Hospitality Sector

Matt Rodda Excerpts

Wednesday 3rd September 2025 Commons Chamber

[Andrew Lewin (Welwyn Hatfield) (Lab)]

I am pleased to have the opportunity to talk about our hospitality sector and how we value and reward the people working in it, the rising confidence that business is reporting and the evolving nature of our high streets.

High streets and hospitality are changing, but sadly what has not changed is a Conservative party in opposition that wants to talk the country down. The reality, as reported by 1,200 businesses in the Lloyds business survey, is very different from the picture that the Conservatives want to paint. The survey, which is in its 15th year, last week reported that the overall business confidence index, which combines firms’ trading expectations and economic optimism, rose for a fourth consecutive month in August, reaching its highest level since late 2015. Let me set that out plainly: business confidence under this Labour Chancellor is higher than it was at any point under any of the last six Conservative Chancellors who occupied No. 11 Downing Street.

[Matt Rodda (Reading Central) (Lab)]

My hon. Friend is making an excellent point. Does he agree that confidence of consumers is also rising, with a number of cuts to interest rates, a rise in the minimum wage and many other benefits for working families?

[Andrew Lewin]

I do agree. I have spoken to constituents on two-year fixed-rate mortgages who were being hammered two years ago by Liz Truss and are now paying hundreds of pounds less per month because we are getting a grip on the economy.

Sixty-two per cent of firms plan to increase headcount over the next 12 months, and confidence in retailers surveyed rose by 13 points to 57%, also marking a five-month high. This is all welcome news, but I am far from complacent. Of course there are real challenges for some hospitality firms. I turn now to how the Government are seeking to address them and why it matters to my constituents.

A fitting place to start is the people who work in the sector. The average age is 35. Our shops, restaurants, pubs, cafés and cinemas are powered by younger people. When I bought my last suit at the Galleria in Hatfield, I received much-needed sartorial advice from an employee younger than me. [Interruption.] I will go back again for my next suit! When I pop into a Simmons branch for a coffee, it is invariably a younger person who serves me—as it is when I head in for a pint in one of the fantastic pubs in our two towns or the villages.

People working in hospitality are just as deserving of rights and protections in the workplace as anyone else. That is why it is so important that the Employment Rights Bill brings forward day one protections at work. It introduces protection from unfair dismissal, bans exploitative zero-hours contracts and strengthens statutory sick pay.

Earlier this year, the Labour Government increased the national living wage by 6.7% to £12.21 an hour—an increase comfortably above inflation that was welcomed by millions of workers, though seemingly not by the Conservative party. The Conservatives’ motion seems to cast doubt on the role of the Low Pay Commission, and sadly they have refused to welcome the pay rise we gave to the country last year. If any of them wants to say thank us for the minimum wage rise, I will happily give way.

On business rates, the Conservatives left the Treasury with no funded commitment to continue with the retail, hospitality and leisure relief, as the Minister set out powerfully in his opening remarks. It is right that this Government stepped in to make the 40% reduction in rates permanent, giving confidence and security to business owners. I hope we can go even further in future.

I know how much civic pride people have in their town centres. Although we will not return to the high streets of the 1990s, there is real demand in towns for variety: shops, places to eat, entertainment and events. A mixture of permanence, such as our iconic John Lewis store in Welwyn Garden City, and the events that the business improvement district puts on in our town every year, such as the world food festival, which draws thousands of local people and tourists from across the world.

This is a Government who have listened to business, strengthened the rights of workers and given millions of lower earners a pay rise. Sentiment is improving and confidence is rising. Let us not talk down our hospitality sector; let us champion it and seize the opportunities that are in front of us.

[Brian Mathew (Melksham and Devizes) (LD)]

As the Member for Melksham and Devizes, I represent many rural villages and communities, a number of which I visited over recess. I have long been struck by the importance of the village pub as a hub of community—a place for good conversation and friendly banter, and for connecting with friends and neighbours, which is in fact vital for good mental health. Indeed, while on my summer tour of the constituency, I hosted a drop-in session in the lovely village of Urchfont, outside the Lamb, a friendly community public house.

In communities such as the one I represent, transport links and broadband connectivity can, on occasion, leave much to be desired, creating in their wake a sense of isolation and loneliness, especially for those working at home, raising children or trying to enjoy their well-earned retirement. In such instances, a feeling of community, of knowing one’s neighbours and of having someone to talk to becomes so important. In rural villages, it is often the pub that makes that possible. We have all heard the headline statistics—the closure of 1,100 pubs and restaurants since the tax on jobs was introduced in last autumn’s Budget, leaving 84,000 people out of work, with two pubs shutting every day—yet those statistics do not show the whole impact, with landlords and bar staff often putting in superhuman efforts to try to keep their businesses afloat.

I recently met my constituent Hannah, who runs the Swan at Enford. She came to talk to me about the increasing pressures that her business has faced since the Budget. In addition to diversifying her business, including by running a butcher’s shop, the Swan plays a vital and diverse role in the community, running a monthly “hub in the pub” event and helping with the yearly village fête and fireworks night. However, the costs on the business have risen exponentially since the Budget. The cut to hospitality relief has more than doubled the business rates she must now pay, from £167 to £444 a month. That, combined with the increase in employer national insurance contributions, means that landlords like Hannah are under greater financial pressure than ever.

Given that taxes make up 40% of turnover and that £1 in every £3 goes to His Majesty’s Revenue and Customs, with just 12p made on each pint sold according to the British Beer and Pub Association, surely it is time for the Government to review the burden that they are placing on these vital hospitality businesses. If the pressures continue, we will likely see more and more villages being stripped of their pubs and community spaces; greater numbers of people will prefer to drink at home. If the Government do not act, we risk losing the time-honoured tradition of the farmer drinking shoulder to shoulder with the accountant, the builder with the postie and the vicar with the carer—in short, the bedrock of village life.

In addition to lowering the tax burden on those businesses, the Government should also look at the support they can offer to community pub schemes, through which villagers can come together to buy and run their local pub.We have already had one such success in my constituency. The Hop Pole in Limpley Stoke offers a shining example of such schemes, and I hope to see this success replicated by the Friends of the Ivy in Heddington, who I am proud to support in their effort to get their local reopened.

[Matt Rodda]

The hon. Gentleman is making an excellent point about the importance of pubs as the heart of our local community life, and that is the case for towns as well as for villages. Does he agree that the measures announced by the Deputy Prime Minister yesterday to support community assets will help exactly the type of pub he is describing, and would he perhaps like to offer a word of support and congratulate her on her work on this?

[Brian Mathew]

I thank the hon. Gentleman for his comments, but more is needed. The Minister’s Department must support these schemes and the pub trade or risk losing a vital component of rural life.

Lastly, let me make the point that profitable businesses pay taxes, but closed pubs pay no taxes.