Hospitality Sector

Debate between Gregory Stafford and Damian Hinds

Tuesday 1st July 2025 Westminster Hall

[Damian Hinds (East Hampshire) (Con)]

It is a great pleasure to see you in the Chair, Ms Butler, and a privilege to take part in these proceedings under your guidance. I congratulate my hon. Friend the Member for Kingswinford and South Staffordshire (Mike Wood) on setting out his case—our case—so comprehensively and compellingly.

It is a shame that hospitality does not make the cut as a growth sector for the Government’s industrial strategy, for it is a huge part of this country’s economy and employment. We must never forget that there are relatively few power sectors in employment, and principal among them are hospitality, retail and personal care. In my constituency, hospitality accounts for about 200 outlets, and about 2,000 people are employed in the sector. As in retail, employment in that sector really does go throughout the entire country.

As it happens, hospitality was my career before I came to this place. We used to define the term “hospitality” a bit more narrowly—it really used to mean hotels. That was the business that I worked in, and latterly I worked a little in the licensed trade. In my time as a Member of Parliament and a Minister, I have worked very strongly with the sector, particularly on employment opportunities, as it is foremost in getting young people into work. There is a debate going on in the main Chamber that is very relevant to this issue. Hospitality helps people who are furthest from the labour market to come back into work, and it also supports a lot of people in part-time work.

The sector has just withstood two very big blows: first, the cut in business rates relief, which has a major effect on the fixed cost of businesses even before a pint has been poured, as a number of Members said; and, secondly, the enormous increase in national insurance contributions. We often talk about the rate going up from 13.8% to 15%, which does not sound very much, but the bringing down of the threshold has a huge effect. As I said, the sector employs a lot of part-time people, and it is with those people in particular, and of course with younger people coming into the workforce for the first time, that that is felt.

There are many things that we could talk about, but time is short and colleagues are many, so I will concentrate on one issue: the Employment Rights Bill, which the hon. Member for South East Cornwall (Anna Gelderd) talked about, and specifically zero-hours contracts. I am afraid that that type of contract has a totemic significance for Labour politicians, way beyond the number of people affected or involved. It dates back to the time when the last leader of the Labour party, who now sits as an independent, made bringing down the number of people on zero-hours contracts one of his great crusades. When I was at the Department for Work and Pensions, we looked a bit more deeply at how many people are on such contracts, and it turns out that fewer than 3% of people rely on a zero-hours contract for their primary job; on average, they worked not zero hours but 25 hours a week, and most were not seeking more hours. They also—this came as the greatest shock to people in general—had higher average job satisfaction than people not on zero-hours contracts.

[Gregory Stafford]

In Farnham, the Nelson Arms pub uses zero-hours contracts, and it needs them. I spoke to a staff member who said that the reason he was so keen on them is that he is actually a paramedic, and between his shifts he worked at the pub. That worked for him and the pub, because it gave them both flexibility.

Project Gigabit

Debate between Gregory Stafford and Damian Hinds

Tuesday 26th November 2024 Westminster Hall

[Damian Hinds (East Hampshire) (Con)]

rose—

[Gregory Stafford]

I give way to my right hon. Friend the Member for East Hampshire (Damian Hinds).

[Damian Hinds]

My hon. Friend is right to identify the progress made in constituencies like his, Farnham and Bordon, or mine, East Hampshire. Does he agree, however, that improvement is all the more urgent and important in the most rural areas, where there is already very poor or no mobile signal and very poor broadband speed? They are not on the list for the commercial gigabit roll-out and some are not on the list for the second tier of gigabit roll-out. On top of all that, they hear the announcement that the PSTN—the public switched telephone network—is going to be switched off. In the event of an emergency, in the event of a power cut, they are in danger of being marooned.

[Gregory Stafford]

My right hon. Friend makes an extraordinarily prescient point. That is a combination of factors that will leave many in rural areas, especially those who are elderly or have other caring needs, at a real disadvantage. That is why it is so essential to turbocharge this roll-out going forward.