Hospitality Sector

Scott Arthur Excerpts

Wednesday 3rd September 2025 Commons Chamber

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

May I first thank Alex Leitch from my office for helping me to research what was going to be a long speech? I will use just little bit of it, given the limited time that I have in which to speak.

I spent weeks in my constituency over the summer recess, as other colleagues did in theirs. I spent one week volunteering with small businesses and another visiting pubs in my constituency. I heard at first hand from many owners and employees about the dire situation they face, not just because of Labour’s increase in national insurance contributions, but because of its crippling Employment Rights Bill.

As someone with a small business background, I am appalled that these policies have been cloaked as favourable to the working person. I have always been in favour of supporting hospitality, which is the cornerstone of our communities. In my constituency alone, the hospitality sector added more than £76.6 million to our economy, and the hospitality sector in general is growing at almost double the rate of the UK economy.

The hospitality industry is one of the highest-taxed sectors in the UK economy, and I am very disappointed that the Government have continued to hammer our service industries with NIC increases and minimum wage increases, all while boosting the salaries of people like train drivers, who are already on £65,000.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

Will the hon. Gentleman give way?

[Mr Mohindra]

There is not enough time.

Others have already spoken about the retail, hospitality and leisure relief scheme in 2023, so I will not dwell on that. Let me just say that the hospitality businesses I speak to remain disappointed that the 75% discount applied previously has not been adhered to. Small independent businesses like the Kitchen Croxley in my constituency have warned me of the job losses that will become inevitable just to keep their doors open on account of Labour’s policy changes.

If we continue down this path, we will only see higher levels of inflation and unemployment and increasing reliance on our universal credit programmes. I have no doubt that, despite putting an enormous additional £40 billion burden on British taxpayers—taking the tax burden to its highest ever level—the apparent lack of foresight will only lead to more dismay in the future.

Other Members have spoken about the number of pubs that have closed, as well as the job losses in the hospitality sector. However, one point I have previously mentioned and I think is relevant to this debate is the lack of business experience among the Cabinet. Having run a small business and understanding the challenges associated with that would, I hope, lead to a better policy position than we are currently seeing. I look forward to further U-turns from this Government, because where they are doing the right thing, Conservative Members will support them. There is a long list of things they could be doing better, and I hope that when the Minister responds, he will give at least a glimmer of hope to the small businesses that are struggling.