Retail and Hospitality Sector

Lord Kempsell Excerpts

Thursday 22nd January 2026 Lords Chamber

[Lord Kempsell (Con)]

My Lords, how perspicacious it was of my noble friend Lady Monckton to secure this vital business today. I join others in expressing my appreciation for her opening speech, which set the scene for this debate, replete as it was with illustrations and examples from her own experience. I congratulate newly minted noble Lords and Ladies on the Benches opposite on their maiden speeches. If they are to be treated as a pop group, they sang, if I may say so, a beautiful song in this Chamber. I hope that they continue to feel very welcome in your Lordships’ House.

George Orwell imagined his favourite public house. He called it the Moon Under Water, and stipulated, in post-war style, that it should have,

“draught stout, open fires, cheap meals, a garden, motherly barmaids and no radio”.

The prices have gone up since 1946, and I think you are more likely to hear music nowadays in hospitality establishments, but even George Orwell, that master of English dystopia, could not, even in his worst nightmares, have imagined the fate that awaits British pubs today under this Government. Indeed, his vision of the Moon Under Water has given way to the grim reality of the pub under Starmer.

There is one fact in this debate which sums up all other points—this indictment alone: that under Labour, one pub permanently closes every day in this country, and that is before all the measures from last year’s Budget are fully implemented. Noble Lords opposite spoke with high mind about public services in this country. I have to inform them that, in many places in Britain, especially in rural Britain, the pub is the only real public service that remains. Hospitality venues are safe and hospitable places, one of the few on the high street where people can meet without breaking the bank. British landlords are de facto social workers, changing lives as well as changing barrels, whether, as we have heard in this debate, by giving young people their first job and income or by healing the epidemic of loneliness that is faced by the old. How much more vividly the humblest member of hospitality establishment staff understands the daily reality of life in this country than those who sit in the Cabinet—not one of whom has run so much as a small business between them, let alone faced the scale of challenges that now confront the hospitality sector.

From April, when the minimum wage increases and the new rateable values take effect, pubs, cafes, restaurants and other venues will face what for many of them will be impossible bills. Business rates for the average hospitality business will rise by 94% over the next three years. Labour is driving publicans and hospitality entrepreneurs, like farmers, to the brink of despair. The Government already moved in the Budget last year to destroy their profits, and now they are targeting their revenues, meaning that many of them will not even be able to open. I hope that the right honourable Chancellor in the other place enjoyed a drink in Davos. How much more she could have learned had she travelled instead to the Dog and Duck.

I am old enough to remember—it was only a few weeks ago—when the Government promised not to increase taxes on working people. There are no harder-working people in this country today than those in the hospitality trades. Can the Minister, who speaks with experience and gravity on these topics, please answer the questions that have been raised in this debate? Until those questions are answered by the Government, it will be no surprise if every Labour MP continues to be routinely barred from public houses in Britain. I hope that the Prime Minister likes to use vending machines, because if he carries on with his policy he may never be served in a public house in Britain again.