Finance (No. 2) Bill

Caroline Voaden Excerpts

Committee of the whole House
Tuesday 13th January 2026 Commons Chamber

[Steve Darling (Torbay) (LD)]

I will focus on Liberal Democrat new clause 9, which would require an assessment of the cumulative impact of the proposals on the hospitality industry.

One must bear in mind that, after a medley of challenges, our hospitality industry fears the future—it is in crisis mode—so it is not prepared to invest or take a chance by improving its offer, and it is hunkering down and hoping for the best. I reflect on the international pandemic, which had a massive impact; Torbay’s tourism and hospitality industry has still not recovered to pre-pandemic levels. The outrageous second invasion of Ukraine almost four years ago caused a shock in our energy costs. I am afraid that there have also been self-inflicted wounds, such as the national insurance hike and the ensuing employment challenges.

David from Rock Garden in Torquay told me that his utility bill has risen to £3,000 a month, which dwarfs his rental costs. Ofgem is asleep at the wheel; it must back local businesses and drive the changes that we need. Our hospitality industry is horrified by the proposals for business rates. The Government must apply the full 20% rate of relief to ensure that there are protections. I am afraid to say that many people in the hospitality industry scoff at proposals that simply deregulate around the edges, because if they do not have paying customers in their premises, they are set up to fail.

[Caroline Voaden (South Devon) (LD)]

Will my hon. Friend give way?

[Steve Darling]

I will happily give way to my Devon colleague.

[Caroline Voaden]

As his constituency neighbours mine, my hon. Friend may be aware that three much-loved venues—Wild Artichokes, the Old Warehouse and the Old Bakery—closed in the town of Kingsbridge last week. The owner of one of those venues told us that part of the problem was the cumulation of challenges faced by the hospitality industry—not just the lack of people coming through the door and spending money because of the cost of living crisis, as my hon. Friend just said, but the rises in business rates and employer national insurance contributions, which have made it impossible for businesses to continue. Does he agree that it is a tragedy that such venues are closing every day, and that something must change before the hospitality industry is devastated?

[Steve Darling]

My hon. Friend is spot on. We need the Government to wake up, smell the coffee and recognise the challenges that our hospitality industry faces.

Some national chains, such as Wetherspoons, use their buying power to drive down the cost of a pint—many customers reflect on prices when they cross the threshold of a venue. The reality for lots of independents—because it is independents that are really important—is that £6 a pint is the minimum they can achieve with all the costs that are involved. When we compare that with the cost in a supermarket, it is really scary. The Minister rightly highlighted the difference we see today, with more than 70% of the alcohol consumed having been purchased at a supermarket. I feel we need to have a national debate about whether we have got the balance right and how we can ensure that we are driving greater footfall towards our hospitality industry.