Wednesday 10th December 2025

(1 day, 22 hours ago)

Commons Chamber
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Andrew Griffith Portrait Andrew Griffith (Arundel and South Downs) (Con)
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Thank you, Madam Deputy Speaker. It is always a pleasure to see you in the Chair.

We have heard from Members from across the House who understand a fundamental truth: that the hospitality sector is the cornerstone not only of our economy but of our society. It is a great strength of our parliamentary system that we all represent unique districts that are all, in one way or another, replete with high streets and hospitality businesses—pubs, restaurants and hotels—which we all wish to support. Members on both sides of the House have observed the importance of binding our communities together, giving people a warm place to stay—a refuge from loneliness—and keeping our high streets vibrant. Those are places where life happens.

As we have also heard, hospitality performs a vital and arguably unique role in providing the next generation with that vital first step on the career ladder. I imagine that many of us had our very first experience of the world of work—that priceless exposure that helps us become world-ready—in retail or hospitality. I certainly did, and we have heard many other such examples. The sector does that precisely because it is a feature, not a bug, that it provides flexible seasonal work that allows young people to earn their first wage, combined with other responsibilities or opportunities, and, in so doing, to learn the important dignity of labour.

As we have heard from my right hon. and hon. Friends, pubs, hotels and restaurants in particular are hurting as a direct result of the Chancellor’s choices, not just in last year’s Budget but once again in this year’s Budget, which was delivered from the Dispatch Box just a few weeks ago. More than a dozen venues from my South Downs constituency have contacted me in the last 24 hours alone, having heard about this debate. Ruth and Martin at the Cricketers in Duncton described to me how their rates are going up by £4,500 to £5,000 a year—that is money that they do not have. The Fox Goes Free in Charlton has been a public house, continuously serving the community, for over 400 years. Like every pub, it makes a huge contribution. Its business rates bill will increase by more than £13,000 next year. The House should bear that in mind when Labour Members talk about how they have introduced permanently lower business rates. That is a laughable idea. I have heard similar stories—and worse—from the Murrell Arms in Eastergate, the Half Moon Inn in Northchapel, the Labouring Man in Coldwaltham and the Onslow Arms in Loxwood.

Graham Stuart Portrait Graham Stuart
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Tom, the landlord of the Kings Head in Hedon, heard on Budget day that business rates would be cut for businesses like his. Instead, the rateable value of that pub, which provides such an important service to the people of Hedon and the surrounding villages, has gone from £9,000 to £32,000.

Andrew Griffith Portrait Andrew Griffith
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My right hon. Friend is exactly right. I would not want to incur wrath by accusing anybody of misleading the House, but that is exactly the same story that I have heard from the Bridge Inn in Amberley, the Star and Garter in East Dean, the Bricklayers Arms in Midhurst and the Black Horse Inn in Byworth. That surely cannot be a coincidence; these cannot be isolated examples of those “permanently lower” business rates—

Andrew Griffith Portrait Andrew Griffith
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Of course I will give way. I look forward to hearing about how one should understand that statement about the “permanently lower” business rates that this Government have introduced, of which we cannot seem to find an example.

Anna Dixon Portrait Anna Dixon
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Perhaps the hon. Gentleman would like to come and walk with me down the high street in Saltaire, where property valuations mean that many businesses will have lower business rates in absolute terms. Has he explained to his local pubs that that property revaluation has been hanging around for many years, but his Tory Government did nothing to implement it? That is the main reason why some of his pubs might be experiencing increases—it is due to property valuation, not business rates.

Andrew Griffith Portrait Andrew Griffith
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I hear the hon. Lady’s point, and I am glad she has found some examples—I note that neither in her intervention nor in her earlier remarks did she go so far as naming any of them, and I will happily take another intervention if she would like to do so. I have named many examples. The revaluation exercise on pubs is not some long-delayed exercise; it is a routine, frequent timeframe that the Valuation Office Agency goes through. This is not something that has been pent up for many years; it is just the process of revaluation.

When it comes to the rubber hitting the road of how much business rates are being levied on pubs, and how much cash will leave those stretched businesses that are struggling with all the different costs, what matters is the net effect of revaluation, this Government’s removal of the retail, hospitality and leisure relief that the Conservative Government put in, and of course the ongoing rate multiplier.

Every pub and hotel that I have spoken to in my rural constituency bears out precisely the figures from UKHospitality and the British Beer and Pub Association —we have heard about that many times today, and I know that they ran drop-ins earlier today for Members across the House. Tom Richardson at the Three Moles in Selham explained to me how the turnover basis of assessing rateable values has combined with the cost headwinds that this Government have amplified—I will be so kind as to imply that they did not all happen from 1 July 2024. Nevertheless, the choices that the Government have made, in particular the change in the national insurance rates and the changes to thresholds on national insurance, have enormously pushed up the cost of employment. On top of that, businesses are still waiting for the promised reduction in energy prices, whether for electricity or heating oil, because those prices have more than doubled in some cases.

Tottington Manor Hotel in Henfield has to find nearly £50,000 extra due to the changes that this Government have made to employment costs. It is no surprise—we heard this again and again from colleagues this afternoon—that pub and hotel owners are at the end of their tether. Nobody should want to preside over such a series of choices. One landlord told me that they have not been able to draw a wage from their pub for the last six months. Another told me how she was working seven days a week, 16 or 17 hours a day, just trying to keep the pub open.

As we heard from many colleagues, the cost of hiring staff has become so prohibitive that owners are having to cut back. They are not able to hire, support or sustain staff, and they are taking more and more upon themselves, stretching their working day and taking on more tasks, creating one of the doom loops in which, it is sad to say, this Chancellor so specialises.

We heard that from many colleagues who made contributions this afternoon, including my hon. Friend and near neighbour the Member for Isle of Wight East (Joe Robertson), who spoke about the challenges on the island, particularly with seasonal work, and about how young people are hurting and how that is costing all of us in the country.

My hon. Friend the Member for North Dorset (Simon Hoare) said that this Government are awash with policies, plans and visions, but words butter no parsnips and they do not provide the jobs that we need—least of all the Employment Rights Bill, which, as it comes down the line, will really hurt and disincentivise family businesses, with which the sector is replete.

My hon. Friend the Member for Hinckley and Bosworth (Dr Evans) talked, as did others, about the cumulative effect of measures—tax rises, national insurance increases, higher energy costs and more red tape—rather than there being one single axe falling on the heads of businesses. We should listen to small enterprises when they say that it feels like the Government are not on their side. It is no surprise that pub after pub, hostelry after hostelry, is erecting a sign on the door saying, “No Labour MPs here”. I remember that the Minister said that he had not seen one of those signs, so I trust that people in his constituency will take that as a personal challenge to ensure that one such sign is brought to his attention in the very near future.

My hon. Friend the Member for Gosport (Dame Caroline Dinenage) said that this Government are doing that most terrible of things: preventing young people from getting on the job ladder through their first chance of work. The Government weigh down precisely the sorts of businesses that do such a good job of providing those opportunities, and that is difficult.

My constituency neighbour, my hon. Friend the Member for Bognor Regis and Littlehampton (Alison Griffiths), talked about the tourism economy. To all the challenges and headwinds that have come about because of the Chancellor’s choices, we can add the bed tax, which will increase the cost for anyone holidaying in the UK. It will deter people from enjoying the wonderful vistas of Bognor Regis, Littlehampton or the South Downs, and simply encourage people to go to other countries on holiday, following in the wake of the many young people mentioned by hon. Friend the Member for Hinckley and Bosworth, who are leaving this country, such is the dearth of opportunity.

My hon. Friend the Member for South Northamptonshire (Sarah Bool) talked about the degree to which the hospitality and pub sector is already over-taxed, and my hon. Friend the Member for Bridgwater (Sir Ashley Fox) made the really important point that all the burdens of family businesses fall back on families.

I am afraid to say that we are seeing nothing less than a full-frontal attack on seasonal work, and we see that no more so than in the unemployment Bill that was before the House this week. Like King Canute, this Government are legislating to outlaw seasonality and the rhythms of the tides. If a seaside café hires a student to wait on outside tables in the glorious sunshine, Labour wants the café to be forced to offer the student the same hours once the shutters come down in the autumn. It will mean the demise of strawberries and cream sellers in Wimbledon fortnight.

The Government’s plans will even mean the death of Father Christmases and assistant elf helpers in shopping centres across the nation, because there is little demand for a Christmas elf in January, February or March. This is bureaucratic madness, yet Ministers press on, deaf to the cries of those who would most benefit from the choice—[Interruption.] Labour Members do not like what I am saying, but they do not have an answer. They should know by now that you do not protect workers by bankrupting employers; you do not support our high streets, communities, pubs and restaurants by taxing them into submission.

We Conservatives understand business. Unlike those in the current Cabinet, many of us have worked in businesses and enterprises ourselves. We stand with the risk takers in this country who create wealth, not the bureaucrats who seek to destroy it. That is why our motion supports seasonal, flexible and part-time working. We will take 250,000 high street businesses and pubs out of business rates entirely, paid for by the welfare reforms that the Government does not have the backbone to push through, and we will repeal all of the job-destroying measures in Labour’s unemployment Bill.

We back the engines of growth in our economy—the providers of jobs. This Government seek to push them to the wall. I commend this motion to the House.