Hospitality Sector

Debate between Michael Payne and Angus MacDonald

Wednesday 3rd September 2025 Commons Chamber

[Michael Payne]

I congratulate the Golden Smog on its initiative. I look forward to having a pint there with my hon. Friend next time I am in his constituency.

Gedling has nearly 3,000 businesses, 98% of which are small or micro. Retail and hospitality alone support over a quarter of the jobs in my constituency. Those are not just numbers; they represent livelihoods, families and futures. That is why I welcome the Labour Government stepping in where the last Conservative Government left a cliff edge. Instead of pulling the rug out from under small businesses, we are providing a lifeline: a 40% business rate relief, targeted where it is needed most. Labour does not turn its back on small businesses; we back them. More than 10,000 pubs and bars shut under the Conservatives. By contrast, this Labour Government are acting: permanent business rate cuts from 2026; high-street rental auctions; and a ban on unfair rent clauses—real measures to make our high streets revive and thrive.

The Conservative motion mentions “catastrophic choices”, but Conservative Members should take a long, hard look in the mirror. On their watch, inflation peaked at 11.1% in October 2022, and food inflation hit 19% by March 2023. [Interruption.] I can hear chuntering on the Opposition Benches, but those inflation levels did not just hit household budgets; they scarred small businesses in Gedling and across the country.

[Mr Angus MacDonald]

When the hon. Gentleman prepares his agenda for the next small company roundtable, will he ask companies how they are getting on with the 8.7% national insurance increase, and the total employment cost increase of 12.4% as a result of the Budget? That is four times inflation. I think he will be surprised how uncomfortable the answer is.

[Michael Payne]

With the greatest respect to the hon. Gentleman, the businesses did a grand job of telling the Minister their views directly. I do not think that they need any lectures from him on how to run their businesses.

While café, pubs and shops fought to stay open, the Conservatives were too busy fighting among themselves to help small businesses. This Labour Government are turning the page. Through our plan for small and medium-sized businesses, Gedling employers are getting the support that they need to recover, grow and thrive, and we are already seeing the results. The Opposition talk about job losses, but the facts is that employment has risen by more than 625,000, and economic inactivity has fallen by 338,000. That is not rhetoric; it is progress under this Labour Government.

The previous Conservative Government wrecked the economy, left inflation spiralling and turned their back on the high street. In Gedling, the damage is clear for my constituents to see: vacant units on the high street; council cuts that have left our town centres less clean; and, yes, crumbling pavements and roads in and around our high streets. In just over a year, under this Prime Minister and the Under-Secretary of State for Business and Trade, the hon. Member for Harrow West (Gareth Thomas), Labour is turning things around. It is backing small businesses, especially in hospitality; getting people back into work; delivering a new deal for working people; and, yes—although the Conservatives do not like the facts—growing the economy faster than any other G7 nation. That is what we get with a Labour Government, and by gosh, after 14 years of Conservative neglect, it cannot come fast enough for my constituents, and for businesses in Gedling.