Hospitality Sector

Caroline Nokes Excerpts

Wednesday 3rd September 2025 Commons Chamber

[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.

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[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.

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[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.

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[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

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[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.

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[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.