Retail and Hospitality Sector

Lord Bishop of Newcastle Excerpts

Thursday 22nd January 2026 Lords Chamber

[The Lord Bishop of Newcastle]

My Lords, it is a great honour to follow the noble Lord, Lord Forbes of Newcastle, and to welcome him to your Lordships’ House. I also extend a welcome to other noble Lords making their maiden speeches today.

I thank my friend, the noble Lord, Lord Forbes, for his excellent maiden speech. He made some immensely wise comments that superbly illustrate his capacity for, and commitment to, the work that he will undertake in this place. His mention of the values that have shaped his life are those that we should all aspire to and live out in our collective endeavours in this House. His calling our attention to the importance of inclusion is particularly vital.

The noble Lord’s years of dedicated service to local government and his commitment to creating thriving communities will greatly benefit this House. His lived experience, coupled with his kind heart, fierce mind and strong spirit, underpins his integrity, determination and resolve to seek the welfare of people and communities, especially those in deprivation. A keen listener and one who is ready to learn, he is well equipped for his new role in your Lordships’ House. I wish him well and look forward to working with him.

I turn to the subject of this debate. I thank the noble Baroness, Lady Monckton of Dallington Forest, for bringing it to your Lordships’ House. I am aware that, with the noble Lord’s contribution, noble Lords are getting a double dip of north-east input, but I hope this adds value.

Just yesterday, two chefs from Michelin-starred restaurants in Newcastle and Northumberland warned of major hospitality job losses caused by higher tax bills. Cal Byerley and Kenny Atkinson said that many businesses were on their last legs. For some hospitality venues in Newcastle, it is too late, with popular and long-standing venues having closed their doors permanently even in recent weeks. The North East Chamber of Commerce reports that many businesses used the temporary reliefs during Covid and subsequent energy crisis support to cover fixed costs rather than to invest, meaning that resilience remains thin.

On the upside, in Newcastle city centre, bus reform and subsidised young person fares have increased evening and weekend footfall, helping the night-time economy, which in Newcastle is rather lively. Regeneration investments make the city a more attractive visitor destination, which supports hospitality and retail spending. Information given to me by the North East Chamber of Commerce reports that the visitor economy supports around 63,000 jobs and contributes over £6.6 billion to the regional economy, representing 8% to 11% of regional GDP.

The Government’s announcement today of the investment in cultural organisations is therefore welcome in its potential to boost the broader economic landscape. Similarly, the overnight visitor levy could be a tool to invest in communities and support better jobs. Time will tell. Will the Minister monitor its impact?

In Northumberland, co-ordinated tourism strategies promote heritage assets such as Alnwick Castle and the coastal trail. This draws millions of visitors annually, boosting accommodation, cafés and retailers in towns such as Bamburgh and Berwick-upon-Tweed. However, these gains are strongly seasonal. A café might thrive in August but struggle in January, even as fixed costs remain year round. Government policies, through business rates, labour regulation and demand-side investment, exert powerful and concrete effects on retail and hospitality in Newcastle and Northumberland.

An underlying theme is what policy does at a granular level to communities and their ability to thrive in the short, medium and longer term—a point that the noble Baroness made so eloquently in her opening speech. The noble Lord, Lord Forbes, and I have in common that we both grew up in the north-east, as well as the year of our birth, 1973—the year Sunderland won the FA Cup. In that regard, we will both have similar memories of the impact of the decline of industry on communities, and the knock-on effect of that on the economic prosperity of the region and on people, the effects of which are long-standing and intergenerational.

The challenge now, which is also an opportunity, is not only to craft a policy environment that balances cost pressures with sustainable demand and opportunity for growth but to truly set forth a long-term vision that enables the welfare and flourishing of people and communities—not driven by fear and anxiety, but drawn by confidence, hope and economic sustainability.