the 2024 birth trauma inquiry report by Theo Clarke and the hon. Member for Canterbury (Rosie Duffield). That report recommended a national maternity strategy, which we committed to. Over a year on, a so-called rapid inquiry announced in June only has a chair with no experience in maternity services and an expectation to fix this national scandal by the end of the year. That is asking too much of one woman to support many women across the country. How will the Minister address ongoing and widespread concerns, which we have heard again in the Chamber, react to the existing evidence and stop the belief that many women are being failed by this Labour Government?
Stephen Kinnock
I really do find it a bit rich that the Conservatives stand there and try to lecture us after the 14 years of neglect and incompetence that were the trademark of their time in government. Baroness Amos is chairing the independent maternity and neonatal investigation, which will be a rapid investigation with two core roles: to conduct urgent reviews by the end of this year of up to 10 trusts where there are specific issues; and to conduct a systemic investigation into maternity and neonatal care in England, to create one set of national actions to drive the improvements needed to ensure high-quality care and ensure that women are listened to. That is responsible government; that is trying to fix the mess that the Conservatives made after 14 years. The Conservatives would do well to actually support us in that.
Jim Shannon (Strangford) (DUP)
The Minister for Social Security and Disability (Sir Stephen Timms)
We want young people with disabilities and health impairments to secure good employment as soon as possible and to fulfil their aspirations. The “Pathways to Work” Green Paper proposed a youth phase in health and disability benefits, and we are currently reviewing the consultation responses.
Jim Shannon
Research by the national disability charity Sense found that more than half of disabled benefit claimants with complex needs between the ages of 18 and 34 say that there are few jobs that meet their needs as disabled people. What steps can the Minister take to ensure that more employment opportunities are available to young disabled people with complex needs?
Sir Stephen Timms
The hon. Gentleman raises a very important point. There are excellent examples of job carving for people with complex needs, and we need more of that. We look forward to the report being submitted soon by Sir Charlie Mayfield on what more employers can do to open up opportunities for people out of work on disability grounds, and I think he will have some very interesting proposals.
Deirdre Costigan (Ealing Southall) (Lab)
The last Conservative Government left so many young disabled people in Ealing Southall who wanted to work consigned to a lifetime on benefits, but at West Ealing jobcentre we are already seeing a difference being made, with £1.3 billion of funding for employment support from this Labour Government. Does the Minister agree that the Mayfield review offers a once-in-a-lifetime chance to transform the workplace to make it more accessible for disabled people?
Sir Stephen Timms
I agree with my hon. Friend; she is absolutely right. Disengaging from work and learning in early adulthood can do lasting harm to career prospects and wellbeing. We are launching the youth guarantee so that all 18 to 21-year-olds in England, including disabled young people, can access quality training opportunities and apprenticeships or help to find work. I am glad to hear that things are developing so well in her constituency.
Samantha Niblett (South Derbyshire) (Lab)
The Minister for Women and Equalities (Bridget Phillipson)
This Government are focused on breaking down barriers to opportunity for everyone. We are backing working families, saving them £7,500 through rolling out 30 hours of Government-funded childcare and rolling out free breakfast clubs in our schools. Building on the proud legacy of Sure Start, we will deliver 100 Best Start family hubs to give every child the best start in life. We are opening 10 new construction technical excellence colleges, backing our young people to learn a trade and to get on. Our plan for change will deliver for everyone.
Samantha Niblett
I am sure that the Minister will have seen research last week, which parents in my constituency will be really disappointed in, saying that mums earn £302 less per week than dads. For too long, the Tories were happy for those costs to fall on women. What steps is she taking to ensure that this Labour Government tackle the motherhood penalty?
Bridget Phillipson
I agree with my hon. Friend that that is totally unacceptable. This Labour Government will deliver for women, unlike the Conservative party—whose leader said that maternity pay was “excessive”—or the Reform leader, the hon. Member for Clacton (Nigel Farage), who claimed it was a “fact of life” that women coming back from maternity leave would earn less. We know the difference that high-quality early years education makes, which is why I am delighted that, from this week, working families will be able to access 30 hours of Government-funded childcare.
Mims Davies (East Grinstead and Uckfield) (Con)
Writer and comedian Graham Linehan was apparently arrested by five police officers at Heathrow, then questioned about three tweets that he says were based on his gender-critical views, a belief protected by the Equality Act 2010. Despite this Government’s claim to protect free speech, Mr Linehan has been banned from using that platform as part of his bail conditions. Can the Minister confirm whether it is now a crime in Britain to tell potentially offensive jokes, and whether those who do so may face armed arrest?
Bridget Phillipson
The hon. Lady will know well that I cannot comment on live police investigations, as the police operate independently of Government, but the Home Secretary has been clear that her priority and the priority of this Government is that the police focus on tackling antisocial behaviour and making sure that people can walk our streets free from fear.
Yuan Yang (Earley and Woodley) (Lab)
Bridget Phillipson
I am grateful to my hon. Friend for raising that work in her community. The Government have commissioned NHS England to undertake a LGBT health evidence review, which is being led by Dr Michael Brady, the national adviser on LGBT health. It will diagnose the problems we need to solve, making sure we have evidence-led recommendations in order to improve access to healthcare for adults.
Ian Sollom (St Neots and Mid Cambridgeshire) (LD)
Bridget Phillipson
If the hon. Gentleman will provide me with some more details of his constituent’s case, I would be happy to make sure it is looked into by Ministers and that he receives a full response.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Bridget Phillipson
We recognise the value of parents continuing in education, which is why there are often available mechanisms such as the childcare grant and the parents’ learning allowance. As I do not know the full circumstances of her constituent’s case, I would be grateful if my hon. Friend would write to me, so I can make sure that we give her constituent full advice on the childcare support that might be available to her.
Sir Desmond Swayne (New Forest West) (Con)
Kirith Entwistle (Bolton North East) (Lab)
Bridget Phillipson
My hon. Friend raises an important area. We know that preparing for and adopting a child is an important time in the life of families, which is why we have committed to reviewing the parental leave system to ensure it best supports working families, including those who adopt. I would be happy to discuss that further with my hon. Friend, or make sure a Minister discusses it further with her.
Kirsty Blackman (Aberdeen North) (SNP)
Have the Government done an equality assessment on how cancelling family reunion differentially impacts those from ethnic minority backgrounds?
Bridget Phillipson
The Home Secretary has set out our approach and the action we will be taking in this area, and I will make sure that the hon. Lady receives a response from the Home Office on the matter that she raises.
Kim Johnson (Liverpool Riverside) (Lab)
Bridget Phillipson
We are determined to ensure that we have high-quality housing available, including social housing for rent, and that people have the opportunity to buy their own home. There is no place for racism in our housing system. If my hon. Friend will share with me the details of the report that she mentions, I will look into that further on her behalf.
Dawn Butler (Brent East) (Lab)
The Prime Minister (Keir Starmer)
On Sunday, we won the contract for the biggest defence deal that Norway has ever placed. That is a £10 billion investment, securing 15 years of shipbuilding in Scotland and across the rest of the United Kingdom. One day later on Monday, we launched 30 hours of free childcare for working families. Not only does that save working parents £7,500 a year, but it will transform the life chances of our children, because every child will start reception with an equal opportunity to achieve their potential. That is a Labour Government in action, delivering for working people.
This morning, I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.
Dawn Butler
Economically deprived high streets and poorer high streets are flooded with gambling shops. The “aim to permit” legislation prevents councils from saying no. My summer campaign on gambling reform has received loads of support, including from Gordon Brown, who says that if we tax the gambling industry, we will get £3 billion for our economy. Will the Prime Minister join campaigners and help me to end “aim to permit”, so that constituents such as his and mine can thrive?
The Prime Minister
I thank my hon. Friend for her question. It is important that local authorities are given additional tools and powers to ensure vibrant high streets. We are looking at introducing cumulative impact assessments, like those already in place for alcohol licensing, and we will give councils stronger powers over the location and numbers of gambling outlets to help create safe, thriving high streets.
Mrs Kemi Badenoch (North West Essex) (Con)
I know the whole House will want to send our condolences to the family of our former colleague, David Warburton.
I also welcome the fact that the Deputy Prime Minister has referred herself to the ethics adviser. She has admitted that she underpaid tax, so why is she still in office? There is not just a crisis at the very top of the Prime Minister’s Cabinet; there is a crisis brewing for the whole country. When was the last time that the cost of Government borrowing was so high?
The Prime Minister
I join the Leader of the Opposition in her comments about Mr Warburton. I think the whole House would unite on such an issue.
In relation to the Deputy Prime Minister, she has explained her personal circumstances in detail. She has gone over and above in setting out the details, including yesterday afternoon asking a court to lift a confidentiality order in relation to her own son. I know from speaking at length to the Deputy Prime Minister just how difficult that decision was for her and her family, but she did it to ensure that all information is in the public domain. She has now referred herself to the independent adviser. That is the right thing to do, but I can be clear that I am very proud to sit alongside a Deputy Prime Minister who is building 1.5 million homes, who is bringing forward the biggest upgrade to workers’ rights in a generation, and who has come from a working-class background to be Deputy Prime Minister of this country.
On the question of borrowing costs, they have risen across the world, as the Leader of the Opposition well knows. We are driving them down by getting debt down. That is hardwired into our fiscal rules; those fiscal rules are non-negotiable. I am not going to take lectures on the economy from the Conservatives, who crashed the economy. Mortgages went through the roof and there was a record fall in living standards.
Mrs Badenoch
I am not sure we would have heard all that sympathy if it had been a Conservative Deputy Prime Minister who was being attacked. I remember when the Prime Minister said that tax evasion was a criminal offence and
“should be treated as all other fraud”.
If he had a backbone, he would sack her.
But let us get back to the issue of borrowing. The Prime Minister did not answer the question about why it is so high. The Conservatives left him the fastest-growing economy in the G7. Under him, the cost of our borrowing is now higher than it is in Greece. Why does the Prime Minister think that is?
The Prime Minister
If it had been the Conservatives, there would not have been the accountability, which is now in place, because they spent years and years avoiding it. The right hon. Lady’s claims about the economy on their watch are about as credible as her place at Stanford University. [Interruption.] She leaves out of her account, because she wants to talk down the country, that we have the highest growth in the G7. I look forward to her getting up and welcoming that. We have had five interest rate cuts in a row, and, of course, £120 billion of investment in the first year of a Labour Government. That is a record.
Mrs Badenoch
It is a terrible record. I stand by every single thing that I have said. The Prime Minister cannot say why borrowing is higher under him. I will tell him why it is higher: it is because the Chancellor changed the fiscal rules so that she could borrow record amounts. She maxed out the country’s credit card, and that has pushed up borrowing costs. These are their bad choices. Former members of the Monetary Policy Committee are warning that
“we are heading for an economic crash”.
Why does the Prime Minister think that he is right and they are wrong?
The Prime Minister
The right hon. Lady cannot resist it—she comes straight back to talk the country down at every opportunity. She does not welcome the highest growth in the G7. She could have got up and welcomed that, but no. What about the 380,000 jobs that we have created? She could welcome that, but no. What about the three trade deals that we have? Not only does she not welcome them; she opposes them. And, of course, she has not welcomed the Norway deal—the biggest deal for shipbuilding in a very, very long time. She should stop talking down the country and get behind the renewal that this Government are delivering.
Mrs Badenoch
The Prime Minister is dragging down the country. He is dragging it down. How can he stand there and say that he is creating jobs? Unemployment has gone up in every single month under this Labour Government. He does not know why borrowing costs are going up. Another reason is that the markets can see that he is too weak to control spending. Now we are reading that he wants to have another go at welfare costing. What makes him think that Labour Members will vote for it this time?
The Prime Minister
I think I saw that the Leader of the Opposition said this to The Sunday Times at the weekend:
“I have inherited a gigantic mess and I’m cleaning it up.”
She said:
“It’s very difficult…it’s going to take a while.”
I know exactly how she feels.
Mrs Badenoch
We are not the ones referring ourselves to ethics advisers. The fact is that he is floundering. He—[Interruption.] Perhaps he should have a read—[Interruption.]
Mr Speaker
Order. We do not want to start the session with someone leaving, do we? If someone wants to volunteer, please do so. If not, I will choose one.
Mrs Badenoch
Labour Members can do the fake cheers as much as they like. The whole country knows what a mess of the economy they are making.
It is clear that taxes are going up for everyone—except, perhaps, the Deputy Prime Minister. I warned before the summer that we would face weeks of speculation about which taxes would be going up. The former head of the Institute for Fiscal Studies has said:
“This sort of…uncertainty is actively damaging to the economy.”
And now we find that we have to wait until 26 November for a Budget. Does the Prime Minister really think that the country, or the markets, can wait that long?
The Prime Minister
The right hon. Lady said that the Opposition were not referring themselves to the ethics advisers. That is among the reasons they got booted out of office last year. She complains that we are going through the due process for a Budget and going through the necessary steps. We tried a Budget on their watch without going through those steps. What happened? They blew up the economy. We will take no lessons from them.
Mrs Badenoch
This is desperate stuff from the Prime Minister. This week, he had another reset. This morning, the Prime Minister scrapped his five missions. After scrapping his three foundations, his six first steps for change and his seven pillars for growth, the truth is that this man has got no clue—zero clue. But this is serious. The Prime Minister’s incompetence is hurting real people. They are losing their jobs and the cost of everything is going up, from energy bills to the weekly shop. This is a crisis made in Downing Street. Is it not the truth that he is too weak to change course, and too arrogant to admit he got things wrong?
The Prime Minister
I do not know what social media sites the right hon. Lady has been on this morning, but I think the chair of the Tory party said that this Government are the “firefighters”. Well, in a sense we are, because we are putting out the fires that the Conservatives created. They were the arsonists—the biggest fall in living standards on record, blowing up the finances. We have spent the first year putting out their fires—quite right too—but now we are delivering on the cost of living: funded childcare worth £7,500 for working families, free breakfast clubs and opening new school-based nurseries. That is what we are fighting for: the best start for every child in this country.
Paulette Hamilton (Birmingham Erdington) (Lab)
The Prime Minister
May I recognise and congratulate the businesses in my hon. Friend’s constituency? We have published our small business plan, which was very well received. It includes new rules; cracking down on late payments, which has long been asked for; a £3 billion boost to more business loans; and fairer business rate systems to support small businesses. That is why it was so warmly received.
Ed Davey (Kingston and Surbiton) (LD)
On behalf of my hon. Friends on these Benches, may I join the Leader of the Opposition in sending our condolences to the family of David Warburton?
I am sure the whole House will join me in paying tribute to Annette Brooke, who served in this House for 14 years and sadly passed away last month. Annette dedicated her life to public service and serving the people of Dorset, and she is greatly missed.
We have all seen the horrifying images from Gaza: the babies so thin from starvation that you can see their skeletons; the bodies of children killed while queuing for water; the emaciated hostages still held captive by Hamas. The Prime Minister has rightly said he wants to stop all that, so when the one man in the world who has the power to stop that comes to our country on a state visit, will the Prime Minister look President Trump in the eye and urge him to use his influence on Netanyahu and Qatar to make it stop?
The Prime Minister
May I join the right hon. Gentleman in his comments about Annette Brooke, and also in his description of the horrifying situation in Gaza? It is horrifying. We are looking at a man-made famine, on top of everything else. That is why we are expending so much of our time, with partners, on seeking to bring about a ceasefire, to get humanitarian aid in at pace, to get the hostages out and, of course, to put forward a peace plan that can actually take us to a two-stage solution. Of course I will talk to all international leaders about that. I gently say to him that if he had not refused the invite to the state banquet, he could have been there two weeks on Tuesday speaking to President Trump himself. I am surprised; it is not an act of leadership to pass up that opportunity.
Ed Davey
I have to disagree with the Prime Minister on that—we are now debating this issue.
Here is an issue on which I hope the Prime Minister will agree with me. The European convention on human rights is a British creation that protects all our basic rights and freedoms: the rights of children, disabled people, survivors of domestic abuse, victims of horrific crimes—everyone. It protects care home residents from abuse and families from being spied on by councils, but the leader of the Conservative party and the leader of Reform want to join Russia and Vladimir Putin by withdrawing from the convention. The Liberal Democrats disagree, and so do the majority of the British people. Will the Prime Minister categorially rule out withdrawing from the ECHR, suspending it or watering down our rights in any way?
The Prime Minister
We will not withdraw from the European convention on human rights. We do need to make sure that both the convention and other instruments are fit for the circumstances we face at the moment, and therefore of course we have been, as we have made clear, looking at the interpretation of some of those provisions. It would be a profound mistake to pull out of these instruments, because the first thing that would follow is that every other country in the world that adheres to these instruments would pull out of all their agreements with this country. That would be catastrophic for actually dealing with the problem.
Irene Campbell (North Ayrshire and Arran) (Lab)
The Prime Minister
I thank my hon. Friend for her question. I was very pleased to get the call from the Prime Minister of Norway on Saturday night, telling us that the UK had won this contract, beating off competition from the US, France and Germany because of the quality of shipbuilding in this country. This is a £10-billion deal—15 years-worth of shipbuilding, particularly in places like the Clyde, and thousands of skilled jobs in Scotland. It shows the importance of the defence industrial strategy, and the importance of Britain being taken seriously again on the international stage. It comes on top of the record investment in defence that we have already announced earlier this year.
Robin Swann (South Antrim) (UUP)
I am joined today in the Gallery by the leadership of the Young Farmers’ Clubs of Ulster, an organisation and young people who are passionate about youth work, our rural countryside and the future of farming and agriculture. Agriculture policy is devolved, but the Prime Minister’s agricultural inheritance tax is the thing that has them and young farmers across all the country despairing not just for their future, but the future of food security. When will the Prime Minister change course on the farm family inheritance tax, now that he is taking control of tax policy?
The Prime Minister
First, I welcome the Young Farmers’ Clubs of Ulster to Parliament. I take this opportunity to say to the hon. Member and to them that we have invested more than £2.7 billion in farming and nature recovery—that has been welcomed—and of course we are developing a 25-year farming road map to make the sector more profitable. Again, that has been warmly welcomed. Their future will depend on that road map, and we will work with them.
Bell Ribeiro-Addy (Clapham and Brixton Hill) (Lab)
The Prime Minister
My hon. Friend raises a really important issue in relation to the horrifying situation in Gaza. The Israeli Government are preventing urgently needed aid from getting in, which is why we are now seeing a man-made famine, and that should cause us all to pause and reflect. We are working with other countries to get aid in by any practical means, but land routes are the only viable and sustainable means of getting aid into Gaza on the scale that is required. Israel must lift the restrictions to allow aid agencies to deliver the life-saving supplies that are so desperately needed.
Pete Wishart (Perth and Kinross-shire) (SNP)
The Prime Minister
The hon. Gentleman overlooks the fact that at the last Budget there was a record settlement for Scotland—£50 billion a year. He talks about support. We have just won the Norway frigates contract. That is 15 years of shipbuilding in Scotland. The SNP First Minister has said what about that since Sunday? Absolutely nothing. I know we have another SNP question in just a moment. Perhaps that will be the opportunity to welcome the deal that we have won, and the jobs now for Scotland.
Lola McEvoy (Darlington) (Lab)
The Prime Minister
Of course, the hon. Member for Clacton (Nigel Farage) is not here to represent his constituency in the House that he was elected to. No, he has flown to America to badmouth and talk down our country. It is worse than that, Mr Speaker: if you can believe it, he has gone there to lobby the Americans to impose sanctions on this country that will harm working people. You cannot get more unpatriotic than that. It is a disgrace. The Online Safety Act 2023 protects children from material on suicide, self-harm and online predators. Reform says it would scrap it. When its leader was asked, “Well, what would you replace it with?”, his answer was:
“There needs to be a tech answer. I don’t know what that is”.
You cannot run a country on “don’t know” answers.
Dr Kieran Mullan (Bexhill and Battle) (Con)
The Prime Minister
I hope the hon. Gentleman paced out the visits to all those pubs, and did not do them all in one go. UKHospitality has welcomed our small business plan, which obviously applies to pubs. [Interruption.] Yes, it has. The reason is that it permanently lowers the business rates that they pay, and it tackles late payments—something for which it has been asking for a very, very long time. The Conservatives talked about fixing that, but they never delivered. We are delivering.
Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)
The Prime Minister
I think the whole House is sorry to hear about the awful fires that my hon. Friend’s constituents have faced, including the destruction of St Mungo’s. I know just how important that church was to the local community. The Scottish Government have received the largest settlement in the history of devolution—£50 billion a year. That should be focused on the issues that matter to her constituency. I will take this up, and make sure that we raise it with the Scottish Government.
Stephen Gethins (Arbroath and Broughty Ferry) (SNP)
The Prime Minister
There is nothing progressive about people crossing the channel in small boats—nothing at all. We need to ensure that that stops.
I agree with the hon. Gentleman on the question of the Dublin agreement. We had a returns agreement with the whole of Europe, but it was ripped up when we left the EU by people who made promises that that would not be the case. We are rebuilding that relationship—we have reset it—and we now have a returns agreement with France. We would not need a single returns scheme with France if we had not ripped up the Dublin agreement.
Richard Burgon (Leeds East) (Lab)
The Prime Minister
We do stand at an important moment: we can have the politics of renewal under this Government, or the politics of grievance under Reform. Reform does not want to fix the problems; it wants the grievance to continue. The last thing it wants is improvement in the lives of working people in this country, because it feeds off the problems and grievances being there. That is the difference.
Sir Julian Lewis (New Forest East) (Con)
The Prime Minister
I have the misfortune to disagree with him.
Jess Asato (Lowestoft) (Lab)
New mums and dads in my constituency tell me that one of the things they worry about most is whether they can afford the childcare that they need to be able to go back to work. That is why it is great that parents will be able to save up to £7,500 a year on nursery fees, thanks to this Labour Government. Does the Prime Minister agree that not only is investing in childcare important for tackling the cost of living crisis, but it will help to remove barriers to deciding to have children in the first place?
The Prime Minister
I thank my hon. Friend for raising this matter. I was very proud to make our announcement about childcare on Monday. As she says, rightly, it will save families on average £7,500 in a cost of living crisis, but crucially, it also applies from nine months to four years. Under the previous Government, there was a disparity at age four between children arriving at reception, with some barely out of nappies, and others quite articulate. That locks in inequality for life. I am really pleased that the measure that we announced on Monday unlocks that, ensuring that every single child aged four gets to the starting line in reception with a fair chance of going as far as their talents will take them.
Ellie Chowns (North Herefordshire) (Green)
The Prime Minister
I did notice that the Leader of the Opposition went to Scotland, I think, this week to announce that if she ever became Prime Minister, which is extremely unlikely, she would pull down £50 billion of investment in renewables in Scotland. This is good, secure jobs of the future—absolutely reckless behaviour. The Opposition have not learned anything.
The Greens have a new leader—unfortunately for the hon. Lady—and we can now see what they really stand for: withdrawal from NATO at a moment like this; totally unfunded spending that would blow up the economy; and blocking all planning proposals. They also have a leader who has made—to say the least—some very strange comments about women. There is only one party delivering fairness and tackling the climate crisis and that is the Labour party.
Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)
Prime Minister, in September 2021, you met ex-Arsenal player Michael Thomas in Portcullis House alongside other former footballers of the V11, when I hosted them in Parliament. Last night, the BBC broadcast the V11 documentary, exposing the fraud perpetrated against them and the financial abuse that they have suffered within the footballing system. They have all suffered terrible financial loss, but His Majesty’s Revenue and Customs is still chasing them for taxes from funds that were defrauded from them. Prime Minister, will you join me in meeting Michael Thomas and other players to see how we can protect victims of fraud and, instead, go after the perpetrators of fraud?
The Prime Minister
I will, and I have met Michael Thomas a number of times. Of course, he has a special place in my heart, having scored that winning goal at Anfield when we won the league—although the less said about winning at Anfield at the moment probably the better. The serious point is that these are sporting heroes who have brought us so much joy, and they should have proper support from their sporting bodies on both health and welfare. Michael Thomas and others are running an important campaign to bring this to our attention. We do need a trusted system that takes the wellbeing of our sports people seriously, particularly those in vulnerable positions. I know that the Minister for Sport is in contact with the campaigners.
Olly Glover (Didcot and Wantage) (LD)
The Prime Minister
I thank the hon. Member for raising this important issue, and reassure him that we do want to keep the huge expertise and knowledge of the UK Space Agency staff, including those working in his constituency. We have already secured almost £300 million in contracts from the European Space Agency and this will cut costs, reducing duplication, so we can really focus on growing this important sector.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
Since the start of the full-scale invasion into Ukraine, Russia has stolen, abducted and indoctrinated at least 19,546 children. It is one of the most heinous crimes of this war. I warmly welcome this morning’s announcement of an additional package of sanctions on those perpetrating these crimes, and will the Prime Minister assure the House that he will do everything possible to return these children to their homes?
The Prime Minister
I acknowledge my hon. Friend’s campaigning on this really important issue. Russia’s policy of forced deportations and indoctrination of Ukrainian children is despicable, and anybody who has heard the stories or seen the pictures cannot be other than profoundly moved. We have taken firm action. This was one issue that we discussed two weeks ago in Washington when I went over with other leaders to ensure that we are all imposing maximum pressure. Among the very many horrors of the Ukraine conflict, this is right up there as one of the absolute worst.
Jack Rankin (Windsor) (Con)
The Prime Minister
I thank the hon. Member for raising this point. He will have seen that the commissioner put out a statement this morning in relation to this case. I have been clear throughout that we must ensure that the police focus on the most serious issues and the issues that matter the most to our constituencies and all communities. That includes tackling issues such as antisocial behaviour, knife crime and violence. We have a long history of free speech in this country. I am very proud of that, and I will always defend it.
Dr Zubir Ahmed (Glasgow South West) (Lab)
In a week when the Prime Minister has worked tirelessly to place Clydeside, Glasgow and Govan at the epicentre of Type 26 shipbuilding, is he as perplexed as I am at the radio silence from the SNP and the contempt that the SNP continues to show for the defence sector? Does he agree that it is a contempt for jobs and growth and an 18-year-long contempt for Scotland?
The Prime Minister
I am perplexed that the First Minister has not welcomed the deal. It is a massive deal for Scotland—it is 15 years of shipbuilding. I would have expected the First Minister to hold a press conference to celebrate what we have done with this deal. Those 15 years of shipbuilding are extremely important to the Clyde and many industries, and they are a reflection of the professionalism and dedication that workers in Scotland have shown over many years. I urge the First Minister to come forward and welcome this deal.
Sir John Hayes (South Holland and The Deepings) (Con)
The Prime Minister
I share the right hon. Gentleman’s pride in our country’s flag. It represents our history, our heritage and our values. That is why we display it. I was the Labour leader who put the Union Jack on the membership card for the Labour party, and I was very proud to do so. It belongs to all of us. We should be proud of it and value it.
Point of Order
John McDonnell (Hayes and Harlington) (Ind)
On a point of order, Mr Speaker. I am chair of the Public and Commercial Services trade union group in Parliament. As Members will know, PCS members from the House’s security division are taking strike action today. These are professional, dedicated and committed staff, and it takes a lot to motivate them to take strike action: their sense of grievance. There is a clear difference of view between the management of the House and the union about how we have arrived at this situation. Could I use this mechanism to urge the senior management of the House to seek another meeting with the union to clarify the situation and to come up with a reasonable offer that will resolve this dispute? I do not wish to see our dedicated staff outside of work on this basis. They provide us with the security that we need.
Mr Speaker
I thank the right hon. Member for giving notice of his point of order. While it is strictly not a matter for the Chair, I would agree that it is in everyone’s interest to work together to resolve matters. I hope that we can get people around the table rather than striking. I do not want to go into further details, and I think it is better we leave it at this stage.
Methanol Poisoning (Travel Advice)
Wednesday 3rd September 2025
(2 days, 20 hours ago)
Commons ChamberMethanol Poisoning (Travel Advice) Bill 2024-26 View all Methanol Poisoning (Travel Advice) Bill 2024-26 Debates Read Hansard Text Watch Debate
A Ten Minute Rule Bill is a First Reading of a Private Members Bill, but with the sponsor permitted to make a ten minute speech outlining the reasons for the proposed legislation.
There is little chance of the Bill proceeding further unless there is unanimous consent for the Bill or the Government elects to support the Bill directly.
For more information see: Ten Minute Bills
This information is provided by Parallel Parliament and does not comprise part of the offical record
Mr Speaker
Before we come to the ten-minute rule motion, I wish to make a short announcement about the House’s sub judice resolution. A coroner’s inquest has been opened into the death of Simone White, and those proceedings are now sub judice. However, given the significant public interest in addressing this matter, I, as Speaker, have decided to grant a waiver from the House’s resolution relating to matters sub judice in respect of any inquests into the deaths of UK citizens or residents resulting from methanol poisoning overseas. Members may therefore refer to the case in the course of proceedings, but I would urge them to avoid saying anything that might prejudice any future criminal or civil proceedings in the UK.
Motion for leave to bring in a Bill (Standing Order No. 23)
Laura Trott (Sevenoaks) (Con)
I beg to move,
That leave be given to bring in a Bill to require travel advice issued by the Secretary of State and other persons to include guidance about the risks of methanol poisoning; and for connected purposes.
I have been working closely on this issue on behalf of one of my constituents, Chloe Lassetter, who alongside her family, Sue, Neil, Tom and Amanda, have been fighting to raise awareness of the dangers of methanol poisoning abroad following the tragic death of Simone White last year. As Members may have seen from media coverage at the time, Simone was travelling with her friend Bethany in Laos. They were staying in a small riverside town about two hours north of the capital. It is a hub for backpackers travelling across south-east Asia. It was there that Simone and her friend consumed free shots of alcohol offered at the hostel.
The next day both felt unwell, but they carried on with their plans. Hours later, after boarding a bus to their next destination, things worsened: Bethany fainted; Simone vomited. They were eventually taken to a local hospital, but doctors had no idea what was wrong and initially suspected food poisoning. Still confused and deteriorating, the girls made it to a private hospital. I cannot imagine how frightened and confused they must have been at this point, but sadly, by then it was too late for Simone. She started having seizures during dialysis and was eventually taken for emergency brain surgery. The surgery relieved the pressure but caused bleeding and the other side of her brain started to swell. The results confirming methanol poisoning were not available until two weeks later, but by then Simone had sadly already passed away.
Although Bethany recovered following her hospitalisation, six other young people fell victim to suspected methanol poisoning, having drunk at the same hostel. Two young Australians, two young Danish women and an American all lost their lives. As the Australian Prime Minister said in November, this is “every parent’s worst nightmare”. My heart goes out to all the families who lost loved ones in the most unbelievably tragic circumstances.
Over the last year, I have learnt so much about Simone, who was a much-loved young woman. She had a brilliant life ahead of her, and when I attended her funeral, it was clear that she was deeply loved by her friends and family.
A year ago, like so many of us here, I did not know much about methanol poisoning, yet over 1,000 people die from it every single year worldwide. This is such a huge danger, but barely any of us know about it. I also went backpacking after university but never knew about the dangers, and sadly, the same is true of so many of our young people. That must change. For Members who are less aware than we should be, methanol is tasteless and has only a faint smell, making it impossible to tell if a drink has been contaminated. When consumed, it can lead to a coma, convulsions, blindness, nervous system damage and death. Medical specialists say drinking as little as 25 ml of methanol can be fatal, but it is sometimes added to drinks because it is cheaper than alcohol.
Since their devastating loss, Simone’s family have campaigned tirelessly to prevent similar tragedies from affecting other families. Alongside Simone’s friend Bethany, they have been raising awareness of the dangers of methanol poisoning, and it was an honour earlier this year to help to arrange a parliamentary drop-in session on the subject, alongside my hon. Friend the Member for Orpington (Gareth Bacon) and the hon. Member for Dartford (Jim Dickson). The family were joined by representatives of the travel industry, the National Poisons Information Service, the British Toxicology Society and the Foreign, Commonwealth and Development Office to educate MPs, and the message was clear: awareness saves lives, but only when Government guidance is accurate, clear and consistent.
Sadly, current official travel advice is falling short. In some high-risk countries, there is very little warning at all. Where advice does exist, it is vague and understated. Travellers are told that certain drinks “might carry a risk” or that they “should exercise caution.” This is not a matter of caution: this is about a lethal, preventable danger. I appreciate that the Foreign, Commonwealth and Development Office has updated the health section of the travel advice on its website, but we must do more to make the warnings clearer and more explicit, so that information is more readily available to everyone. The Government’s Travel Aware website has an informative section on methanol poisoning, but more must be done to make that advice and guidance better known to young people before they travel. As things stand, they really have to search to find it.
My Bill, supported by my hon. Friend the Member for Orpington and the hon. Members for Dartford, for Cheadle (Mr Morrison) and for Lewisham North (Vicky Foxcroft), proposes a straightforward, proportionate solution. It does not attempt to police alcohol sales abroad. It does not require costly programmes or enforcement. It simply requires the Government to provide prominent, clear and consistent guidance about methanol poisoning for countries where the risk is known to exist. Other Governments have already taken steps to warn their citizens. Australia’s Smartraveller service provides unambiguous, practical advice and reaches young travellers through targeted campaigns. We should do no less, and we must not be left behind.
Families such as Simone’s, who have endured unimaginable grief, are not asking for the impossible. They are asking for honesty, clarity and actionable guidance, so that other families do not have to suffer the same loss. We have already shown in this House that collaboration between families, experts and parliamentarians can and does raise awareness. Now it is time to turn awareness into action. I know that Ministers in the Foreign Office are well aware of Simone’s story, as we have exchanged many letters on the topic, and the Foreign Office kindly hosted me, my hon. Friend the Member for Orpington and the family at a meeting earlier this year. I thank them for their engagement to date and I look forward to continue working with them, as I know they understand the grave risks at stake.
As Simone’s mother, Sue White, said:
“If it can happen to Simone, it can happen to anybody”.
So let’s start the process today to prevent future tragedies. I commend the Bill to the House.
Question put and agreed to.
Ordered,
That Laura Trott, Gareth Bacon, Jim Dickson, Tom Morrison and Vicky Foxcroft present the Bill.
Laura Trott accordingly presented the Bill.
Bill read the First time; to be read a Second time on Friday 29 May 2026, and to be printed (Bill 300).
Property Taxes
(2 days, 20 hours ago)
Commons ChamberRead Hansard Text Watch Debate Read Debate Ministerial Extracts
Mr Speaker
I inform the House that I have not selected the amendment. I call the shadow Chancellor of the Exchequer.
Sir Mel Stride (Central Devon) (Con)
I beg to move,
That this House notes recent reports that the Government is considering a wide range of increases to taxes on property; notes the Prime Minister’s commitment last year not to impose Capital Gains Tax on primary residences; and calls on the Government not to introduce an annual property levy which would tax the family home, higher rates of Council Tax, or a land value tax, or to lower the thresholds or further increase liability to Inheritance Tax, for example, by changing the seven-year gift rule.
I trust you had a good recess, Mr Speaker. I am absolutely certain that the Deputy Prime Minister also had a good recess. We saw many photographs of her down at the seaside, just off the coast in a rubber dingy—rather like many of the other photographs we saw over the summer, given this Government’s reckless policies on illegal migration. She was probably celebrating the acquisition of another property for her property empire, but that celebration was perhaps slightly tinged with a nagging doubt as to whether she had indeed paid enough stamp duty. Well, we will get to the bottom of that in due course.
Those who could not avoid paying the taxes imposed by this Government are businesses right up and down our country, many of which I took the time to visit during the recess. In the leisure sector alone, some 80,000 jobs have been destroyed by the national insurance rises, and this has particularly affected those taking their first job, younger workers, part-time workers and female workers. Jobs are being destroyed.
While the Deputy Prime Minister was lounging on her boat with her wine, this Government were all at sea, like a cork bobbing on the tide, with no control over the events swirling around them. When it came to the economy, although eclipsed by the calamities around illegal migration, we saw recently the panicked reshuffle of the Treasury Front Bench. I offer my congratulations to the Exchequer Secretary to the Treasury, the hon. Member for Chipping Barnet (Dan Tomlinson) and warmly welcome him to his new role. However, I should also tell him that he is joining a sinking ship, whose captain has just had all her authority stripped from her, while all his comrades down below deck are fiercely trying to bail it out. I also offer a fond farewell to the former Chief Secretary to the Treasury, the right hon. Member for Bristol North West (Darren Jones), who no doubt thought he was very clever when he leapt off the sinking ship. He will not be feeling quite so clever when he discovers that the place to which they have sent him is even more dysfunctional than the Treasury Front Bench.
Among all this news of arrivals to our shores, we have had a cruel summer of speculation around tax. We have seen in the skies clouds of kites flown largely by the Treasury as to what taxes it is going to put up. It has all been tax, tax and tax. I am reminded of the Beatles’ song “Taxman”:
“I’ll tax the street,
If you try to sit, I’ll tax your seat,
If you get too cold, I’ll tax the heat,
If you take a walk, I’ll tax your feet.”
When it comes to tax, it is not so much “Good Day Sunshine” as “Help!”[Laughter.] Okay—it was a bit hammy, but it was worth a try. I was going to try “Penny Lane” as well, but I drew the line there.
It is worth examining how we got to this point, for a reckoning for our country is surely coming. This will be a story for all time.
Sir Mel Stride
I will do so momentarily.
It started with broken promises. This was a party that said during the run-up to the general election that it had no intention of raising taxes left, right and centre, and yet within a month or two, this Government did precisely that, with devastating consequences: tax rises on businesses that stifle growth. They talked down the economy by confecting a £22 billion black hole that did not exist. What an irony it was that it was they who brought in the Office for Budget Responsibility to decide whether that £22 billion black hole existed and that the OBR said it could not legitimise the claim—the Government were wrong.
What happened with spending and borrowing? It got completely out of control. The combination of passing on price rises because of the national insurance increases, and the extra borrowing and spending, has led to higher inflation. We are an outlier when it comes to inflation.
Helena Dollimore (Hastings and Rye) (Lab/Co-op)
Will the right hon. Member give way?
Sir Mel Stride
In a moment.
That in turn has seen interest rates higher for longer and the servicing costs on our national debt now running at over £100 billion a year—more than twice our defence spend. I will now give way to whoever was trying to intervene behind me.
Sir Oliver Dowden
Would my right hon. Friend agree that correcting this loss of market confidence demands decisive action from the Government at the Budget, and that that decisive action cannot be taken solely on the tax side? The tax side is what has driven us into this loop. We need decisive action on spending and particularly on welfare if we are to see some restoration of market confidence and get ourselves out of this rut.
Sir Mel Stride
My right hon. Friend, as ever, is absolutely right. The reality, as we see in the bond yields at the moment, is that the markets have no confidence in the ability of this Government to get on top of spending. We saw the farce of a Government who came into office scrapping the £5 billion of welfare savings that were already baked into the OBR’s scorecard because we had brought them in, and attempting to bring forward their own reforms only for their Back Benchers to vote them down. My right hon. Friend is so right; this Government do not have the will or the plan to deal with spending, and that is at the heart of the reason why we will all be punished and pay the price of more taxes come the Budget in November.
Jim Shannon (Strangford) (DUP)
I commend the shadow Chancellor for bringing forward this subject for debate. He clearly shares my deep concern that I have, and that I think everyone in this Chamber should have, that the Government are considering a further tax on property, despite the fact that the Prime Minister committed to not imposing capital gains tax on residents of this United Kingdom of Great Britain and Northern Ireland. Last year, it was the family inheritance tax; this year, those who own property—those who have scrimped and saved for their house, those who are middle class, those hard workers—have now become the latest target of Labour tax policy.
Sir Mel Stride
The hon. Gentleman is entirely right. Of course, if the Government have got into a situation where they are having to scrabble around and look at property taxes, as we are debating this afternoon, than really nothing is safe from the taxman under this Government.
Helena Dollimore
I gently remind the right hon. Member that since this Labour Government came to power, interest rates have been cut five times—a vote of confidence in our Chancellor, fixing the foundations of our economy. That saves the average family on an average tracker mortgage in my constituency over £100 a month. Will he remind me what happened to interest rates when his party was in power?
Sir Mel Stride
As the hon. Lady will know, interest rates are one of the key tools in monetary policy and are applied to bring down inflation. While she is right that there have been five reductions in the level of the base rate, there should have been many more. The reason is—the evidence is there—that this Government have stoked inflation. Inflation is still rising. It is at twice the level or thereabouts that it was on the day of the general election. When a Government stoke inflation, we pay the price through higher interest rates, and that is precisely what has been happening.
Graham Stuart (Beverley and Holderness) (Con)
My right hon. Friend is right to highlight the massive impact of these tax rises on so many families and businesses up and down the country. Will he comment on how we can have a Deputy Prime Minister who has admitted avoiding paying the tax that she owed and who continues in office? And this, from a party that called for the resignation of people for far lower offences! Does that not expose the rank hypocrisy that seems to run right through this Government?
Sir Mel Stride
If the right hon. Lady wants to make the rules, she should live by them. That message will go out to businesses and families up and down the country. There is no way that they can avoid the juggernaut of taxes that are coming down the track.
Tim Farron (Westmorland and Lonsdale) (LD)
In return for the right hon. Member’s generosity in giving way, I will say something pleasant about the last Conservative Government. [Interruption.] I know—wait for it! It will be just one thing.
The last Government allowed councils like Westmorland and Furness, run by the Liberal Democrats, to double council tax on second homes. It is right to do that because excessive second-home ownership annihilates communities in the lakes and the dales, the west country and elsewhere. But can I encourage the Conservatives and the party in government now to do something that would do much more to limit the number of second homes than that: bring in a new planning category of use, so that national parks and councils can manage the numbers and save communities?
Sir Mel Stride
I thank the hon. Gentleman for his kind words about the Conservative party—I am sure that they are deeply felt and very genuine. What the Deputy Prime Minister should be doing is delivering more homes. It is quite clear that the target of 1.5 million homes, which the Government claim they will deliver at the rate of 300,000 a year, will not be met. I am quite happy to be proven wrong, but I very much suspect that I will not be, unfortunately.
We have ended up in a situation in which a huge black hole is looming. The National Institute of Economic and Social Research puts it at possibly as much as £40 billion. The economic mismanagement of the Labour party is a recurrent theme. In the October Budget—the Government’s first—there was headroom of about £10 billion against the fiscal rules. That, plus £4 billion more, was blown by the time of the spring statement—the emergency Budget. Once again, it appears that considerably more has been blown all over again.
That is no surprise. The U-turns on winter fuel payments and on welfare reform, which we have already discussed in this debate, led to unfunded commitments of around £6 billion—unfunded commitments after the Chancellor had said that the Labour party would never find itself in that position. What she said has simply not happened. What signal does it send to the markets when the Government cannot control spending? In the long-term, it will be interesting to see what the Office for Budget Responsibility has to say about its forecasts for growth. In recent times, 30-year bond yields have hit a 27-year high. We are paying more to borrow than Greece. There is a potential debt crisis looming, and this country could be on the brink—all on Labour’s watch.
Dr Scott Arthur (Edinburgh South West) (Lab)
The Government inherited bond yields higher than those in many other countries. Right now bond yields are going up in Japan, Germany and the United States. Is the Chancellor responsible for all that?
Sir Mel Stride
There is no doubt that under the previous Government there was a need to support the economy. That involved the expenditure of £400 billion, not least on the furlough scheme. I do not remember the hon. Gentleman’s party arguing at the time that we should not do that; in fact, it argued that we should go further still. The Conservative Government stepped in, supported jobs and saved us from going into mass unemployment that many feared would be worse than even in the 1980s, and I take great pride in that. But we are where we are now, and what the Government should be doing is growing the economy, stoking up business sentiment, getting taxes down and getting the economy moving, but they are doing precisely the opposite.
Dr Luke Evans (Hinckley and Bosworth) (Con)
Is not the difference now that we are seeing stagflation—high inflation and the economy not growing as it should be? We are therefore seeing job losses and unemployment going up every month under this Labour Government. Unless they do something drastically different, it will only get worse, and that will impact on our growth prospects and therefore on the prosperity not just of our nation but of the individuals who work and try to thrive here.
Sir Mel Stride
My hon. Friend is absolutely right. We are seeing high inflation, anaemic growth, high gilt yields and a pound that has been plummeting in recent times. All those are signals flashing red on the dashboard.
Instead of getting a grip on spending and getting taxes down, the Government have been out there pitch-rolling yet more taxes. Over the summer, we have seen briefings to the press suggesting tax rises on property. The Labour party has an opportunity this afternoon to rule out those possibilities, and the Minister should do just that when he responds.
First, there has been a suggestion that there will be changes to the private residence relief under the capital gains tax regime. That would strike at the heart of our country as a property-owning democracy. People would be penalised simply for selling up and moving home. It would have clear implications by bunging up the property market, and clear economic implications by causing friction in the process of people moving from one part of the country to another, often in search of work. It would discourage downsizing, even though that would be beneficial in providing more homes for people to live in. Before the election, the Prime Minister said that there never was a policy of that type so it did not need to be ruled out, but let us rule it out just in case anyone pretends that there was such a policy. When he responds, will the Minister confirm that he stands by the words of the Prime Minister?
Secondly, there has been a suggestion of an annual tax on homes. What a tax on aspiration! What a tax on people who have saved hard and managed to get on the property ladder, but who will then be stuck with annual taxes. What about those who are asset-rich but income-poor and cannot afford to pay—are they expected to sell up? Will the Minister rule out that possibility and put people’s minds at rest?
If that was not enough, we hear that the Government may be considering changes to the gifting regime in inheritance tax. They are not content just to pulverise farmers and family businesses, and to see those businesses and farms broken up when they are passed on from one generation to another, because of the imposition of tax. In fact, it was a Labour Government in the 1970s who brought in the reliefs that this Government have chosen to abolish. The inheritance tax yield will double over this Parliament. The Opposition say, “Enough is enough.” We should not punish parents who wish to pass something on to their children. Socialists do not understand that we do not all stand as atomised individuals; we work together as families and communities. We care about each other, we care about the people we love, and it is right that we have the opportunity to pass something on to them.
Harriet Cross (Gordon and Buchan) (Con)
I thank the shadow Chancellor for introducing this debate on such an important issue. Properties and assets are vital to the country and to people. On the lifetime limit for inheritance tax, over the past year everyone will have heard the Government telling farmers and family businesses to get their affairs in order and to plan. Not having a limit on the lifetime cap was what allowed them to plan. If that is cut or the cap is not in the right place, it will negate every argument that the Government have made in the past year to justify their family farm and family business tax. Will the Minister please acknowledge that and rule out any change to the cap, which would penalise family farms and businesses?
Sir Mel Stride
My hon. Friend has put it brilliantly and succinctly, and she is absolutely right. In their horror—in their recoil from the inheritance tax changes—that is exactly what farmers and family business owners have been doing: thinking about alternatives. The seven-year rule has been one of those alternatives, and it would be a really heartless and extraordinarily cruel moment if the Government were to shut that down as well.
Dr Andrew Murrison (South West Wiltshire) (Con)
My right hon. Friend is explaining the situation in his usual powerful way. If, as seems likely, the Government impose capital gains tax on a person’s principal private residence, will he, as mitigation, consider whether there should at least be indexation allowance to provide some relief from the horror that I fear is about to be inflicted on my constituents? He will remember that the Finance Act 2008 abolished that relief on other property. I suspect that the Government will not be sympathetic to such a suggestion given what happened in 2008, but it would at least take the edge off the imposition of taxes on the sale of a person’s principal private residence.
Sir Mel Stride
My right hon. Friend raises his point in his usual eloquent manner. That is a question for the Minister, and I hope that, when he rises to the Dispatch Box, he will rule out our concerns in their entirety. In the event that he cannot, perhaps he will choose to answer my right hon. Friend’s inquiry.
Is it not the case that those in the Labour party have a clear misunderstanding because they have no business experience? Those on the Government Front Bench have no business experience in setting up companies or understanding the meaning of business taxes—the experience is simply not there. Labour will talk about taxing wealth, but does it not understand that if we tax wealth, we will get less of it?
It has been estimated that about 15,000 high net worth individuals have left our country in the period in which this Government have been in power. A consequence of that tax just walking out of the door is that we will require somewhere around a third of a million to half a million people on average earnings to make up the difference. This is not a case of good riddance to wealth; the Government should—as the Conservative party would—encourage and turbocharge wealth at every turn.
Andrew Pakes
I am sure Hansard will correct me.
The right hon. Gentleman just made some comments about high net worth or high value individuals. In my constituency, I am particularly interested in individuals on low incomes. In Peterborough, I represent a city with one of the highest levels of those employed on zero-hours contracts and in chronically insecure work. Does he not agree that his party often wants all the spending, but none of the funding for delivery? He talked about reducing taxation for some of those with higher net worth, but will he also talk about which doctors’ surgeries in my constituency would suffer cuts under his plans, which individuals would receive no protection for their employment rights, and how the people of Peterborough would be worse off because he wants to reduce the spending that will fix the foundations of this country?
Sir Mel Stride
The hon. Gentleman refers to cutting spending. His party attempted to cut spending, but entirely failed to do so. My point is that if he wants money to spend on public services, he needs to cut welfare and should worry about how to do so. I do not know how he voted when that was put to the test in this House, but if he in any way voted against his own Government and against getting on top of the welfare bill, he should ask his own question of himself.
As for those on low incomes, they are precisely the people who are now being devastated by the increase in national insurance. There is not just an increase in the rate, but a substantial reduction in the threshold at which national insurance kicks in, which has meant higher unemployment, in particular among younger workers, part-time workers, women and people getting that vital first job so that they can get themselves on a career path. They are the people whom the Labour Government are punishing most.
Dr Luke Evans
Is that not exactly the point—that the top 1% of earners pay almost 30% of income tax? If we lose them, we damage the people who need the support and the investment from the very taxpayers we have just scared off. Should not the reverse be happening? We should attract more people into this country to spend more money, so that we have more money for such services through tax collection.
Sir Mel Stride
My hon. Friend is absolutely right. I have already shared with the House the classic example of the number of people who have left this country because of a punitive tax regime and the costs of that.
Sir Oliver Dowden
Further to the excellent point made by my hon. Friend the Member for Hinckley and Bosworth (Dr Evans), the Labour party denigrates wealthy individuals who choose to come to this country. However, it is about not just the tax that they provide, but the jobs and opportunities they create by investing in constituencies up and down the country. This country has prospered for hundreds of years by being open and welcoming to inward investment. If we lose that, we lose a key plank of the competitiveness and growth that have been associated with our economy.
Sir Mel Stride
That is right. We live in a highly mobile world; it is easy for people with substantial wealth or money to invest to go anywhere in the world. We have to remain competitive, and this Government are making us less competitive. My right hon. Friend refers to unemployment, but just look at the record—should we have expected any more from this Government? No, not really. Every single Labour Government in history have left unemployment higher when they left office than it was at the time they came into office. What have we seen on unemployment since this Government have been in office? It has increased every single month since they have been in power.
Yuan Yang (Earley and Woodley) (Lab)
The right hon. Gentleman has spent the past five minutes circling around figures gathered by a consultancy that aids the super-wealthy to migrate from this country. Where is the Conservative party getting its economic ideas from? It speaks volumes that he has spent so much time up to this point speaking for the 15,000 high net worth individuals served by that consultancy; and his previous point was about inheritance tax, which is paid by only 4% of all estates in the UK. If he has any ideas, what will the Conservative party do to grow the economy for the benefit of all people in this country?
Sir Mel Stride
The hon. Lady asks where we are getting our ideas from; where we are not getting them from is from academics and researchers who believe in taxing wealth and who now sit there on the Treasury Bench, or in other places where they advise No. 10. They talk on a regular basis about taxing property, wealth, shares and assets of any description that they can think of, but that is the road to ruin. She asked where we get our ideas from, and I will tell her. I set up my own business in the 1980s, from absolutely nothing. I grew it from scratch, and then I took it over to America and grew a business there. I have lived, breathed and eaten business most of my life. I also go up and down the country to speak to other such businesses. They are the people who understand what needs to be done on the tax front and who have to live with the red tape that her party is bringing in to tie them down. They are the people whom this party is listening to.
Mr Jonathan Brash (Hartlepool) (Lab)
The right hon. Gentleman has talked at great length about taxing the wealthy, but he has omitted one of the suggestions that came forth over the summer, which was to get rid of the punitive council tax system, which taxes poverty and deprivation in this country. The former Conservative leader of Hartlepool borough council famously cheered when he put up council tax on deprived people in Hartlepool. Why are the Conservative party and now Reform—that former Conservative leader has now defected to Reform—so attached to that regressive system?
Sir Mel Stride
I think that council tax, different variants of it, revaluations and so on are things that Government should look at, because we do not want them to be entirely static; there can always be reform and change. I will observe, however, that the average council tax paid in Labour areas is demonstrably higher than the equivalent taxes in Conservative areas. That comes down to the approach that a Conservative council takes to spending and to ensuring that councils are efficiently run, rather than the profligate approach of the Labour party.
Luke Murphy (Basingstoke) (Lab)
One of the suggestions made to the Government earlier this year was from Conservative-run Hampshire county council, to increase the council tax on my constituents by 15%. That was blocked by this Government, by the Secretary of State. Will the right hon. Gentleman join me in condemning Conservative-run Hampshire county council’s proposal to increase council tax by 15%?
Sir Mel Stride
I am not going to get into specific things going on in the hon. Gentleman’s area. How can I be expected to opine with authority on something of that nature relating to his constituency? [Interruption.] Hold on. My general point stands: the simple fact is that Labour-controlled local authorities charge more in council tax than Conservative-run councils do.
Mr Speaker
Order. Members cannot keep standing up and waving their hands in the air; the right hon. Gentleman has to give way.
Emily Darlington
What the right hon. Gentleman has said is not a fact. The reality in my region is that Milton Keynes, the Labour-run local authority, has lower taxes than all the surrounding Tory authorities, including in Northamptonshire, which has failed over and over again. Two Conservative and now Reform councils have failed, as has Buckinghamshire, while Milton Keynes has been labelled by the Local Government Association as one of the best-run councils. It still delivers lower council tax than all those Tory-run authorities.
Sir Mel Stride
It is a simple matter of logic that even if the hon. Lady’s assertion is true—I do not know whether it is or not—it does not contradict the point that I made.
Dr Luke Evans
Was it not the current Prime Minister who said
“not a penny more on your council tax”?
Is the shadow Chancellor aware of how that worked out?
Luke Murphy
A moment ago, the shadow Chancellor suggested that he would not get into speculation, but this whole debate is premised on media speculation. I asked him to comment on an actual proposal that was made to the Government by a Conservative-run county council to increase local council tax for my constituents by 15%, so he is asking us to vote on a motion about media speculation but he will not comment on an actual proposal.
Sir Mel Stride
My point is very clear—I need to make some progress as I have been fairly generous in taking interventions—that when it comes to council tax, it is a fact that Conservative-controlled councils charge less, because their whole approach to running the council is the same as our approach to running the economy: to ensure it is done efficiently and not to impose undue burdens on people by way of tax.
We were told by the Chancellor that the tax hikes in the Government’s first Budget, last autumn, were a “once in a Parliament” event. It is now a question not of whether there will be further tax increases, but which taxes will be increased. The uncertainty that has flowed from the disastrous situation over the summer has meant that, because of Labour’s choices, a hold has been put on businesses investing, on property transactions and choices, and fundamentally on some of the freedoms that we, as citizens, often take for granted.
Labour Members will desperately dismiss all of this as press speculation—I expect to hear that from the Minister in a moment—but is it not the truth that this sorry tale is entirely of their own making? It is the inevitable result of their choices and the failure that has followed, with much of this speculation seemingly fuelled by briefings from within the Government. This House and the public deserve answers.
The Chancellor cannot borrow more and has shown no ability to control spending. That can only leave tax, but which taxes will it be? Are family homes safe or are they simply fair game? If Labour Members fail to vote for the simple motion before us today, then the answer will be clear: under this Labour Government, nothing is safe—not people’s homes, pensions, savings, businesses or farms, and not that which they simply wish to pass on to their own children. The message to hard-working people up and down our country could not be clearer: Labour will always duck the hard choices and tax the living daylights out of your family’s future, to pay for its failure.
Mr Speaker
Order. I hope somebody did not use the word “hypocrisy”. I am sure that was not the case.
I call the Chief Secretary to the Treasury—and congratulations on your promotion.
The Chief Secretary to the Treasury (James Murray)
I thank the right hon. Member for Central Devon (Sir Mel Stride) for opening the debate. I can tell that he spent his summer polishing some of his rhetorical flourishes, which he has shared with us today, but I suggest that he could have spent his time rather better.
Thank you for your words of congratulation, Mr Speaker. It is a real honour to be here as Chief Secretary to the Treasury. May I put on record my tribute to my predecessor, now the Chief Secretary to the Prime Minister, my right hon. Friend the Member for Bristol North West (Darren Jones), for all his fantastic work, notably delivering the spending review? I welcome the Exchequer Secretary to the Treasury, my hon. Friend the Member for Chipping Barnet (Dan Tomlinson), to his new role. I thoroughly enjoyed the role myself, and I am sure that he will be excellent in it.
Conservative Members will appreciate that today’s motion, as tabled, simply cannot form the basis of a specific debate on individual tax measures. Members from across the House will know that the Government do not respond to speculation in advance of a Budget, which the Chancellor has today announced will take place on 26 November. This has long been the case: the shadow Chancellor knows it well and he knows that it would be irresponsible to engage in that speculation. Whatever political rhetoric he and his colleagues will use in today’s debate, and no matter how many variants of the same question they ask, I know that he will understand that I cannot engage with speculation about individual tax measures ahead of the Budget.
Jerome Mayhew (Broadland and Fakenham) (Con)
The hon. Gentleman says that he cannot speculate on individual tax measures, but will he deny that the No. 11 machine has been leaking these stories to the national press over the summer?
James Murray
I am not going to engage in speculation about tax measures or any of the mechanics around them. The hon. Member and his hon. Friends will simply have to wait until 26 November to hear the specifics of the Budget. At that point, I am sure that he and his colleagues will have plenty to say.
Sir Oliver Dowden
I genuinely congratulate the hon. Gentleman on his appointment as Chief Secretary to the Treasury. I have always found him to be an honest and straightforward speaker in the House and he deserves his position. On the point about speculation, can he confirm reports that the Government are looking again at welfare? Surely he will agree with me that, in any process of fiscal consolidation, one must look to tax rises and to spending cuts. There has been a lot of reporting about there being further measures on welfare, so will there be further measures on welfare under consideration—yes or no?
James Murray
I thank the right hon. Member for his kind words. As he will know, welfare measures are already going through Parliament and being investigated by my right hon. Friend the Minister for Social Security and Disability through the review that he is undertaking. This Government are determined to ensure that the safety net is there for the people who need it, and that the people who can work have the support they need to get and maintain a job.
Freddie van Mierlo (Henley and Thame) (LD)
What is not speculation is that the largest rise in property taxes happened under the Conservatives, when Liz Truss crashed the economy and increased interest rates for everyone in my constituency. Will the Minister speak to the fact that house prices are different in different parts of the country, and that must be reflected in Treasury thinking about tax and the Budget this year?
James Murray
The hon. Gentleman is right to remind everyone of the record under the short-lived Prime Minister, Liz Truss. I notice that Conservative Members do not refer to that themselves when evaluating the economic situation, but the British people will not forget it. On his wider point about housing across the country, we want to ensure that we are building affordable homes in every part of the country. One of this Government’s priorities has been to reform the planning system, to enable the building of 1.5 million homes and ensure that every community has those homes, so people have homes that they can afford to live in, in the area where they grew up, where they want to live or go to work. That is a central mission of this Government.
James Murray
I will give way one more time, but then I will make some progress.
Harriet Cross
The fact that the Government hope to build all those new homes shows that they recognise the importance and value of a home to a family. The Minister says that he will not talk about specific tax measures, but does he recognise the principle that we should not tax people’s homes if we are a country that values home ownership?
James Murray
I gently remind the hon. Member that council tax—a tax on property—exists in this country, so the principle of applying some taxes to property is well established in the UK, and has been for some time. She is trying to tempt me to engage in more speculation, but as I said to the shadow Chancellor, I am not going to engage in speculation about what may or may not be in the Budget.
Chris Vince (Harlow) (Lab/Co-op)
I thank the Minister for giving way—he is always very generous with his time—and congratulate him on his well-deserved promotion. The Conservatives are not fans of tax, but sadly they are also not fans of supporting public services. Under their Government, thousands of His Majesty’s Revenue and Customs compliance officers, including my mum, were made redundant and we were not able to collect the right amount of tax that people owed. Is that partly why this Government inherited such a large financial black hole?
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. Before the Minister responds, I will say that we have quite a few colleagues hoping to contribute, so interventions should be short. The Minister should be aware of that and consider how much longer he wishes to contribute.
James Murray
Thank you, Madam Deputy Speaker—the hint is taken.
I thank my hon. Friend the Member for Harlow (Chris Vince) for his intervention, and I thank his mother for her service to HMRC in the past. People at HMRC do an absolutely critical job in collecting the tax that is important in funding our public services and ensuring that our economy functions effectively. One of our priorities as a Government has been to close the tax gap that existed under the previous Government. At the Budget last year and in the spring statement earlier this year, we set out plans to raise an additional £7.5 billion in tax revenue as a result of hiring people to do those really important jobs, as well as investing in new technology and modernising the service to ensure that people pay the tax they owe.
James Murray
I am going to make some progress, because a few moments ago I said I would do so. I have been gently reminded by Madam Deputy Speaker that I really must live up to my promise on that front.
The right hon. Member for Central Devon asked me questions in his opening remarks—indeed, his colleagues have their sheets from the Whips, and they have been dutifully following up in their comments—but they are on matters that we cannot talk about today. There are of course other important facts that the right hon. Gentleman does not want to talk about, but the British people have not forgotten them. There is the £22 billion black hole in our public finances, which the previous Government hid from the light. There is the disastrous mini-Budget, which caused damage to households across the country and to our reputation around the world. We had stalled housing, unfinished infrastructure and public services brought to their knees by under-investment and disinterest. The Conservatives do not want to talk about those things because that is the legacy of the last Government. We found out just today that the right hon. Gentleman does not even want to talk about things happening in Conservative councils, as my hon. Friend the Member for Basingstoke (Luke Murphy) raised so importantly in his contribution earlier.
Now that the Conservatives are in opposition, the right hon. Gentleman’s party and Reform Members are talking Britain down. They want to claim that Britain is broken, but I believe that Britain is unbreakable. Our country is full of potential. It is home to hard-working people, brilliant businesses, world-leading universities and research institutions, cultural giants and the promise that if people work hard and contribute to the country, it will be a place where they can succeed. Yet undeniably, after 14 years of Tory mismanagement, far too many working people feel that the economy is stuck.
James Murray
I have been asked by Madam Deputy Speaker to make some progress, so I will return to the hon. Gentleman a little later.
I hear from my constituents, as I am sure many other Members in the Chamber hear from theirs. They tell us that no matter how much effort they put in at work, their careful management of household finances and their diligent efforts to save for a brighter future, they do not yet feel that they are getting enough in return, and it has become harder to get ahead. At the same time, our roads and railways seem slow and less reliable and our classrooms seem fuller, while the NHS has a massive backlog. The root cause of all that is the chronic under-investment by the previous Government. That under-investment over many years has slowed our productivity growth to a rate not seen since the Napoleonic wars.
Jim Dickson (Dartford) (Lab)
Does the Minister agree that it is thanks to the tight fiscal rules that this Government have introduced and the changes in the Budget that since the election my residents in Dartford have seen an investment in the lower Thames crossing? They have wanted that for 15 years, and it was not delivered under the last Government. They have also seen a £25 million hospital rebuilding project at Darent Valley hospital and a £1 billion structures fund from the Department for Transport, which will repair the ruined Galley Hill Road in my constituency. Is it not thanks to the Government’s rules and Budget changes that we are seeing those changes?
James Murray
My hon. Friend is absolutely right. It is only thanks to the fiscal rules that the Chancellor introduced at last year’s Budget and our decisions—the right decisions—to ensure that those fiscal rules are non-negotiable and that we keep to them at every stage that we have been able to boost investment by £120 billion over the course of this Parliament in many projects, including those that he mentioned and those in constituencies right across the country. That is the right thing for our country.
We were just talking about chronic under-investment. We are tackling that through ensuring that the Government invest across the country and by encouraging private-sector investments to get businesses across Britain growing.
Alison Taylor (Paisley and Renfrewshire North) (Lab)
Will the Minister give way?
James Murray
I will take a very short intervention, then I really will make progress.
Alison Taylor
Does the Minister agree that taxation is intrinsically linked to economic growth and that there are already green shoots of recovery in the economy, with three trade deals and five interest rate cuts?
James Murray
My hon. Friend is absolutely right; economic growth is of course critical to our plans. She points to the trade deals that we secured. She and other hon. Members will know that the UK was the fastest-growing G7 economy in the first half of this year. There is much more for us to do, but we are showing that because of the right decisions that we have taken we are starting to move in the right direction.
Tim Farron
I do not want the Minister to speculate, but I want him to consider something. We talked about people not paying taxes. A significant minority of owners of second homes in my constituency let their property out for just a few days a year; as a result, they can claim to be a small business and pay no council tax or business rates. People on the minimum wage in my constituency are subsidising those people who pay no council tax at all. Will he change that situation to protect our communities?
James Murray
I congratulate the hon. Gentleman on an inventive way of encouraging me to speculate on tax measures. I am aware of the issue that he points to, and I thank him for raising it in this context, but I am not able to make any decisions on taxation at the Dispatch Box today.
Let me go back briefly to the broader context. It is absolutely crystal clear from the opening remarks of the right hon. Member for Central Devon, and from what all his colleagues have said so far, that Conservative Members are still in total denial about any responsibility they have for the situation that the country finds itself in. They act as if being behind the wheel for 14 years is irrelevant to where we find ourselves now. It may be that they think that if they do not talk about it, the British people may forget the last Government’s responsibility for getting us into the current situation, but the British people know that the Conservatives did this to our country. That is why the British people put their faith in us at the last election.
While there is clearly more to do to bring down inflation and the cost of borrowing, it is clear that we have turned a corner by taking the right decisions for our country. We have taken the decisions to address the black hole in the public finances, fix our foundations and clear up the mess that we inherited from the previous Government. As a consequence, as I mentioned a moment ago, in the first half of this year we were the fastest-growing economy in the G7; we outpaced France, Germany, Japan and the United States.
Since taking office, this Government have welcomed around £100 billion in investment into the UK, with 384,000 jobs being created over the same period. We have cut red tape and changed planning regulations to deliver 1.5 million new homes over the course of this Parliament. We already have nearly 100,000 new homes on large developments that were previously stuck in the planning system or simply not progressing as fast as they should be; they are now being given the support that they need to make that progress quickly. In just over a year, the Bank of England has cut interest rates five times, which means that someone on a tracker mortgage of just over £200,000 will be better off by around £100 a month. Crucially, real wages have risen more in the time since the last election than they did in the first 10 years of the previous Government.
The choice at the next Budget is clear. Over 14 years, the last Government made wrong choices time and again. They, their many Prime Ministers and many Chancellors all embraced the cycle of austerity, debt and decline, and we will never repeat that. We will continue to invest in Britain’s renewal, using every power at our disposal to drive forward an economy that works for working people. As I said, the Government do not respond to speculation, especially ahead of a Budget, and in any case we are not writing a Budget this far out.
The Budget that the Chancellor delivers in November will be carefully considered and designed to get the balance right between making working people better off and raising enough money to fund our public services and getting the country moving once again through investment and growth. Of course, it will also undergo proper scrutiny by the OBR. I was going briefly to address the taxes mentioned in the motion, but I suspect that I should skip over that part of my speech. [Interruption.] I am getting a gentle indication from you, Madam Deputy Speaker, that I have come to the right conclusion.
If we are to get this country moving again, investment from both businesses and Government is essential. We must therefore strike the right balance in our tax system, so that we can put more money in the pockets of working people while supporting the private sector to invest and grow and funding our public services. Members on both sides of the House will have their own views on what the right balance is, and I look forward to hearing those views today. I thank all hon. and right hon. Members in advance for their contributions.
Several hon. Members rose—
Madam Deputy Speaker (Ms Nusrat Ghani)
Before I call the Liberal Democrat spokesperson, I inform the House that all Back Benchers will be on a time limit of four minutes.
Daisy Cooper (St Albans) (LD)
I begin by adding my voice and that of my party to the others who have welcomed the hon. Member for Chipping Barnet (Dan Tomlinson) to the Front Bench.
Like so many other things, property taxes in this country are broken and hopelessly out of date. Council tax is regressive; stamp duty is a transaction tax that slows growth; and business rates are a tax on bricks and mortar that bear no relationship whatever to the amount of money a business might make. It is quite extraordinary that the official Opposition have chosen to debate property taxes, given that I can barely remember any discussion at all in the last Parliament about things that they wanted to tackle in that area. In particular, they did not tackle any of the three things I have mentioned. If it is true that the Labour Government are now thinking about biting the bullet and bringing forward fairer alternatives to those things, I commend them for looking at the issue. However, I caution the Government not to repeat the jobs tax fiasco. Going after property simply as a Treasury tax grab will be a disaster if the Government do not set out a broader vision for property taxation and for housing as a whole.
We agree with parts of the Conservatives’ motion today. We agree with their call to rule out capital gains tax on primary residences. In the general election, we Liberal Democrats set out a way of reforming capital gains tax to make it fairer, one that would reduce that tax for two thirds of people already paying it and increase it for the super-wealthy. That would have raised more revenue than the carte blanche measures that the Labour Government have pursued, so we agree with that part of the motion. We also agree with the Conservatives that the property levy that has been described in newspapers would be a disaster. It would choke up the housing market, stop people from downsizing and slow economic growth, so I hope that if Ministers are considering any of these things, they look at the reaction there has been.
Freddie van Mierlo
In my constituency of Henley and Thame, the average house price is £515,000. Does my hon. Friend agree that the property tax described by the Government so far would be a tax on the south-east and London?
Daisy Cooper
I absolutely agree with my hon. Friend. He will know, as I do from my constituency of St Albans, that many people have spent decades and decades living in their property, which they might have bought for a few thousand pounds. It might now be worth a huge amount, but they might be asset-rich and cash-poor. People in that situation are incredibly scared by the reports they have seen in newspapers of a potential tax of the kind that has been described.
There are parts of the Conservatives’ motion we agree with, however we are open in principle to the idea of a land value tax. In principle, land value taxes can create more fairness in the system and produce a more efficient use of land, but of course, the devil is always in the detail. It would depend on the design of any land value tax and any exemptions that might be introduced. We Liberal Democrats have previously set out policies for how we would replace the broken business rates system with a commercial landowner levy. That is an example of how the principle of land value could be applied to commercial land.
Steve Darling (Torbay) (LD)
Many tourism industry businesses in Torbay raise concerns about the impact of Airbnb, both on safety and legality. Surely the Government should publish their long-awaited short-term let registration scheme as a matter of urgency.
Daisy Cooper
I could not agree more with my hon. Friend. I would love to see that registration programme, although we Liberal Democrats have repeatedly said that it is only the first step. Registration is something that the Airbnb-type platforms actually want, because it enables them to pinch properties from other platforms. It does not solve the problem we have of lots of additional homes being used as Airbnbs, not by young people—or, in fact, by anybody who wants to be able to rent a property in their area. It is important that local authorities have the power to strike the right balance between tourism and enabling the people they need in their local area to afford to live there.
Tim Farron
My hon. Friend makes an extremely good point. In my constituency, we have seen a collapse in the long-term private rented sector, which has pushed hundreds of people out of our communities—they are not able to contribute, to be part of the workforce, or to send their children to our schools. Surely, an answer would be the ability to create short-term lets as a separate category of planning use, just as we are calling for with second homes. That would allow councils and national parks to make sure there are enough homes for local people to live in.
Daisy Cooper
Again, I absolutely agree with my hon. Friend. I recall—as I am sure he does—that in the previous Parliament, we Liberal Democrats tabled a number of amendments to legislation introduced by the Conservatives, to try to make that happen. Unfortunately, those amendments were not accepted by the now official Opposition.
In principle, a land value tax could help address land banking. All of us in this House say that we want to build on brownfield first, but of course, part of the problem is that big developers can land bank. We Liberal Democrats have repeatedly tried to table amendments to ensure that local authorities could buy that land at land value, rather than hope value. In principle, there are some merits to at least considering a land value tax, but the devil will be in the detail. If the Government bring forward any such proposals, we will scrutinise them closely.
There are a couple of major omissions from the official Opposition’s motion, one of which—as I have already outlined—is business rates. Business rates are a property tax facing small businesses, and the business rates system is broken. We have heard repeated promises, both from the previous Government and this one, that business rates will be fixed, so it is incredibly disappointing that as yet, we have not seen an ambition to replace the business rates system. Instead, we have seen tinkering around the edges, and the Government’s proposals will potentially make business rates a little bit worse, particularly as they will target hospitality. There is another major omission: the motion should refer to giving local authorities real power to regulate the location and number of short-term lets, particularly in the south-west and Cumbria, but also in many other areas.
Sarah Dyke (Glastonbury and Somerton) (LD)
Queen Camel Community Land Trust is working to create much-needed homes in south Somerset, but it is often hampered by lack of access to finance and an outdated planning system. Does my hon. Friend agree that this Government should focus on community-led development to deliver the affordable homes that are so greatly needed—homes that communities want, and will appreciate?
Daisy Cooper
I agree. We are discussing property taxation, but of course, taxation on its own without a broader vision for property may well lead us towards the kind of fiasco we had with the jobs tax. There absolutely should be a community-led planning system, rather than the top-down planning system we had under the previous Government, and have under this one, too.
In my constituency of St Albans, Airbnbs are a real problem. A previous Conservative Housing Secretary gave approval for offices to be turned into blocks of flats, but local authorities were given no power to control how that happened. That means that many young people who get a job in my constituency cannot afford to take it up unless they live with mum and dad. They cannot even afford to rent a place, let alone get on the housing ladder. It is absolutely essential that the Government not only come forward with a registration scheme for short-term rentals, but give local authorities real power to regulate the number and location of Airbnbs, so that we can get the balance right between tourism and homes for young people and others who want to live where they work.
Royal Assent
Madam Deputy Speaker (Ms Nusrat Ghani)
I have to notify the House, in accordance with the Royal Assent Act 1967, that the King has signified his Royal Assent to the following Acts:
Universal Credit Act 2025
Armed Forces Commissioner Act 2025.
Property Taxes
(2 days, 20 hours ago)
Commons ChamberRead Hansard Text Watch Debate Read Debate Ministerial Extracts
15:05 - The House divided: - Ayes: 98 / Noes: 335 - Question accordingly negatived.
Emily Darlington (Milton Keynes Central) (Lab)
I appreciate the opportunity to speak in this debate. I want to take on the challenge set by the shadow Chancellor, the right hon. Member for Central Devon (Sir Mel Stride), so let us talk about how we got to this point, and the devastating consequences. Under the last Government, despite 27 tax rises, Government debt rose from 60% of GDP to 100.5%. They were borrowing for day-to-day spending. The shadow Chancellor talks about unfunded commitments; he knows about those, because the last Government left a £22 billion black hole of unfunded commitments. He says he cares about property ownership, but the last Government were responsible for a 6% fall in home ownership among people aged between 25 and 34. That was on his watch. This Government are building 1.5 million new homes, including record numbers of council homes and social properties. We also have renters’ rights reform, and we are looking into mortgage reform. That is about ensuring a fair and more affordable housing mix for all.
What drove that fall in young people owning homes? We have to look to inflation, which peaked at 11.1% under the last Conservative Government, almost hitting Margaret Thatcher’s record of 17%. The Conservatives seem to be comfortable with high interest rates; in 2022, food inflation hit a 45-year high. In 2023, the UK recorded the highest inflation rate in western Europe; it was the only country to have double-digit inflation. Under this Government, we have had five interest rate cuts in only a year.
The real cost of high interest rates can be found in the number of children living in poverty. There was a 20% increase in child poverty between 2014 and 2024. Food bank demand rose by 3,772% under the Conservative Government. In 2010, approximately 2.3% of children were living in relative poverty. In 2024, the figure was 4.5%, and that is shameful. It was the biggest fall in living standards on record, but under this Government, wages are finally rising faster than prices. We have seen the results of cuts in spending, particularly on youth services, which had a 73% real-terms cut under the last Government. This Government are putting £88 million back into youth clubs. Is that what the Conservatives want to cut?
Finally, I want to talk about businesses. The shadow Chancellor said that nobody on this side of the House had experience of starting, running and growing a business. I, for one, have done that, as have many others on the Government Benches. He should get to know his colleagues before he makes those assertions.
Peter Fortune (Bromley and Biggin Hill) (Con)
After a summer of rumoured tax rises, my constituents are deeply concerned. They are already paying more, because Labour broke its promise to freeze council tax, broke its promise not to increase national insurance, and broke its promises to first-time buyers, small businesses and farmers. Thanks to the Chancellor’s anti-business policies, growth forecasts are collapsing, borrowing costs are sky-high, and our national finances are shot.
Instead of looking at its reckless decisions, Labour is now calculating the best way to raise taxes, and my constituents are worried that the Chancellor is eyeing up their family home. In Bromley and Biggin Hill, on the edge of Greater London, homes are expensive. The average house price is well over half a million pounds, and there are rumours that the Government may scrap the private residence relief, which would be devastating. It would slap my constituents with an average £33,000 tax bill when they sell their family home. If someone has scrimped and saved, and been lucky enough to see the value of their home go up, they should not be handed a punitive tax bill. It only serves to knock working people back down when they are trying to get ahead.
Mr Louie French (Old Bexley and Sidcup) (Con)
Residents in Bromley, like those in Bexley, have been hit by the Mayor of London’s 77% increase in his share of council tax since he took office, alongside various driving taxes. Does my hon. Friend agree that this increase in property taxes would be the straw that broke the camel’s back for many residents?
Peter Fortune
I agree that the Mayor of London, Sadiq Khan, is causing residents in Bromley and Bexley real financial hardship. However, I in no way believe that this will be the final straw—the final way that the Mayor of London can find to damage my constituents and those of my hon. Friend. I am sure that he has plenty more straws, and a lot more camel to lay them on.
As I was saying, scrapping private residence relief would be irresponsible and economically ruinous. Imagine if somebody bought a house in Bromley in 2010 for £350,000. Today, it would cost somewhere in the region of £550,000. If they wanted to move to a new area for work or to be closer to family, without that relief, the tax bill would be somewhere in the region of £50,000. That eye-watering bill would stop people moving and wreck the housing market. That is why I urge others to support the motion, which rules out any further reckless tax rises. Working people cannot afford to keep bailing out Labour.
Mark Ferguson (Gateshead Central and Whickham) (Lab)
It is wonderful to be back for another Opposition day debate, as I am sure we can all agree. It is another debate about imagined proposals. It must be a difficult time for Opposition Members, because for so many years, this was the time of year when they were preparing for their conference and for the Budget, but this year, scant attention will be paid to them—and, of course, they are not writing the Budget anymore.
Mark Ferguson
Indeed. Thank God the Conservatives are not writing the Budget, because we have seen what their Budgets led to. I understand Opposition Members’ frustration. It is nice to see that they have settled into the most comfortable aspect of being in opposition. As I have said before in these debates, as a Labour party member of many years’ standing, I have a huge amount of experience of the comfort of opposition; you start to create straw men, talk about what the Government might be doing and your fears, rile your supporters, and spark up a bit of concern among them. However, the Opposition are not willing to set out their actual plans for the country. [Interruption.] An hon. Friend makes a good point: they do not have any.
All the Opposition parties—again, this is the nature of the easy early years of opposition—want the benefits that result from our difficult choices, but they are unwilling to say how they would pay for them. I am sick and tired of listening to the never-never from those on the Opposition Benches. They are confident and comfortable with the imaginarium of the Budget that they believe will happen, but they are unwilling to come up with real, meaningful proposals—incapable of doing so, perhaps.
Proposals floated by the Conservatives include cutting maternity pay, means-testing the state pension and attacking the minimum wage. We know the impact of a Conservative Budget: the grotesque chaos caused by Liz Truss and Kwasi Kwarteng. I would call that Budget a bombshell, but bombshells go off only once, and that bombshell is going off in homes and communities across this country every single day. Families on mortgage rates that were fixed for five years or longer would have had lower interest rates now if it had not been for that Budget. Despite the five admirable and welcome interest rate cuts made under this Government, those families will be paying hundreds or thousands of pounds more a year.
Opposition Members express concern today for those in valuable homes. Many of those in valuable homes will understandably have significant mortgages, and many of them will have seen their mortgages go up by hundreds or thousands of pounds, thanks to the actions of the previous Government—actions that Opposition Members were cheerleading at the time. We are all still living with the results of those actions. That is not imaginary; that is the real consequences of their Government, and it is what we are trying to put behind us.
Gregory Stafford (Farnham and Bordon) (Con)
The Treasury has been flying more kites than we saw at the end of “Mary Poppins” in the papers over the last few weeks, but if they are genuine, the Chancellor is preparing the most destructive raid on homeowners in living memory. Families across my constituency are bracing themselves for new taxes on homes worth more than £500,000, capital gains tax on family houses, a revaluation of council tax, and even a land value tax. This is not reform; this is a sledgehammer aimed squarely at aspiration, mobility and stability, and once again it is the south and the south-east that will be punished the most. In Farnham, where the average house price now exceeds £608,000 with the price of detached homes at nearly £900,000, families could face annual bills of nearly £5,000 on top of mortgages, council tax and energy costs. In Haslemere, Liphook and Bordon, households will not be spared; these levies will strip thousands from budgets already stretched to the limit. And what of pensioners and downsizers in Grayshott, Churt, Bramshott, Tilford, or Frensham? They will face the grotesque prospect of capital gains tax on their primary residences.
Peter Fortune
My hon. Friend talks of pensioners. Does he agree that this is an extra pressure on them, following all the concern that was caused to them by the cut in winter fuel payments?
Gregory Stafford
My hon. Friend is entirely right. Once again, the Government are showing that they do not understand and do not value pensioners and the sacrifice that they have made. Everyone—pensioners, farmers and business owners—is seen as a cash cow for this Government.
Tom Hayes (Bournemouth East) (Lab)
The Conservative Government raised taxes 25 times in the last Parliament. How many of those tax rises did the hon. Gentleman oppose?
Gregory Stafford
I do not want to correct the hon. Gentleman, but I was not here to oppose or support any of them. I gently remind him—I use the word “gently” because I know that the Minister loves the word “gently”, so I have used it twice now—that there was a pandemic that had to be dealt with, and that had to be funded. There was a war in Ukraine, and dealing with that had to be funded. As we have gone back in history a bit, let me add that we also had to deal with the deficit that the last Labour Government left us. That is the reality of the situation.
Gregory Stafford
No, I will not. I have already given way a couple of times.
This is a tax on the family home, and it will hit hardest those who have worked hard, saved responsibly, and played by the rules. Let us be clear: this is not simply a question of numbers on a balance sheet. It is about whether families can stay in the communities where they raised their children, whether pensioners can pass on their homes, and whether young people will ever see the ladder of opportunity come down again. A capital gains tax on main homes will trap people in their properties, create a locked-in market, and dry up the supply of homes. Transactions will slow, chains will break, and first-time buyers—the very people whom Labour claims to champion—will be shut out even further.
The Government have tried to defend this agenda by talking about “fairness”, but there is nothing fair about a pensioner in Greatham being forced to sell his or her family home to pay the taxman. There is nothing fair about young families in Lindford choosing between childcare and a new annual property levy, and there is nothing fair about placing the heaviest burden on one region of the country simply because the value of its housing stock is higher. In truth, this is a south and south-east tax dressed up as national fairness; and it is part of a pattern.
From scrapping the pensioner fuel allowance, mentioned by my hon. Friend the Member for Bromley and Biggin Hill (Peter Fortune), to threatening VAT on private schools to punitive business tax rises, every single decision seems to be about sending a political signal rather than supporting families or growing the economy. The consequences are plain to see: falling business confidence, another year of negative hiring expectations, and growing unemployment. Wasn’t the Government’s White Paper meant to be called “Get Britain Working”? All we are seeing is Britain grinding to a halt. The Chancellor may talk of fairness, but she is stripping away the last sanctuary for working people—the roofs over their heads. Over-taxation, without clarity, will paralyse the housing market, punish my constituents, and undermine economic stability.
If you tax homes, you tax hope, and that is the surest way in which to drain ambition from our country. We should be protecting families, not forcing them to sell up. We should be supporting aspiration, not taxing it into extinction.
Louise Sandher-Jones (North East Derbyshire) (Lab)
I think the record that we, the Labour Government, had to deal with when we took over last year bears repeating. We have heard theories propounded on the relationship between tax and growth and public spending, and we have heard that if we only lowered taxes, we would enter a glorious period of growth and even better public services, but the fact is that the impact of those theories and that ideology over the last 14 years has been clear to see. Austerity cut the engines of our economy, leaving us with public services that were not delivering for British people. Investment in our services and our country was cut, which left us at the mercy of global shocks that we were less well prepared and less well placed to withstand.
The upshot of that in my constituency has included GP waiting lists that are far too long, and bus routes disappearing from rural villages that badly need the opportunities they provide in, for instance, connecting families. We have seen NHS waiting lists increase, whether the waits are for serious surgery, dentistry or GP access. That has resulted in serious ill health issues, restricted opportunities for young people, and, throughout the constituency, a restriction of opportunity and growth for the very people who will drive growth in the economy: those who start and drive small businesses.
We have heard from Conservative Members again and again about the 1%, and they have come out fighting for that 1% very hard today. They say that they are concerned about yearly charges on people who are just starting out in life and have just bought their first homes—and yes, I would love to talk about charges that have no connection with service. I am thinking particularly of “fleecehold” and charges from estate management companies that bear no relation to the services that they provide. That is a real problem in my constituency, and I know that many of my hon. Friends have raised it repeatedly.
In Wingerworth, in my constituency, FirstPort has raised service charges repeatedly, but the charges are for services that my constituents have not received and have been imposed for very spurious reasons. I have also heard that some residents have been forced to pay for a play park when no such play park has been provided by FirstPort or any other company in the area. This means that people who are starting out—they have their mortgages, they have their homes, and they just want to get on and live their lives—are being subject to, in many cases, charges amounting to thousands of pounds each year by a company that is not delivering the services that they deserve, and the same problem is occurring elsewhere. We have heard horror stories of charges and ground rents rising exponentially. None of these problems— I think we can all agree that they are problems—were dealt with by the Conservative Government. I did not notice any particular concern being raised about them at the time. However, we will continue to fight hard for solutions on this side of the House.
Let us look at what this Labour Government have achieved since coming to office. We have seen real wages rising faster than prices for the first time for ages, and I cannot stress enough how important that is. Three million people have seen the minimum wage rise. This is exactly the sort of thing that led me to join the Labour party, and it is one of our proudest achievements. We are seeing a rise in the wages of the very poorest in society, including those under 21 who are starting out in their very first job. Let me highlight another of our massive achievements. We in the Labour party believe that taxes are what we take to ensure that we can deliver public services. Lower taxes and lower public services will not result in a rise in living standards. Yes, we have had to make some difficult decisions, but we have seen NHS waiting lists fall month after month, and I know that my constituents have already begun to feel the effects of that. Why? Because they have told me so.
Ann Davies (Caerfyrddin) (PC)
I begin by referring the House to my entry in the Register of Members’ Financial Interests.
I represent a rural, agricultural community. As we look forward to a Budget for Christmas, this Labour UK Government’s last autumn Budget remains of significant concern. The wide divide between rural Wales and Westminster was made clear as day last year when the Chancellor announced plans to restrict full inheritance tax relief from April next year to the first £1 million of combined agricultural and business property. Combining APR and BPR means that the asset value of the tools and the machinery necessary to operate a farming business are affected, as well as the agricultural land and property.
While the Government maintain that this policy will affect only about 500 estates a year and that small family farms will not be affected, the calculations of the Farmers’ Union of Wales and NFU Cymru show otherwise. When I told the Minister for Food Security and Rural Affairs that 92% of one local accountancy firm’s clients would be hit, it was totally dismissed, but now even the producers of the research used by this Government to justify their plans have conceded that working farmers are more likely to suffer under the policy than the wealthy.
Edward Morello (West Dorset) (LD)
Over half of UK farms have a net value of over £1.5 million. Farmers are already worried about the family farm tax and are now looking at the potential tax rises that the Government are floating for the upcoming Budget, including increased rates of inheritance tax and other forms of property taxes. These are our food producers, and they are writing to me to ask why they should continue to sow the seeds. Does the hon. Lady agree that farmers need a break?
Ann Davies
Absolutely, and I will come on to that in a minute. In Wales, between 75% and 90% of farmers will be affected by the policy, according to NFU Cymru and FUW.
It is clear that this Government’s APR changes will not hit tax-avoiding wealthy land hoarders. Instead, they will punish working farmers in Wales, whose income dropped by an average of 34% last year, forcing many to sell what their parents and grandparents spent lifetimes building. And it is not just farm business owners. Family Business UK estimates that the changes will cause a £15.5 million reduction in GVA in my constituency of Caerfyrddin alone, along with the loss of 282 full-time jobs.
The new inheritance tax rules will be introduced amid mounting financial pressures on our farmers, from the financial implications of bluetongue restrictions and testing requirements to the effect of Wales’s hottest summer on record on crops and pasture. Our rural businesses will also suffer, with car garages, food wholesale businesses and uPVC project businesses among those in my constituency that are hard hit by this Government’s BPR changes. All employ hundreds of my constituents.
We cannot afford to lose our rural businesses or our family farms. We cannot lose the knowledge, the heritage and the community—the work that sustains and feeds our nation. Ahead of the autumn Budget at the end of November, I call on the Government once again: please reverse these changes before it is too late. Diolch yn fawr.
Laurence Turner (Birmingham Northfield) (Lab)
It is a pleasure to be called in this debate, even if I must start by questioning the wisdom of the Opposition’s decision to bring forward today’s motion. After all, the memories and consequences of their so-called mini-Budget are still fresh—the culmination of Liz Truss’s economic policies, which the present Leader of the Opposition said were “aspirational and inspirational”. Their dreams became our constituents’ nightmares—to say nothing of the Conservatives’ failure to pass renters’ rights reform, which this Government are now putting through, or of their dreadful record on wages, which left people in my constituency with £300 a month less, after inflation, every month.
It cannot be reasonably denied—although the Conservatives have tried—that the incoming Government faced a bedevilled inheritance last July. For all the sound and fury, there is little mystery about this now. As Richard Hughes, the chair of the OBR, told the Treasury Committee:
“When we had a high-trust relationship with the Treasury those things were being well managed, and managed within the total. That system very clearly broke down… there was about £9.5 billion-worth of net pressure on Departments’ budgets, which they did not disclose…which under the law and under the Act they should have done.”
What a disgraceful set of affairs, and decisions that awaited the Government on public sector pay had been ducked and delayed until after the election.
We need to be clear about this: Conservative Ministers already knew the recommendation of the schoolteachers review body. They also knew that the recommendations of each pay review body tend to be similar. Why were those recommendations delayed, given that the pay year started not in July or even at the beginning of the pre-election period, but in April? It was because Conservative Ministers and their Departments submitted the remit letters and their evidence late.
As the Office of Manpower Economics said in its 2022 efficiency review:
“The work of the PRBs is demand led and essentially non-negotiable—departments set the remits and timetables.”
There we have it: the additional cost was always coming, and the only reason why it came seven months into an election year was because Conservative Ministers were content for it to be so delayed. Today Opposition Front Benchers claim that they would have rejected the recommendations, but not once has any Opposition Member had the courage to say how much less they would have paid nurses, paramedics, teachers, police officers and armed forces personnel in each of our constituencies.
Are any Opposition Members able to enlighten us today? No. The reality is that they want the investment that means 25,000 fewer people are on a University Hospitals Birmingham waiting list compared with last year, and which is almost doubling the free school meals entitlement in my constituency of Birmingham Northfield, but they do not support a single measure to pay for it. We should be clear in saying that strong public services create value. Businesses and working people in all our constituencies need roads, schools and hospitals that are resourced and decent.
Laurence Turner
The hon. Member tempts me to get drawn into a discussion to which, in one minute and 30 seconds, I do not have enough time to do justice. Of course we need a bin service that is fit and decent—I have spoken about that many times in this House.
What my constituents did not need were the sharpest cuts in resourcing of any unitary authority in the entire country, coupled with the sharpest increases in council tax, and those were signed off by Conservative Ministers. I have in front of me the impact assessment of the 10% council tax increase from January last year, which says:
“The decision for Ministers across Government, as No. 10 and HMT clearance will be needed, is whether to grant these increases.”
That is the legacy of the hon. Member’s party for my constituents: the highest spending cuts and the highest tax rises. The last thing they need is a return to the failed approach of the Conservatives, who deserve to be reminded of that every time they bring such a debate to this House.
Sir Ashley Fox (Bridgwater) (Con)
This Government were elected on a manifesto to increase spending by £9.5 billion. That was to be paid for through £7.3 billion of extra taxes and £3.5 billion of extra borrowing, all of which was set out in the Labour manifesto. It was a modest plan with a prudent margin—exactly the sort of plan one might expect a party in opposition to put forward to show that it can be trusted to run the public finances. Labour Members might reflect on the fact that had they implemented the plan, the British economy would be in better condition than at present.
In its first Budget, Labour increased public expenditure not by £9.5 billion, but by £70 billion. How those on the Labour Benches cheered with delight at the thought of all the extra spending: pay rises for train drivers, with no conditions; pay rises for junior doctors, with no strings; money for Great British Energy; and more money for the British Business Bank—all so the Government can invest in projects that the private sector does not think will make a return.
We all know how this story ends: Labour will use all the business acumen that the Cabinet has at its disposal to create a modern version of British Leyland. It is what Labour does best: spending other people’s money, and borrowing yet more money that other people’s children can repay. But all this extra spending and borrowing comes at a price, and the Government are now paying 5.7% interest to borrow money for 30 years. That is the highest level since 1998, and this surge in borrowing costs reflects the market’s lack of confidence in the Chancellor’s ability to manage Britain’s finances.
Oliver Ryan (Burnley) (Lab/Co-op)
Does the hon. Gentleman accept that the surge in borrowing costs actually started with Liz Truss’s mini-Budget and has not really stopped since the trajectory started?
Sir Ashley Fox
I do not accept that at all. This surge is entirely due to the Chancellor losing control of public expenditure, and the increased cost of servicing our national debt adds further pressure on the British taxpayer.
Having presented her Budget, the Chancellor said:
“We’re not going to be coming back with more tax increases, or indeed more borrowing.”
The problem is that no one believes her. The markets do not believe her, and Labour Back Benchers certainly do not believe her. They now know that they only have to threaten to rebel on any item of public expenditure and the Chancellor will cave. We saw that on the welfare reform Bill, which was brought forward to save a modest £4.5 billion. What happened? The first whiff of a rebellion, and the Bill was gutted, leaving the taxpayer to pick up the cost.
In that context, over the summer we saw briefings from the Treasury testing the water on a whole series of potential tax rises: higher rates of council tax, a land value tax, capital gains tax on family homes, lowering the thresholds for inheritance tax and an annual property levy on the family home. No wonder the Deputy Prime Minister is being so careful about which of her many homes is her primary residence.
The Chancellor is clearly desperate to raise more money. It is a cruel irony, is it not, that having invented a £22 billion black hole to justify her taxing and spending, the Chancellor now finds herself facing a black hole entirely of her own making? It is her jobs tax and other tax rises that have caused the economy to slow and unemployment to rise. Her increase in public expenditure has fuelled inflation, which has led to higher wage demands and increased benefit costs.
Robbie Moore (Keighley and Ilkley) (Con)
That is exactly the problem. Many businesses in my constituency—and, dare I say it, in others—are saying to us as Members of Parliament that they want to but dare not invest in growing their businesses, because they do not know what increases in taxes are coming down the line from this Chancellor. Does my hon. Friend share my concern that businesses are reluctant to invest right now in the projects they want to deliver for the growth of their own enterprises?
Sir Ashley Fox
I agree. It is the threat of higher taxes that is causing the economy to stall.
Rather than reducing the size of the state so that it is affordable, the Government give every indication of wanting it to grow further. The fundamental reason that this Government need to raise taxes is that they are incapable of controlling the fiscal incompetence of their own Back Benchers. At their core, Labour MPs genuinely believe that the state can spend our constituents’ money better than they can spend it themselves. They do not believe in thrift or self-reliance, and they see no limit on the size of the state.
Opposition Members know that it is businessmen and businesswomen across Britain who create wealth and growth. Success is the result of hard work, taking risks, satisfying customers and employing neighbours. The Government should provide the environment for those businesses to thrive, rather than threatening every part of the economy with higher taxes.
Luke Murphy (Basingstoke) (Lab)
As my hon. Friend the Member for Gateshead Central and Whickham (Mark Ferguson) pointed out, the motion we are debating is based purely on media speculation. It also conveniently overlooks the Conservatives’ own disastrous record. Let us not forget that it was the Conservatives who presided over 14 years of failure, during which the very foundations of our economy rotted away. It was on their watch that taxes were increased 25 times in the last Parliament and the costs of mortgages soared, crippling family finances across the country.
We have heard Conservative Members talk about covid, and Russia and Ukraine—and some even seem to acknowledge the travesty that was Liz Truss. However, a 2021 report from the cross-party Treasury Committee highlighted that the OBR had been warning since 2011 about an “unsustainable” fiscal trajectory in the public finances, although the Government failed to engage with that fact. Who was the Chair of the Treasury Committee making that shrewd analysis? It was of course the current shadow Chancellor. Before we got to Russia, covid and the disaster of Liz Truss, the Conservatives had already been mismanaging our economy.
Now the Conservatives come to this House to complain about a Budget that has not even been written, offering no credible economic plan of their own and continuing to make unfunded promises. This Labour Government took immediate emergency action to stabilise our economy, and made difficult but absolutely necessary decisions. We are already seeing the early signs of promise: wages are now rising faster than prices; we have had five interest rate cuts, bringing down the cost of mortgages; and we have secured three major trade deals.
Jerome Mayhew
The hon. Member and a number of his colleagues have referred to the reduction in interest rates as the sign of a growing economy. If he even googled it, he would realise that the first explanation for the Bank of England reducing interest rates is that it is worried about a weakening economy. Does he not realise that?
Luke Murphy
The foundation for being able to cut interest rates is a stable economy, and that is exactly what the Bank of England has done.
We are putting more money directly into people’s pockets, lifting the minimum wage for 3 million workers and delivering free breakfast clubs for all primary school pupils. We are getting Britain building again by reforming the planning system to cut through red tape, bringing in hundreds of new planning officers and making a record investment of £39 billion in affordable housing. We are committed to building 1.5 million new homes, so people are not locked out of the dream of home ownership. We are correcting the mistake of successive Conservative Governments with the crucial £113 billion in extra capital investment right across the country to boost our infrastructure and catalyse high-growth sectors.
Crucially, we have had to make difficult but fair decisions on taxation—decisions that ensure that the richest and larger businesses pay more—because we urgently need to invest in the public services that the Conservatives ran into the ground. That means vital investment in our NHS, schools and other essential services that all my constituents tell me we need. It is only because of the revenue measures applied by this Government, which the Conservative party repeatedly opposed, that we are able to make that investment.
As many others have said, the Opposition parties want all the benefits of our difficult choices, but refuse to say how they would pay for them. They talk about growth, but they consistently attempt to block measures to get our country building and they have been holding our economy back for far too long. As the Prime Minister and the Chancellor have said, the next phase of this Government is singularly focused on making working people better off, improving living standards across the entire country, boosting British jobs and delivering the renewal that our country desperately needs. We will not be swayed by Opposition motions based on their fantasies, or by those who offer no credible solutions themselves.
Jerome Mayhew (Broadland and Fakenham) (Con)
I have been told that we are speculating today, so I do not know whether I have to refer to my entry in the Register of Members’ Financial Interests. However, in an abundance of caution, I declare that I am a homeowner and I also have properties for rent.
The kids in Downing Street—whether in No. 11 or No. 10—think it is clever to fly kites about tax rises. We had it last year, from 4 July onwards, with briefings to the press saying there would be tax rises because of a wholly fabricated £22 billion black hole in the economy. That was fabricated as a fig leaf for tax rises that were not in the manifesto. From July to October, those stories dripped in one after the other—and what was the impact? It has been the collapse in business confidence to pandemic levels, the collapse in consumer confidence as a result, and unemployment beginning its inexorable rise month after month for every single month that this Government have been in office.
Now the Government are at it again. They have not realised their past terrible mistake, and they are doing it once more. Despite raising taxes by £40 billion last October and increasing borrowing by another £32 billion, they have created a genuine black hole, which the National Institute of Economic and Social Research suggests means that about £51 billion is required in higher taxes or lower spending. The briefings have started again—a property levy on mansions, the replacement of stamp duty with a national property tax, national insurance contributions on rental income and capital gains tax on primary residences with a value of more than £1.5 million. Even Which? magazine has said there may be changes to the in-life gifting regime to reduce inheritance tax.
Sir Ashley Fox
Does my hon. Friend accept that speculation about all those new additional taxes causes more uncertainty, which itself causes the economy to slow further?
Jerome Mayhew
My hon. Friend is absolutely right. Do the Government not recognise that posturing from the Government Benches does not come for free? Construction activity has had a bigger fall recently than in the last five years due to the leaks from No. 10 and No. 11. The commercial property sector is in recession. There are hiring freezes and staff are being laid off. People are losing their jobs because of the Government’s kite flying. Residential property prices had a surprise fall last year.
We are asked to believe that growth is the No. 1 priority of this Government. They say they are going to build 1.5 million houses during this Parliament. Merely saying that does not make it true, when their policies serve to do exactly the opposite. If Members do not believe me, look at the markets—they are not politicians. Look at the 30-year gilts that the Government are paying today. Government debt is now running at 5.73%. That is the highest rate this century. The markets think that further tax increases will damage growth. That means they will damage the fiscal environment in the future. We will have less tax in the future because of the tax-raising decisions the Government are apparently going to take in November. Labour is planning, literally, to rob Peter to pay Paul. This is no way to run an economy.
As someone much more famous than me once said, the problem with socialism is that you eventually run out of other people’s money. Stop now. Stop before it is too late to avoid a vicious debt spiral. I fear—I genuinely fear this—that the Government will be forced to cut spending. They have two options: they can be forced to do so by the markets in a chaotic fiscal event, or they can take the responsibility of government seriously and take the difficult but necessary decisions on spending that the country needs them to take as a responsible Government. Otherwise, they will be swept away by their own incompetence.
Dr Jeevun Sandher (Loughborough) (Lab)
I rise to speak against the motion on tax. I welcome the Chief Secretary to the Treasury, my hon. Friend the Member for Ealing North (James Murray), and his well-deserved promotion.
We all know that if we share in growth, we make the country more prosperous and we make it stronger. Tax, of course, helps to pay for the investment that makes us all more prosperous. Under the previous Government, we did not invest in our country and we saw a weaker nation as a result: the highest energy bills in the G7; the worst waiting lists ever seen in this nation; and the worst transport infrastructure in western Europe. That is what this Government are fixing and that is what we are doing with the taxes we have raised.
The Opposition motion speaks of property taxes—this from the party that dashed the dream of home ownership for my generation. Some 40% of those under 30 live with mum and dad. Young people living in big cities pay 40% of their income on rent, unable to save for a house because of the amount they are paying in housing costs. That is precisely the kind of thing we are fixing when we invest to build social housing—£40 billion-worth. But of course, all that needs to be paid for and that is exactly what we do with the taxes we raise. That is why we are proud of the country we are building, where every single one of us is better off.
Crucially, the taxes we raise follow three principles: that they are progressive, raising more from those on higher incomes than from those on middle and low incomes; that they are growth enhancing, both in the way that they are applied and in the investment they pay for; and that we can implement them easily. Those are the three principles that our taxes faced in the autumn: closing a non-dom loophole for those at the top of society; asking the largest businesses to pay more, so we can reduce our waiting lists; and increasing the taxes on second homes, so we can build homes for every single person in this nation. The revenue raised from those who can most afford it makes each one of us better off—that is what this Government are about.
The Opposition want to leave us with a nation where we are weaker: where we do not invest in our collective prosperity, as they did not for the last 14 years; and where we see, instead of a nation that is united and sharing in our prosperity, one that is divided. A house that is divided against itself cannot stand and a nation that is as divided as ours will not stand. It is for us to invest in every corner of this country, so that every person can benefit. That is exactly what we are doing in our economic programme and that is exactly the kind of investment we are paying for through our taxes.
We build a stronger nation when each of us shares in our prosperity, and we help to achieve that through our tax system when we invest to get wages rising, waiting lists down and energy bills down—a stronger nation where each of us is doing better, raising living standards that for too long have been far too low, helping people to be able to afford a home, helping them to raise a family, helping them to pay their bills without having to worry about their overdraft, and sharing, each of us, in our nation’s prosperity. That is what this Government are doing, that is what we are building and that is what we are proud to be a part of.
Robbie Moore (Keighley and Ilkley) (Con)
Here we are, well over a year into this new Administration, this new Labour Government, and it is clear that they have fundamentally mismanaged the economy in their first year in office. What do we see? Borrowing costs up, growth flatlining, taxes rising and businesses being absolutely hammered. To fix this mess to the tune of £50 billion—who knows what it might be—Labour is now threatening to hike taxes on anyone they have not already squeezed into submission.
It is clear that the Labour Government are coming after people’s property. It was not enough for them to legislate to compulsorily purchase people’s gardens and homes by giving local authorities and Natural England more power through the Planning and Infrastructure Bill, and to acquire them not at market value, but at a disregarded value relating to agricultural property value if they are a farm. If the Government do not manage to grab it, they certainly intend to tax it.
As if that tax on people’s homes or gardens was not bad enough, Labour is also coming after people’s businesses. Through the changes to inheritance tax relief, agricultural property relief and business property relief, the Government have destroyed one of the sole business environments that our communities and businesses rely on—the ability to pass an asset on to the next generation and for them to earn an income from it. Across my constituency, soft furniture makers such as Fibreline, brewers, farmers, hotels and those involved in the hospitality sector have all actively taken the decision to slow the amount of investment they are willing to put in to grow their own businesses. Why? Because of the threats coming out of the Labour Government’s previous Budget in October last year and the Budget coming down the line.
Jerome Mayhew
My hon. Friend is making a powerful speech. He mentions the hospitality sector. Does he recognise the Government’s cruel decision to reduce the business rates discount for the hospitality sector from 75% to 40%? It does not sound too bad, but it is actually a tax increase of 140% on the struggling hospitality sector. What impact does he think that has on future investment plans?
Robbie Moore
My hon. Friend makes a valid point. Many of our family businesses, whether in the hospitality sector or in other sectors, are actively withholding a level of investment in their businesses which they want to grow and thrive. I have spoken to many farming businesses and many family businesses in my constituency who have worked out what their BPR or their APR liability is likely to be over a 10-year plan, and are therefore holding the level of investment back, because they may have to give it to the Chancellor and not invest it for the future growth of their business. That is not good for the health of the communities and businesses we represent.
Then there is council tax, with the looming threat of council tax revaluations potentially coming down the line, raising the council tax liability on many constituents, with properties potentially moving into higher tax bands. Bradford residents, who include those in Keighley, Ilkley, Silsden and the Worth valley, have already had our council tax raised by 10%. This threat is being added by the Labour Government when council tax is increasing. And then there is the cut to business rates relief, which is impacting many of our businesses.
With the threat of a revaluation process coming down the line, I want to raise the case of the Valuation Office Agency. Just this morning, I spoke to the Rock family, who have developed Providence Park in Keighley, with a huge amount of public funding going into the project. Despite the project completing its construction phase in April, they are now being told that despite an application being submitted, the valuation office is not even progressing with providing the business rate liability. It will therefore be more difficult for the Rock family to let those business premises. What is the Minister doing right now to put pressure on the valuation office to get a grip, pull its finger out and get those rates looked at, not just for Providence Park, but for the many businesses up and down the country that are struggling to get understanding from the valuation office?
This debate is about property taxes. We know that the Government have indicated that they are going to come for property owners in the Budget that is coming down the line—they indicated it in the previous Budget through the changes they made to inheritance tax. The Government must change course for the health and the good of the economic prosperity of our country.
Amanda Martin (Portsmouth North) (Lab)
Like my family and friends and the people of my city, I saw at first hand the economic failures and harms done to the people of this country under 14 years of the previous Government—harm to our council services, armed forces and public services, the special educational needs and disabilities system, NHS waiting lists, rents and mortgage costs, wages, prison place numbers, police numbers and safety on our streets. It was 14 years of made-up unfunded promises and commitments—14 years in which the previous Government gave up on Pompey, on Britain and on everyone in it, leaving us as a Government to clear up their mess. Fourteen years cannot be cleaned up overnight—it takes time—but, Madam Deputy Speaker, cleaning it up we are.
I welcome the investment in my constituency, including £13.8 billion for flood defences to protect our homes; £2.2 billion for the defence sector, which will protect jobs in my city and provide greater opportunities for our small and medium-sized enterprises; £4.8 million for better buses, allowing better transport; £2.7 million on fixing potholes to repair the crumbling streets we live on and stop the damage being done to our vehicles; £2.3 million for upgrading schools and college buildings so that our young people have a safe environment to learn; £1.9 million in additional SEND funding to start the process of patching up the mess, which the previous Government said was a lose-lose situation; and £1.2 million in additional funding for temporary accommodation to house some of the most desperate families in my city. We are seeing investment into solar panels on public buildings to reduce costs and protect the environment, safer streets programmes in North End and Cosham, in addition to named police officers, as well as free school meals and breakfast clubs to support pupils.
Robbie Moore
I just want to pick up on the hon. Lady’s point about free school meals, because these meals are not free. I spoke with a school in my constituency just last week that has been mandated to provide these so-called free school meals. However, the meals are having to come out of the school’s own budget. Can we change the narrative associated with the rhetoric that this Labour Government are putting out?
Amanda Martin
As a former teacher, I say no. I will continue with the term free school meals.
We are also seeing breakfast clubs to support pupils and families at the start of every day, additional nursery allocations to help working parents with the crazy cost of childcare, and investment in our NHS. All of those measures are the result of having a Labour Government and two Labour MPs in Portsmouth. I could go on, because that is just the tip of the iceberg of the investment and initiatives that are very much needed by the people of my city. This is reality, not imagination, speculation or politicking—not, in the words of the motion today, “considering”, but action.
None of that would have been possible without the decisions of this Government. Some, I admit, have been difficult, and some have been very necessary, such as placing the burden of tax on the very wealthiest, with private jet tax up 50%, stamp duty on second homes, changes to inheritance tax on big landowners, the scrapping of non-dom status, the ending of offshore trusts to stop inheritance tax avoidance, and VAT on private schools. Does the Minister agree that the investments like those in Portsmouth North are possible only because of the decisions and actions we have taken to raise revenue?
Those decisions, Madam Deputy Speaker, were repeatedly opposed by the Opposition. In bringing this debate, which is—in the words of Willy Wonka—one of “pure imagination”, they appear not to be considering an alternative, but to be going back to the status quo of 14 years of cuts and damage to Britain. This debate has been full of amnesia and sloping shoulders, with no regret and not one apology. It is a debate set to talk Britain and its people down—a debate ignoring the most positive things this Government have brought to the people of my city and this country.
Madam Deputy Speaker (Ms Nusrat Ghani)
For the final contribution from the Back Benches, I call Melanie Ward.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
Here we are, with another Opposition day debate and another tedious motion from the Conservatives that completely ignores the catastrophic economic inheritance they left for this Labour Government coming into power. Their decision to put Liz Truss into Downing Street is something they will never quite live down. It really does stick in the craw to be lectured on sound economic management by them. We have had some fine examples of that today, with the hon. Member for Bridgwater (Sir Ashley Fox) stating his belief that speculation about future measures damages the economy. Why, then, have the Conservatives today put down a motion that is entirely about speculation? It makes no sense, even on their own terms.
In government, the Conservatives did untold economic damage to the UK’s public finances, and the Chancellor is right to prioritise investment in our infrastructure and public services while ensuring sound economic management. The Conservatives talk of wanting to put more money in people’s pockets, yet they presided over the worst pay growth of any Government for a century. Had the Conservatives—and, we must not forget, the Liberal Democrats for a while—grown wages between 2010 and 2024 at the same pace as the previous Labour Government, the average worker would be £117 a week better off. [Interruption.] Opposition Members may heckle, but that is real money that could be in my constituents’ pockets which is not because of what their Government did.
It is this Labour Government who are putting money back in people’s pockets. Our increase to the national minimum wage means that wages are rising faster than prices, and 8,000 low-paid Fifers this year received a pay rise, including thousands in my constituency of Cowdenbeath and Kirkcaldy. Let us not forget that the Leader of the Opposition said that the minimum wage is a burden and that maternity pay is excessive. It is the Labour Government’s stewardship of the economy that means interest rates have fallen five times and average mortgages are now £1,000 a year less than when the Conservatives were in power. Again, that is real money in the pockets of my constituents. My constituents know that it is this Labour Government and this Labour Chancellor who have prioritised Kirkcaldy for multimillion-pound regeneration funding as part of the growth mission fund, beginning the transformation of our town centre, which was neglected for a decade and a half by the Tories, and for almost two decades by their enablers in the Scottish National party.
The old cliché that to govern is to choose is correct. All politics is about choice, and the difference between this Labour Government and the Opposition is that we have chosen to invest in our communities, in our public services and in increasing economic activity and wages, after they failed to do so under five Prime Ministers and seven Chancellors.
Madam Deputy Speaker (Ms Nusrat Ghani)
We now come to the wind-ups. I call the shadow Secretary of State.
Sir James Cleverly (Braintree) (Con)
Before I get into my speech, I genuinely welcome the Exchequer Secretary to the Treasury, the hon. Member for Chipping Barnet (Dan Tomlinson), to the Treasury Bench and to his position in the Treasury. I give the House due notice that I do not intend to take interventions; the hon. Gentleman will have a tough enough job defending the indefensible as it is, and I do not want to curtail his time any more than I strictly have to.
The Labour party loves tax, and that has been on display in the Chamber this afternoon. When given the opportunity, Labour has been very critical of us. It is only fair to say that in government we did put up taxes more than we would have wanted. However, I do not remember Labour Members criticising our expenditure when we were supporting businesses and individuals through furlough; I do not remember them criticising our decisions to support people with their fuel bills in response to Russia’s brutal invasion of Ukraine. Labour likes the spending when it comes.
A number of Government Members stood up and criticised us for putting up taxes—a bold move, bearing in mind that that is exactly what they are going to do later on this year. If I am wrong in my estimation, if I have been unfair, or if I have mis-categorised the heart and soul of those on the Government Benches, I will break the rule that I made just a moment ago and take an intervention from any Government Member who is willing to stand up and say that they want to see taxes coming down—I thought not.
Sir James Cleverly
No, I will not give way. The hon. Member had his chance.
This is the point: the Government love putting up taxes. We in the Conservative party put up taxes when we had to; this Government put up taxes at every chance they get. And the reason they put up taxes whenever they get the chance to do so is that they think taxes are not a necessary evil, but a good in and of itself. That is at the heart of the problem. The fact that gilt markets, bond markets, businesses and individuals know in their heart of hearts that taxes will go up under this Government has produced the stagnation and the stifling that Labour Members are criticising.
I was about to say that we have had a number of good contributions from both sides of the House, but that is being generous. The simple fact of the matter is that a key indicator of confidence in a Government is the cost of borrowing, and, currently, that is at a multi-decade high. As we have said, it has not been higher this century; it is trending in the wrong direction. The Bank of England, when setting interest rates, made it clear that it is concerned about the trajectory—specifically the trajectory on property taxes. Those on the Treasury Bench say that they do not want to speculate on what might be in the Budget later this year. They did not want this House to investigate what they claim to be speculation. They probably should not have spent so much time briefing the media over the summer. They cannot have it both ways. We are asking legitimate questions of the Government, because the markets and the country are worried about what is happening and we want to allay their fears.
Sir James Cleverly
No, I will not give way.
Let me just say this: if we are to address the slowing of the housing market, we should make sure—[Interruption.] I say “we”, but Labour is in government now and it should therefore make sure that it does nothing to stagnate the market further. Speculation is rife that there will be a £14,000 tax bill on average for UK households, a £23,000 tax bill for those in the south-east, and potentially an average tax bill of £33,000 for property transactions. That is the Government’s fault. They have the opportunity to put that speculation to bed and they choose not to do so. Despite the fact that they are now in government, they do not seem to have learned the lesson that when they speak—whether it be on or off the record—markets move. That is why speculation among those on the Government Benches is so damaging and so dangerous. They are causing economic problems because of their kite flying. We have given them an opportunity to put one of those pieces of speculation to bed and they have failed to do so. In that failure, the mask has slipped—they want to put up taxes. They love putting up taxes and they are going to put up taxes.
The Exchequer Secretary to the Treasury (Dan Tomlinson)
I thank the shadow Secretary of State for Housing, Communities and Local Government for bringing the debate to a close for the Opposition and for the welcome that he has given me as I move down to the Front Bench. I also thank my right hon. Friend the Chief Secretary to the Treasury for his speech and congratulate him on his promotion to Cabinet. He was a fantastic Exchequer Secretary, and I will do my best to carry out the role with the same diligence and effectiveness.
I also wish to put on record that, although I may be standing at the Dispatch Box for the first time, my respect for this place and for the Members on both sides of this House and on all Benches will remain. The Commons, after all, is the heart of our democracy. The importance of Ministers being held to account and of MPs voting and debating on big issues—and on Opposition Day debates—and, crucially, of the public being able to hold us all to account will never diminish in my mind. I look forward to continuing to work constructively with Members from all parts of the House as we discuss and debate the important and very interesting topic of tax policy.
Under the leadership of the Chancellor and the Prime Minister, this Government are turning the page on 14 years of economic mismanagement. We must and we will put an end to the years of sluggish economic growth and squeezed living standards—issues that have typified the past two decades. We must turn this country around and build an economy that works for everyone.
Ben Coleman (Chelsea and Fulham) (Lab)
I welcome my hon. Friend to his new position, which is hugely well deserved. This motion gives the impression that the Conservatives care about homeowners and renters, but does he agree that it is Labour who are giving homeowners greater powers and protections through leasehold reform, giving renters stability so that they can stay in their homes for longer, and building 1.5 million more homes to tackle the terrible housing legacy of the previous Government? They did too little and we are sorting it out.
Dan Tomlinson
I thank my hon. Friend for that very kind intervention. I agree with every word that he said.
The subject of today’s debate is, of course, taxes and which taxes may or may not change in the future. Let me be clear: I will not be writing the Budget today or any day in this role. That is a job for the Chancellor. Just as she delivered a Budget that fixed the foundations for the country last year, I am confident that the Budget this year will showcase the right choices for the country for the long-term health of public and family finances.
Property taxes make a significant contribution to the public finances, raising more than £75 billion a year. That is crucial for funding our schools, our NHS, our emergency services and our armed forces and for filling in potholes too. They help to provide a broad tax base, which underpins good fiscal policy. I know that that is not something to which the previous Government gave much thought. They were happy, it seemed, to run our economy and public finances into the ground, leaving us with a £22 billion black hole, which we of course had to fill.
We believe in a tax system that is fair and sustainable and that supports economic growth. At the autumn Budget in 2024, my right hon. Friend the Chancellor took a number of decisions to raise taxes on the wealthy to help fix our public finances and support public services such as the NHS and education. These tax changes included: abolishing the non-domicile tax status; raising the rates of capital gains tax; limiting inheritance tax reliefs; and increasing air passenger duty for private jets. Thanks to the work of my predecessor and the great work of HMRC officials, whom I am looking forward to working with, we are also increasing work to make sure that the wealthy pay their fair share of the tax that they owe. These changes and others that we have made demonstrate the fundamental truth of politics in 2025.
Graham Stuart
I congratulate the hon. Gentleman on his appointment. In the Labour manifesto on which he will remember he stood along with his colleagues, it was suggested that there would be tax rises under a Labour Government. I think the figure was £7 billion. In the event, £40 billion-worth of rises came forward in the autumn. Will he commit the Government to being more transparent in future in preparing the markets for tax rises, and, indeed, the people who have to pay them?
Dan Tomlinson
I thank the right hon. Member for his intervention. I would ask him if I could whether he could identify £40 billion of spending cuts, if he wants to have £40 billion of tax cuts. I do not want to see NHS waiting lists grow in my constituency, in his constituency, or in any of the constituencies that we all have the privilege of representing.
The tax changes that have been introduced demonstrate the fundamental truth of politics in 2025. The bedrock of this Labour Government is fiscal responsibility, while the cornerstone of the Conservatives’ economic plans is fiscal fantasy. It is simply incredible that they have opposed every single one of the tax increases that we have put forward. Willing the ends without having any of the means is coming to define the economic policy of the Conservatives. Frankly, it should concern us all how unserious they have become. As my hon. Friend the Member for Gateshead Central and Whickham (Mark Ferguson) said, it is clear that the Conservatives are enjoying the comfort and ease of opposition. Long may that continue.
I must say, it is surprising that the Conservatives would wish to raise the subject of property, given their abysmal record in that area. There can be no doubt that a big part of the mandate that this Government were given was to build more homes. The public had grown weary of years of sluggish growth, and over-budget projects that were first stalled, and then delayed. The public needed change; they needed us to build for this country’s future, and that is what we are setting about doing.
From infrastructure to planning reforms, which I have been championing for the last year, and our mission to build 1.5 million new homes. The Government have put housing at the heart of our approach, which will create jobs and opportunities for those who build the homes, and give families and individuals the opportunity to call somewhere home. As I said when I gave my maiden speech from a few rows back, housing is central to my politics. The aspiration of everyday families up and down this country is to have a home to call their own, maybe with a garden and a spot to park their car, in a community supported by public services that work. People do not want the world delivered to them on a plate by Government. They just want a good life for themselves and those they love. Building more housing and improving public services are essential ingredients of meeting their aspirations.
I have made many notes on all the fantastic contributions from Members on both sides of the House, but I can see that Madam Deputy Speaker thinks that it is almost time for me to conclude, and I am sure that the Opposition Whip thinks so. [Interruption.] Ah, it turns out that there is more time, so I shall begin with my hon. Friend the Member for Milton Keynes Central (Emily Darlington), who made a powerful intervention about the success of Milton Keynes city council, and the importance of this Government investing in public services.
The hon. Member for Bromley and Biggin Hill (Peter Fortune) gave a powerful example of house prices in his constituency, showing how prices have surged in this city—I know that, as I represent a north London seat—but that is why we must build more homes. I hope that he will support all the planning reforms going through this House, and the reforms that will come soon, because we need them to bring down house prices and improve the living standards of people in this country.
The hon. Member for Farnham and Bordon (Gregory Stafford) made an interesting and thoughtful intervention about support for pensioners, but he should talk to the shadow Chancellor, the right hon. Member for Central Devon (Sir Mel Stride), who has said that the triple lock is unsustainable—a view with which the Government do not agree. I would like to give a pleasant mention to my hon. Friends the Members for North East Derbyshire (Louise Sandher-Jones), and for Loughborough (Dr Sandher). I congratulate them on their marriage over the summer. It is fantastic to see them both contribute to the debate, and they both bring so much to the Labour Benches.
My hon. Friend the Member for Birmingham Northfield (Laurence Turner) had a very good line on Liz Truss. He said that her dreams became our constituents’ nightmares, which is very true. We know it, and I think the Conservatives do, too. I will certainly be stealing that line for future contributions in this House.
To conclude, as the new Exchequer Secretary to the Treasury, I look forward to returning to this Chamber and to Committee corridor on many occasions to discuss tax policy. The people of this country work hard for everything that they earn. They deserve an efficient and fair tax system, whether that tax relates to property or other areas, and for Governments to spend every penny of public money wisely. That is why everything we do is underpinned by fiscal stability, our sticking to our rules, and our managing the public finances well in this uncertain world. We do not turn to more borrowing, as Liz Truss did or the hon. Member for Clacton (Nigel Farage) would, but put economic stability at the heart of all we do. That is the foundation for what really matters: higher growth for higher living standards in every part of the country. That is what this Government are working every day to deliver.
We are working to lift the crushing burden of the cost of living crisis, to back those who want to invest in the future of this country, and to give as many people as possible a home that they can call their own. That is the future that I fought for on the Back Benches, and that is the future that this Government can and will deliver.
Question put.
Hospitality Sector
(2 days, 20 hours ago)
Commons ChamberRead Hansard Text Watch Debate Read Debate Ministerial Extracts
18:58 - The House divided: - Ayes: 158 / Noes: 334 - Question accordingly negatived.
Madam Deputy Speaker (Ms Nusrat Ghani)
We now come to the second Opposition Day motion. I inform the House that Mr Speaker has not selected any amendments. I call the shadow Secretary of State to move the motion.
Andrew Griffith (Arundel and South Downs) (Con)
I beg to move,
That this House regrets the combination of catastrophic choices made by the Government causing the closure, downsizing and lack of hiring by pubs, restaurants, hotels and hospitality businesses across the United Kingdom, with an estimated 84,000 job losses over the last 12 months and an average of two site closures per day in the first half of 2025; further regrets the Government’s policies that have led to this such as the omission of the hospitality sector from the Government’s industrial strategy, increases in the cost of pavement licences, the reduction in retail, hospitality and leisure business rates relief from 75 per cent to 40 per cent for 2025-26, the increase in employers’ National Insurance contributions to 15 per cent and the lowering of the secondary threshold to £5,000, and measures in the Employment Rights Bill which will make hospitality employers liable for the behaviour of customers and others; and calls on the Government to publish a dedicated strategy for the sector, to consult with hospitality employers prior to any future changes to the National Living Wage, to amend the Employment Rights Bill to protect seasonal and flexible employment practices vital to the sectors’ contribution in providing a ladder into employment for young and often excluded groups and to introduce targeted support measures to prevent further business closures, job losses and damage to local communities.
From the great British pub to the family-run restaurant, from the small seaside bed and breakfast to world-leading hotels, hospitality businesses are the beating heart of our communities, our high streets and our economy. Yet today, under Labour, they are hurting like never before. We were promised a Government for jobs, for opportunity and for prosperity. What have we got instead? A concoction of catastrophic choices causing a lack of hiring and the closure and downsizing of pubs, restaurants, hotels and hospitality businesses across the nation; a jobs tax that goes out of its way to savage the part-time, entry-level opportunities that hospitality offers in abundance; soaring business rates; and over 300 pages of additional job-killing red tape.
Graham Stuart (Beverley and Holderness) (Con)
My hon. Friend might have been like me: the first job I ever had was as a porter, and then a barman, at the Crown and Mitre hotel in Carlisle. These are opportunities for people who are coming into the labour market for the first time or trying to get back into the labour market. The hospitality sector offers opportunity to people who otherwise have none, and that opportunity has come under devastating attack from this Government.
Andrew Griffith
My right hon. Friend is exactly right. Opportunity is a word we are going to hear again and again, because of the huge contribution that the hospitality sector makes to the economy and to getting people on the ladder of opportunity with their first job in life.
Andrew Griffith
The hon. Gentleman is trying to get his first opportunity, and I will give him that. We are going to have a good debate, and I will make some progress after this.
Mr Quigley
Does the hon. Gentleman acknowledge that, under the Tories, a pub closed every 14 hours? That was 10,000 in total, so whether it is 14 hours or 14 years, the Tory party cannot be trusted with the economy.
Andrew Griffith
All I can suggest, and I say this in all seriousness, is that the hon. Gentleman should spend a lot more time in local pubs in his constituency, because the people there will talk about the horror show that is the Employment Rights Bill. They will talk to him about the soaring business rates, the reduction in relief under this Government and the national insurance job tax—that swingeing £25 billion attack on the private economy.
Dame Caroline Dinenage (Gosport) (Con)
If we are going to exchange numbers, does my hon. Friend agree that it is shocking that over 1,000 pubs and restaurants have closed since the autumn Budget, and that 84,000 hospitality workers have lost their jobs? That is one in every 25 since the autumn Budget alone—and that was when the autumn Budget was actually in the autumn. Does he agree that that is having an impact on our high streets and the very viability of our local town centres and that it needs to stop? The Government need to stop holding our hospitality sector responsible for everything that happens in the local economy.
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. We must keep interventions short. We have close to 50 people trying to contribute today.
Andrew Griffith
My right hon. Friend makes an important point. It is about the numbers, and it is important that we should be instrumented. This is a sector that is extremely well instrumented, and groups such as UKHospitality do a great job at calling out the impact. But it is not just about the numbers, because behind every one of those numbers is a story: a family, a striver, a risk taker, an entrepreneur, a community or a high street whose life is being sucked out of it by this Government. Hospitality is where the character of our nation lives, in the welcome of a restaurant host, the laughter in a dining room and the clink of a glass, and it is the fact that that life that is being extinguished that is so tragic.
Dr Luke Evans (Hinckley and Bosworth) (Con)
One thing that is not picked up in the figures is the fact that cafés and businesses up and down Hinckley and Bosworth are having to reduce the man-hours that people are working to reduce their staffing costs because of the taxes that are being put in place. This is a real problem. Does my hon. Friend agree that we are not getting the growth that we want in this country because people are having to deal with this toxic concoction of legislation and tax?
Andrew Griffith
I do agree. My hon. Friend puts it extremely well. It has been an enormously difficult summer. The weather should have been a tailwind, but the tailwind was not significant enough to offset the headwind of the impact of that jobs tax. And who does it hit? Labour Members say that they stand up for opportunities for young people and the most vulnerable, but the change to national insurance thresholds in particular—the reduction from £9,100 to £5,000—has hit the part-time workers, the young mums trying to balance the responsibilities of family life and the young people trying to get their very first step on the ladder.
In her first Budget, the Chancellor said that she had made her choices. Well, we warned her, businesses warned her and even the Office for Budget Responsibility warned her, and what has happened? As my hon. Friend the Member for Gosport (Dame Caroline Dinenage) said, 84,000 jobs have been lost in hospitality since the Chancellor took office. That is a Wembley stadium’s-worth of livelihoods shredded by this Labour Government, affecting the most vulnerable in society, those trying to juggle other commitments and young people trying to have their first shot in the world of work. If this Government are about protecting working people, I have to say they have a very odd way of showing it. It is not just us saying this. Last month, Kate Nicholls, the chair of UKHospitality, said:
“More than half of all job losses since October occurring in hospitality is further evidence that our sector has been by far the hardest hit by the Government’s regressive tax increases.”
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
On that point, does my right hon. Friend agree with my constituent, Stephen Montgomery, who is the director of the Scottish Hospitality Group, that the very circumstances he is setting out have brought the industry to the brink, and that unless the Government start listening, it is going to go over a cliff edge?
Andrew Griffith
As it happens, I was in Edinburgh yesterday, talking to representatives of the hospitality sector and the hard-pressed tourist sector, and they made exactly the same point to me.
This is unnecessary. It did not need to be this way. And to what end? An increase in the jobs tax to fund tax cuts for Mauritians and cookery classes for illegal migrants, or to let the bloated public sector work from home another day a week? If proof were needed of where hospitality ranks in the priorities of this Government, we need look no further than the pages of their own industrial strategy, because in 160 pages of closely typed text and hundreds of thousands of words, the word “hospitality” features just three times, one of which was a typo where they misspelt the word “hospital”. Let’s be frank, their attitude to hospitality is lamentable, and the bad news just keeps coming.
No Government that understood business would ever come forward with the Employment Rights Bill. Tony Blair did not. Gordon Brown did not. It is 330 pages that prove this Government are not serious about growth. They have zero appreciation for the seasonal and flexible work that suits the workers and the hospitality and tourism businesses alike. They are conscripting pub landlords into an attack on freedom of speech with a banter ban on overheard remarks—not harassment, but remarks that somebody could construe, misdirected at them, as offensive.
Any small business owner will say that the two words they fear the most in the English language are “employment tribunal”, yet the Government want to legislate to grow even further the half a million cases that are already in the employment tribunal backlog. There is no point concocting and cooking up additional workplace rights if people cannot find a job in the first place. That is why the top five business groups in the UK—almost exceptionally—wrote an open letter saying that the impact on growth will be deeply damaging and lead to job losses and recruitment freezes. That is here right now; that is what is happening on our high streets and in our communities across this country thanks to this Government damaging the hospitality sector.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
I agree with the hon. Member on the point about employer national insurance contributions, but in the Press and Journal today—one of the august daily papers in Scotland—there are reports that highland hoteliers are struggling to recruit. The large part of the blame for that is laid at the door of Brexit, and the current immigration policy does nothing to help the highlands and islands in Scotland. There is demand for a rural visa, which is fully backed by the Federation of Small Businesses—
Madam Deputy Speaker (Caroline Nokes)
Order. I remind Members that there are 45 of you wishing to speak. Interventions must be a lot shorter. I am sure the shadow Minister has got the hon. Gentleman’s point.
Andrew Griffith
The ability of people to find work in this wonderful sector, which provides those wonderful opportunities is, yes, a function of access to the labour market, but it is also a function of an employer’s ability to take that risk on somebody—to take a chance and give them that opportunity.
I think we would all agree—occasionally we hear positive noises from those on the Government Front Bench before they are reigned into line by their own Back Benchers—that it would be far better for our nation and our out-of-control public finances if the 9 million people of working age could seize the opportunity presented by sectors like hospitality, which offers flexible working and the chance to start a career, and could join the workforce, regardless of which constituency they come from. Almost uniquely, hospitality is a sector whose contribution to our constituencies is something of which each and every one of us—all 45 of us who wish to speak today—is proud. That contribution is why Conservative Members value the sector so strongly.
Sorcha Eastwood (Lagan Valley) (Alliance)
The shadow Minister talks about the 45 people wanting to speak. My first job was in hospitality. I want my young constituents in Lagan Valley to have the same opportunity, but does he agree that with these tax increases and not giving VAT cuts, it is so difficult for our hospitality businesses?
Andrew Griffith
I absolutely agree that we have to do everything we can to help. This is about tax and employment, because one of the characteristics that hospitality, tourism and retail share is the significant amount of employment they offer, but it is also about other taxes. It is about the tax system; that is why I referred in the motion and in my opening remarks to a concoction.
Take business rates, for example. From a business perspective, they are a terrible tax; they are paid before a business has made a single pound, and they get fewer and fewer services from local government in return. When we were in government, we shielded the sector with generous reliefs and exemptions, yet one of the first acts of this Government was to more than double business rates for many in retail and hospitality. I agree with Emma McClarkin, the CEO of the British Beer and Pub Association, who says that “punishing rates and regulations” are at the heart of why so many pubs are closing.
This Government do not get business—and no wonder: there are more alumni of the Resolution Foundation in government now than there are Ministers who have ever run a business. I think many of them had their first opportunity in hospitality, but very few of them, sadly, stayed there. Business is not about numbers on some page in a policy wonk’s pamphlet. We are talking about real people who took a risk, put their capital to work, gave their time and energy, and, as a result, grew our communities and the economy—people like those running the award-winning Tottington Manor in my constituency, Chalk restaurant in Wiston, the warm and welcoming Three Moles in Selham and the innovative Kinsbrook vineyard in West Chiltington.
It is not just hospitality businesses being ravaged by these state-imposed headwinds; thousands of businesses say they are being impacted and are at risk because of these measures. We are witnessing collapse on many of our high streets, and in the Minister’s own constituency of Rhondda and Ogmore, Porth has lost its last clothes shop because of rising costs imposed by his Government.
Catherine Fookes (Monmouthshire) (Lab)
Last weekend, I attended the reopening of a wonderful pub in my constituency: the Star in Llansoy. It was one of the 10,000 pubs that shut on the Conservatives’ watch, and it has now been reopened by the community. Does the shadow Minister agree that our policies are giving businesses confidence to reopen?
Andrew Griffith
My background is in business, and I celebrate anybody who succeeds and takes a risk in business, including the hospitality venue in the hon. Lady’s constituency. One of the innovations that the previous Government pursued was the community ownership fund, which I know from personal experienced saved or helped many hospitality venues. Sadly, it has lost its way under this Government.
I will conclude my remarks to allow as many colleagues as possible to speak. Let us be crystal clear about this. [Interruption.] There is nothing funny about this debate and what is happening in hospitality right now—people are losing their jobs. We cannot tax, regulate or spend our way to growth. Every pint pulled, every plate served and every bed made grows our economy: a job provided, a supplier supported, life breathed into a community. No Government are perfect, which is why it is often best for the state to stay out of the way. Yet under Labour, this vital, valued sector is being punished, not rewarded. This Government do not protect workers by destroying the businesses that employ them. They cannot claim to lead our country while draining the very life from so many communities.
British hospitality businesses deserve better. The Conservatives will always stand with those who dare to dream, invest, build and hire. We stand for every business, big and small, that is fighting to keep its lights on. We stand for every young person desperate for their first shot at work. Above all, we stand for the growth that this country so desperately needs.
The Minister for Creative Industries, Arts and Tourism (Chris Bryant)
If I might, Madam Deputy Speaker, I will start with an apology. As I told the shadow Secretary of State for Culture, Media and Sport, the hon. Member for Droitwich and Evesham (Nigel Huddleston), last night, I am not able to be here for the end of this debate—I do apologise.
Chris Bryant
Well, I am glad that people like me being here—that is very kind. I am not going to be kind for the rest of my speech, so the shadow Business Secretary, the hon. Member for Arundel and South Downs (Andrew Griffith), should not get used to that.
What an absolute joy it is to see the shadow Business Secretary up close. He must think that amnesia has hit the whole country. I mean, he was the business adviser to Boris Johnson—and we know what expletive Boris Johnson used when referring to business, don’t we? Did the shadow Business Secretary resign as a Minister when all the others were resigning, though? Oh no, he lashed himself to the Boris Johnson mast until the very end. In February of last year, still he was calling for the return of Johnson.
But that is not all, is it? When it came to the lettuce-defying catastrophe known as the Liz Truss premiership, the shadow Business Secretary was not just a casual supporter; he was the Financial Secretary to the Treasury. He actually helped to put together that disastrous Budget. He was not just in the room when it happened, to quote “Hamilton”; he held the pen! He was Kwasi’s amanuensis; he was Truss’s handmaiden. This is a man who could not see the writing on the wall even if it were spitting out fire 50 metres high. Even when the Bank of England had been forced to act to shore up the economy following the mini-Budget, he went out to defend it.
Graham Stuart
On a point of order, Madam Deputy Speaker. I wonder whether you have any advice for those in the hospitality industry listening to the Minister, who is so afraid to deal with the issue at hand that he has to resort to this ad hominem attack on our Front-Bench colleague.
Madam Deputy Speaker (Caroline Nokes)
May I thank the right hon. Gentleman for his point of order, and perhaps encourage all Members to ensure that they stay on topic and in scope this afternoon?
Chris Bryant
They don’t like it up ’em, do they, Madam Deputy Speaker?
The shadow Business Secretary then said,
“We think they’re the right plans because those plans make our economy competitive.”
The problem with the argument that he has made today is that he has not learned a single thing since that mini-Budget. He still wants us to tax less and spend more at the same time. Yes, of course he wants to reverse the national insurance increase, but does he point to where the money should come from? No, of course he doesn’t. He likes the additional spending on the NHS, he approves of our spending on prisons, he supports more spending on policing, and he clamours for more spending on defence—and, no doubt, on trains, telecoms, universities and schools—but he does not want to pay for it, which is why it is as plain as a pikestaff that he has not changed a bit. He would re-run the Truss mini-Budget in the twinkling of an eye. It was doolally economics when Truss introduced it and it is doolally economics today. I give you, Madam Deputy Speaker, the Minister for doolally economics. Let me deal with two specific points that he made.
Chris Bryant
I will make a couple of points; then of course I will give way to the Father of the House.
The shadow Business Secretary condemned what he calls the reduction in retail hospitality and leisure business rates relief from 75% to 40% for 2025-26. Does the House note the sleight of hand there? When the Conservatives left office, they had no plans to extend the business rates relief beyond the financial year, and hospitality was facing a complete cliff edge, going from 75% relief to zero relief—so I am proud that our Chancellor introduced the 40% relief. I am also proud that the Government are creating a fairer business rates system that will protect the high street, support investment and is fit for the 21st century. The Conservatives had 14 years to do that. Did they bring in any amendment that would have improved the situation for hospitality? Nary a one.
We recognise the vital role that hospitality businesses play in driving economic growth and strengthening economic cohesion across the country. That is why from 2026-27, this Government intend to introduce permanently lower tax rates for retail, hospitality and leisure properties with rateable values of less than £500,000. That is a permanent tax cut to ensure that hospitality benefits from much-needed certainty and support.
Sir Edward Leigh
This is all good, amusing, knockabout stuff—nothing wrong with that—but will the Minister say a few words of comfort to the small family businesses that are closing all over the country and about whether, as the Minister with responsibility for hospitality, he is making representations to the Chancellor to relieve some of those small businesses from such taxes in the Budget?
Chris Bryant
I will be very straightforward with the right hon. Gentleman: of course we recognise the problems that small businesses are having—I have heard from many—and I am about to come to the issue of national insurance contributions, which I accept, of course, have provided difficulties to many different businesses. However, it is all very well everyone campaigning against the tax, but if they are not prepared to say where the billions are to come from otherwise, then they will the ends but they do not will the means.
Sarah Coombes (West Bromwich) (Lab)
Last week, saw the opening of West Bromwich’s brand-new indoor market and the return of the much-loved Firkins bakery. People were queuing from 7 am for the famous lemon iced buns that Firkins has sold for many years. Does the Minister agree that food and hospitality are at the heart of our high streets, would he like to come to taste one of those iced buns, and does he agree that that is what we can achieve when Labour Governments work with Labour councils and communities?
Chris Bryant
I am more of a Chelsea bun person than an iced bun person, but my hon. Friend makes a good point: there are businesses up and down the country opening anew and afresh. Far from such businesses dismissing the opportunity of having a national health service that works more effectively, a rail service that works effectively and a secure set of working rights for people; they welcome that provision, and they want people to have a proper wage when in work because they know that motivates their staff better.
Chris Vince (Harlow) (Lab/Co-op)
Talking of businesses opening, in my constituency of Harlow we have just welcomed a new branch of IKEA. It is the first business in my constituency that has spoken to me about the Employment Rights Bill; it is really excited about it and wants us to hurry up and get on with it—[Interruption.] It is no wonder that IKEA employees across the country are very happy in their jobs, are loyal to their jobs and like working for that company.
Chris Bryant
I agree. I note that an awful lot of Conservative MPs are saying, “Oh, they’re Swedish”, as if foreign investment in the UK were a bad idea. [Interruption.] Yes, that is what they were doing—they can furrow their brows as much as they want.
The shadow Secretary of State pointed to the increases in employer national insurance contributions. Yes, of course the Government have taken a number of difficult but necessary decisions on tax, welfare and spending to fix the public finances, to fund public services and to restore economic stability after the situation that we inherited from the previous Administration, but I have to point out to the hon. Gentleman—because he does not seem to understand the facts—that the hospitality sector is made up predominantly of smaller businesses, and we took decisive steps to protect the smallest businesses from the impact of the increase in employer national insurance by increasing the employment allowance from £5,000 to £10,500. That means that 865,000 employers will pay no employer national insurance contributions at all this year and that more than half of all employers will either gain or see no change. Employers will be able to employ up to four full-time workers on the national living wage without paying a penny of employer national insurance contributions.
Mr Quigley
Unlike most, if not all, of the Conservative Members listed on the Order Paper as supporters of the motion, my wife and I own two successful hospitality businesses. We welcome the increase in national insurance contributions and the improvements in workers’ rights because they are good for our employees, our businesses and our customers. Does the Minister agree that the Tories only know how to race to the bottom and not how to give workers a leg up?
Chris Bryant
I passionately support what we have done about the national minimum wage. I remember when we had to sit through the night in this Chamber to ensure that the national minimum wage was introduced in the first place; incidentally, I remember that the Liberal Democrats voted against that, as well as the Conservatives. We want people who work for a decent number of hours every week to be able to put food on the table, pay a mortgage and give their children the opportunities in life that they may not have been able to achieve. That is why it is important that in this sector, perhaps above all other sectors, we ensure that people are properly paid.
Saqib Bhatti (Meriden and Solihull East) (Con)
UKHospitality says:
“At a time when the country needs jobs, the Government should be encouraging hospitality to grow and create jobs, not tax them out of existence.”
Is it right or wrong?
Chris Bryant
We are not taxing them out of existence, as I have tried to explain to the hon. Gentleman. He is another one of those people who is awfully nice when you meet him in the bar—[Interruption.] The shadow Secretary of State is saying that that sounds terrible, but he was saying earlier that every single pint that is pulled represents an increase to the economy, so the hon. Member for Meriden and Solihull East (Saqib Bhatti) helped out. The point that I am trying to make—not very well—is that it is impossible to simply say, “We are not going to tax,” and still want to see the same level of expenditure. That is what got us into the trouble in the Truss Budget, and for family finances that meant—
Mike Wood (Kingswinford and South Staffordshire) (Con)
On that point, will the Minister give way?
Chris Bryant
I will not give way again. That meant that mortgage rates rose faster than they have ever risen in our history, which made it almost impossible for people to survive economically.
Sir Julian Lewis (New Forest East) (Con)
The Minister is an entirely charming chap and a great entertainer—I worry that his Equity card might be getting out of date. He praises the changes that have been made to the employment conditions of bar staff, for example, but does he really think that it is a good idea to have them policing the comments of people who use public houses, when it takes as many as five members of the constabulary to arrest a comedian over inappropriate tweets?
Chris Bryant
The right hon. Gentleman makes a perfectly legitimate point. No, of course I do not want that. I want the police officers in my constituency to be policing the streets, as my right hon. Friend the Secretary of State for Health and Social Care said this morning, not policing tweets or private conversations between individuals—[Interruption.] I have made my point. The police in my constituency, where, incidentally, we lost large numbers of police officers during the time that the Conservative Government were in office, are hard pressed enough to deal with the problems they have without trying to take on ludicrous and preposterous elements as well.
My biggest complaint about the speech made by the hon. Member for Arundel and South Downs is that he is so determined to do down the Government that he ends up dragging down the sector as well. The honest truth is that the UK hospitality sector is absolutely amazing. Whether it is the Lake district, the night life in Manchester and London, the gastropubs in the Cotswolds, the movie locations up and down the land, the Royal Oaks, the White Harts, the Red Lions, the Prospect of Whitbys, the Moon Under Waters, the Eagle and Childs, Bamburgh castle, Chester zoo, which I loved visiting last week to feed the giraffes, the British Museum, all the V&As and the Tates, Windsor castle—the pub and the castle—Stratford-upon-Avon—
Chris Bryant
Whether it is St Mary Redcliffe, Canterbury cathedral, the O2 or the Stadium of Light, we should celebrate every single part of our hospitality industry across the whole of the UK and be proud that we are British.
Manuela Perteghella
Does the Minister agree that in Stratford-upon-Avon, hospitality is not just an industry, but the lifeblood of our visitor economy? Every pub, café or restaurant closure is a blow not only to jobs, but to our high street and our community’s sense of place.
Chris Bryant
Yes, and I would add another point to that. In Stratford-upon-Avon, as in many other parts of the United Kingdom, the hospitality industry, the tourism industry and the creative industries are intrinsically bound together. A number of people will go to the theatre, stay in a hotel, go to the Lazy Duck or one of the other pubs—apparently other pubs are available in Stratford-upon-Avon—and go to the most visited church in England, which is in Stratford-upon-Avon. It is a multifarious concoction of different industries that fit together, which is why we need to try to foster all of them so that they can all flourish together. The hon. Lady makes a very good point.
One of the arguments I have been trying to make is that as much as I love Stratford-upon-Avon—which, incidentally, is very difficult to get to by train; that is one of the things I would dearly love for us to sort out—a lot of international tourists come only to London and the south-east and perhaps to Oxford, Cambridge, Stratford and Edinburgh. I want them to see the whole diversity of the hospitality industry and the tourism sector across the whole of the United Kingdom.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Will the Minister give way?
Chris Bryant
I was looking in the direction of the right hon. Gentleman, so I think I will have to take his intervention first. I will then take an intervention from my hon. Friend.
Mr Carmichael
I think the Minister may need to add a few more island venues to his travel itinerary in the future. May I take him back to the question of tax? He is right to say that if we will a reduction in tax, we should look for a reduction in expenditure, but it does not always work like that. When we cut the rate of duty on spirits, we did it with the expectation of a loss of £600 million, but it actually brought an increase of £800 million. That can sometimes happen. For years, the UK hospitality sector has been asking for a reduced rate of VAT on its services, and that would be sector specific. It has given evidence, backed by some of the biggest consultancies in the area, that that would in fact bring an increased tax take. Will the Minister make that point to the Treasury?
Chris Bryant
At nearly every meeting that I have with any sector in my portfolio, the sector says to me, “Can we have a cut in VAT?” While people in the hospitality sector have said to me many times that they would like a cut in VAT, that is also said by people in the theatre industry and a whole series of others. These are matters for the Chancellor, not for me, as the right hon. Gentleman well knows.
The right hon. Gentleman is absolutely right about islands. We are an island nation, and we should embrace that as part of our tourism and hospitality industry across the whole of the UK. Specific challenges arise for coastal areas and islands, and I hope we will be able to address those when we come to produce our tourism strategy later this year.
I will take an intervention from my hon. Friend the Member for Stratford and Bow (Uma Kumaran), then I hope to make some progress.
Uma Kumaran
We have been talking about Stratford, but I am waiting to hear about Stratford and Bow in London, where I am really pleased that the Government are backing our bid for the 2029 world athletics championship. My constituency, like so many others, thrives when more tourists and visitors come from across the UK and overseas, but we want to see that spread across every region in the country. The Minister is developing a visitor economy growth strategy. Will he set out how it will spread tourism beyond London so that all the other regions can thrive as well?
Chris Bryant
One of the first things I did when I became the Minister was to set an ambitious target of reaching 50 million international visitors to the UK by 2030; we are at something like 43 million visitors at the moment. If we are going to get to that target of 50 million visitors, we will have to ensure that we have the mix of accommodation across the whole United Kingdom. That poses some challenges around how we deal with short-term lets to ensure that there is more of an even playing field and that coastal areas and areas that are heavily dependent on tourism do not end up being completely denuded when the tourists go away at the end of the season. We need to do more to extend the season so that it is not just the summer months. We can do a whole series of things to ensure that that happens, but this is not just about international visitors.
When an international visitor comes to the UK, they bring dollars, euros, yen or whatever it may be to the UK. That is a net gain to our economy, but I argue that when a domestic visitor decides, “You know what? I’m not going to go to Spain this year, because I know that there is so much here,” they will then stay in the UK, and that is a net gain for us as well. Frankly, there is also a climate in the summer in the UK that is rather more agreeable for human beings nowadays. We need to explore all those different elements.
My hon. Friend referred to the east end of London. Of course, quite a lot of sporting events happen in the east end of London, and sport is just as much of an intrinsic part of why people come to this country. The number of international visitors who come to the UK solely for a premiership match is very large, but the number of people who went to the theatre last year in the UK is double the number who went to a premiership match, so we need to get the whole of this sector moving as much as we possibly can. We need to make sure that there is investment in the right parts of the sector, and that that investment takes place across the whole of the United Kingdom.
Dr Luke Evans (Hinckley and Bosworth) (Con)
Will the Minister give way on that point, very quickly?
Chris Bryant
It will not be quick—I know it will not, least of all my answer—but anyway.
Chris Bryant
I am not going to do the Chancellor’s job, but we have no plans to introduce a tourism tax. Of course we are looking at different places in the country that have gone forward in different ways—Manchester, for instance, has a system that has been voluntarily agreed, and there is the situation in Scotland and in Wales, which the hon. Gentleman referred to. We want to look at how all of that progresses, but many people in the sector have made the point to me that they feel taxed enough. I do not know that we would want to add any more to that.
As I say, there is a job of work to be done on short-term lets, because it seems intrinsically unfair for somebody who is effectively providing hotel-like accommodation to not be subject to any of the same rules, or the same taxation, that a hotel—even a small hotel—would be. That is one of the areas in which we want to take forward the work that was done by the previous Government.
Chris Bryant
Every time I deal with something, another person stands up, but we have not had anybody from the SNP intervene yet.
Chris Law
Apart from my hon. Friend the Member for Moray West, Nairn and Strathspey (Graham Leadbitter). I thank the Minister for highlighting the V&A museums, one of which is in my city of Dundee, which has numerous hospitality businesses. Scotland makes a £9 billion contribution to the UK Exchequer through hospitality, and 200,000 jobs depend on it. There are consequences from the national insurance contribution rises; for example, just this year, one third of venues in Scotland have reduced their staff numbers and almost one fifth have shortened their opening hours, which means fewer jobs, less income tax and less tax from profits.
Madam Deputy Speaker (Caroline Nokes)
Order. The interventions are very long. The Minister has now taken longer than the shadow Minister did in opening the debate. I am sure he will bring his remarks to a conclusion very soon.
Chris Bryant
I have just binned that bit of the speech, Madam Deputy Speaker.
When the Government took office, the sector was already under strain. The aftermath of the pandemic and the cost of living crisis left hospitality and tourism businesses facing real difficulties. In particular, domestic tourism had struggled to get back to pre-pandemic numbers, which is still the case in many parts of the country. We inherited a very distressed sector, but we have acted quickly and decisively to stabilise it, supporting jobs and laying the foundations for growth.
We continue our work to get people into jobs, in collaboration with the Department for Work and Pensions. The sector-based work academy programmes have seen nearly 10,000 starts in hospitality over less than two years, and we have extended the destination hospitality SWAPs to 26 areas across England, which aim to specifically help jobseekers gain the skills and experience needed to enter employment in hospitality and tourism. The one area in which I agree with the shadow Minister is that this is a unique sector in one sense: that a person can go from having no skills, no qualifications and no experience to being a skilled worker in the sector within six to nine months. That is absolutely transformational for many people, and I want to make sure that more young people in this country do not think of it just as a job, but as a career. Representatives of the sector have repeatedly told me that there is a skills shortage, particularly of people who are five or 10 years into the sector. We want more people to stay, because nearly every chief executive you meet in the sector is somebody who started on the shop floor—pulling pints, working as a barista, changing beds or something like that. For us as a Labour Government, this sector is essential to social mobility.
In July, the Government set out our plan for small businesses, which is the most comprehensive package of support for small and medium-sized businesses in a generation and will be transformational for the sector. We are slashing red tape to overhaul planning and licensing rules, making it quicker and easier for new cafés, bars and music venues to open in place of disused shops, and we are increasing access to finance for entrepreneurs through a massive £4 billion finance boost. We are ending the scourge of late payments, which cost the UK economy £11 billion annually and close 38 businesses daily. That is another issue that is repeatedly raised with me.
We are not complacent at all about the sector. We want to get 50 million international visitors to the UK by 2030. As was mentioned earlier, we are preparing to publish a visitor economy growth strategy later this year. It will set out how the UK can capitalise on global opportunities, increase investments and strengthen the long-term resilience of the sector.
The hospitality and tourism sectors are the beating heart of our towns, cities and rural economies, as the hon. Member for Arundel and South Downs (Andrew Griffith) said. They are vital to our high streets. They provide jobs and skills for young people, entry routes into work for those who might otherwise be excluded from work, and vital social spaces that bind our communities together. This Government will continue to back them with action, not rhetoric. Finally, I encourage every single Member of the House to find a business in the sector—not in their constituency, but in somebody else’s—that they can boost this weekend.
Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Sarah Olney (Richmond Park) (LD)
The economic landscape is extremely difficult for many businesses and industries, and hospitality is one of the sectors facing the most acute challenges. Pubs, restaurants, cafés and hotels are dealing with huge pressures—unfair taxes, soaring energy bills, skills shortages, and a broken business rates system. The Labour Government have had more than a year to address these issues, but instead of throwing businesses a lifeline, their policies have only made it harder for businesses to keep their head above water. Changes to employers’ national insurance, the reduction in business rates relief and the absence of any meaningful action to bring down commercial energy prices are all factors contributing to job losses, business closures and stagnant economic growth.
Although this Government’s decisions have made things worse, business sentiment certainly was not rosy during the last Parliament. Years of dire economic mismanagement by the previous Government forced business owners to make cuts, hike prices and work longer hours. Even though we Liberal Democrats are supportive of today’s motion, we feel obliged to point out that the Conservative Government’s chaotic approach caused so many of these problems, including soaring energy costs, a staffing crisis, and the vast increase in regulation and red tape brought about by their dismal Brexit negotiations.
According to UKHospitality, the measures in last year’s autumn Budget delivered a hit to the sector worth a cumulative extra £3.4 billion annually. Meanwhile, data from the Office for National Statistics shows that the hospitality sector has shed nearly 70,000 jobs since last October. That works out as an astounding 3.2% of all jobs in the sector, and it is 266% higher than the number of jobs lost in the overall economy. Those figures lay bare the slow dismantling of the hospitality sector as a direct result of this Government’s policies. A recent survey conducted by UKHospitality found that since the autumn Budget, a third of hospitality businesses are now operating at a loss, with 60% cutting jobs, 75% having increased prices, and two thirds reducing staff hours. These cuts are a last-ditch attempt by businesses just to stay afloat as they cry out for support. Small businesses are the beating heart of our economy.
John Milne (Horsham) (LD)
This morning I received a letter from Kelly Mariner, the manager of an independent coffee shop in my constituency of Horsham. She said:
“Since the last Budget I have been unable to hire new staff and cannot grow my business. I am spending every day doing the job I love in front of the customers, but it means I can’t develop or follow up new ideas. Paperwork is a juggling act and I spend very little time with my family.”
She asked to meet me. Does my hon. Friend agree that meeting those in the hospitality industry is exactly what the Chancellor needs to do before digging her budgetary hole any deeper?
Sarah Olney
My hon. Friend gives a striking example of exactly what I was saying about the pressures faced by the hospitality sector. He is absolutely right that the Chancellor needs to hear these calls from the hospitality sector as she puts together her Budget, which we now expect at the end of November.
Small businesses are the beating heart of our economy. They are at the centre of our local communities, and they create the jobs we all rely on. We are glad that raising the employment allowance will shield the very smallest employers, but thousands of local businesses, including many in the hospitality sector, will still feel the damaging impact of the national insurance increase. My Liberal Democrat colleagues and I have voted against the Government’s misguided jobs tax at every opportunity, and I once again urge them to scrap these measures, but I also press the Minister to at least spare our treasured pubs, restaurants, café and hotels by exempting the hospitality sector from this tax rise. Whether they were aware of it or not, the Government’s decision to raise the rate of national insurance contributions while reducing the salary threshold at which it is levied has significantly increased the cost of employing part-time workers, delivering a disproportionately large blow to the hospitality sector.
Monica Harding (Esher and Walton) (LD)
The Minister has talked about social mobility. Does my hon. Friend agree that when a company cuts hours, it is those who work part time—some of the most disadvantaged members of society—who lose out, and lose their jobs?
Sarah Olney
My hon. Friend is exactly right. That is why this jobs tax has been so damaging, not just to the hospitality sector but to the many people who rely on the sector for flexible work that can fit in with their caring demands or other issues that they are experiencing.
Dr Andrew Murrison (South West Wiltshire) (Con)
The hon. Lady is trotting out a whole load of helpful suggestions, of which the hospitality Minister is no doubt taking careful note for the time when he makes his representations—which he said he would not be making—to the Chancellor. Does the hon. Lady agree that he could also make recommendations to the Deputy Prime Minister, especially in relation to the Unemployment Bill, that would have no particular cost attached? I am thinking of the “banter ban”, which even the Equality and Human Rights Commission has said is absolutely bonkers, and is likely to make hospitality venues even less attractive to those who need to use them.
Sarah Olney
I thank the right hon. Gentleman for his intervention, but I entirely disagree with him about the banter ban. The Liberal Democrats agree with the concerns expressed in the motion about the challenges facing the hospitality sector, but we do not agree with the part of the motion that expresses regret about measures in the Employment Rights Bill on workplace harassment, which we do not believe have been accurately represented. As is clear from what has been said by my hon. Friend the Member for Torbay (Steve Darling) and the significant work done on this issue by my hon. Friend the Member for Bath (Wera Hobhouse), we welcome the introduction of reasonable and workable measures to protect employees from harassment in their place of work.
The Government must take steps to boost the hospitality workforce, and that includes showing much more urgency in introducing a youth mobility scheme. It took nearly a year for them to listen to calls from the Liberal Democrats and others for the negotiation of a youth mobility system, and I hope that Ministers will not continue to drag their feet on an agreement that will truly benefit the hospitality sector. Changes implemented in April 2024 that increased the minimum salary threshold for skilled worker visas shrank the talent pool from which businesses can recruit, contributing to greater staff shortages, and in a 2024 survey of nearly 1,700 employers from a range of sectors, including hospitality, almost 40% of employers with hard-to-fill vacancies said that a reduction in the availability of overseas talent was one of the main causes of staffing issues. At a time when so many businesses are considering whether they can remain viable, we must give hospitality businesses the tools they need to grow and help boost the wider economy, and access to global talent is part of that. I therefore ask the Minister once again whether the Government will finally set out a timeline for the introduction of a youth mobility scheme.
We also need serious action from the Government on boosting the domestic workforce by supercharging apprenticeships and investing in skills and retraining opportunities. Can the Minister assure the House that Skills England will function as a properly independent body, with employee rights at its heart?
Businesses across the country continue to struggle with sky-high energy costs, and I recognise that the recent industrial strategy provided some welcome measures on that front, particularly for the manufacturing sector, but as the motion points out, there was very little in the strategy to help support hospitality firms with their soaring energy bills. Liberal Democrats have long campaigned for energy market reform, which would include reducing our reliance on expensive fossil fuel imports by investing in home-grown renewable energy. In recent months we have set out a plan to cut energy bills by half within 10 years by breaking the link between gas prices and electricity costs, so that households and businesses can see the benefits of cheap, clean power in lower energy bills.
Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)
May I intervene, please?
Mr MacDonald
It is difficult to get a word in. [Laughter.] I am married; I know about these things.
I have 100 staff members in the hospitality industry in the highlands, and I can say that all is not well in hospitality by any means. Those who are not on mains gas are paying for electricity, by and large, and we are paying four times as much for energy as people in the city. Moreover, we in Scotland do not receive the same business rates relief as the rest of the UK. [Interruption.] I thank my Scottish National party friends, who are sitting next to me. Our staffing costs, including employers’ national insurance contributions, have increased by 12.4%. So we have real problems, and I must say to the Minister that all is not well.
Sarah Olney
Well, I think I thank my hon. Friend for his intervention. He is, of course, absolutely right about the cost of energy and the difficulties that it presents for businesses up and down the country. His point about Scotland in particular is well made. Will the Minister consider the proposals put forward in our plan, which could help to truly ease the burden not just on the hospitality sector, but people across the country?
Finally, I turn to business rates. Today’s motion rightly reflects many of the economic mistakes made by this Government. However, it is important to highlight that it was the last Conservative Government who broke their manifesto promise to reform business rates, leaving small businesses trapped in an outdated and unfair system. Of course, the current Government have also pledged to replace the system, with no action taken thus far. The Liberal Democrats will continue to hold Ministers accountable for their pledge, because there is a need for a fundamental overhaul of the unfair business rates system. It penalises manufacturers when they invest to become more productive and energy efficient; it leaves pubs and restaurants with disproportionally high tax bills; and it puts our high-street businesses at an unfair disadvantage, compared with online retail giants. In too many places, pubs, restaurants and shops are being forced to close, taking with them jobs, opportunities and treasured community spaces.
More broadly, the outdated tax system inhibits business investment, job creation and economic growth, holding back our national economy. These problems have persisted for too long, and it is high time the Government took action. Our proposals for fair reform would cut tax bills, breathe new life into local economies and spur growth. Equally importantly, they would provide long-term certainty for businesses, which in today’s commercial environment is needed more than ever.
The value of our hospitality sector goes beyond economics. Pubs, restaurants and cafés are the beating hearts of our towns; they brighten our high streets and bring our communities together. The economic landscape created by the last Government did so much to damage them, and this Government continue to push many to the brink of collapse. I hope today that Ministers will listen to the Liberal Democrats’ calls and reverse the jobs tax, bring forward plans for business rate reforms, and seriously consider our plans to cut energy bills for people and hospitality firms across the country.
Madam Deputy Speaker (Caroline Nokes)
There is now a five-minute time limit.
Olivia Bailey (Reading West and Mid Berkshire) (Lab)
Over recess, I had the pleasure of visiting more than 20 fantastic small businesses in my constituency during my small business summer roadshow. My aim was to promote these businesses and hear what I can do to help them thrive. I visited a large number of hospitality businesses, including Nino’s in Pangbourne, the Avenue Deli in Calcot, Bradley’s Café and the Street Food Shack in Theale, Mortimer Café, Dee Caf on the Dee estate, Blackbird Café in Chapel Row, The Pantry in Yattendon, the Swan pub in East Ilsley and the Mad Duck in Purley. These wonderful businesses do not just serve amazing food and drink; they are at the heart of our community, providing places for people to be together—places where members of our community can look out for each other. I thank every single one of them for everything that they do.
From all the conversations I have had, I know how hard it can be to run a business. Owners face many costs, and can struggle to afford advertising or access finance, and there are high business rates and endless red tape. I am glad that the Government’s recently published small business strategy starts to address this. We are transforming business rates, introducing permanently lower multipliers for hospitality, cutting red tape and admin costs, expanding access to start-up loans and other finance, simplifying licensing, and establishing hospitality and night-time economy zones. For the many pubs and independent breweries in my constituency, we have also cut duty on draught products and are consulting on improving access for guest beers.
I thank the Conservative party for providing the opportunity for this debate, but I gently say to hon. Members that they have conveniently ignored the contribution that their 14 years in government made to the challenges they outline. Yes, this Government have had to make some tough choices in order to fix our public services, but it is the Conservative party that left our public services on their knees. It left a huge hole in the public finances and oversaw skyrocketing inflation, mortgage rate chaos and higher energy bills for everybody, including our businesses. It was on the Conservatives’ watch that families stopped being able to afford a meal out, because the Conservatives caused an unprecedented fall in living standards. It was on their watch that businesses had zero stability and certainty to plan for the future, because they went through Prime Ministers so fast that it felt like each one was a daily special.
Sean Woodcock (Banbury) (Lab)
We have heard a lot from opposition parties about the taxes they are not happy to see go up, but we have heard very little about the spending or investment that they would cut as a result of taxes going down. Does my hon. Friend not agree with me that this is a case of opposition parties having their Banbury cake and eating it?
Olivia Bailey
I entirely agree with my hon. Friend, and I thank him for his intervention.
This Government are cleaning up the mess that the Conservative party made, fixing the foundations of our economy by restoring stability and presiding over rate cut after rate cut. We are supporting people with the cost of living through measures such as expanding free childcare, tackling the antisocial behaviour and shoplifting that plague our high streets, and transforming the apprenticeships and skills system to train up young people and get them into secure jobs.
For Conservative Members to pretend that they presided over some sort of golden age of hospitality is simply farcical. Over 6,000 pubs and bars closed on their watch, with many high streets becoming nothing more than rows of shuttered shops. Yes, we have made some difficult decisions to get our public services back on track, and I firmly believe that that is the right thing to do for our country, and to step out of the black hole the Tories left us in. However, we are also focusing on positive measures to support our local hospitality businesses, rather than waxing lyrical when it is simply too late. For the businesses I met over the summer, actions speak louder than words, and that is the difference between this Labour Government and the Opposition.
Charlie Dewhirst (Bridlington and The Wolds) (Con)
The hospitality industry is often the unsung hero of our local communities. We often do not appreciate it enough and we take it for granted. It is everywhere: it is in every village and every town, and in every corner of our constituencies. This opportunity to debate the importance of the hospitality industry is extremely timely given the challenges it is facing.
As my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) said, the hospitality industry offers many people the first opportunity to get into a first job. It offers opportunity for those who want flexible working, and it offers opportunity for career progression for those who wish to move into management and maybe aspire to own their own hospitality business one day.
As the proud representative of Bridlington and The Wolds, hospitality is vital to my constituency. I represent two seaside towns—Bridlington and Hornsea—and a huge rural inland area, all of which is reliant on the hospitality industry that is part of the tourism we so enjoy. Five million visitors come to Bridlington alone every year, all of whom enjoy hospitality of some sort in the pubs and the cafés, with the fish and chips and the ice creams. All of these businesses are under serious pressure. We have heard about the 84,000 job losses across the sector nationally, and the pressures felt by individual businesses from the rise in national insurance contributions, the Employment Rights Bill and other measures taken by the Chancellor in her first Budget.
One particular area on which I want to concentrate—it was raised by the right hon. Member for Orkney and Shetland (Mr Carmichael)—is the serious issue of VAT, particularly on the pub and restaurant sector. I was told by a local landlord of a very successful pub in my constituency that he has 500 covers a week, and still struggles to make a profit, because although he is buying food without VAT, he has to charge it to the customer. That puts a serious squeeze on his ability to achieve a profit, even though he is running a successful business. Of the 500 people who come in for a meal every week, the Government is taking the first 100 covers.
VAT is quite a hit on such businesses, and I think the Minister should make more significant representations to the Chancellor on that specific point. I know he says he is approached by every sector about VAT, but it seems to be a particularly acute problem for pubs and restaurants.
Joe Robertson (Isle of Wight East) (Con)
My hon. Friend referred to the Minister’s representations to the Chancellor, but I think the Minister said he was not going to make any representations to the Chancellor.
Charlie Dewhirst
It is not for me to say whether the Minister will or will not, but he should do so, and he should be shouting much more loudly on behalf of the hospitality sector.
Chris Bryant
I am always happy to make representations to the Chancellor on lots of different things, but I have no intention of sharing them with the House.
Charlie Dewhirst
There we go. Let us hope the Chancellor listens this time.
Another point, which was raised by my hon. Friend the Member for Hinckley and Bosworth (Dr Evans), was on the tourism tax in Wales. This has caused significant concern in my coastal communities of Bridlington, Hornsea and the other coastal villages. As the Minister said, the tourism industry is already heavily taxed and people are already feeling the pressure. We certainly do not want to see any sort of tourism tax expanded from Wales into the wider United Kingdom.
It really is not possible for these businesses to continue in the current climate. As we have heard, over a third are unable to make a profit in the hospitality industry and yet our local pubs are the lifeblood of our communities. They are so important. We saw that during covid, when we were not able to go to the pub and the impact that had on communities for people to be able to mix, particularly those who live alone whose social contact is perhaps limited to visiting friends for a pint after work in the evening.
Dr Neil Hudson (Epping Forest) (Con)
My hon. Friend is rightly articulating that hospitality businesses are the lifeblood of our communities. Epping Forest has fantastic local pubs, such as the Theydon Oak, the Forest Gate Inn and the Bull, and fantastic restaurants such as Mila and the India Grill in Loughton. They are all really suffering under the punitive taxation regime from the Labour Government—the jobs tax and the business rates rises. Does he agree that everything they are doing is damaging our local communities?
Charlie Dewhirst
Absolutely. As I say, hospitality is the lifeblood of our local community and we should be doing more to look at this as a special case, because it really, really is damaging when we see pubs close. When a village loses a pub, it loses part of its heart and soul. We absolutely need to protect these businesses. They want to make money, but they are not out there trying to fleece their customers. They want to make a living; they do not want to make millions out of what they are doing. Our landlords and landladies are a fantastic part of our communities, so we should be doing more to support them.
The Chancellor, when we eventually get to our Christmas Budget, has a chance to say to our hospitality businesses across the country that we do value them, that we do accept there are pressures that have been created by the rise in national insurance contributions, that there are pressures through the Employment Rights Bill, that there are pressures they already have through the existing VAT rate and that we want to help.
Now, I know the Chancellor says, “Where are you going to cut money, if you take money away from those particular taxes?” I say, let us be inventive. Let us have a look at what we value. This is not about service delivery; this is about whether, if we reduce taxes, we might, as we have heard, get more take from the overall tax bill. If more people are going into pubs, restaurants and cafes and spending more money because it is more affordable to do so, the Treasury might actually end up with more money. I ask the Minister to use this opportunity. Please do make representations. He does not have to make them public, but please shout loudly for our hospitality industry.
Tom Hayes (Bournemouth East) (Lab)
Bournemouth relies heavily on hospitality and tourism. In my constituency alone, hospitality generates £162.8 million in revenue and employs 3,700 people across more than 30 venues. The sector creates vibrant communities, accessible jobs and attracts investment. Take Kris Gumbrell, the CEO of Brewhouse and Kitchen. He chairs an industry apprenticeship programme and has invested over £3 million to revive a derelict pub in Southbourne, creating a community hub and over 40 new jobs. Take Emma Sclanders of Wild & Ginger or Ricky Knowlton of Syds Slaps, who the new the Chief Secretary to the Prime Minister, my right hon. Friend for Bristol North West (Darren Jones), was so happy to visit just a few short months ago. Take James Fowler of the Larder House, Jon Roberts of Little Perth or Rich Slater of Sobo Beach. The list really does go on.
In Bournemouth East, we are blessed with fantastic hospitality owners. That is because, as entrepreneurs, they are investing time, money and personal risk to create jobs and community hubs. They shoulder costs and were often overlooked in policy discussions over the past 14 years. They want, as do we on the Labour Benches, balanced and targeted support for businesses to ensure that their efforts are being supported.
Hospitality matters so much because it is woven into everyday life. Whether it is coffee with friends, football at the stadium, a drink down the pub, date nights or quick bites before events, the hospitality sector provides so many of the events that we find so meaningful in our personal lives. They are a critical community space and social infrastructure that bring us together, and create belonging to each other and to the places we live in. And by God, over the last 14 years have we not seen our social infrastructure attacked and decimated?
We need to support our hospitality sector, and that is especially important for Government Members who represent coastal communities. Labour now represents more coastal communities than at any time since 1997, after nearly half the coastal seats in England and Wales were won from the Conservatives in 2024—that is no wonder when I hear my constituents talk about how Bournemouth has been left behind and how coastal communities have been forgotten. Labour is committed to putting that right, which means supporting our hospitality and tourism sectors.
Fred Thomas (Plymouth Moor View) (Lab)
I thank my hon. Friend for his passionate argument for the hospitality sector in our coastal communities. Plymouth has some of the best pubs in England, and I am convinced that beer tastes better in pubs in Plymouth than in any other place in the UK. I have a question for my hon. Friend: does he not think it is important to acknowledge that the previous Conservative Government’s catastrophic mismanagement of the hospitality sector during covid is still wreaking havoc?
Tom Hayes
I am astonished that nobody raised a point of order there. Of course Plymouth does not have the best beer in the country; Bournemouth East does. If not Bournemouth East, I am sure that many other constituencies would claim to, too. However, I agree with my hon. Friend that the hospitality sector has endured difficulty time and again, whether during the pandemic, the cost of living crisis or the previous Government’s reckless disregard for the sector’s needs, and so Labour needs to fix the foundations of the hospitality sector. We need to support our economy by stabilising it and, in so doing, supporting our hospitality businesses.
Coastal communities like Plymouth and Bournemouth have faced significant challenges, whether it be worse health outcomes, lower life expectancy, poorer education, lower pay or higher deprivation. We need to support our coastal communities, particularly given that they are so heavily reliant on tourism and industries that have struggled over recent years, such as hospitality. According to the Office for National Statistics, coastal communities have a higher proportion of hospitality businesses than inland areas. The hospitality sector in our coastal communities can therefore be a powerful economic driver at a time when we are desperate to raise productivity from its sluggish levels and grow our economy.
Jess Brown-Fuller (Chichester) (LD)
The hon. Gentleman is absolutely right to reflect the importance of coastal communities in driving the Government’s growth agenda. My constituency has the coastal community of Bracklesham, a small village where the Beach Café, Rewild Sauna and GOAT Coffee are doing incredible things in all coming together to bring so much more tourism to what is a beautiful part of my constituency. Does the hon. Gentleman recognise that there is a quid pro quo with businesses that are trying to drive growth, but are being hamstrung by the Government’s increased taxes and business rates?
Tom Hayes
The hon. Lady raises an interesting point on behalf of her constituents and businesses. I would, of course, say that were it not for the tax rise that allowed for investment in our NHS, we would not be seeing so many hospital appointments and such dramatic falls in NHS waiting lists, and we would not then be seeing people who were once ill returning to the workforce, so that they can earn, work and contribute to our economy, and then help our hospitality sector.
Mr Angus MacDonald
Would the hon. Gentleman admit that what actually happened in the Budget was a transfer of 2% of GDP from the private sector to the public sector? That private sector is, to a significant extent, the hospitality sector.
Tom Hayes
I thank the hon. Gentleman for his intervention, although I do not recognise what he is saying. I hope he is welcoming the NHS investment that his constituency is receiving, as well as the free breakfast clubs, place-based nurseries, stimulation of his local economy, improved pothole filling and improved connectivity. If he wishes to stand up and say that, I would be happy to give way to him again.
Euan Stainbank
Does my hon. Friend agree that the constituents of the hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) will have the opportunity to welcome those measures if Scotland votes next year for a Scottish Labour Government?
Tom Hayes
I think my hon. Friend has said enough—and I welcome what he has said.
I also want to recognise the difficult financial inheritance of this Government: how they needed to raise money to fix the foundations, to invest in our public services, and to deliver the change that people were calling out for during the general election and long before. All of us on the Government Benches, and I hope on the Opposition Benches too, are hearing from our constituents about the green shoots of recovery in our NHS, about schools finally starting to get the investment that they need, about those place-based nurseries and about childcare being rolled out on a larger scale.
What I want to see from our Government is a continuation of their hard work. I welcome the fact that the empty shops rental auction is under way in Bournemouth. I welcome, too, that the Government are moving ahead with supporting the hospitality sector. I would particularly like to see the valuation office properly pay regard to the issues that need fixing and that have been stated to me in places like Boscombe. At the last valuation, which was done under the Conservatives, neighbourhoods like Boscombe saw their rates stay flat or even increase, harming independent retailers. As a Labour Member who wants to support hospitality, I would like to see that corrected. I would like to see proposals including the raising of the rateable value threshold for 100% relief from £15,000 to £25,000 with tapered relief, the introduction of high street survival discounts, and the simplification of the appeals process with open data and fast-track support for SMEs. Those are just some of the ideas that I am hearing from constituents. I am sure that other colleagues will have many more that they wish to share, so I shall rest there.
James Wild (North West Norfolk) (Con)
As we have heard, hospitality is a crucial part of our economy. Our pubs, restaurants, hotels and other businesses employ 3.5 million people—over 5,000 in my North West Norfolk constituency alone, contributing £136 million to my local economy—but this Government’s decisions have hammered the sector. As the owner of the Crown and Mitre pub in King’s Lynn, which I highly recommend, recently put it in the local Lynn News:
“How many rising costs can you face before collapsing face-first into the till?”
Will’s grim humour says it all. He says that costs are piling up faster than a
“bad souffle in an over-heated oven”.
But the reality is no laughing matter. When we were in Government, the Conservatives supported the sector. We boosted growth and helped it to recover from the difficult decisions that we had to make during covid. That record stands in sharp contrast to what we are seeing today. All Members will know from talking to hospitality businesses in their constituencies this summer just how worried they are about the increased costs.
When I was at the Rose and Crown in Harpley during the summer, talking to the team that reopened that pub and had pubs across Norfolk, I heard just how damaging the increase in the national insurance rate has been. The lowering of the threshold to £5,000 has also been a real challenge. That change alone has brought 750,000 workers in the sector into national insurance for the first time—and what has happened? Well, as UKHospitality’s TaxedOut campaign shows, Labour’s decisions have already cost nearly 90,000 jobs in the sector, particularly hitting younger people, part-time workers and those starting out in entry-level positions, which they can then grow into the career that the Minister said that he hoped more people would have an opportunity to do.
The jobs tax is costing the sector as a whole £3.4 billion a year. Little wonder that a third are now operating at a loss. Three quarters have had to put up their prices to cope with the increased costs that they are facing, and two thirds are reducing the hours of their existing staff, and are not taking on the people that they otherwise would have done. Little wonder, too, that UKHospitality has called the Government’s decisions a “hammer blow” for the sector.
But it is not just the jobs tax; the Government’s choice to almost halve hospitality and leisure business rates relief from 75% to 40% will hit a quarter of a million businesses. I was very surprised, as I am sure the sector would be, to hear the Minister boasting about this damaging decision, given that the average pub is paying £5,500 more and restaurants are paying £9,000 extra. How does he expect them to absorb those costs without the consequences for employment that we are seeing? Depressingly, there is even more to come. The Deputy Prime Minister’s Employment Rights Bill—or whoever picks it up after her—will add £5 billion a year to employer costs, making it less likely that firms will take on people.
Our hospitality firms are resilient, and they need to be with all they are having to weather. This Government are putting them under the cosh. With creativity, investment and the high-quality staff across the sector, hospitality firms can attract customers and support our local communities. I have seen many impressive hospitality businesses in my constituency, including ones that have newly reopened—the Ship in Brancaster, the Chequers in Thornham, the Pub in Clenchwarton, and new enterprises such as Nopa and VinedMe, which are also in Thornham—but the Government are making it far too hard for firms like those to thrive and grow. Members have the opportunity today to back our very sensible motion to back the sector, to think again about the doubling of business rates, and to amend the damaging Employment Rights Bill to protect seasonal and flexible work.
With borrowing costs at a 27-year high, hospitality businesses cannot afford for a Government to be making such damaging economic choices. Ahead of the Budget, the Chancellor and her team of tax raisers should listen to employers and take action to live within our means, otherwise more pubs, more venues and more jobs will be lost.
Andrew Lewin (Welwyn Hatfield) (Lab)
I am pleased to have the opportunity to talk about our hospitality sector and how we value and reward the people working in it, the rising confidence that business is reporting and the evolving nature of our high streets.
High streets and hospitality are changing, but sadly what has not changed is a Conservative party in opposition that wants to talk the country down. The reality, as reported by 1,200 businesses in the Lloyds business survey, is very different from the picture that the Conservatives want to paint. The survey, which is in its 15th year, last week reported that the overall business confidence index, which combines firms’ trading expectations and economic optimism, rose for a fourth consecutive month in August, reaching its highest level since late 2015. Let me set that out plainly: business confidence under this Labour Chancellor is higher than it was at any point under any of the last six Conservative Chancellors who occupied No. 11 Downing Street.
Matt Rodda (Reading Central) (Lab)
My hon. Friend is making an excellent point. Does he agree that confidence of consumers is also rising, with a number of cuts to interest rates, a rise in the minimum wage and many other benefits for working families?
Andrew Lewin
I do agree. I have spoken to constituents on two-year fixed-rate mortgages who were being hammered two years ago by Liz Truss and are now paying hundreds of pounds less per month because we are getting a grip on the economy.
Sixty-two per cent of firms plan to increase headcount over the next 12 months, and confidence in retailers surveyed rose by 13 points to 57%, also marking a five-month high. This is all welcome news, but I am far from complacent. Of course there are real challenges for some hospitality firms. I turn now to how the Government are seeking to address them and why it matters to my constituents.
A fitting place to start is the people who work in the sector. The average age is 35. Our shops, restaurants, pubs, cafés and cinemas are powered by younger people. When I bought my last suit at the Galleria in Hatfield, I received much-needed sartorial advice from an employee younger than me. [Interruption.] I will go back again for my next suit! When I pop into a Simmons branch for a coffee, it is invariably a younger person who serves me—as it is when I head in for a pint in one of the fantastic pubs in our two towns or the villages.
People working in hospitality are just as deserving of rights and protections in the workplace as anyone else. That is why it is so important that the Employment Rights Bill brings forward day one protections at work. It introduces protection from unfair dismissal, bans exploitative zero-hours contracts and strengthens statutory sick pay.
Earlier this year, the Labour Government increased the national living wage by 6.7% to £12.21 an hour—an increase comfortably above inflation that was welcomed by millions of workers, though seemingly not by the Conservative party. The Conservatives’ motion seems to cast doubt on the role of the Low Pay Commission, and sadly they have refused to welcome the pay rise we gave to the country last year. If any of them wants to say thank us for the minimum wage rise, I will happily give way.
On business rates, the Conservatives left the Treasury with no funded commitment to continue with the retail, hospitality and leisure relief, as the Minister set out powerfully in his opening remarks. It is right that this Government stepped in to make the 40% reduction in rates permanent, giving confidence and security to business owners. I hope we can go even further in future.
I know how much civic pride people have in their town centres. Although we will not return to the high streets of the 1990s, there is real demand in towns for variety: shops, places to eat, entertainment and events. A mixture of permanence, such as our iconic John Lewis store in Welwyn Garden City, and the events that the business improvement district puts on in our town every year, such as the world food festival, which draws thousands of local people and tourists from across the world.
This is a Government who have listened to business, strengthened the rights of workers and given millions of lower earners a pay rise. Sentiment is improving and confidence is rising. Let us not talk down our hospitality sector; let us champion it and seize the opportunities that are in front of us.
Brian Mathew (Melksham and Devizes) (LD)
As the Member for Melksham and Devizes, I represent many rural villages and communities, a number of which I visited over recess. I have long been struck by the importance of the village pub as a hub of community—a place for good conversation and friendly banter, and for connecting with friends and neighbours, which is in fact vital for good mental health. Indeed, while on my summer tour of the constituency, I hosted a drop-in session in the lovely village of Urchfont, outside the Lamb, a friendly community public house.
In communities such as the one I represent, transport links and broadband connectivity can, on occasion, leave much to be desired, creating in their wake a sense of isolation and loneliness, especially for those working at home, raising children or trying to enjoy their well-earned retirement. In such instances, a feeling of community, of knowing one’s neighbours and of having someone to talk to becomes so important. In rural villages, it is often the pub that makes that possible. We have all heard the headline statistics—the closure of 1,100 pubs and restaurants since the tax on jobs was introduced in last autumn’s Budget, leaving 84,000 people out of work, with two pubs shutting every day—yet those statistics do not show the whole impact, with landlords and bar staff often putting in superhuman efforts to try to keep their businesses afloat.
I recently met my constituent Hannah, who runs the Swan at Enford. She came to talk to me about the increasing pressures that her business has faced since the Budget. In addition to diversifying her business, including by running a butcher’s shop, the Swan plays a vital and diverse role in the community, running a monthly “hub in the pub” event and helping with the yearly village fête and fireworks night. However, the costs on the business have risen exponentially since the Budget. The cut to hospitality relief has more than doubled the business rates she must now pay, from £167 to £444 a month. That, combined with the increase in employer national insurance contributions, means that landlords like Hannah are under greater financial pressure than ever.
Given that taxes make up 40% of turnover and that £1 in every £3 goes to His Majesty’s Revenue and Customs, with just 12p made on each pint sold according to the British Beer and Pub Association, surely it is time for the Government to review the burden that they are placing on these vital hospitality businesses. If the pressures continue, we will likely see more and more villages being stripped of their pubs and community spaces; greater numbers of people will prefer to drink at home. If the Government do not act, we risk losing the time-honoured tradition of the farmer drinking shoulder to shoulder with the accountant, the builder with the postie and the vicar with the carer—in short, the bedrock of village life.
In addition to lowering the tax burden on those businesses, the Government should also look at the support they can offer to community pub schemes, through which villagers can come together to buy and run their local pub.We have already had one such success in my constituency. The Hop Pole in Limpley Stoke offers a shining example of such schemes, and I hope to see this success replicated by the Friends of the Ivy in Heddington, who I am proud to support in their effort to get their local reopened.
Matt Rodda
The hon. Gentleman is making an excellent point about the importance of pubs as the heart of our local community life, and that is the case for towns as well as for villages. Does he agree that the measures announced by the Deputy Prime Minister yesterday to support community assets will help exactly the type of pub he is describing, and would he perhaps like to offer a word of support and congratulate her on her work on this?
Brian Mathew
I thank the hon. Gentleman for his comments, but more is needed. The Minister’s Department must support these schemes and the pub trade or risk losing a vital component of rural life.
Lastly, let me make the point that profitable businesses pay taxes, but closed pubs pay no taxes.
Deirdre Costigan (Ealing Southall) (Lab)
It is interesting that the Conservatives’ motion acknowledges the important role that hospitality businesses play in offering a first step on the employment ladder to
“young and often excluded groups”.
If they care so much about young and often excluded people, I would have thought they would have backed Labour’s Employment Rights Bill, because right now in Ealing Southall, young workers and the many workers of Indian heritage in my constituency can be sacked for no reason whatsoever in their first two years in a job. These are often hard-working, qualified people but they are completely at the mercy of bad employers because the right not to be unfairly dismissed applies only after two years in a job.
There are some great hospitality businesses in Ealing Southall, including the Plough in Northfields, a Fuller’s pub I visited recently, which does a lot to train and support its staff. However, over half of employees under 30 have been with their current employer for less than two years, and 42% of black, Asian and minority ethnic employees have been with their current employer for less than two years, compared with 28% of white workers. The very young, black and Asian workers that the Conservatives claim to care about are therefore exactly the people who will be helped most by Labour’s Employment Rights Bill. In fact, it is an all-too-common trick for bad employers to sack workers just before the two years are up. The Conservatives need to explain why they think it is okay that a young worker can be sacked for no reason after 23 and a half months in the job, just so they do not get their rights.
The Conservatives’ motion also objects to Labour’s plan to end exploitative zero-hours contracts. Who do they think is most likely to be on those kinds of contracts? Oh yes! It is exactly the same young and often excluded workers, but they obviously do not care about them at all. Exploitative zero-hours contracts do not just mean that workers do not know from week to week if they will be able to afford the rent; they also put power into the hands of managers who can use the threat of people losing their hours to threaten and bully—you’ve guessed it—young, black and Asian workers, who are often the most vulnerable at work.
Sam Rushworth (Bishop Auckland) (Lab)
My hon. Friend is making an excellent speech. Small businesses in my constituency often tell me that they want to be really good employers. That is something that they take great pride in, but they get undercut by some of the bad employers. Does she agree that the Bill is good not only for the worker but for the business?
Deirdre Costigan
I absolutely agree with my hon. Friend. Labour’s Employment Rights Bill is all about levelling the playing field so that the efforts made by the great employers that we have in this country, including hospitality employers, to look after their workers can be broadened out to the whole of the industry.
The Conservatives also need to stop pretending that this change that Labour is bringing in would stop seasonal working in the hospitality sector. Stop making things up! A worker can stay on a zero-hours contract if that is what they want. Many people will choose to do that if it fits with their lives, but where there is clearly a regular job and someone has been working those hours for at least three months, they will have the right to a guarantee of those minimum hours. What is wrong with that? The Tories need to explain why they think it is okay for young and often excluded workers to remain at the beck and call of bad managers, with no control over their hours and no financial security.
Our hospitality businesses are indeed often the first step on the employment ladder, and McDonald’s in Southall is another great example of that. The Conservatives are busy trying to knock people off that ladder. With Labour’s Employment Rights Bill, we are helping workers climb up the ladder into decent, well-paid jobs that their families can thrive on.
Saqib Bhatti (Meriden and Solihull East) (Con)
I will speak about some of the hospitality businesses in my constituency, but I say to the hon. Member for Ealing Southall (Deirdre Costigan) that that was an interesting speech; I do not think much of it was based in reality, however, and I am more than happy to explain. The Employment Rights Bill will cost £5 billion by the Government’s own assessment. The businesses that will bear the costs of that will then have to make cost-cutting measures, and it is usually young people—I trust her that it might be ethnic minorities who are at the vanguard—who are at risk. They are the ones who will suffer and lose their jobs, because those businesses still have to make a profit.
I broaden my point out to the Government Benches. I listened to the opening speech by the Minister. It was sometimes an entertaining speech, especially when he took my intervention, but sitting here, I thought, “There is a fundamental misunderstanding of what it means to make a profit and how important that is to businesses.” That is literally the reason people go into business: to make a profit and generate cash. The rise in national insurance contributions—the jobs tax—and the Employment Rights Bill, which will cost £5 billion, are costs imposed by the Labour Government. They made a choice to impose that on businesses. Hospitality businesses suffering at the hands of the Labour Government are having to make tough choices, and that means seasonal workers will not be employed, or not as many of them will be. We are already seeing that.
When I quoted the chair of UKHospitality to the Minister, he denied that and said it was not happening, but the stats say something different. Over half of the jobs lost since the Budget have been lost as a result of Labour’s Budget. I have been speaking to businesses since then, including Visit Knowle, Eric Lyons and the Barn at Berryfields—these are beautiful businesses that we have. We have the National Exhibition Centre, which is a great importer of tourism and which the Minister spoke about, backed by Birmingham airport. We have the Greenwood pub, Nailcote Hall, Three Trees community centre—I could go on and on. There are huge numbers of hospitality businesses, but they are all suffering the cost of the jobs tax, which disproportionally affects them. It means that those businesses are not investing because they are having to save that money to pay the Chancellor.
Sam Rushworth
The hon. Member mentioned costs on businesses. One of those costs is the cost of sick days, which has increased by £30 billion since 2018. I visited a business recently in my constituency, and I am not going to lie: they said, “Yes, it’s a bit of a squeeze having to pay an increase in national insurance,” but then they said, “But we’re saving money on sick days because people are getting the appointments they need in the NHS.” He will know that there have been 7 million more GP appointments. Does he welcome that investment in the NHS and the fact that there were nearly 14 million fewer sick days in the last year?
Saqib Bhatti
I have a rude awakening for the hon. Member, and it is a broader point about the debate. Having listened to Government Members, and I suggest that they turn on the news and start looking at what is happening to the bond market, because we are seeing record interest rates when the Government have to borrow. Last year, all these Government Members backed the Chancellor’s fictitious black hole; now she has a real black hole that she created, which she will have to deal with. I do not know what they think will happen at the Budget, but it will either be the cuts that they opposed in the welfare Bill and other cuts that they find unpalatable, or it will be further taxes raised on working people, who they purport to defend and support. When those taxes are imposed on businesses, it will hurt either consumer sentiment or the business themselves. They will then have to make further job cuts to survive. That is the reality; everything has a consequence.
What Labour Members fail to understand is that it is absolutely essential—particularly because they talk about supporting such businesses—that they lobby the Chancellor to get a grip on the situation, instead of allowing it to balloon completely out of control as a result of the measures they backed last October. The consequences of that have been tens of thousands of job losses and thousands of businesses going under. I am deeply worried for my constituents.
As much as I found the Minister’s speech interesting and sometimes entertaining, I thought that it was quite disrespectful to the hospitality sector, which is very worried. The chair of the biggest representative body of the hospitality sector is saying that there is a problem, but she is being ignored or told that there is no problem. Hospitality businesses in the constituencies of Labour MPs will be knocking on their doors and asking for answers. I ask for a degree of humility because the reckoning is coming—respected economists and think-tanks are saying it—as a consequence of the Chancellor’s decisions. I restate my request for a bit of humility and understanding of what the hospitality sector is going through.
Several hon. Members rose—
Madam Deputy Speaker (Caroline Nokes)
Order. After the next speaker, I will reduce the time limit to four minutes. Members might like to think about the length of interventions, or indeed whether interventions are needed at all, given that plenty of colleagues still wish to speak.
Michael Payne (Gedling) (Lab)
The hospitality businesses across Gedling are more than just places to eat and drink; they are the backbone of our community and the beating heart of our high streets. From Carlton to Arnold, Mapperley to Netherfield and Burton Joyce to Bestwood Village, those businesses make Gedling a great place to live, work and socialise. To every café owner, chef, pub landlord and staff member, and to all our small businesses, I say thank you. Their hard work keeps our towns and villages alive and our local economy moving.
Just last week, I was proud to welcome the then Chief Secretary to the Treasury, my right hon. Friend the Member for Bristol North West (Darren Jones), to Gedling to meet some of our fantastic small businesses—many of them in hospitality. At Mapperley Top, we held a roundtable in La Zenia, a tapas restaurant that opened a year ago—I send huge congratulations to Lucy and her brilliant team on their first year of business. My right hon. Friend also heard directly from Copper, Steve’s Bar, Deli-icious and Coosh bakery. In Arnold, we met the passionate teams at Cleo’s deli, Taste First, the Empress, Chambers butchers and Paradise café. I thank my right hon. Friend for visiting and listening to Gedling’s fantastic small businesses, and congratulate him on his new role as Chief Secretary to the Prime Minister.
May I also take this opportunity to congratulate the Woodlark Inn in Lambley, and its landlady, Emma, on recently being named one of the best 500 pubs in England by The Telegraph? Over the summer, I had the brilliant opportunity to enjoy a pint at the Abdication in Daybrook, the Four Bells Inn in Woodborough, the Waggon and Horses in Redhill—my local—and the Bread and Bitter at Mapperley Top, among the many other brilliant pubs in Gedling.
I will always fight the corner of Gedling’s many amazing small businesses. That is why, last year, I launched my own annual small business awards to celebrate small businesses throughout Gedling. With so many amazing businesses across Carlton, Netherfield, Burton Joyce and beyond in the wider Gedling area, our door is always open to Government Ministers who wish to come and listen and support our local small business community.
Chris McDonald (Stockton North) (Lab)
My hon. Friend is doing an amazing job of talking about the importance of small hospitality businesses to the local community. Does he agree that that extends beyond economic value to their value more generally? The Golden Smog, a friendly family pub in my constituency, supports an inclusive basketball team and has raised £700,000 from its annual “pALEgrimage”—it is like a pilgrimage but involves ale, so it is even better. Will he join me in congratulating that pub?
Michael Payne
I congratulate the Golden Smog on its initiative. I look forward to having a pint there with my hon. Friend next time I am in his constituency.
Gedling has nearly 3,000 businesses, 98% of which are small or micro. Retail and hospitality alone support over a quarter of the jobs in my constituency. Those are not just numbers; they represent livelihoods, families and futures. That is why I welcome the Labour Government stepping in where the last Conservative Government left a cliff edge. Instead of pulling the rug out from under small businesses, we are providing a lifeline: a 40% business rate relief, targeted where it is needed most. Labour does not turn its back on small businesses; we back them. More than 10,000 pubs and bars shut under the Conservatives. By contrast, this Labour Government are acting: permanent business rate cuts from 2026; high-street rental auctions; and a ban on unfair rent clauses—real measures to make our high streets revive and thrive.
The Conservative motion mentions “catastrophic choices”, but Conservative Members should take a long, hard look in the mirror. On their watch, inflation peaked at 11.1% in October 2022, and food inflation hit 19% by March 2023. [Interruption.] I can hear chuntering on the Opposition Benches, but those inflation levels did not just hit household budgets; they scarred small businesses in Gedling and across the country.
Mr Angus MacDonald
When the hon. Gentleman prepares his agenda for the next small company roundtable, will he ask companies how they are getting on with the 8.7% national insurance increase, and the total employment cost increase of 12.4% as a result of the Budget? That is four times inflation. I think he will be surprised how uncomfortable the answer is.
Michael Payne
With the greatest respect to the hon. Gentleman, the businesses did a grand job of telling the Minister their views directly. I do not think that they need any lectures from him on how to run their businesses.
While café, pubs and shops fought to stay open, the Conservatives were too busy fighting among themselves to help small businesses. This Labour Government are turning the page. Through our plan for small and medium-sized businesses, Gedling employers are getting the support that they need to recover, grow and thrive, and we are already seeing the results. The Opposition talk about job losses, but the facts is that employment has risen by more than 625,000, and economic inactivity has fallen by 338,000. That is not rhetoric; it is progress under this Labour Government.
The previous Conservative Government wrecked the economy, left inflation spiralling and turned their back on the high street. In Gedling, the damage is clear for my constituents to see: vacant units on the high street; council cuts that have left our town centres less clean; and, yes, crumbling pavements and roads in and around our high streets. In just over a year, under this Prime Minister and the Under-Secretary of State for Business and Trade, the hon. Member for Harrow West (Gareth Thomas), Labour is turning things around. It is backing small businesses, especially in hospitality; getting people back into work; delivering a new deal for working people; and, yes—although the Conservatives do not like the facts—growing the economy faster than any other G7 nation. That is what we get with a Labour Government, and by gosh, after 14 years of Conservative neglect, it cannot come fast enough for my constituents, and for businesses in Gedling.
Aphra Brandreth (Chester South and Eddisbury) (Con)
The hospitality sector is all too often overlooked, yet it is one of the most vital pillars not just of our economy, but of our communities. My constituency has 215 registered businesses in accommodation and food services, contributing at least 4,000 jobs—nearly one in 10 local jobs. The sector really matters to Cheshire’s economy. Each year, it contributes £370 million in Cheshire East, and £390 million in Cheshire West and Chester. Hospitality, however, is being punished with higher taxes and even more regulation.
Since being elected, I have been meeting and listening to our local business owners, and I hear the same message time and again: times are tough, and they need policies that deliver stability, champion growth and secure the future of the sector—none of which this Government have delivered. Instead, policy after policy has punished small business owners, especially in hospitality. Do not just take my word for it. Earlier this year, I sat down with Woody Barlow who runs the Swan in Tarporley and the Lion at Malpas, two of our fantastic local village pubs. Woody told me that the 2024 Budget hit his business hard through increased employer national insurance contributions and reduced business rates relief. What struck me most was his concern for his staff and community. He was not just worried about profits, but about young people. Their first job in a local pub can be vital; they learn soft skills, gain confidence and work in a team.
I also met William Lees-Jones, managing director of JW Lees brewery, a seventh-generation family business, approaching its 200th anniversary. It supplies and runs well over 100 pubs across the north-west, not to mention its inns and hotels. William raised serious concerns about proposed changes to business property relief. The brewery has consistently reinvested its profits to grow and innovate, creating jobs, supporting communities and contributing to our economy. Before the Budget, it forecast the creation of 178 new jobs in 2025, but after the spring statement, William told me that he is not sure those jobs will be possible.
Jake, at the Fire Station in Malpas, spoke to me about the impact of VAT, along with increasing wage costs, and how that threatens his ability to run a much-loved café at the heart of the local community. Add to that the surging cost of utilities and the anti-growth, anti-business measures in the Employment Rights Bill, and it is clear that the sector is under immense pressure.
I want to emphasise just how important hospitality is in rural communities like mine. Yes, a pub is a place to grab a pint, and a café is a great place to get a coffee, but they are so much more. Just last Thursday, I attended the first “chatty café” at Tilly’s in Bunbury, a scheme that provides vital social contact, particularly for older people. I met Charles, who is 86 years old and travels from Crewe every week to have his breakfast and a chat at Tilly’s. For many in our rural areas, cafés and pubs are lifelines. They host community groups, offer local services and provide a space where people feel connected.
With their unfair taxation, economic mismanagement and poorly thought-out legislation, this Government are putting pubs, cafés and restaurants, and the jobs that they create and support, at risk. I will continue to speak up for the hospitality businesses in Chester South and Eddisbury, and I thank them for everything that they do for our local economy and our communities.
Katie White (Leeds North West) (Lab)
Anyone who knows my constituency of Leeds North West will know how much our pubs, cafés and restaurants mean to people. Do not get me started on the coffee from Woodlawn, the cakes from the Bramble Bakehouse, the croissants from the Underground Bakery and the curry from Daastan. We have nearly 300 places to eat, 72 pubs and three fantastic breweries. They are where people meet, celebrate birthdays and meet their friends, and they help to keep our high streets alive. I am in them most weekends, and with typical Yorkshire honesty, the owners never sugar-coat it—they tell me straight about the pressures that they face.
I listened to what the hon. Member for Meriden and Solihull East (Saqib Bhatti) said about humility, but let us be clear that the pressures that we are talking about did not come out of nowhere, and they did not start in July last year. Under the Conservatives, more than 6,000 pubs and bars closed. The legacy of a decade of neglect is shuttered shopfronts, struggling high streets and local people losing the places that hold communities together. I know that things are tough and how hard businesses are working, and I applaud and appreciate all that they are doing. I commit to being a champion for them.
I am proud to be part of a Labour Government who are beginning to address the challenges by cutting red tape and providing for new hospitality and night-time economy zones to simplify licensing, boost footfall and support al fresco dining. I am proud to be part of a Labour party that is revitalising our high streets. The new high street rental auctions are absolutely brilliant. In Otley, I am working with local businesses on the “Take Back Fultons” campaign. For many years, there has been a huge empty building on the high street, which has been an eyesore. We are looking to bring it back into use, through initiatives introduced by this Labour Government. Ministers from across Government are meeting me next week to talk about the campaign, because these are cross-Government initiatives.
We are on the side of hospitality. Earlier this year, businesses were staring at a cliff edge, with temporary business rates reliefs due to expire. This Government stepped in with a 40% discount for retail, hospitality and leisure properties, up to a cash cap of £110,000, and a freeze in the small business multiplier. Together, that support package was worth over £1.6 billion in 2025-26, saving the average pub more than £3,300 in 2025. I know that Ministers are looking closely at business rates over the next few months to ensure long-term certainty, and small businesses across my constituency would certainly welcome that.
This Government have done what every pub-goer can cheer: they have cut duty on draught beer and taken a penny off a pint. Through the hospitality support scheme, I am proud that this Government are backing Pub is The Hub, giving community pubs the support that they need to keep delivering for their communities. It is breathing life back into the high streets, backing community pubs and supporting the cafés and restaurants that make places like Otley, Yeadon, Adel and Horsforth such brilliant places to live.
We in Leeds North West can already see what success looks like. Bavette in Horsforth took over a vacant high street unit, and within a year it was awarded a Bib Gourmand. In Otley, a wave of female-led businesses is driving a revival, from Belle beauty salon and Mollie & Mauve florists to the Secret Garden café and the Bookshop on the Square. Vacancy rates in our town are now well below the national average, and footfall is hitting record highs. That is the strength and spirit of our local entrepreneurs, and with Labour backing hospitality, I know that we will hear many more stories like those. With Yorkshire honesty, I will say it plainly: if we want strong communities, we have to back hospitality. Under Labour, that is what we are doing, and will continue to do.
Gideon Amos (Taunton and Wellington) (LD)
The pubs, restaurants, cafés and hotels in our hospitality sector are not just places to eat and drink; they are the heart of our communities. They provide jobs, keep our high streets alive and make our communities better and stronger, but many of them tell me that they feel abandoned as a result of the Government policies that we are discussing.
Across the country, an average of 30 pubs close their doors every week. In Taunton and Wellington, Shane Fisher, who runs the lovely Allerford Inn at Norton Fitzwarren, has recently taken on the Racehorse Inn in Taunton town centre. He describes policy effects that are simply unsustainable. The business rates that he pays are now greater than his lease—than the cost of the building. Business rates at that level simply cannot be right.
The Castle hotel in Taunton, an iconic landmark that has been a hotel since 1786 and has famously been run by the Chapman family since 1950, faces similar challenges. In 2024-25, it paid £21,000 in business rates; the very next year, it is being asked to pay well over double: £52,000. That is an increase of £30,000. When that is combined with the damaging increase in national insurance last year and other cost increases, upwards of £200,000 has been added to its costs in a single year. The Little Wine Shop in Taunton’s great independent quarter told me that this kind of increase in costs, coupled with VAT, is killing the industry. I hope the Minister agrees that these increases are simply unsustainable for small family businesses. As a result, all these kinds of businesses are in survival mode.
Hospitality businesses need support, not just through fair taxes, but by seeing the benefit of their taxes being invested in public services, such as policing. That is why I am delighted that our Liberal Democrat town council in Taunton is introducing street marshals, who will provide reassurance, safety and support to people in the town centre. I welcome the Government’s 10 extra police officers in Taunton and west Somerset. We have campaigned to restore proper community policing, which reassures people. Visible patrols are essential for the confidence of traders and customers alike. Too often, Government treat policing purely as a cost, and fail to see its economic benefits. Lifting town centre businesses by providing safe environments that attract customers is hugely valuable. Nowhere is that more true than for hospitality, and I encourage the Government to go further on that.
The Government’s business rates hit hardest the bricks-and-mortar businesses that make up our town centres. On top of that, there is the rise in national insurance, which is nothing more than a tax on jobs. The burden falls most heavily on businesses and sectors like hospitality, which have a large proportion of part-time workers.
Tom Gordon (Harrogate and Knaresborough) (LD)
I recently visited the General Tarleton in Ferrensby, which has just reopened. A fantastic group of people have created the Jeopardy Hospitality project, which reopens pubs that have closed down; those involved include the celebrity chef Tommy Banks and Matt Lockwood. Pubs are the heart of the community. Does my hon. Friend agree that people who take these risks and try to put the heart back in our communities deserve help, not a clobbering from this Government?
Gideon Amos
I completely agree with my hon. Friend, and look forward to visiting them with him when I am next in his constituency.
Hospitality is not asking for special treatment. Rather, it is asking for fairness, a level playing field and the chance to compete, invest and thrive without being penalised by the tax system. That is why Liberal Democrats have long called for business rates to be scrapped and replaced with a fairer system, one that shifts the burden from the tenants to the landowners, and it is why we opposed the rise in national insurance contributions, which squeezes small firms and workers alike. The Government need to listen to the hoteliers, publicans and restaurateurs in towns such as Taunton and Wellington, because unless things change, more doors will close, more jobs will go, and communities across the country will be poorer for it.
Joe Morris (Hexham) (Lab)
I spent my summer on a tour across my constituency, holding over 80 surgeries, meeting residents face to face and hearing about the challenges in their communities. In the largest constituency in England, which takes in parts of Newcastle and stretches all the way up to the Scottish border, you certainly get a variety of casework and conversations. It would not have been possible to complete that summer tour without the generous hospitality of many hospitality businesses throughout the constituency. Cafés, pubs, restaurants and hotels all opened their doors to me and my team, allowing us to meet local residents and hear the concerns that matter most to them.
I thank the St Mary’s Inn; the Shoulder of Mutton in Longhorsley; the George Hotel in Chollerton; the Crown Inn in Humshaugh; the Hemmel in Allenheads; the King’s Head in Allendale; the Rochester Relish; the Duke of Wellington in Riding Mill; Oddfellows in Haydon Bridge; the Blenkinsopp Castle Inn in Blenkinsopp; the Engine Inn in Walbottle; the Poacher’s Cottage in Callerton; the Tea on the Train in Bellingham; the Northumberland Arms in West Thirston; Battlesteads Hotel and Restaurant in Wark; the Rose and Crown in Slaley; the Lord Crewe Arms in Blanchland; the Village Store and Coffee Shop in Matfen; the Blacksmith’s Coffee Shop in Belsay; the Running Fox in Kirkharle; and the Bowes Hotel in Bardon Mill, alongside a lot of churches, village halls and community organisations. It is incredible to sit down with a cup of tea with your constituents and speak about the issues that matter to them, be they international issues, national ones, or things such as road markings and speeding concerns. I was also able to visit the Bridge End Inn in Ovingham, which recently reopened after a refurbishment, something that has been much welcomed by locals.
I know the impact that the hospitality industry has on rural communities or communities on the outskirts of Newcastle. As has been said many times, pubs and cafes define those communities, and an empty pub—an empty building in the heart of those communities—can truly blight them and lead to declining confidence. That is why the first letter I wrote after my election was to a Minister in the Ministry of Housing, Communities and Local Government, urging them to release the money to allow the Samson Inn in Gilsland to reopen. I will now stop naming quite so many local businesses.
One of the issues that businesses raised with me was that poor investment in road infrastructure and in public transport often led to delays in workers getting to and from the business. Another was that a real issue with road surfaces and road resurfacing communication from local government is impacting their ability to open properly—for example, falconry days near Simonburn had seen the road from Chollerton up to Wark closed. Larger businesses had been notified, but they did not feel they had received notice from the county council. That cost them bookings and potential footfall, and it really does cause concern. It is one of the many ways in which I feel that Northumberland county council—which, sadly, is still led by the Conservatives—lets down the west of the county.
Colleagues have already identified the many issues facing the sector. These are things that I hear about from its representatives every day—I go out and meet with them. I said that I would be a constituency MP, and I hope that 80 surgeries in four weeks demonstrates that I will do my best on that front. Ultimately, I want to make sure that I hear concerns directly from local businesses, without the kind of political theatre that we are often all too guilty of in this place. That enables us to make sure we have the proper conversations with Government and reflect those conversations back in the most effective way possible.
If we do not recognise how vital hospitality is—as the first foot on the ladder for young people, as a defining enterprise in a town, or as a local landmark—we risk losing something that is at the heart of not just our economy and our local economies, but of what it means to be English and to be British. Ultimately, there is nothing more emblematic of communities than sitting down, whether that is in Humshaugh, in Wark or in Callerton, having a drink or a coffee and speaking to the people who are at the heart of communities—those who define us and define themselves.
Mike Wood (Kingswinford and South Staffordshire) (Con)
I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I have received hospitality below the threshold from UKHospitality, the British Beer and Pub Association, the Campaign for Real Ale and probably the British Institute of Innkeeping.
Hospitality, as has been said, offers more than just a place for food and drink. With Pub is The Hub, I was fortunate to see pubs in Cornwall that offer everything from the last village shop to jobs, clubs and even the village hairdresser and barbers. I think of the venues that provide drop-in sessions to tackle loneliness and isolation in our communities, and I think of all the pubs, cafés and restaurants up and down the country that fund grassroots sports and raise enormous amounts of money for charities and local good causes. That is why the previous Government worked so hard to try to support them. They scrapped Labour’s beer duty escalator. There was a series of freezes and cuts in alcohol duty, and a new draught beer duty differential, so that a pint in a pub always pays less duty than equivalent beer bought in supermarkets. We had 75% business rate relief for hospitality businesses, taking three quarters off their bills. We must not forget the tens of billions of pounds invested in supporting hospitality during the pandemic and as we recovered from the effects of covid.
Even though that support made the difference between surviving and going under for many, it was still tight. Many still carry a lot of covid debt and they still need our support. Instead, they have suffered a continuous onslaught of taxes and higher costs caused by Labour’s choices since the election. The changes to national insurance contributions, the national minimum wage and business rates have piled an additional £3.4 billion a year on to businesses, and the Government have hit hospitality businesses that rely on many part-time staff particularly hard.
It is no wonder that eight in 10 operators have been forced to raise their prices since April. Business rates more than doubling for a small independent pub or café have meant that thousands of pounds is out of the till before a single pint has been pulled or a single breakfast served. Those are fixed costs that many just cannot meet. Some 69% of businesses are running below required capacity because of staff and cost pressures. One in eight are planning to cut sites and two thirds have cut staff hours. As has been said, the chair of UKHospitality put it plainly last month when she said:
“At a time when the country needs jobs, the Government should be encouraging hospitality to grow and create jobs, not tax them out of existence.”
As we prepare for the pre-Christmas Budget, we need the Government to take this issue seriously and to take hospitality needs seriously. They need to fix national insurance contributions by raising the threshold, particularly for smaller venues. They should introduce exemptions for young people and returners to work. We need them to reconsider their plans to pile further burdens on small businesses next year. We need them to come good on their promise to reform business rates and make sure that when that reform finally happens, those businesses are paying bills that are lower, not higher than what they were paying last year. Finally, the Government should look at how some flexibility can be added to covid loan repayments so that those loans do not threaten otherwise viable businesses.
Rachel Hopkins (Luton South and South Bedfordshire) (Lab)
Hospitality is at the heart of our economy, with the sector contributing as the third-largest employer in the country. Every one of our constituencies has beloved restaurants, cafés, pubs, hotels and high streets that contribute to our local economies, as well as our local communities and cultural landscapes. These venues provide places for families to meet and for friends to get together and to catch up for special milestones and celebrations. If you might indulge me, Madam Deputy Speaker, I take a moment to congratulate my parents, Pat and Kelvin, on their diamond wedding anniversary. [Hon. Members: “Hear, hear.”] Just two weeks ago, we celebrated with a pub lunch at the Jolly Topers. I thank the team there for making that lunch special; they really do know what customer service is. We had a slightly more boisterous evening with Artan and co. at Lartista, celebrating my niece’s brilliant exam results. [Hon. Members: “Congratulations!”] Thank you very much. She did very well.
We in Luton are definitely a community that knows how to celebrate, and wedding venues are no exception. Venue Central, Crescent Hall and the new Grand Royale Banqueting are all fantastic hospitality venues. As part of these wonderful celebrations, we do of course have fireworks, but may I take a moment to say that we need to be considerate? Too often in Luton, fireworks are let off outwith the time when they are allowed, late at night, in places where they disturb our neighbours. I therefore support the private Member’s Bill tabled by my friend and neighbour, my hon. Friend the Member for Luton North (Sarah Owen), which is intended to reduce the noise category available when fireworks are bought in public, and to review the current regulations governing their online sale.
Our Labour Government continue to invest in my constituency and across the eastern region, green-lighting the expansion of London Luton airport and approving plans for the new Universal Studios theme park in Bedfordshire. Both provide key opportunities for local hotels and restaurants to thrive, with a significant uptake and footfall expected as the plans get under way—not to mention the hospitality venues associated with the new football stadium at Power Court, once it is built. I welcome the Government’s proposals to establish a visitor economy advisory council, which will drive efforts to fulfil the UK’s ambition of welcoming 50 million international visitors annually by 2030, boosting hospitality and cultural activity across the country.
Small businesses and hospitality do face challenges, but through our plan for change and our commitment we are turning the tide on 14 years of failure under the Conservatives. They dithered and delayed on business rates reform, creating a cliff edge for hospitality businesses, and I am proud that this Labour Government are committed to revitalising our high streets through permanent cuts in business rates. When the temporary business rates relief was due to expire, it was this Labour Government who stepped in to deliver a 40% discount to retail, hospitality and leisure properties with a cash cap of £110,000 per business, as well as freezing the small business multiplier. That support package is worth more than £1.6 billion in 2025-26, and from April next year high street retail, hospitality and leisure properties with rateable values below £500,000 will enjoy permanently lower business rates.
I could go on. We are tackling the scourge of late payments, we intend to ban upward-only rent review clauses, and we will expand start-up loans for small businesses. All those measures will support hospitality. We will invest in our businesses to ensure that local communities not only feel the economic benefits, but thrive.
Peter Fortune (Bromley and Biggin Hill) (Con)
The hospitality sector is a major employer in my constituency. In Bromley town centre, in Hayes—which has the excellent New Inn—and in Biggin Hill, Coney Hall, Bickley and Keston, we are lucky to have many fantastic small and independent pubs, cafés and restaurants. However, they are struggling to afford Labour’s tax hikes.
The Government’s decision to increase employer’s national insurance contributions is a jobs tax. Businesses have to pay an average of £900 for every job they support, and the situation is made worse by the decision to slash business rates relief for retail, hospitality and leisure businesses. For an independent pub in my constituency with a rateable value of £98,000, the changes in relief and the increase in the standard multiplier have added £20,000 to its tax bill. All this is happening as energy bills and inflation rise again under Labour, increasing businesses’ costs and squeezing consumer spending. It is no wonder that few hospitality businesses can withstand Labour’s tax raid.
We have already heard about the 84,000 hospitality jobs that have been lost over the past 12 months, but I do not think the Government appreciate the damage that they are inflicting on communities. Much-loved businesses are closing their doors and local job opportunities are shrinking, and it is particularly affecting young people and older workers seeking part-time employment. This threatens to gut high streets, knocking local pride and leaving places poorer, and to add insult to injury, Labour has changed inheritance rules to tax any family business that survives its anti-business policies when the next generation picks up the baton.
It has been said many times that these decisions expose the lack of business experience in the Cabinet. Worryingly, the Government are looking to double down on this “tax everything” approach. They need to change course before we become a nation of shuttered shops and broken dreams.
Euan Stainbank (Falkirk) (Lab)
I declare an interest as a former barman, a former waiter, a former pie seller and someone who has done essentially every front-of-house job—except chef, unfortunately.
I come at today’s debate from the position of a former hospitality worker. It might be slightly over three years since I last pulled a pint, but I have to say that in debates such as this, the insight from hospitality workers is oddly missing. Hospitality is a hard job, and it can be rewarding. I made lifelong friendships through the 14 or 15-hour back-to-back wedding shifts that I pulled to get myself through university, but hospitality is often treated corrosively as a secondary, less-worthwhile occupation. That completely wrong-headed perspective is dripping off the pages of the Opposition’s motion today. It says that we must
“amend the Employment Rights Bill to protect seasonal and flexible employment practices”.
What that says to the 3.5 million hospitality workers in this country—it is the third largest sector in the UK—is that they should be part of a two-tier workforce and have less employment rights than every other worker. Which rights should hospitality workers be excluded from? Should they be able to be sacked in the first two years of employment for no good reason? Should they be disqualified from parity in sick pay? Should they not be entitled to a contract that reflects their hours worked? The motion states that if someone works behind a bar, they should be entitled to fewer rights than those who work behind a desk.
I would like to draw attention of the House to the recent victory of the young unionised workers at the Village hotel in Govan. These hospitality workers won a pay rise, backdated to 1 April 2024, on the terms of equal pay regardless of age. Young workers brought their employer to the table and, in a cost of living crisis, it will now value the value of their labour properly. Thanks to the universality of the Employment Rights Bill and the collective action of the workforce in hospitality, the era of poverty pay and contractual insecurity, which has been rife in the sector, will come to an end. Today’s motion sets a targeted approach: to bring that era back just for the people who keep our hard-working hospitality sector ticking.
Not a pint is poured, nor a meal served or a single beat of music played, without the express permission of hospitality staff—a reminder for all of us in this House that the workers are the hospitality sector. I will be proud to stand up today for my pals I worked beside in hospitality, who do essential, hard, skilled work, which this motion seeks to dimmish by suggesting that those of us who make laws, instead of making beds, should weaken their employment rights today.
Cameron Thomas (Tewkesbury) (LD)
We have heard a lot from those on the Government Benches about how they are improving the experience of businesses across the country. I come in peace; I hope they will take me sincerely when I say that that is absolutely not the feedback I am getting from my hospitality sector, and certainly not from my publicans.
I represent 52 pubs and three breweries in my constituency, and please take me at my word: I am trying to get to all of them. The House may have heard of a cult YouTube channel and Facebook page entitled “The Great British Pub Crawl”, which is run by Dale and Holly and has a combined online followership of over 200,000 subscribers. Their mission is to highlight the state of the hospitality sector across the UK by having a drink at every pub in the country. I wish them every success and a responsible alcohol intake.
Rachel Hopkins
“The Great British Pub Crawl” was in Luton last week, and I just want to flag that Dale and Holly said that Luton had a variety of brilliant pubs and that they really enjoyed their time there.
Cameron Thomas
I do not doubt that. I am sure Luton is second only to Tewkesbury.
Over the summer recess, a friend of mine reached out, told me who Dale and Holly were and asked me to meet them. I did so when they visited Tewkesbury. I sat down with both of them at the Bell Inn, outside Tewkesbury abbey. They and I have very different occupations, but the great thing about pubs is that people often meet others from different backgrounds. We get to know other people and, without knowing it, our social skills and ability to speak and listen to others develop along the way. I got on really well with Dale and Holly. We discussed how our pubs are far more than just drinking spaces; they are as synonymous with British culture as drinking tea, complaining about the weather and even queuing.
For 800 years, pubs like the Black Bear in Tewkesbury have provided places to work and to tackle loneliness. I love to visit the King Teddy in Longlevens so that I can watch Tottenham Hotspur play—it is very convenient when I need to drown my sorrows afterwards—and I hosted a surgery there over the recess.
Dale and I agree that these vital spaces are under great threat, partly because of actions that this Government have taken. Beer duty costs patrons and puts venues under strain, and the Government must recognise the need to further reduce it. The rise in national insurance contributions disproportionately affects the hospitality sector. I do hope—and I say this in good faith—that the Government will change direction quickly.
Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)
It is a pleasure to speak in this debate. I am proud to be one of the vice-chairs of the all-party parliamentary group for the night time economy. Like all of us, it seems, I have been taking the opportunity to engage with all the hospitality businesses across my constituency and companies that form part of the supply chain. When I say talking to all of them, I mean the independents, the tied pubs, the breweries and the franchisees. What they are not talking to me about is wages. They are also not talking about staffing hours and contracts. Even after pushing from me, they are saying that while the national insurance increase is a concern, it does not even make it into their top 10 problems.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
Is the hon. Lady aware of the comments in the Scottish Parliament yesterday by the chief executive of the Scottish Tourism Alliance? He said that
“the first half of this year was brutal”,
and that the increase in employer’s national insurance contributions has resulted in a “loss of jobs”. Is he wrong?
Katrina Murray
I respect the comment, but I had not heard it, because I have been looking at other things today. I am reflecting what businesses are telling me, and as I think the hon. Member will have found in his own constituency, they are talking to me about far more fundamental issues for the hospitality industry in Scotland. They have reminded me that hospitality businesses in Scotland are closing at twice the rate they are in the rest of the country, and that although there was investment in the hospitality sector in the Scottish budget for the current year, it was the first time that had happened. The Scottish Licensed Trade Association has expressed to me that the Scottish hospitality industry is starting off £200 million behind the rest of the country because of how the Scottish Government are reacting.
Those businesses talk to me about the vow of silence from the Scottish Government on business rates and about the need for certainty, but also about improving of planning processes; for the big breweries and pub landlords, the sheer amount of time that development takes means that it is easier to invest in other parts of the UK than in Scotland. Planning for a new-build hospitality business or a change of use takes years. Disproportionate cuts to local government planning services in ongoing Scottish Government budgets have had a wider effect across the whole sector. The hon. Member is probably right that the NICs issue is in the mix, but these matters are much more of an issue, certainly in my sector locally.
Last weekend, as part of Scotland Loves Local Week, I was proud to join Kilsyth councillors Jean Jones and Heather Brannan-McVey in visiting the relatively newly owned Urban Grind coffee shop in Kilsyth. The owners Martin and Marie told me—over coffee—about their struggles in getting the facility open for business, getting the change of use from a vacant shop to a hospitality business, and the need to build a fence between the outside sitting area and the soft play area next door. But they also told me about their investment in a young workforce, who combine studying with working, and the importance of working with businesses in the area. It was good to see the place so full, and I hope those who go to watch Chris Hoy’s Tour De 4 going through Kilsyth on Sunday make a point of visiting not just Urban Grind, but the Coachman, the Scarecrow or the Boathouse, because it is a circular economy; local businesses support other local businesses and make sure that they invest.
When local businesses use hotels in the local community —the local independents—and do not bring people in from Glasgow, there is more chance of the local community benefiting. Everybody I spoke to talked about quality, a changing market and a more discerning customer. They said that a greater proportion of the business is about food and soft drinks than ever before, and that they had to work harder to get customers, but that when they did provide high quality and good value, they got loyalty.
In conclusion, our hospitality industry is continually changing as our habits change. That is a good thing. The hospitality sector should fulfil a key role in our communities, which is way bigger than the blinkered ways outlined in the motion.
Several hon. Members rose—
Madam Deputy Speaker (Judith Cummins)
The House will have seen that many Members are seeking to catch my eye. After the next speaker, there will be three-minute time limit.
Mr Peter Bedford (Mid Leicestershire) (Con)
As Members of Parliament, we receive campaign email after campaign email every week on dozens of issues, from environmental matters to recent calls for a general election. Amid all that, there is one concern that continues to cut through: support for our pubs and the wider hospitality sector. Why? Because the UK’s hospitality sector is more than just about business. It is a vital part of the social fabric of our communities. Whether it is the Nook café in Anstey, the Ex-Servicemen’s Club in Groby or the Coach and Horses in Markfield, these are not simply places to eat and drink; they are places of refuge from everyday life, places where people come together and places that sustain the spirit of our towns and villages.
Yet what do we see from this Government? With Starmer the pub harmer at the helm, it seems they are determined to call last orders on our fantastic hospitality sector. Since the general election, we have witnessed a series of reckless decisions that have shattered business confidence. Take the Chancellor’s disastrous autumn Budget, which slashed the rates relief for the retail, hospitality and leisure sectors and imposed damaging rises in employer’s national insurance contributions; or look at the Secretary of State for Business and Trade attempting to push one of the most damaging employment Bills in a generation through Parliament—and I know so, because I sat on the Bill Committee. The legislation will do more to hinder job creation than to help workers.
In my own constituency, I have spoken to countless publicans and small business owners who are feeling the strain—none more so than the Royal Oak in Kirby Muxloe, which recently won my Mid Leicestershire best pub competition. Local hospitality businesses in Mid Leicestershire pose the same questions to me time after time. Should they raise their prices and risk losing customers, or should they cut staff and reduce their opening hours just to stay afloat? Neither choice is fair and neither is sustainable. Across the country, we have seen the consequences: 83,000 hospitality jobs lost as a direct result of this Government’s actions. And what for the future? We know the Chancellor is facing a self-inflicted £40 billion black hole as a result of her Budget, and with the recent reshuffle at No. 10, with supporters of high taxes and high spending being promoted, there is a worry among businesses in Mid Leicestershire that the worst is yet to come.
It does not have to be this way. If the Government would only listen to industry experts such as UKHospitality and the British Beer and Pub Association, or to brewers such as Punch Pubs and Everards, we could actually help the industry rather than hinder it. I urge the Government to act boldly and continue to cut business rate reliefs for the hospitality sector, reduce duty on draught beer and lower VAT on products sold in hospitality settings, just as many of our European neighbours do. It is time that the Government stopped punishing the sector and listened to the rational arguments of those who work in and care so much about the industry they love.
Madam Deputy Speaker (Judith Cummins)
Order. I remind Members that we do not refer to other Members by name in this Chamber.
Antonia Bance (Tipton and Wednesbury) (Lab)
In the spirit of the Minister’s invitation, I invite any Member to come to one of our brilliant Black Country Desi pubs, or to come and eat orange chips with me next to the canal.
Everyone in this Chamber wants high and rising wages, and for their constituents to feel that they can just take the family out for a curry on a Friday night. That is why I was so disappointed to see in the wording of the motion before us today an attack on the Low Pay Commission—a piece of settled government machinery that has served Governments of all parties well. The commission is tripartite, representing business, unions and academics; it consults business closely, visits employers and talks to both managers and workers. If Conservative Members were to read the report of the last session of the Low Pay Commission, they would find that it visited hospitality businesses in the city of Glasgow, speaking both to workers and to the people running those businesses. It is one of the very best, most consensual ways of forming Government policy, and I am disappointed in the attack on it, especially as it is at present chaired by a Conservative peer.
I stand here today, as I always do, representing workers. Many hospitality workers are represented by my union, Unite. I am proud of the record of our Government, for far from being a Bill that attacks the hospitality sector, the Employment Rights Bill is written with the hospitality sector in mind. The extension of day one rights is a policy tailor-made for the hospitality sector; as 50% of all hospitality workers do not have two years’ service, they can be hired and fired at will, as if we were America. That is not what we want in our economy. Why should it be possible for someone who has worked faithfully for an employer for a year and 11 months to lose their job overnight, with no process and no reason, meaning they cannot pay the rent next month? We will stop that.
Ditto zero-hours contracts, on which 18% of hospitality workers are employed—the highest of any sector. Let us remind ourselves of the reality of that. Workers on zero-hours contracts cannot set things up because they do not know when they will be working. They may get a text message when they are stood at the bus stop on the way to their shift saying, “Sorry mate, we don’t need you today. Don’t come in.” We will ban those contracts.
My last point is on sick pay. Some 279,000 workers in the hospitality sector earn below the lower earnings limit, and we will make sure they are entitled to sick pay. This is Labour delivering for workers.
The Tories and the Lib Dems, along with their mates in Reform, have ganged up together in the House of Lords to try to gut the Employment Rights Bill, but we will not have it. I do not want the hospitality workers serving me a curry on Friday night—
Damian Hinds (East Hampshire) (Con)
I am sad to say that the number of payroll employees in this country has fallen by 149,000 in the past year. We now have unemployment inching up towards 5%, with youth unemployment much higher than that. Why do I mention that in the context of a debate about hospitality? It is because a disproportionate number of jobs—tens of thousands—have been lost in this sector. It is absolutely fundamental to employment, along with the retail and care sectors. It is a shame that hospitality was not deemed worthy of a chapter in the Government’s industrial strategy, because if it had been—or, indeed, if the Government had an employment strategy—they would not have done what they did in the Budget.
The hospitality sector is incredibly important. It is important to me personally, as it happens; like many others, I had my first job in hospitality. Actually, it was where I spent most of my career before I became a Member of Parliament. More importantly, hospitality is important to my constituency, as it is to just about every constituency in the country. In my case, it employs around 2,000 people across some 200 establishments, including a number of historic heritage pubs.
Hospitality is important to our nation partly because of all those jobs, but also because an important part of the hospitality sector is overnight hospitality, which is fundamental to tourism, which in turn brings in such important export earnings. I do worry that with all this talk of tourism taxes, it is starting to sound like people think that tourism is, in some way, a problem to be mitigated. Tourism does have issues, of course, but fundamentally, tourism—especially inbound tourism—is an exceptional opportunity to be grabbed.
It is not just about the number of jobs; it is about who those jobs are for. This sector is a key source of first jobs and jobs for people coming back to the labour market, including those who are the very furthest from work. I think of some of the great work done by hospitality businesses—including by one of my old employers, Greene King—with people leaving the criminal justice system, for example.
Of course, we are talking disproportionately about part-time workers. The sector has suffered terrible blows from the big increase in business rates, and the two effects through national insurance contributions, both in the rates and in the threshold, have disproportionately affected part-time workers. We hope for some relief in the delayed Budget when it eventually comes, but there is something Ministers could do now ahead of the Budget to mitigate the situation. I am talking about the Employment Rights Bill.
I know that zero-hours contracts have had a sort of totemic importance for Labour Members ever since their last leader made it so, but we have to get past the idea that a zero-hours contract is necessarily trying to exploit workers; it is not. The NHS has many bank workers in hospitals on zero-hours contracts. Students will often work on zero-hours contracts so they can stay in their jobs, even when they move between home and university. The two things the Government could do to mitigate the situation are to lengthen the reference period to reflect seasonality and to make sure that it is an opt-in right, rather than something that has to be offered repeatedly.
Chris Kane (Stirling and Strathallan) (Lab)
In my constituency of Stirling and Strathallan, castles and scenery may draw tourists, but it is the people in our pubs, cafés, restaurants, clubs and hotels who make them feel welcome. In my constituency, we have no shortage of world-class heritage, picturesque rural communities, scenery, and pubs, restaurants and cafés.
At Stirling castle, visitors can see the great kitchens that provided the hospitality to the court of many a Stuart monarch. After that, they can go to the Portcullis hotel or Stirling’s oldest pub, the Settle Inn, which was built in 1733.
In Causewayhead, the Birds & Bees is nestled in the shadow of the Wallace monument. In Balmaha, we have the Oak Tree Inn on the shores of Loch Lomond. In Tyndrum, the Real Food Cafe and the wonderfully named Green Welly Stop are on the West Highland Way. Visitors to Bannockburn—where Robert the Bruce defeated the English—can go to the 1314 pub, the King Robert Hotel, the Borestone Bar, or the Tartan Arms, where the steak pie, in my opinion, is the best in Scotland.
Out west to Gartmore is the Black Bull bar and restaurant, which was taken over by the community and is now run as a charity. The macaroni there is a treat. In Kippen, we have the Cross Keys pub and the Woodhouse farm shop and restaurant, which are great for a Sunday drive. The Buttercup café in Doune is wonderful for lunch. In Kinbuck, Andy and Kim Murray are breathing new life into the Cromlix House hotel, and, of course, we have the world-famous Gleneagles as well.
In Fallin, a mining village, we have the Gothenburg—or simply the Goth—which is a community-run pub founded in 1911. It is one of the few remaining still running under the Gothenburg system with all the profits donated to the community. During the miners’ strikes in the 1980s, it hosted soup kitchens and supported miners’ strike funds.
When the Opposition talk about their conversations with hospitality businesses, what they leave out is as telling as what they put in. Too often, they are not talking to or listening to the employees themselves. Those employees deserve the best employment rights and a fair wage for doing their job, which is why I am proud of this Government’s landmark Employment Rights Bill and our commitments on the living wage.
I set out this roll-call of hospitality not just to show my pride in Stirling and Strathallan, but because I have had to cut out all of my other points as the speech time limit has been reducing. I also want to make a point that is often lost in these debates: for every venue that struggles—and there are venues struggling, including in my constituency—there are many more that are thriving, innovating and contributing to their communities. Let me end by offering my thanks to everybody working in hospitality in Stirling and Strathallan, and across the United Kingdom. They are doing a remarkable job, and our communities and our country are all the better for it.
Caroline Voaden (South Devon) (LD)
I congratulate the thousands of hospitality workers across South Devon for coming to the end of another summer season, catering to visitors from far and wide—from Brixham to Bigbury and from Start Point up to Dartmoor. With 2,618 establishments in my constituency, Members will be pleased to hear that I am not going to start naming them all—[Interruption.] I would miss someone out for sure.
Time and again, this sector is overlooked. Although it is the third largest employer in the country, it was barely mentioned in the Government’s industrial strategy, which was a huge oversight. The combination of decisions taken by the Government since July 2024 is now pushing many businesses to the brink.
This summer I visited 52 villages across South Devon on my surgery tour—though I did not have a drink in every one of them. Over and over again, I heard the same message: the local pub is absolutely vital. They are not just places to eat or drink but a third space where communities can come together. They also offer a vital first step into the working world for young people, and those jobs are not just any jobs. They teach skills such as communication, teamwork, problem solving and managing money. Those are real-world skills that stay with kids for life. I sold ice creams in the Edinburgh Lyceum theatre, and both my daughters earned their stripes in the local pubs around Totnes, so I know how valuable these jobs are. With almost a million young people aged 16 to 24 not currently in education, employment or training, we should be doing everything we can to make sure that sectors such as hospitality are open, thriving and hiring.
A couple of weeks ago I met Mitch Tonks, the successful owner behind Rockfish, which has 11 restaurants in Devon and Dorset. He looked me in the eye and told me directly that the choices made by this Government in recent months are killing the industry. The latest rise in national insurance alone has left his business facing extra costs equivalent to opening an entirely new restaurant in one year. The lower national insurance threshold particularly hits seasonal employers. At a time when the country needs jobs and local communities need to be revived, the Government should be encouraging hospitality to grow and create jobs, rather than shrinking and restricting hospitality with taxes.
Hospitality is not a luxury sector but a lifeline, especially in constituencies such as South Devon, where every single village pub, seaside café, family-run restaurant or hotel is a pillar of the local economy. I would briefly like to commend the team at the Bull Inn in Totnes, who this week launched the first ever level 3 award in regenerative and sustainable hospitality. The course will lead to bars and restaurants across the UK learning how to minimise their environmental impact, promote social responsibility, support regenerative farming practices and build long-term business resilience through regenerative practices. It is a truly inspirational new course for the hospitality sector.
Catherine Fookes (Monmouthshire) (Lab)
Last week I was delighted to attend the reopening of what was once my local pub when I first moved to Monmouthshire 25 years ago. The Star on the Hill in Llanfihangel Tor y Mynydd was one of 6,000 UK pubs and bars that closed during the 15 years of Tory neglect, but it has been revived by the brilliant local community and its new landlords, who have worked tirelessly to get it started again.
Other new hospitality businesses have opened recently, including the Fuzion restaurant in Abergavenny and Rustica in Monmouth. Monmouthshire is the food capital of Wales. We have the Abergavenny food festival, which was once described as the Glastonbury of food festivals. Members are welcome to visit on 20 and 21 September and see the incredible hospitality we have on offer.
Over 450 hospitality businesses, employing over 2,800 people, play a vital role in making Monmouthshire a fantastic place to live and visit—from the Black Bear Inn and the Boat Inn, to my new local, the Halfway. The Halfway is run by Rhi and Jason, who have also opened an amazing shop so that people do not have to drive to the nearest shop, because we are a bit out in the middle of nowhere. It is a community interest company, and it is doing fantastic stuff for our community and employing people from the community.
I am relieved that the Government are determined to deliver the support that pubs and hospitality need to survive and begin to thrive once again. Labour backs hospitality and, unlike the Conservatives, it is matching that message with meaningful action. This Labour Government have cut tax on pints and are getting rid of the red tape that stops customers being able to take their after-work pint on to the pavement. The Welsh Labour Government will help my constituents in Monmouthshire by providing a 40% discount on non-domestic rates for businesses in retail, leisure and hospitality for the sixth year in a row. This is the life support that our pubs need, and I know that the Government will continue to do the right thing by engaging with the sector about the challenges it is navigating and the help that it needs.
I look forward to spending as much time as this job will allow in the various pubs and cafés I have mentioned in Monmouthshire. I can now be hopeful that after over a decade of neglect, we can start to see hospitality businesses go from strength to strength.
Rebecca Smith (South West Devon) (Con)
There are over 300 hospitality businesses in South West Devon, and even though that may not be the highest number in a single constituency, considering the areas of countryside in mine, where the only residents are cattle and sheep, it is a hefty number. There are 316 venues, including the Woolwell Centre, the Who’d Have Thought It, the Black Cat Surf Club and the Plympton Conservative Club, the Exchange in Ivybridge, Nelli’s in Yealmpton, School House at Mothecombe, the Odd Wheel in Wembury and Kingfisher Fish and Chips. The list goes on.
Hospitality in South West Devon means more than 2,000 jobs, a turnover of £91.7 million and an economic value to the local economy of £50 million. Hospitality plays a crucial role in our local community tourism offer—in our area, there is everything from coast to moors to explore. Neighbouring constituencies have even more jobs and economic value at risk under this Labour Government. That is why a group of local businesses have taken matters into their own hands and formed a campaign to save hospitality across Plymouth and South West Devon. I am proud to support it.
The impact of increased employer national insurance contributions; of halving business rate relief; of bringing forward employment rights that nobble employers and add undue cost and pressure; and of the minimum wage increase, even for the youngest employees, is hitting so hard that many businesses fear for the future. The sector is reeling. Businesses are simply not employing new staff, and they are less inclined to employ young people and students.
John Lamont
My hon. Friend is making an excellent speech about the importance of these businesses to her constituency. Does she agree that those businesses are often the very heart of local communities, and that if residents lose them, they lose a vital part of their community?
Rebecca Smith
I will come on to that exact point in my remaining few minutes, but absolutely, they are a crucial part of our community.
Why does that all matter? As hospitality businesses across the country bring financial and social value to our communities, they are critical to a thriving tourism sector. They are also a key part of our everyday life, whether it is having the treat of an ice cream on the beach during a summer holiday, using a local memory café with a loved one, chatting over a pint to ease loneliness, or bringing family together for a meal that someone else has cooked, in order to mark a special occasion. However, the increased business costs imposed by this Labour Government mean that there are increased costs to the consumers who want to make the most of those opportunities. It means that fewer people go out; that is what I am hearing from constituents. Then those businesses face closure, which impacts the local economy. It is a vicious cycle and, sadly, the Labour party seems completely oblivious to it.
The equation is simple, and I am saddened and disappointed to see the Labour party stick its head in the sand, completely determined to ignore the issue. If we Conservative Members do not speak up, there will not be a hospitality sector in this country. As I have said, the Labour party keeps boasting about economic growth in hospitality, but I am not sure that we will see that in my constituency, because all the hospitality businesses feel massively under threat.
Josh Fenton-Glynn (Calder Valley) (Lab)
I am immensely proud of the hospitality sector in my constituency of Calder Valley. Our community has always been amazing, but it was recently made famous by the TV show “Happy Valley”. I always say to the public, “Come to our towns. They have the same amazing scenery, but far fewer murders.”
Hospitality is where neighbours meet, where milestones are celebrated and where people get to find out what is great about towns and communities. My constituency is a string of communities, from Brighouse to Todmorden, with a string of high streets. Between 2010 and 2018, our authority of Calderdale lost 50—nearly a quarter—of its pubs. They were among the more than 10,000 closures nationwide under the coalition and Tory Governments—and that was before the pandemic. Although I welcome the sudden interest in the hospitality sector from the Conservatives, theirs is a new concern.
Hospitality is vital to the future of our high street. As we see high streets moving away from retail because of the internet, we see people selling experiences and connection. An American friend recently asked about the difference between a pub and a bar. Drawing on my experience of both, I said that a bar was just somewhere someone goes to drink, but a pub is a community living room. Change has to include challenging some of the tied pub rules that meant that a pub in my constituency saw the amount it has to pay more than doubled by the pub company Stonegate, from £800 to £1,700 a week. That was because just one week after the six-month probationary period ended, the company invoked a clause to break the tie. That is the kind of irresponsible, rapacious practice that was allowed to thrive under the last Government, and I urge Ministers to look at that.
Conservative Members want to focus on one specific tax, not on the whole strategy for the high street, and it is that lack of holistic thinking that has landed us in this mess: too many tactics, not enough strategy. That is why I welcome this Labour Government’s plan, which has been welcomed by the hospitality sector, to reduce business rates, tackle late payments, cut red tape and deliver a £1.6 billion package that will save the average pub £3,300 next year. That support will give the venues some space to breathe. It will help to keep Calder Valley’s towns buzzing and help our hospitality to thrive, and when our hospitality thrives, our community thrives.
Robbie Moore (Keighley and Ilkley) (Con)
Hospitality is under a huge strain. Pubs particularly are really struggling across the country, and indeed in my constituency of Keighley and Ilkley. Nationally, pub closures are estimated to be running at one establishment a day, thanks to this Labour Government’s hike in employers’ national insurance, the hike in the minimum wage and the looming threat of this Labour Government’s Employment Rights Bill. The number of closures is only climbing, and these punitive measures are pushing our pubs to the brink.
That is coupled with disposable income tightening for families, including families who may want to support our pubs. In the Bradford district, council tax has been raised by 10%. That impacts all my constituents who want to spend money at their pubs but cannot because they have to tighten their belt. The Dickie Bird in Long Lee and many other pubs are coming under a huge amount of strain as their overheads increase; they are, dare I say it, looking at closure. I met the owners of the Dickie Bird recently, and they expressed to me how much financial strain this Labour Government’s policies have put on them; that has ultimately led to them having to make the decision to close.
Tom Hayes
My understanding is that the Airedale NHS foundation trust covers the hon. Member’s constituency. The waiting list there has fallen from 14,779 to 13,846, there are 32,312 additional urgent dental appointments, and £3.3 million is going to the hospital to support building and other safety works. Does he welcome that investment, which is partly funded by the national insurance contributions increase?
Robbie Moore
As all of us know, I have been campaigning tirelessly to secure the funding to rebuild Airedale hospital, and it was finally announced in 2023, but it was very disappointing to many of my constituents when the completion date for the rebuild was pushed back by this Labour Government from 2030 to 2035. My constituents and others from surrounding constituencies will now have to wait much longer for the rebuild to be completed because of the decisions made by this Labour Government.
The Airedale Heifer, the Busfeild Arms, the Brown Cow and the Black Hat are all fantastic pubs in my constituency, and I encourage everyone to go along and buy a pint of Timothy Taylor’s—one of the finest breweries in this country. A pint of Landlord will go down very well. The Bridgehouse brewery in Keighley also produces fantastic ales. All these establishments want to be supported, but they are expressing to me the challenge of their increased overheads, resulting from this Labour Government, and particularly from the employers’ national insurance increase. The Turkey Inn in Goose Eye is also experiencing the same challenges.
These punitive measures are directly impacting communities, as I have said. They hurt young people who want to start out in the workplace. The Government have rightly made a great deal of the importance of getting young people into work, but the Employment Rights Bill, the increase in employers’ national insurance and the hike in the minimum wage are making it much more difficult for the hospitality sector to recruit young people and provide opportunities for them to thrive, get work experience and earn an income. That is impacting many constituencies, not least those across the Keighley and Ilkley area, which I represent.
Amanda Martin (Portsmouth North) (Lab)
As the third-largest employer in Britain, hospitality supports 3.5 million jobs and is the beating heart of our high streets and communities, yet this vital sector has been let down by a decade of Conservative neglect; over 10,000 pubs closed between 2010 and 2024. This motion continues to let down businesses and workers, and as my hon. Friends the Members for Falkirk (Euan Stainbank), and for Tipton and Wednesbury (Antonia Bance), eloquently pointed out, our workers are our hospitality sector—workers like my cousin James, a fantastic head chef in my city. He has been a skilled professional for over two decades. He deserves the same workers’ rights and protections from the Low Pay Commission as any office worker.
This Labour Government are turning the tide. We are backing hospitality with our new hospitality and night-time economy zones, cutting red tape, and supporting al fresco dining to boost footfall. We are delivering permanently lower business rates for hospitality in 2026 and developing our strategy for small and medium-sized enterprises. Through our safer streets mission, we are reducing crime and keeping our workers safe, but we must also recognise the unique challenges facing seasonal hospitality businesses, particularly in coastal communities. These areas have remarkable booms during the summer months, but face economic hardship through the winter. This feast-or-famine cycle makes it difficult for businesses to budget. That is where the English devolution Bill is crucial. By empowering mayoral combined authorities with greater control over growth and resources, we can develop targeted support for seasonal economies—a great example of this Government working together to protect workers. Local leaders understand their communities’ rhythms. They know when businesses need support, and understand the impacts, both positive and negative, on the local economy and our public services.
The hospitality sector—pubs, restaurants, hotels and leisure facilities, as well as the often forgotten and ignored security staff who keep us safe in those venues—is vital. I want to praise all the fantastic workers and businesses in Portsmouth who go above and beyond in our city. There are so many great places to spend leisure time. They provide employment and contribute brilliantly to our communities. They include the Café on the Green and the Cross Keys—the final pub left—in Paulsgrove; Bar Aroma, the Heath’s tearoom and café, set up by two brilliant young sisters, and the Drayton Tavern in Drayton and Farlington; the Mardin café and the Star & Garter in Copnor; the Casemates and Hilsea Lines cafés in Hilsea; Makemake brewery and Beeny’s in Baffins; the Palace café, the Highbury café and the Portsbridge pub in Cosham; and the Mother Shipton and the North End café in Stamshaw and North End, to name only a few. I thank all of them, and hope that they continue to flourish under our Labour Government.
Gregory Stafford (Farnham and Bordon) (Con)
Hospitality has been battered by a perfect storm of punishing taxation, regulation and soaring operational costs, which has left pubs and restaurants fighting for survival. In recent months, I have visited 36 of the 55 pubs in my constituency and hosted a hospitality roundtable. I will shortly be sitting down again with the family chain, the Healy Group. Everywhere I go, the story is the same: rising costs, thinning margins and landlords asking, “How much longer can we keep the lights on?”
In this darkness, I can bring a little ray of delight and hope to my constituents. During the summer recess, I continued my constituency pub tour, part of my best pub campaign. I am delighted to announce to the House that the Crown at Arford has won that accolade in the Farnham and Bordon constituency. You may be aware, Madam Deputy Speaker, that Fleetwood Mac’s “Down at the Crown” was inspired by this pub, so if the Chancellor ever finds herself lost in East Hampshire, she might fancy a visit—though judging from Labour’s economic stewardship, she would probably relate more to one called “Closing Down at the Crown”.
I joke, but there is nothing amusing about the reality. Since May, four pubs in my constituency have been driven out by Labour’s relentless war on small businesses, including the Wheatsheaf Inn at Grayswood, which has closed indefinitely. The sector is collapsing, despite what Government Members say. Six pubs are closing every single week. That is because, from April this year, relief collapsed to 40%, halving their protection while doubling their pain. The Budget hiked national insurance, increased the minimum wage and added £3 billion to their bills. The Chancellor’s 1p off a draught pint gesture was not just laughable but insulting.
Jay at the Six Bells told me bluntly that on a £5.50 pint, pubs make about 8p. That is the future that Labour is offering. The Bluebell in Dockenfield, a family business run by Lucy and Robin Catchpole, is fighting tooth and nail to thrive. Pubs are the heart of our towns and villages, and Labour is ripping out that heart.
Ms Julie Minns (Carlisle) (Lab)
I do not want to rain on the hon. Gentleman’s pub parade, but my constituency has a proud history when it comes to pubs, as for 60 years it was the only place in the country where the pubs were nationalised—although I am not calling on the Minister to reintroduce nationalisation of pubs. Does the hon. Gentleman agree that one thing that would help our pubs would be to extend the pubs code by introducing a guest beer agreement—like the one in Scotland—so that we get more independent products, and more people, into our pubs?
Gregory Stafford
That sounds like an interesting idea. I will support anything that will get the pub industry thriving, but to be frank, Labour is destroying the opportunities for pubs to thrive, and I am afraid a guest ale will go no way towards solving that problem.
I am conscious of time, Madam Deputy Speaker, so I will touch briefly on the fact that it is not just Labour in Westminster that does not understand the hospitality industry. The Liberal Democrats in Waverley are showing the same wilful blindness. Farnham is undergoing major infrastructure works, and its hospitality and retail businesses are struggling. I urge the council to act. It has the powers to provide business rates relief, but it has done nothing. Borelli’s Wine Bar and Grill, for example, has operated since 1987, yet the Lib Dems sit on their hands, proving that they share Labour’s contempt for small businesses.
Hospitality is being taxed, squeezed and regulated into oblivion. If Labour carries on like this, the last orders bell will ring not just for our pubs, but for the very character of British life itself.
John Cooper (Dumfries and Galloway) (Con)
It was a great moment when my daughter pulled a pint for me as part of her duties as a barmaid in her first job as she worked her way through university. Although that job put vital cash in her pocket, it also gave her people skills and proof on her CV that she was reliable and trustworthy with cash valuable stock. Her work today is far removed from that bar, but the foundations of her career were laid there. Yet across Dumfries and Galloway, hospitality businesses tell me that they are pausing giving youngsters like my daughter that all-important first job. The increase in employer’s national insurance contributions to 15%, and the lowering to £5,000 of the secondary threshold, are Labour’s dreaded £900-a-head black spot curse on bright youngsters ready for the world of work.
In Scotland, matters are made worse by the anti-business SNP, which is not passing on moneys intended for business rate relief, and whose multiple unit pricing alcohol regime makes Scotch whisky more expensive in the land of its birth than in many other places. Shrouded in pious health messaging, MUP has had little discernible effect on problem drinking and seems more like the SNP fun police given free rein. Spirits prices are high; business spirits are low.
No doubt the wealth-finder general, the new Chief Secretary to the Prime Minister—tough on growth, tough on the causes of growth—will seek new ways to squeeze hospitality. Knowledge is knowing that the tomato is technically a fruit; wisdom is being wise enough not to put a tomato in the fruit salad. The Pensions Minister is, improbably, holding the pen on the nightmare-before-Christmas Budget. He has a lot of knowledge about taxes, but has he the wisdom not to deploy them in the growth basket?
Hospitality is a canary in the economic coalmine. The fact that pubs are closing and restaurants open only a couple of days a week at best is a leitmotif for this anti-business Government. They think that business is a dripping roast to be devoured to fund ruinous policies such as the Chagos surrender deal. Terrifyingly, hospitality is supping in the last chance saloon, but surely it is last orders for this maladroit Labour Government? Haven’t they got three homes to go to?
Vikki Slade (Mid Dorset and North Poole) (LD)
Hospitality is more than an industry; it is a way of life. My first jobs were in hospitality—potato rumbling in the basement of the Crown in Cowden, with my brother Spencer potwashing, and learning the bar at the King Henry VIII in Hever, where my sister Chloe worked—and for 14 years I ran a hospitality business in my constituency with my husband Paul. All my children, like so many others, have worked in hospitality. It is an amazing learning ground for life and deeply rewarding.
Through our business, we supported families through the happiest and saddest days of their lives. We befriended the lonely, offered a daily catch-up for regulars and became a hub for community groups and local businesses. But it is a tough life, with unsociable hours, low pay and insecure conditions the norm. In the nine months since the Budget, more than 80,000 people in the industry have lost their jobs, including my son Isaac.
I first got involved in local politics because of the crippling cost of business rates. I continue to campaign on that. I hear the argument that the Conservatives had no plan to continue the relief, and that interim measures are better than nothing—but that is cold comfort to businesses facing massive cost increases, uncertain revaluations and no assurance about what happens next April.
It is not just the rates, but the whole regime. Hall & Woodhouse, the brewery that runs so many brilliant pubs in Dorset, explained that revaluations after refits directly disincentivise investment. The Minister will say that he cannot pre-empt the Budget, but I want him to hear loud and clear that some hospitality businesses will not make it until April. For those that do, without permanently lower costs, the writing is on the wall.
On national insurance, I have to take issue with the claim that small businesses are not worse off. I have run a hospitality business, and with the front and back of house 12 hours a day, seven days a week, more than five full-time members of staff are needed. My constituent Craig from Bear in Wimborne explained that national insurance costs for part-time workers on the minimum wage have increased 74.5%. Those costs have to be passed on. As well as affecting prices, they are likely to lead to slower wage growth and job losses.
The cost of going out impacts heavily on gen Z. As a mum of four of them, I welcome the reduced drinking culture and healthier lifestyle, but the reality is that they are preloading at home to reduce the cost of a night out. That is no criticism of the night-time economy—its costs have increased with the responsibilities of Martyn’s law—but we must change our tax regime to reflect how our society is changing.
Hospitality is not just about food and drink; it is about people, community and the very identity of the United Kingdom. Let’s not just save hospitality; let’s celebrate it.
Llinos Medi (Ynys Môn) (PC)
Diolch, Madam Dirprwy Lefarydd. I declare an interest as the chair of the all-party parliamentary group for hospitality, events, major food and drink businesses in Wales.
The hospitality sector in Wales has enormous economic value. It contributes £4 billion to the Welsh economy and employs more than 165,000 people. It also has immense social value, creating strong communities and providing opportunities for local people, often young people whose first job is in hospitality. However, the tax changes introduced by this Government have placed huge pressure on the sector.
This summer, a report by Family Business UK showed that on Ynys Môn changes to business property relief and agricultural property relief could result in a more than £10 million reduction in gross value added, as well as the loss of 167 local full-time equivalent jobs. That pattern is seen across Wales. The report also finds that Wales will see some of the steepest forecast declines in investment, turnover and employment due to the changes to BPR and APR.
Beyond the statistics are the real impacts on family-run businesses, such as Kingsbridge caravan park in Beaumaris, which has been family-owned for 26 years. Those running it say that the increases to employer national insurance have already forced them to reconsider employing wardens next year and have affected their ability to reinvest in the caravan park.
Analysis by UKHospitality Cymru shows that of the 164,641 job losses in the UK since the Budget last October, some 89,000 have been in hospitality. About 2,600 of those are in Wales—roughly equivalent to the number of jobs lost at Port Talbot due to the closure of the blast furnace, but spread across our communities throughout Wales. The sector is crying out for the Government to recognise the urgent situation and to acknowledge that many businesses are barely treading water, unable to invest or grow.
Hospitality is an important source of skills and growth for Ynys Môn and Wales, yet this Government are putting the brakes on that growth through short-sighted decisions. Thousands of jobs have already been lost and future investment has been cut. To prevent a bad situation from getting worse, the Government must rethink their damaging increases to employer’s national insurance contributions and the upcoming changes to business property relief, and give the Welsh hospitality sector the breathing room it needs to flourish.
Matt Vickers (Stockton West) (Con)
Hospitality is at the heart of our local communities. It is the best of British: the pubs we visit for a pint or two, the restaurants where we go to celebrate a special occasion, or the bars that power our night-time economy. My constituency is home to some truly incredible hospitality businesses—if you have never been for a night out in Yarm, you have never lived. We do not love pubs just because we love pints. The great British pub brings communities together. They tackle isolation, provide a safe environment where people can consume alcohol, support more than a million jobs and help many youngsters get their first foot on the employment ladder. The best ideas are usually the ones we come up with in the pub. Pubs are places where community spirit is found and fostered. If I had more time, I would tell hon. Members about the innovative and generous support shown to local charities by the Locomotion in Eaglescliffe and the Griffin in Thornaby.
Like several MPs, I host my own pub awards, recognising and celebrating the best of our local pubs. This year’s winner was Courtney and the incredible team at the Myton House Farm pub in Ingleby Barwick. I am looking forward to celebrating more places in the coming years, such as Luna Blu, a fantastic local tapas restaurant and bar in Yarm; the Derry in Long Newton, where people can get a warm welcome, great grub and all the village gossip while enjoying one of the best beer gardens around—if Carlsberg made beer gardens, the Derry in Long Newton would be its aspiration—or the Masham in Hartburn, a must-visit eatery that arguably serves the best parmos on the planet. I would love to tell the House more about the incredible hospitality businesses in Stockton West, but time does not allow.
John Lamont
My hon. Friend is making an excellent speech and demonstrating why he is such a great champion for Teesside. Does he agree that many businesses are not just facing the prospect of closing, but of possibly laying off more and more jobs? In my constituency, Mainstreet Trading, a fantastic award-winning bookshop, deli and café, wrote to all its customers earlier this year to say that opening hours were going to be reduced because of Labour’s tax on jobs. Is he experiencing the same in his constituency?
Matt Vickers
Very much so; I could not agree more. These are opportunities for young people to get a first foot on the ladder in the job market. Between October 2023 and July 2024, the number of hospitality businesses increased and the number of jobs in the sector increased by 22,000. Surprisingly, after Labour’s Budget, in exactly the same time period, we have seen 89,000 job losses—89,000 people unable to provide for their families or live out their aspirations and dreams. It is shameful, it is a disgrace, and people did not vote Labour for that.
Speaking to landlords in my part of the world, I am told how real the fight is to save the great British pub. Labour’s jobs tax, its Employment Rights Bill and the slashing of small business rates relief have meant that 89,000 jobs have already been lost in the hospitality sector, and UKHospitality believes that the figure could be as many as 200,000 by the end of the financial year. Labour’s jobs tax means it costs £900 more to employ the average employee, meaning some hospitality businesses are unable to provide opportunities for those youngsters to get their first job. It is part of the reason 14% more people in this country are unemployed and left unable to support their families or fulfil their dreams and ambitions—
Matt Vickers
The hon. Member for Tipton and Wednesbury (Antonia Bance) should not shake her head—that is true. It is a fact.
In the last Parliament, I campaigned for the 75% discount on business rates for leisure, hospitality and retail businesses. It was game changing for many, but with the stroke of a pen, the Chancellor stood at the Dispatch Box and ended that lifeline thrown to many employers. With the average pub having seen its business rates increase from £3,938 to £9,451, and the average restaurant from £5,051 to a whopping £12,122, the Government are taxing the sector to death. Two hospitality businesses are closing every day and it is thought that more than—
Christine Jardine (Edinburgh West) (LD)
I come to Parliament this week fresh from the Edinburgh festival—on which note I refer the House to my entry in the Register of Members’ Financial Interests. Hon. Members will be pleased to hear that I was there not as a performer, but because every year I am tempted across the border into neighbouring constituencies by the absolute feast of music, theatre, dance, literature and comedy that is the Edinburgh festival. Every year it contributes £400 million to the city’s economy, and it is hosted and supported by a hospitality industry that, in my constituency alone, is valued at £200 million and supports 6,500 jobs.
That is the big picture, but there is a much smaller and individual picture about the businesses who come to me every week with complaints. I have to say to Conservative Members that this issue did not miraculously start in July last year; it has been going on for the past decade and since the Conservative Government destroyed the economy on a whim a couple of years ago. These businesses are suffering and under threat.
Christine Jardine
No, actually—I think the hon. Member has said enough today.
Those businesses are suffering and they have been for years. Hon. Members know how important they are not just to my constituency, to Edinburgh or to Scotland, but to the United Kingdom, because of the jobs that they create and the people they employ. That little picture is about families who are dependent on those businesses and who tell me that they are unhappy with the national insurance changes.
Christine Jardine
Those families also tell me that bigger businesses, like Edinburgh zoo and fantastic tourist businesses, which the national insurance changes have added—
Christine Jardine
The hon. Gentleman is beginning to sound a bit like a parrot.
Christine Jardine
No, I will not give way. We hear the hon. Gentleman. I will repeat the phrase for him again: tourism tax. Yes, we know that Edinburgh is taxing tourists, but it is doing that to support its hospitality business, which has been under threat for a decade.
We need to look at the burden that our businesses are carrying: the national insurance burden; VAT, which could be reduced; and the business rates in many places. I appeal to Ministers to listen to the constituents we have heard from today—to listen to my constituents. They should listen to the fact that if those businesses fail, our economy will not have the growth on which this Government and every Government depend so much for our future. Each of those small businesses makes up an important part of that big picture: the hundreds of millions of pounds—the billions—that hospitality brings to this country.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
May I first thank Alex Leitch from my office for helping me to research what was going to be a long speech? I will use just little bit of it, given the limited time that I have in which to speak.
I spent weeks in my constituency over the summer recess, as other colleagues did in theirs. I spent one week volunteering with small businesses and another visiting pubs in my constituency. I heard at first hand from many owners and employees about the dire situation they face, not just because of Labour’s increase in national insurance contributions, but because of its crippling Employment Rights Bill.
As someone with a small business background, I am appalled that these policies have been cloaked as favourable to the working person. I have always been in favour of supporting hospitality, which is the cornerstone of our communities. In my constituency alone, the hospitality sector added more than £76.6 million to our economy, and the hospitality sector in general is growing at almost double the rate of the UK economy.
The hospitality industry is one of the highest-taxed sectors in the UK economy, and I am very disappointed that the Government have continued to hammer our service industries with NIC increases and minimum wage increases, all while boosting the salaries of people like train drivers, who are already on £65,000.
Dr Scott Arthur (Edinburgh South West) (Lab)
Will the hon. Gentleman give way?
Mr Mohindra
There is not enough time.
Others have already spoken about the retail, hospitality and leisure relief scheme in 2023, so I will not dwell on that. Let me just say that the hospitality businesses I speak to remain disappointed that the 75% discount applied previously has not been adhered to. Small independent businesses like the Kitchen Croxley in my constituency have warned me of the job losses that will become inevitable just to keep their doors open on account of Labour’s policy changes.
If we continue down this path, we will only see higher levels of inflation and unemployment and increasing reliance on our universal credit programmes. I have no doubt that, despite putting an enormous additional £40 billion burden on British taxpayers—taking the tax burden to its highest ever level—the apparent lack of foresight will only lead to more dismay in the future.
Other Members have spoken about the number of pubs that have closed, as well as the job losses in the hospitality sector. However, one point I have previously mentioned and I think is relevant to this debate is the lack of business experience among the Cabinet. Having run a small business and understanding the challenges associated with that would, I hope, lead to a better policy position than we are currently seeing. I look forward to further U-turns from this Government, because where they are doing the right thing, Conservative Members will support them. There is a long list of things they could be doing better, and I hope that when the Minister responds, he will give at least a glimmer of hope to the small businesses that are struggling.
Steve Darling (Torbay) (LD)
First—strangely for this debate—I would like to directly address part of the motion that is before us this afternoon. I am concerned that the harassment of people in the hospitality sector would be made worse under part of the motion. However, I strongly support the motion as a whole. As somebody who was brought up in a guest house in Torquay, you could say that the hospitality industry is in my blood. In my mind, Torbay is the premier resort in the United Kingdom; sadly, it is also the most deprived constituency that rejoices in having a Liberal Democrat MP, so there are some wicked challenges there as well.
My constituency has an income of £371 million from the hospitality sector. That is £1 million more than the national constituency average, with 1,000 businesses across the constituency rejoicing in providing hospitality. I warned last November that the national insurance hike would rip the heart out of our hospitality industry in the west of England and, sadly, I have been proven right. The Office for National Statistics has highlighted that there are 84,000 fewer jobs in this sector than there were, and there were a quarter fewer vacancies in the sector this summer in Devon and Cornwall. As colleagues have already highlighted, those are often entry-level jobs—opportunities for students to get some extra money in the summer break to help them through their time at university—so this is extremely important. There has been a lethal cocktail of the national insurance hike; the cost of living crisis, which has impacted not only the industry but the punters who have less discretionary spend; and the failure to properly reform business rates, which is essential.
One sector of our tourist industry that has been particularly hit is our zoos and aquariums. They have also suffered from the bum Brexit deal, which has left them with some real challenges in being able to replenish their animals from other zoos across Europe and elsewhere in the world. As such, I ask the Minister to convene a summit for zoos and aquariums up and down the country to assist them with the real economic challenges that many are experiencing in the challenging world that we in the United Kingdom face.
Madam Deputy Speaker (Judith Cummins)
Order. The wind-ups will start at 6.40 pm prompt.
Liz Jarvis (Eastleigh) (LD)
The hospitality industry in Eastleigh contributes £113 million every year, generates £56 million in economic value, employs 1,805 people and sustains 84 pubs, cafés, restaurants and hotels.
My constituent Lorraine, the landlady of the Master Builder pub in West End, saw her wage bill rise by £1,500 compared with the same month last year despite having no extra staff. She now works 70 hours a week, earning the equivalent of £5 an hour, and in the past two years she has had just five days off. Jane is the manager of the Holiday Inn in Eastleigh, a popular base for those wishing to watch cricket at the Utilita Bowl and for families wanting to explore Peppa Pig World at Paultons Park nearby. She tells me that they have been unable to fill vacancies because of the increased payroll burden from national insurance hikes.
David, the owner of Steam Town Brew Co, tells me that for a part-time member of staff doing just 10 hours a week, costs have risen by more than 9% year on year. For small breweries such as his, these increases make it harder to keep staff on, to recruit and to invest in local jobs. Does the Minister acknowledge that the changes to employer national insurance contributions act as a disincentive for small, labour-intensive businesses—
Nigel Huddleston (Droitwich and Evesham) (Con)
Before I start, may I refer hon. Members to my declaration in the Register of Members’ Financial Interests? I have also taken hospitality below the declarable amount from UKHospitality and the BBPA—I am sure I am not the only one.
I thank all hon. Members for their contributions from across the UK. We have heard some enthusiastic and supportive comments on the industry, but it is a pity that the policies are not so supportive. From the start I was left wondering what planet some of those on the Government Benches are on. They are clearly not talking to the same hard-working and angry people working in the hospitality sector as those on the Opposition Benches are. If they had been, I do not believe for one minute they would have been so enthusiastically supportive of decisions and policies that are doing such immense damage to an industry that supports 3.5 million jobs in the UK.
Hospitality is one of the most important economic sectors and is our third biggest employer. It was a British success story. While we were in power between 2010 and 2024, we oversaw the creation of 4 million jobs—that is 800 jobs a day—and nearly 20% of all those new jobs created were in the hospitality sector. However, since Labour’s disastrous Budget, nearly half of all jobs lost have been in hospitality. Where Conservatives create, Labour destroys. The irony of this Government is that they say they are prioritising growth, yet they are implementing policies that do the opposite. The job losses in hospitality are a direct result of the unexpected and unnecessary employer national insurance increases that have added £1 billion to the cost of hiring people in this sector. The Government also whacked up business rates on hospitality, costing the sector a further half a billion pounds.
As a result of Labour’s decisions, a generation of young people will miss out on their first job opportunity in hospitality—a sector that is particularly enthusiastic about employing young people. Of the 164,000 job losses in the UK since last year’s Budget, almost 89,000 have been lost in hospitality, and more are expected. According to UKHospitality, 79% of hospitality businesses have had to raise prices, and more than half have cut staff. That is before the Deputy Prime Minister’s further attacks on business with her unemployment Bill, burdening UK businesses with more rules and regulations and costing businesses another £5 billion, according to the Government’s own estimates. As I said last year, the Chancellor’s Budget will go down in history as the most anti-business Budget that this country has ever had. Her legacy will be as the destroyer of jobs. We will see how much further she goes in this year’s Budget.
This Government are well on the way to securing the unenviable record of every Labour Government since the second world war of leaving office with unemployment higher than when they started. It is the private sector, business and especially the hospitality sector that are paying the price for Labour’s mistakes and poor judgment.
Nigel Huddleston
I will not because of time, I am afraid. I spent a good chunk of the summer travelling around the country, meeting key players in the tourism, hospitality, heritage and leisure sectors. Everyone was complaining about how hard they have been hit by this Government’s policies, and the sector is angry—so angry, in fact, that they have given the Prime Minister, the Deputy Prime Minister and the Chancellor a middle name, and a good Anglo-Saxon one at that. They told me about job losses, inability to invest, and profit margins being eroded or disappearing all together. Seaside amusement arcades, for example, are closing their doors early, or on certain days, or all together, because it is no longer profitable to stay open.
The focus today is on hospitality, but it is clear that the wider tourism, hospitality and leisure sectors are all being hit. Nearly every sector overseen by the Department for Culture, Media and Sport has been hit by Labour policies, and this is a big deal. Why do people holiday in the UK, or come here from overseas to visit? It is because of our heritage sites, our museums, our art, our culture, our theatres, our festivals and our sporting events. About a million people visit the UK every year just to come and watch football games. All these sectors are being hit, and the 40 million-plus overseas visitors who come to the UK each year spend £33 billion in our pubs, bars, restaurants, hotels and so on. All that is at risk. Tourism is a highly competitive global industry, but this Government’s decisions are undermining our competitiveness in respect of both domestic and inbound visitors. We should always remember that inbound travel spend is all-important export revenue.
Let me respond to some of the comments made during the debate. The Minister for Creative Industries, Arts and Tourism said that this Government had made the “difficult” decisions to increase taxes. What a load of nonsense! The easiest—the laziest—thing for any Government to do is dip into other people’s pockets and spend money on their behalf. The difficult decision is to be restrained about spending and to reduce taxes, which is what we were doing before the election.
The hon. Members for Ealing Southall (Deirdre Costigan) and for Tipton and Wednesbury (Antonia Bance), among others, asked why we were not supporting the Deputy Prime Minister’s unemployment Bill. The answer is simple: it will cause more unemployment. The hon. Member for Welwyn Hatfield (Andrew Lewin) asked why we were attacking the industry and talking it down. We are doing no such thing: we are talking this Government down and talking this Government’s policies down.
My hon. Friend the Member for Kingswinford and South Staffordshire (Mike Wood) pointed out that when we were in government, we rightly supported this sector to the tune of about £25 billion during the pandemic, with measures such as the furlough scheme, the cutting of VAT on tourism, the culture recovery fund and the sport survival fund. We were desperate to get the sector open as soon and as safely as possible while the then Opposition were saying that we should keep things closed for longer, so we will take no lectures from them on that.
My right hon. Friend the Member for East Hampshire (Damian Hinds) rightly drew attention to the disgraceful fact that the hospitality sector is almost completely absent from the Government’s industrial strategy despite its importance. My hon. Friend the Member for Mid Leicestershire (Mr Bedford) spoke of the need to talk to industry and then talk to the Treasury, credibly and confidently, with statistics and information. I do not believe that the DCMS is doing that. It does not appear that it carries any weight with the Treasury, as evidenced by the policies that are attacking all these sectors. My hon. Friend the Member for Stockton West (Matt Vickers) invited us all for a pint. I will take him up on that offer; the first round is on him. I believe that the hon. Member for Tewkesbury (Cameron Thomas), my constituency neighbour, did the same.
Several Members, especially Government Members, asked where the money would come from if we did not increase national insurance contributions. The answer is simple. We would not have spent £10 billion on inflation-busting pay rises for union mates. We would not have spent £8 billion on the National Wealth Fund, £7 billion on GB Energy—which does not produce any energy—or £35 billion on the Chagos surrender Bill. There is the answer.
My hon. Friend the Member for Bromley and Biggin Hill (Peter Fortune) highlighted the additional concerns of this sector given the impending hits to inheritance tax, business property relief and agricultural property relief, which are especially worrying for rural and farming communities. That point was also made by my hon. Friends the Members for South West Devon (Rebecca Smith) and for Chester South and Eddisbury (Aphra Brandreth).
It is clear from its policies, and from today’s debate, that Labour simply does not get business. Perhaps that should not be surprising, given how few members of the Cabinet have actually started or run a business, or even worked for or spent any significant time in the private sector. Few Labour Members have any understanding of, or appreciation for, the hard work and effort put in by entrepreneurs, risk-takers and owners of businesses, especially small businesses, who work so hard to employ others and generate taxes. Labour certainly knows how to spend other people’s money; it just has no idea how that money is generated in the first place.
On the Conservative Benches, we have a party that is unapologetically pro-business, because the Conservatives know that we can have good public services only if we have a dynamic private sector generating the taxes to pay for them. Supporting the private sector and enabling it to succeed is good for public services, too. The hospitality and tourism sectors know that they have a friend in the Conservative party. We appreciate them, and we want them to succeed. We stood by them during the pandemic, we appreciated and applauded their growth when we were in power, and we will be there again to work with them when this Government collapse and we pick up the pieces once more.
We will back business. We will revive the economy and bring opportunity and prosperity back to this country through pro-enterprise policies based on core Conservative principles: lower taxes, smaller Government, light regulation, personal responsibility, fiscal responsibility and living within our means—principles that my party, and only my party, understand and abide by. The British people deserve so much better than this shambolic Labour Government, and we will not rest until they get it.
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Only yesterday I sat down with some of Britain’s great publicans—award-winning Tommy Higgs and Mike Dove of the Three Horseshoes, Emma Gibbon from the Plough in Prestbury, Justine Lorriman of the famous Royal Dyche in Burnley, Matt Todd of the Wonston Arms, and the excellent Steve Alton of the British Institute of Innkeeping—to go through the details of the challenges they are facing, so I welcome the chance to underline the Government’s recognition of the importance of hospitality businesses in all our communities to the economic, cultural and social life of our country.
In this debate we have heard many other examples of great hospitality businesses, notably in the excellent speeches of my hon. Friends the Members for Reading West and Mid Berkshire (Olivia Bailey), for Bournemouth East (Tom Hayes), for Welwyn Hatfield (Andrew Lewin), for Ealing Southall (Deirdre Costigan), for Gedling (Michael Payne), for Leeds North West (Katie White), for Hexham (Joe Morris), for Falkirk (Euan Stainbank), for Cumbernauld and Kirkintilloch (Katrina Murray), for Tipton and Wednesbury (Antonia Bance), for Stirling and Strathallan (Chris Kane), for Monmouthshire (Catherine Fookes), for Calder Valley (Josh Fenton-Glynn) and for Portsmouth North (Amanda Martin).
Hospitality is a sector that contributes well over £50 billion to our economy and employs millions of people across the UK. It is particularly important for young people, who need to gain essential skills and experience to pursue successful lives. It is also often an entry point for those who want a second chance in life, and I pay tribute to Greene King for working with 65 prisons across the UK to provide inmates with hospitality training. It aims to hire 400 prison leavers by the end of this year.
What all the contributions to this debate underline once again is that hospitality is truly the backbone of our high streets and the lifeblood of our communities. However, pubs, cafés, restaurants and hotels felt the full force of the headwinds unleashed by the economic incompetence of the Conservative party. We had 14 years of Britain’s hospitality entrepreneurs being let down. The Conservatives unleashed a cost of living crisis, and interest rates rose 14 times. We had double-digit inflation, with food prices driven higher by the disastrous Brexit deal that they signed. The Conservative party said that it was against red tape but made it ever harder for hospitality businesses to change and innovate. According to the British Beer and Pub Association, the last Government’s watch resulted in 10,000 fewer pubs. When both shadow Ministers held key roles in government, a total of 185,000 hospitality businesses closed their doors for good between 2017 and when they left office.
We are turning the page on that grim period with an industrial strategy to boost the whole economy by driving business investment, productivity and innovation across the economy. Businesses across all sectors have welcomed this approach. Frankly, they welcome the marked departure from the permanent chopping and changing of policy that marked the 14 years when the Conservatives were in power. We had austerity, the disastrous trade deal with Europe, and then the revolving door of Prime Ministers and Chancellors. We are doing things differently by setting out comprehensive, research-backed and business-informed strategies to help businesses plan not just for the next 10 months, but for the next 10 years and beyond. Focusing on our core industrial strategy sectors will benefit the rest of the economy, too—for example, the creative industries are a key sectors that will help drive benefits and opportunity for the hospitality sector.
It is a little rich for the Opposition to talk about omissions from the industrial strategy, when they gave up on having any kind of industrial strategy in their final years in office. All our work is complemented by our small business strategy: to back entrepreneurs, to invest in the high street, to improve access to finance, to open up overseas and domestic markets, and to build business capabilities. Inspired by the US’s Small Business Administration, we have launched our Business Growth Service, which will be the go-to place to get the advice and information that businesses and entrepreneurs need. We are determined to tackle the scandal of late payments, which the Conservative party never did.
On business rates, let us remember what the Conservatives promised six years ago. In their 2019 manifesto, they said they would begin a fundamental review of the business rates system, but they never did. They were due to reduce business rates relief to zero from April this year. We stopped that—we have kept the relief—and we will deliver on our manifesto commitment to create a fairer business rates system that protects the high street, supports investment and drives growth. We will deliver permanently lower multipliers for retail, hospitality and leisure businesses, and I certainly agree with my hon. Friend the Member for Cumbernauld and Kirkintilloch that it is staggering that the Scottish Government will not commit to do the same.
The Chancellor of the Exchequer had to take difficult decisions in the Budget last year to fix the £22 billion black hole in the public finances. The decisions she took were vital to help build the long-term stability that is essential for investment, creating jobs and, crucially, putting more money in people’s pockets. While I understand the sector’s concerns about the increase in national insurance contributions, we are protecting the smallest businesses by increasing the employment allowance to £10,500. Some 1 million employers, of which thousands are hospitality businesses, will pay no NICs at all, and more than half of employers will see no difference or will gain from this package.
We are committed to reducing regulatory burdens to bring down the cost of food, which is why we negotiated a sanitary and phytosanitary deal with the European Union. It is also why we launched the licensing taskforce, with proposals to rebalance the licensing system to better support business growth, cultural vibrancy and public safety. We will bring forward further work in that space shortly. We have also introduced the hospitality support scheme to co-fund projects in line with Hospitality Sector Council priorities, including by supporting initiatives such as Pub is The Hub to encourage local investment, particularly in rural communities. Indeed, the Conservative party axed all funding to support pubs, including support for Pub is The Hub.
Successful pubs, cafés and restaurants depend on people having the money in their pockets to go out and enjoy what are the best hospitality businesses in the world. Wages grew faster in the first 10 months of this Government than they did in the first 10 years of the Conservatives’ time in office. Disposable incomes are set to rise during this Parliament at twice the rate they did during the last Parliament. Business investment is up, almost 400,000 jobs were created in our first year in office, we have had five interest rates cuts and business confidence is rising.
The Conservatives gave up on pubs; they gave up on entrepreneurs; they gave up on cafés, restaurants and hotels; they gave up on small businesses; and they gave up on high streets. They never had a strategy for growth, they certainly did not have a strategy to back hospitality, and they certainly have not offered any new ideas today. We do have a strategy for growth, and we will continue to work with the hospitality industry to address the challenges it faces. I urge the House to reject the motion.
Question put.
Dave Doogan (Angus and Perthshire Glens) (SNP)
On a point of order, Madam Deputy Speaker. Earlier today at Prime Minister’s questions in relation to the Norwegian Government’s £10 billion investment in the Scottish defence sector, the Prime Minister stated, “I am perplexed that the First Minister of Scotland has not welcomed this deal.” The problem for the Prime Minister is that the First Minister did in fact welcome the order from the Norwegian Government to Scottish shipbuilding, meaning that the Prime Minister’s statement today was untrue.
The First Minister said:
“The announcement by the Norwegian Government of their intention to buy frigates from BAE is obviously a significant boost to employment and opportunity in the defence sector in Scotland. It’s an indication of the steps that have to be taken to ensure that countries are able to defend themselves. And I welcome the investments in Glasgow.”
This is an open and shut case and a serious one where the Prime Minister of the United Kingdom was today engaged in advancing a completely false accusation against the First Minister of Scotland. I seek your advice, Madam Deputy Speaker, on how we might get the Prime Minister to come to the House to correct the record.
Madam Deputy Speaker (Judith Cummins)
I thank the hon. Member for giving me notice of his point of order. The content of Members’ speeches or responses by Ministers are not matters for the Chair. However, the Treasury Bench will have heard the Member’s point of order, and I am sure that if there is a need to correct the record, the Prime Minister will do so.
Business without Debate
PETITION
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
I rise to present this petition on behalf of the residents of Birmingham Hodge Hill and Solihull North. The petition declares that my constituents believe that the UK should recognise Palestinian statehood. For too long now, we have witnessed the most unimaginable horror inflicted on the men, women and little children of Gaza, as the Government of Mr Netanyahu seek to create a desert and call it peace. This is an existential moment for the Palestinian people. The International Criminal Court has described war crimes and crimes against humanity. We in this House cannot now turn away. We have a duty to act as a country, and we have a responsibility to act now.
One hundred and forty countries have recognised Palestine. We should act, and we should act unconditionally, unreservedly and urgently. The Government have set out a plan to recognise Palestine. They must now follow it through—to uphold international law, challenge claims of annexation, and show that we in this country match words with deeds. My constituents call for recognition as part of a plan to stop this barbarity and killing and to surge in aid and release the hostages. The petitioners therefore
“request that the House of Commons urge the Government to recognise Palestinian statehood.”
Following is the full text of the petition:
[The petition of the residents of the constituency of Birmingham Hodge Hill and Solihull North
Declares that the residents believe that the UK should recognise Palestinian statehood. The petitioners therefore request that the House of Commons urge the Government to recognise Palestinian statehood.
And the petitioners remain, etc.]
[P003108]
Diabetes in Sport
(2 days, 20 hours ago)
Commons ChamberRead Hansard Text Watch Debate Read Debate Ministerial Extracts
Chris Bloore (Redditch) (Lab)
It is a real privilege to speak on the vital topic of diabetes and sport. I thank Chris Bright and the Diabetes Football Community, Breakthrough T1D UK and Diabetes UK for their invaluable support and work.
I am so grateful to the many people who have contacted me with their stories, which have been both uplifting and heartbreaking. The fact that we are debating this issue in the Chamber is a huge moment for those who have championed it for a very long time. I hope it marks the start of a national conversation about unlocking the potential of young athletes with diabetes, reassuring their families, and supporting the incredible volunteers and coaches who make grassroots sport such an asset.
Diabetes affects 12 million people in the UK. That means that one in five adults are living with diabetes or pre-diabetes. It is not only a serious condition in itself but a gateway to other devastating health problems. Each week in this country, diabetes contributes to more than 980 strokes, 184 amputations, 680 heart attacks and 3,000 cases of heart failure. It accounts for almost 30% of cardiovascular disease deaths. This is a public health challenge on an immense scale. The good news is that physical activity is one of the most powerful tools we have to combat those outcomes. Exercise improves how effectively the body uses insulin, whether naturally produced or injected, and helps to keep blood glucose levels within the target range.
Sarah Bool (South Northamptonshire) (Con)
As a type 1 diabetic myself, I completely agree with what the hon. Member says. Exercise is an excellent way of moderating blood sugar levels, but it can also bring stresses and strains, as diabetics do worry about hypoglycaemia, which I am sure he will come to. I am a big fan of anything we can do to support people to take up sport, so I congratulate him on securing this debate.
Chris Bloore
I thank the hon. Member for her contribution. I will come on to hypos, as we call them, in a minute, but she is right that reassurance and education are so important.
Jim Shannon (Strangford) (DUP)
I commend the hon. Member for bringing forward this debate; he is right to highlight these issues. I want to tell him about a young boy from back home. I recently read an article on diabetes.co.uk about a young man called Ryan Nixon-Stewart from Lisburn in County Down who has his sights set on Olympic victory in athletics after being diagnosed with type 1 diabetes. I know that the hon. Gentleman wants to inspire people, and this young man similarly wants to inspire others. His story is inspirational to those who wrongly believe that diabetes and sport do not co-exist. I am pleased to see the Minister in her place; she is always helpful. Does the hon. Member not agree that we must do more to educate our young people to break down the barriers to sporting victory? Apologies, Madam Deputy Speaker; I should have declared an interest as a type 2 diabetic.
Chris Bloore
The hon. Member is absolutely right to raise that point. Today I want to talk about the issue of stigma connected with diabetes and sport, particularly type 1 diabetes, and some of the inappropriate stereotypes that put people off taking part in sport, which then impacts their health.
Exercise can reduce the amount of insulin needed, help maintain a healthy weight, improve blood pressure and cholesterol, and support mental health by reducing stress and improving mood. There is no single best form of exercise for everyone with diabetes; what matters is moving in ways that people enjoy and can sustain, whether that is playing football, dancing or simply going for a walk.
I want to tell the House about Chris Bright, who is in the Public Gallery. I met Chris playing futsal, a fast-paced, small-sided football game that uses a heavier ball and which started becoming popular in leisure centres about a decade ago. For those unfamiliar, futsal is a sport loved by many football fanatics; indeed, hon. Members might know Max Kilman, currently at West Ham, who played futsal as a young man and represented England. Chris and I lived close to each other in Redditch and often travelled to games together. He was not only a special talent but someone who worked incredibly hard, took great care of himself and always strived to be better.
Our team was successful—a modern-day Crazy Gang of players of many nationalities—but none of us knew the extra challenges Chris faced managing his diabetes alongside training. One day, on driving him home from a game, I was shocked when I noticed that he was injecting himself because his levels were not where they needed to be. Looking back, I cannot believe how underprepared we were, as a club or even as his teammates, to support him.
Chris is an unrelenting personality. That is why he went on to play international futsal for Wales. More than that, Chris has been a pioneer in the diabetes community, setting up the Diabetes Football Community in Worcestershire. The group runs football teams for all ages and genders, holds family days and provides peer support, making sport accessible and welcoming for people with diabetes. Chris’s work is exactly the kind of grassroots leadership we need to replicate across the country, but these personal efforts cannot replace systemic change. That is why I want to share some stories from parents whose children with diabetes have faced exclusion, misunderstanding and stigma when they have tried to take part in sport.
Parent One told me their 10-year-old child was virtually forced out of their football team because the manager said he could not cope with the child’s condition, even though the parent attended every match and training session and never asked for special treatment. They moved their child to another team where the manager also had type 1 diabetes, which helped. Parent Two described being actively discouraged from sending their son to a swimming lesson. They offered to monitor and treat him as needed, train a staff member and comply with safeguarding checks, but were told no parents were allowed in and their offers were refused. They only found another swim class after contacting Swim England directly. Parent Three shared their experiences with karate. After diagnosis, they were initially welcomed because the sensei’s stepson also had type 1 diabetes, but after a hypo incident treated on the sidelines, they were asked to leave the dojo for
“eating and not keeping still,”
which was deeply upsetting and led them to stop going to classes.
Another parent spoke of their child not being selected for a school cricket tournament because the sports lead did not want the “hassle” of caring for him, even though children with no interest in cricket were picked. Another child was sidelined from hockey matches after a coach showed clear misunderstanding and frustration about managing a hypo incident. The child eventually switched to football where the support was better. Even at elite level, a young player in a premier league performance squad experienced exclusion from games after a hypo, despite family reassurance that he was fit to play. The coach never checked in and the player did not get a single minute in an important match, leaving him deeply upset. He ultimately left the club despite the apologies and offers of training for coaches—all because of stigma about something that affects millions of people in this country.
Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)
I thank my hon. Friend for giving way and for encouraging awareness of the often unnecessary barriers faced by people with diabetes. We know the huge physical and social benefits of sport, yet stigma, lack of awareness and poor policies, as described, often hold people back. Only a small fraction of coaches have diabetes training and nearly half of people with diabetes say they have been told they cannot be active. Does my hon. Friend agree that we need sporting bodies to prioritise awareness and education and to tackle stigma, so that everyone can enjoy sport?
Chris Bloore
I thank my hon. Friend for a very articulate summary of where we are. We cannot risk losing these athletes from the system—or even risk losing the people who want to play sport at a grassroots level, just to keep fit and keep up friendships.
The stories that I have told today expose a systemic failure: many coaches, schools, and sporting bodies are ill-equipped to support people with diabetes, creating unnecessary barriers to participation and enjoyment. Of 184 national governing bodies in sport, only 20 mention diabetes on their websites or in policy documents, and just four have specific policies to support people with diabetes. That is simply not good enough, especially as chronic health conditions become more common. We need national sports bodies to show leadership, and to work with healthcare professionals and organisations such as Breakthrough T1D and Diabetes UK on training coaches and volunteers and on providing clear, accessible policies.
Tom Collins (Worcester) (Lab)
Diabetes is a disability that is often hidden and not well understood, and people with it suffer from all the stigma that my hon. Friend has described so well. It is complex to manage, especially being metabolic, and especially in relation to sport, so listening to parents and families, and young people and others with diabetes, is vital. We have benefited in Worcester from the fantastic Warriors Foundation and the Chris Pennell rugby academy, and I have seen the incredible advantages they have brought for people with type 1 diabetes in our area. They have shown how sport can facilitate community, better awareness and better management of the condition for people with diabetes. Does my hon. Friend agree that in sport, diabetes should be managed at an elite level, so that there is a real opportunity for people with diabetes to own the condition and their sports performance?
Chris Bloore
I thank my hon. Friend and neighbour for his contribution. He is absolutely right. It is incredible how sport can be used to reach people and inform them about health conditions in a way that many other areas of our public policy cannot.
The Equality Act 2010 provides legal protection against discrimination but a gulf remains between policy and lived experience. People with diabetes—often a hidden disability, as my hon. Friend said—face ongoing discrimination and a lack of adjustments in schools, workplaces, leisure centres and community settings. Diabetes is a major public health crisis with far-reaching consequences. Physical activity can prevent complications, improve quality of life and reduce the burden on our NHS, where diabetes prescriptions account for 15% of total medication costs. Health inequality is stark. People from the most deprived areas are twice as likely to develop type 2 diabetes, and are less likely to have access to green space and safe affordable places to be active. We need targeted support for these communities to close this gap.
Gurinder Singh Josan (Smethwick) (Lab)
My hon. Friend talks about health inequalities; we know that people of some ethnicities are more predisposed to diabetes, so as well as sports organisations focusing on improving information and support for people with diabetes, does he agree that they should also support people from different ethnicities to ensure that health inequalities are ironed out at every level?
Chris Bloore
I thank my hon. Friend for his contribution. I know he is a champion for reducing health inequalities in his constituency. I completely agree with him, and I hope that will be part of what we do on this.
In conclusion, the unpredictability of diabetes is a real obstacle to physical activity, but ignorance and stigma should never be. People with diabetes deserve to feel safe and confident participating in sport and exercise, and coaches, teachers and volunteers must be equipped with the knowledge and skills to support them. The status quo simply is not working, and I hope that the Minister, after today’s discussion, will be willing to meet me, community leaders and stakeholders, so that we can work together and plan how to deal with this. Together, we can put in place a clear pathway to ensure that everyone, regardless of their health condition, can participate in sport, and that as a nation, we can reap the rewards of improved health outcomes.
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stephanie Peacock)
I am really pleased to be responding to this debate, and I begin by congratulating my hon. Friend the Member for Redditch (Chris Bloore) on securing it. This has been a well attended Adjournment debate, and I put on record my thanks to Members for their attendance and the interventions. We have had interventions from across the House, including from the hon. Members for South Northamptonshire (Sarah Bool) and for Strangford (Jim Shannon), and my hon. Friends the Members for Wolverhampton North East (Mrs Brackenridge) and for Smethwick (Gurinder Singh Josan). That shows the real interest in this incredibly important topic.
My hon. Friend the Member for Redditch made a powerful speech outlining why this is such an important issue and debate. This Government have set out a bold and ambitious agenda for change, and sport and physical activity have an important role to play in it, as my hon. Friend outlined. I will discuss that before addressing specific issues that he raised. Not only does physical activity play a vital role in tackling the health challenges facing our nation by helping to treat and manage a wide range of health conditions, but community sport can play a major role in building confidence and teamwork, supporting life skills for future generations and improving community cohesion.
Despite those benefits, over a fifth of adults—almost 12 million—are inactive, and over a third of children do less than 30 minutes of activity a day. The data shows us that this varies by geography, ethnicity and socioeconomic background. I have seen that at first hand in my constituency; people in Stairfoot live seven years fewer than people on the other side of Barnsley. That is just one example; too often, that is replicated across the country.
Put simply, too many people are inactive, and the number is disproportionately higher among certain demographics, including people with long-term health conditions, such as diabetes. Our ambition is that everyone, no matter their background, should be able to take part in sport. Being physically active is particularly important in helping to reduce the risk of chronic diseases in adults and manage long-term health conditions. Evidence shows that physical activity directly prevents 3.2 million cases of long-term health conditions per year, including 600,000 cases of diabetes, equating to over £10 billion of healthcare savings each year.
Moving more can substantially reduce the risk of diabetes. For example, moving more can reduce the adult population’s relative risk of type 2 diabetes by 40%. For people living with either type 1 or type 2 diabetes, being active helps manage the condition; in particular, it reduces the likelihood of serious complications, such as stroke and heart disease. In fact, moving more can, over time, help people with type 2 diabetes manage their blood glucose levels. Of course, being physically active is incredibly good for mental health as well as physical health.
My hon. Friend knows all this, which is why he brought forward the debate. The challenge for all of us is how we ensure that those with long-term health conditions, such as diabetes, can benefit from physical activity. While every person’s experience is unique, common barriers for people with diabetes include pain, fatigue and sometimes the necessity of regular injections. I was particularly concerned to hear that people with diabetes have also reported that stigma has held them back from doing more physical activity.
Josh Newbury (Cannock Chase) (Lab)
I congratulate my hon. Friend the Member for Redditch (Chris Bloore) for bringing forward the debate, and for so brilliantly setting out the challenges, but also the opportunity to give people with diabetes far more benefits from sport. One of the brilliant innovations in mental healthcare in recent years has been social prescribing in general practice. So much of that revolves around encouraging people to be physically active and to socialise. Does the Minister agree that it is absolutely vital that we ensure that when we signpost people to support, it is available to people with diabetes, so that they can reap the benefits, rather than feeling the stigma of rejection from spaces, which she and my hon. Friend mentioned?
Stephanie Peacock
My hon. Friend makes an incredibly important point, and I will come on to discuss that shortly.
We all share a responsibility to enable, support and include people who are managing health conditions such as diabetes, including in sporting environments. Increasing physical activity and reducing inactivity is part of the Government’s health agenda to shift from treatment to prevention. Our 10-year health plan published in July 2025 commits to taking a place-based approach to physical activity. We will invest £250 million in 100 places through Sport England, invest £400 million in local community sport facilities, and develop new school sport partnerships to support schools and families in establishing healthy physical activity behaviours early on. Sport England’s place-based partnerships show that where investment in physical activity is designed with local people, physical inactivity rates were nearly 4 percentage points lower.
Tom Gordon (Harrogate and Knaresborough) (LD)
I am chair of the all-party parliamentary group for diabetes, and over the summer, we visited the Northern general hospital in Sheffield. We met healthcare professionals who spoke about their one-stop shop for people with diabetes. They want to deliver services in communities, and in places with grassroots community sports. Does she agree that this might be a perfect opportunity that ties into what she describes?
Stephanie Peacock
Absolutely. The hon. Gentleman makes a good point. I would love to hear more about that example in Sheffield, just down the road from my constituency. He brings me neatly on to the example that I was going to share. I recently saw some of this work in action when I visited Essex. There, local council leaders are working in partnership with Active Essex, local health services and leisure providers to knit services together. They are building strong links between the health and leisure sectors, including by co-locating services, so that people have easy access to a wide range of physical activity opportunities. That means, for example, that people with long-term health conditions can access activities that not only improve their physical health, but are fun and social and, in some cases, contribute to getting them back into work.
Of course, excellent examples of the work being done are local NHS and social prescribing services, as my hon. Friend the Member for Cannock Chase (Josh Newbury) said. They can direct individuals with long-term conditions to various local physical activity opportunities, such as public leisure facilities, walking groups and nature-based exercise as part of the Department for Environment, Food and Rural Affairs funding for green social prescribing. Parkrun is linked with over 2,000 GP practices, and offers a free option for all abilities.
Sport England funds and provides guidance and education for their system partners. It funds “Moving Medicine”, a Faculty of Sport and Exercise Medicine initiative that provides resources to support healthcare professionals in integrating physical activity conversations into routine clinical care. That includes specific guidance on type 1 and type 2 diabetes. Sport England’s Buddle programme provides free learning and support resources to inspire and strengthen clubs and organisations offering sport and physical activity, as well the professionals who work with them. Buddle shares the latest information, training and tools, to help clubs and organisations overcome challenges and make the most of the opportunities available to them. That includes sharing case studies and signposting further guidance to enable those with long-term health conditions to exercise safely and effectively.
The national “We Are Undefeatable” campaign, funded by Sport England, inspires and supports people to be active by showing people living with a variety of conditions—both visible and invisible—on their journeys to being active. The campaign aims to address the stigma around exercising with disabilities and long-term health conditions, to reduce exclusion from physical activity.
My hon. Friend the Member for Redditch gave incredibly powerful and moving examples of the impact that stigma can have, showing clearly that there is more to do to ensure that the sport sector provides the support needed for those with diabetes. We expect all national governing bodies to have plans in place to support those with long-term health conditions, and to make the most of the training and support on offer from the professional development body for sport and physical activity and from the NHS. Although the research that my hon. Friend referred to indicates a lack of clear, explicit policies on chronic conditions, such as diabetes, in many NGBs, the legal requirement not to discriminate and to make reasonable adjustments remains in force.
The research clearly shows that some areas of inclusion have more developed policies than others, as is the case with diabetes. That disparity suggests the need for a more co-ordinated and robust approach to supporting individuals with chronic health conditions in sport. We will therefore continue to look for further answers, including through Sport England conducting research with Diabetes UK on the barriers to and opportunities for physical activity. I am very happy to meet my hon. Friend the Member for Redditch and the organisations that he mentioned.
Ultimately, this is about every part of the system—from the NHS to national governing bodies, and from leaders to local partners—playing their part in making sport and physical activity easier to access and manage alongside diabetes.
Tom Gordon
I thank the Minister for being very generous with her time. One key point is that when it comes to exercise and sport, our most formative experiences are at school. When my sister was at high school, diabetes carried a massive stigma, and she was told that she would have to inject her insulin in a toilet, which was completely inappropriate. Does the Minister agree that we must ensure that people with diabetes have positive experiences, starting as early as school?
Stephanie Peacock
I absolutely agree. I thank the hon. Gentleman for his work with the all-party parliamentary group.
In summary, I thank my hon. Friend the Member for Redditch and Members across the House for their contribution to this debate. As much as anything else, public awareness is key to this agenda. I hope that my hon. Friend can take from my response that the Government are committed to getting more people active, no matter their background. I am hugely passionate about this agenda, as I know that being physically active and playing sport is genuinely life-changing, and, if anything, can be even more important for those with long-term health conditions. I will happily continue to work with him on this issue.
Question put and agreed to.