Hospitality Sector

Katrina Murray Excerpts

Wednesday 3rd September 2025 Commons Chamber

[Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)]

It is a pleasure to speak in this debate. I am proud to be one of the vice-chairs of the all-party parliamentary group for the night time economy. Like all of us, it seems, I have been taking the opportunity to engage with all the hospitality businesses across my constituency and companies that form part of the supply chain. When I say talking to all of them, I mean the independents, the tied pubs, the breweries and the franchisees. What they are not talking to me about is wages. They are also not talking about staffing hours and contracts. Even after pushing from me, they are saying that while the national insurance increase is a concern, it does not even make it into their top 10 problems.

[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.

[Several hon. Members rose—]