Business and Planning Bill

Baroness Doocey Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Monday 6th July 2020 Lords Chamber

[Baroness Doocey (LD) [V]]

My Lords, I will focus on those aspects of the Bill relating to tourism. Tourism generates revenues of £155 billion per annum for the UK economy, including £28 billion in export earnings. The industry employs 3 million people, making it the UK’s third-largest employer. Every region has at least 100,000 tourism-related jobs. The sector has been disproportionately affected by the Covid pandemic; inbound tourist numbers are forecast to decline by 59% and expenditure by 63% this year, resulting in a loss to the UK economy of nearly £20 billion and a loss to the domestic tourism industry of a further £25 billion.

Councils have been working hard on measures to help hospitality businesses reopen, for example using town centres differently so that businesses can operate outside. However, a lot more can be done. While the Bill contains welcome new flexibility for businesses to put tables and chairs on pavements, there are at least three further measures we could take to help firms which have lost months of trading income.

First, the package travel regulations should be amended to make transport a mandatory component of package travel, thus allowing small businesses to make a combined offer of, say, accommodation in a guest house and a meal at a local pub without incurring all the responsibilities of a package holiday operator. Research suggests that this could boost domestic tourism by £2.2 billion with no loss in consumer protection.

Secondly, we should remove restrictions preventing caravan parks operating during winter. These parks have already lost between 35% and 50% of their income, and two-fifths of sites presently operate less than eight months of the year. There is an opportunity here to boost domestic tourism with year-round openings for all.

Thirdly, we should remove planning restrictions that prevent self-catering cottages being rented out as long-term lets during winter. These restrictions have a perverse impact, leaving holiday accommodation empty for many months of the year, with a knock-on effect for local pubs and restaurants, which see decreased trade. Over 80% of tourism businesses either were closed temporarily or have ceased trading altogether as a result of coronavirus. Some 92% say that their revenue has at least halved; 75% of their employees were furloughed, compared to just 24% in the jobs market as a whole. This is little short of a catastrophe for the industry.

The Government have the tools to help these businesses survive against the odds and to save jobs as the furlough scheme ebbs away. There can and should be a renaissance in domestic tourism here in the UK as well as a fresh look at how to offer the best to people visiting from around the world. Let us not shut out trade for the sake of arbitrary planning rules. Instead, we can hand much more power to local councils to make their own decisions over how to help the industry in their parts of the country.

I would welcome an initial response from the Minister to these suggestions since I intend to table amendments in Committee on all three subjects.