Hospitality Sector

Debate between Mike Wood and Gregory Stafford

Tuesday 1st July 2025 Westminster Hall

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

I beg to move,

That this House has considered Government support for the hospitality sector.

I draw Members’ attention to my entry in the Register of Members’ Financial Interests; I have also received hospitality from UKHospitality and from the British Beer and Pub Association that falls below the registrable threshold.

I am pleased to open this debate on a subject of national and local importance: the future of our hospitality sector. From pubs and restaurants to hotels and leisure centres, hospitality is more than just a convenience; it is the beating heart of our communities. It provides first jobs, second chances, career ladders and gathering places. It employs 3.5 million people and contributes £140 billion in economic activity and £54 billion in tax receipts to the Exchequer each year. Yet the sector faces an existential threat—not from a lack of demand, but from deliberate political choices made in last autumn’s Budget and the spring statement.

Those choices have hit hospitality harder than any other part of the economy. The Government’s 2024 Budget, far from being fair or progressive, has dealt a brutal blow to our high streets and local economies. The cumulative effect of increased employer national insurance contributions and cuts to business rate relief, alongside the increases in the national living wage, has added £3.4 billion to the sector’s annual cost base. Let us be clear: those numbers are not abstract. They represent shifts that businesses feel every single week and to which they are taking action in response.

Early Government figures show that 100,000 jobs were lost in just one month. That is not a warning sign —that is a siren. Part-time and entry-level workers have been the hardest hit; not highly paid City graduates, but bar staff, kitchen porters and hotel receptionists in every village, town and city across our country. The problem is even more damaging because it flies in the face of the Government’s own stated missions. The Government claim to want regional growth and better living standards across the UK, but the Budget has cancelled investment, reduced hours and led to closures in exactly the communities that need regeneration the most. The hospitality sector has outgrown the wider economy in recent years, yet it barely even features in the Government’s new industrial strategy. There are just three mentions of hospitality in the whole strategy, and one of those was because the Government had mis-spelled “hospitals”.

Hospitality is a proven route to social mobility and opportunity, accessible to everyone, not just a privileged few. Yet the Government’s actions directly contradict their levelling-up agenda. They talk about growth, but strangle the sectors that deliver it. They talk about fairness, but penalise the poorest workers. They talk about opportunity, but crush the businesses that provide it. They have forgotten that enterprise is not just about spreadsheets—it is about people, purpose and pride.

Even before the Budget, hospitality businesses were paying twice as much tax as financial services relative to their profits. That is an astonishing imbalance. Of course, hospitality was particularly hard hit by the pandemic and by lockdowns. Many hospitality businesses are still carrying the burden of covid debts, with repayments that have taken them from being thriving businesses to ones that barely break even.

[Gregory Stafford (Farnham and Bordon) (Con)]

I held a pub and hospitality roundtable in my constituency, where publicans stated that the changes in the Budget had been worse than covid for their balance books and the viability of their businesses, because at least during covid the then Conservative Government gave relief and help to them; this time, they have received nothing.

[Mike Wood]

My hon. Friend is absolutely right. The changes to employer national insurance contributions have meant that 774,000 workers, many of them on lower incomes or working part time, are caught in a net that punishes job creation. The cut in business rate relief from 75% to 40% has driven otherwise viable businesses into the red, hitting pubs such as the Green Man in my constituency, which has seen its business rates bills rise from about £140 a month to nearly £350 a month—before a single customer has been served or a single pint pulled. A third of hospitality businesses now operate at a loss. That is not sustainable, and it is not fair.

According to UKHospitality, the Government’s measures will cost the sector at least £3.4 billion, including a £1 billion cost from the national insurance contribution increases alone. Of course, those tax rises came in at exactly the same time as the increase in the national living wage, adding even more pressure to small business employers such as the tea room at Ashwood Nurseries, in my constituency, which already operate on tight margins.

Let me be clear: no one opposes fair pay. I am proud that the previous Government introduced the national living wage, and increased it to give workers’ incomes a boost. However, if the Government want sustainable wage increases, they cannot also pile on non-wage costs at the same time—and that is before the impact of their employment rights package, which comes into force next year. The data already shows the consequences starkly. The Office for National Statistics confirms that since the October Budget, the hospitality sector has shed 69,000 jobs, even before the latest figures from His Majesty’s Revenue and Customs. That is 3.2% of all hospitality jobs. To put that in context, the overall economy lost 1.2% of jobs in the same period, so hospitality’s job losses were 266% higher than the national average.

Infected Blood Inquiry: Government Response

Debate between Mike Wood and Gregory Stafford

Wednesday 14th May 2025 Commons Chamber

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

I thank the Minister for his statement and for advance sight of it. The infected blood scandal is one of the clearest failures of the state and public services in recent years, causing enormous harm over many years to countless victims and their families. Next week marks the first anniversary of the publication of the inquiry’s report, and I add my thanks and those of my hon. and right hon. Friends to Sir Brian Langstaff and his team for their work and comprehensive report.

On 21 May last year, my right hon. Friend the Member for Salisbury (John Glen) stood at the Government Dispatch Box and made clear his determination to act on the inquiry’s report. I pay tribute to his work and thank him for the advice and support that he has given to me and the shadow Cabinet Office team on this issue since the election.

I am pleased that the Paymaster General picked up from where his predecessor left off. As I have said previously, both sides of the House speak as one on this issue, but sadly there is nothing that we or the Government can do that will undo the terrible damage caused by this scandal. No amount of money will bring back those who have been lost, and no amount of lessons learned can make up for the suffering of those who contracted serious illnesses because of contaminated blood, but Ww would be not only failing in our duty, but failing all those who have died and all those who continue to live with life-changing conditions if we did not take up this battle on their behalf.

To do this, we must directly address the profound distress, anger and fear that is being expressed by victims and their families at the pace of the roll-out of the full compensation scheme. Victims in recent hearings have referred to the wait as “torture” and “disgraceful”—to mention just a few cases. Of course, the gravity of those concerns has been underscored by the decision to re-open the infected blood inquiry for a further report on compensation. Although we support that decision, we need to make sure that it does not delay the proper compensation for those who have already lost so much.

With every week and month that passes, we know that more infected and affected individuals will, sadly, die before receiving their full and final compensation. This underscores the human cost of every single day of delay. Therefore, although I recognise that the compensation authority was set up precisely to be independent of Government in operational matters, I ask the Minister whether he is content with the current pace of delivery and, if not, what he and the Government are doing to help David Foley and his team to speed up pay-outs to dying victims.

Let me turn to other recommendations made by the inquiry. May I ask the Paymaster General what progress has been made on recommendation 6 on monitoring liver damage for people who are infected with hepatitis C? On recommendation 8, which is on finding the undiagnosed, what action has been taken to ensure that patients who had transfusions before 1996 are offered a blood test for hepatitis C? Can the Paymaster General update the House on how many such tests have so far been carried out, and what assessment he has made of the additional infected and affected patients who may now be eligible for compensation?

The journey to rebuild trust with the victims and their families will be long and requires not only words of apology and commitment but, crucially, demonstrable action that proves that the Government and, indeed, this House, are listening and responding. The acknowledgement that the current compensation scheme has not yet won the full trust and confidence of the community is a start, and I hope the Government will continue to take these concerns seriously to put in place the robust changes that are necessary. We will support them in that work.

[Gregory Stafford (Farnham and Bordon) (Con)]

On a point of order, Madam Deputy Speaker.