Hospitality Sector

Alistair Carmichael Excerpts

Wednesday 3rd September 2025 Commons Chamber

[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?

[Uma Kumaran (Stratford and Bow) (Lab)]

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.