Hospitality Sector

John Lamont Excerpts

Wednesday 3rd September 2025 Commons Chamber

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

Is the hon. Lady aware of the comments in the Scottish Parliament yesterday by the chief executive of the Scottish Tourism Alliance? He said that

“the first half of this year was brutal”,

and that the increase in employer’s national insurance contributions has resulted in a “loss of jobs”. Is he wrong?

[Katrina Murray]

I respect the comment, but I had not heard it, because I have been looking at other things today. I am reflecting what businesses are telling me, and as I think the hon. Member will have found in his own constituency, they are talking to me about far more fundamental issues for the hospitality industry in Scotland. They have reminded me that hospitality businesses in Scotland are closing at twice the rate they are in the rest of the country, and that although there was investment in the hospitality sector in the Scottish budget for the current year, it was the first time that had happened. The Scottish Licensed Trade Association has expressed to me that the Scottish hospitality industry is starting off £200 million behind the rest of the country because of how the Scottish Government are reacting.

Those businesses talk to me about the vow of silence from the Scottish Government on business rates and about the need for certainty, but also about improving of planning processes; for the big breweries and pub landlords, the sheer amount of time that development takes means that it is easier to invest in other parts of the UK than in Scotland. Planning for a new-build hospitality business or a change of use takes years. Disproportionate cuts to local government planning services in ongoing Scottish Government budgets have had a wider effect across the whole sector. The hon. Member is probably right that the NICs issue is in the mix, but these matters are much more of an issue, certainly in my sector locally.

Last weekend, as part of Scotland Loves Local Week, I was proud to join Kilsyth councillors Jean Jones and Heather Brannan-McVey in visiting the relatively newly owned Urban Grind coffee shop in Kilsyth. The owners Martin and Marie told me—over coffee—about their struggles in getting the facility open for business, getting the change of use from a vacant shop to a hospitality business, and the need to build a fence between the outside sitting area and the soft play area next door. But they also told me about their investment in a young workforce, who combine studying with working, and the importance of working with businesses in the area. It was good to see the place so full, and I hope those who go to watch Chris Hoy’s Tour De 4 going through Kilsyth on Sunday make a point of visiting not just Urban Grind, but the Coachman, the Scarecrow or the Boathouse, because it is a circular economy; local businesses support other local businesses and make sure that they invest.

When local businesses use hotels in the local community —the local independents—and do not bring people in from Glasgow, there is more chance of the local community benefiting. Everybody I spoke to talked about quality, a changing market and a more discerning customer. They said that a greater proportion of the business is about food and soft drinks than ever before, and that they had to work harder to get customers, but that when they did provide high quality and good value, they got loyalty.

In conclusion, our hospitality industry is continually changing as our habits change. That is a good thing. The hospitality sector should fulfil a key role in our communities, which is way bigger than the blinkered ways outlined in the motion.

--- Later in debate ---

[Rebecca Smith (South West Devon) (Con)]

There are over 300 hospitality businesses in South West Devon, and even though that may not be the highest number in a single constituency, considering the areas of countryside in mine, where the only residents are cattle and sheep, it is a hefty number. There are 316 venues, including the Woolwell Centre, the Who’d Have Thought It, the Black Cat Surf Club and the Plympton Conservative Club, the Exchange in Ivybridge, Nelli’s in Yealmpton, School House at Mothecombe, the Odd Wheel in Wembury and Kingfisher Fish and Chips. The list goes on.

Hospitality in South West Devon means more than 2,000 jobs, a turnover of £91.7 million and an economic value to the local economy of £50 million. Hospitality plays a crucial role in our local community tourism offer—in our area, there is everything from coast to moors to explore. Neighbouring constituencies have even more jobs and economic value at risk under this Labour Government. That is why a group of local businesses have taken matters into their own hands and formed a campaign to save hospitality across Plymouth and South West Devon. I am proud to support it.

The impact of increased employer national insurance contributions; of halving business rate relief; of bringing forward employment rights that nobble employers and add undue cost and pressure; and of the minimum wage increase, even for the youngest employees, is hitting so hard that many businesses fear for the future. The sector is reeling. Businesses are simply not employing new staff, and they are less inclined to employ young people and students.

[John Lamont]

My hon. Friend is making an excellent speech about the importance of these businesses to her constituency. Does she agree that those businesses are often the very heart of local communities, and that if residents lose them, they lose a vital part of their community?

[Rebecca Smith]

I will come on to that exact point in my remaining few minutes, but absolutely, they are a crucial part of our community.

Why does that all matter? As hospitality businesses across the country bring financial and social value to our communities, they are critical to a thriving tourism sector. They are also a key part of our everyday life, whether it is having the treat of an ice cream on the beach during a summer holiday, using a local memory café with a loved one, chatting over a pint to ease loneliness, or bringing family together for a meal that someone else has cooked, in order to mark a special occasion. However, the increased business costs imposed by this Labour Government mean that there are increased costs to the consumers who want to make the most of those opportunities. It means that fewer people go out; that is what I am hearing from constituents. Then those businesses face closure, which impacts the local economy. It is a vicious cycle and, sadly, the Labour party seems completely oblivious to it.

The equation is simple, and I am saddened and disappointed to see the Labour party stick its head in the sand, completely determined to ignore the issue. If we Conservative Members do not speak up, there will not be a hospitality sector in this country. As I have said, the Labour party keeps boasting about economic growth in hospitality, but I am not sure that we will see that in my constituency, because all the hospitality businesses feel massively under threat.

--- Later in debate ---

[Matt Vickers (Stockton West) (Con)]

Hospitality is at the heart of our local communities. It is the best of British: the pubs we visit for a pint or two, the restaurants where we go to celebrate a special occasion, or the bars that power our night-time economy. My constituency is home to some truly incredible hospitality businesses—if you have never been for a night out in Yarm, you have never lived. We do not love pubs just because we love pints. The great British pub brings communities together. They tackle isolation, provide a safe environment where people can consume alcohol, support more than a million jobs and help many youngsters get their first foot on the employment ladder. The best ideas are usually the ones we come up with in the pub. Pubs are places where community spirit is found and fostered. If I had more time, I would tell hon. Members about the innovative and generous support shown to local charities by the Locomotion in Eaglescliffe and the Griffin in Thornaby.

Like several MPs, I host my own pub awards, recognising and celebrating the best of our local pubs. This year’s winner was Courtney and the incredible team at the Myton House Farm pub in Ingleby Barwick. I am looking forward to celebrating more places in the coming years, such as Luna Blu, a fantastic local tapas restaurant and bar in Yarm; the Derry in Long Newton, where people can get a warm welcome, great grub and all the village gossip while enjoying one of the best beer gardens around—if Carlsberg made beer gardens, the Derry in Long Newton would be its aspiration—or the Masham in Hartburn, a must-visit eatery that arguably serves the best parmos on the planet. I would love to tell the House more about the incredible hospitality businesses in Stockton West, but time does not allow.

[John Lamont]

My hon. Friend is making an excellent speech and demonstrating why he is such a great champion for Teesside. Does he agree that many businesses are not just facing the prospect of closing, but of possibly laying off more and more jobs? In my constituency, Mainstreet Trading, a fantastic award-winning bookshop, deli and café, wrote to all its customers earlier this year to say that opening hours were going to be reduced because of Labour’s tax on jobs. Is he experiencing the same in his constituency?

[Matt Vickers]

Very much so; I could not agree more. These are opportunities for young people to get a first foot on the ladder in the job market. Between October 2023 and July 2024, the number of hospitality businesses increased and the number of jobs in the sector increased by 22,000. Surprisingly, after Labour’s Budget, in exactly the same time period, we have seen 89,000 job losses—89,000 people unable to provide for their families or live out their aspirations and dreams. It is shameful, it is a disgrace, and people did not vote Labour for that.

Speaking to landlords in my part of the world, I am told how real the fight is to save the great British pub. Labour’s jobs tax, its Employment Rights Bill and the slashing of small business rates relief have meant that 89,000 jobs have already been lost in the hospitality sector, and UKHospitality believes that the figure could be as many as 200,000 by the end of the financial year. Labour’s jobs tax means it costs £900 more to employ the average employee, meaning some hospitality businesses are unable to provide opportunities for those youngsters to get their first job. It is part of the reason 14% more people in this country are unemployed and left unable to support their families or fulfil their dreams and ambitions—

--- Later in debate ---

[Christine Jardine (Edinburgh West) (LD)]

I come to Parliament this week fresh from the Edinburgh festival—on which note I refer the House to my entry in the Register of Members’ Financial Interests. Hon. Members will be pleased to hear that I was there not as a performer, but because every year I am tempted across the border into neighbouring constituencies by the absolute feast of music, theatre, dance, literature and comedy that is the Edinburgh festival. Every year it contributes £400 million to the city’s economy, and it is hosted and supported by a hospitality industry that, in my constituency alone, is valued at £200 million and supports 6,500 jobs.

That is the big picture, but there is a much smaller and individual picture about the businesses who come to me every week with complaints. I have to say to Conservative Members that this issue did not miraculously start in July last year; it has been going on for the past decade and since the Conservative Government destroyed the economy on a whim a couple of years ago. These businesses are suffering and under threat.

[John Lamont]

Will the hon. Lady give way?

[Christine Jardine]

No, actually—I think the hon. Member has said enough today.

Those businesses are suffering and they have been for years. Hon. Members know how important they are not just to my constituency, to Edinburgh or to Scotland, but to the United Kingdom, because of the jobs that they create and the people they employ. That little picture is about families who are dependent on those businesses and who tell me that they are unhappy with the national insurance changes.

[John Lamont]

Tourism tax!

[Christine Jardine]

Those families also tell me that bigger businesses, like Edinburgh zoo and fantastic tourist businesses, which the national insurance changes have added—

--- Later in debate ---

[John Lamont]

Tourism tax!

[Christine Jardine]

The hon. Gentleman is beginning to sound a bit like a parrot.

[John Lamont]

Will the hon. Lady give way?

[Christine Jardine]

No, I will not give way. We hear the hon. Gentleman. I will repeat the phrase for him again: tourism tax. Yes, we know that Edinburgh is taxing tourists, but it is doing that to support its hospitality business, which has been under threat for a decade.

We need to look at the burden that our businesses are carrying: the national insurance burden; VAT, which could be reduced; and the business rates in many places. I appeal to Ministers to listen to the constituents we have heard from today—to listen to my constituents. They should listen to the fact that if those businesses fail, our economy will not have the growth on which this Government and every Government depend so much for our future. Each of those small businesses makes up an important part of that big picture: the hundreds of millions of pounds—the billions—that hospitality brings to this country.