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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jane Hunt)
It is a pleasure to stand before you for my first Westminster Hall debate, Mr Hollobone. I congratulate my hon. Friend the Member for Watford (Dean Russell) on securing this important debate. Clearly, this is an important issue for him and his constituents. I ought to say that my hon. Friend does an excellent job for Watford. None of his colleagues could ever say they do not know anything about Watford, because he is constantly going on about Watford. Good for him. It is much appreciated, I am sure.
I recognise that this is a local, commercial planning matter. Providing new homes to ease pressure on the housing market is obviously important. It is also important to preserve commercial areas, which are fundamental to the health of local economies and communities. Hospitality, alongside retail, personal care and leisure, is part of an ecosystem, as my hon. Friend said, that underpins healthy local economies and communities. This ecosystem includes a symbiotic relationship between businesses operating during the day and evening, and businesses operating into the night. I have talked to the Department about the day-time, night-time and twilight economies and the connection between them. I am sure that is where much of that £34 is being spent before people go on into the nightclub.
If the night-time economy fails, it has a detrimental impact on the ecosystem as a whole. As well as providing accessible jobs and stimulating local supply chains, hospitality businesses support tourism, help to attract inward investment, generate income for local authorities to invest in services and infrastructure, connect communities and support mental health, just as my hon. Friend said. All that helps to improve living standards and creates desirable places for people to visit, study, live and work.
While increasing the number of residents living in our town and city centres is a good thing for local economies, businesses and residents need to be able to co-exist. However, we know from experience that residential areas and night-time economy businesses do not necessarily co-exist well. We have seen many cases of long-standing businesses being forced to close under the weight of complaints about noise from new residents. To ensure a healthy business environment that will deliver for local economies and communities, this ecosystem needs to be managed, and it needs to support and complement wider plans for economic development, regeneration and levelling up.
It is important to talk about levelling up. People think about levelling up as being for places other than the south-east. In fact, it is just as applicable to Watford as it is to Loughborough or any other town in the country. Levelling up for most parts of the country will involve improving productivity and economic growth by encouraging innovation, creating good jobs, enhancing educational attainment, and renovating the social and cultural fabric of the parts of the UK that are falling behind. Investing in education, digital connectivity, housing and transport to attract new business investment, as well as attracting and retaining talent, is a key part of levelling up. Increasing the number of overseas tourists visiting the UK and achieving a better distribution of tourism across the UK is also an important part of levelling up.
In 2019, 40.9 million overseas residents visited the UK, spending around £28.4 billion. Of those staying at least one night, 21.7 million visited London, while 2.2 million visited Edinburgh, 1.6 million visited Manchester and 1.1 million visited Birmingham. As my hon. Friend said, this is about Watford specifically, but it is also about the night-time economy across the whole country.
Creating the right environment for high street businesses to flourish is vital to creating destinations that will appeal to entrepreneurs, students and tourists alike. Research by Centre for Cities on healthy local ecosystems for students and graduates highlights the importance of attracting new students to bolster local economies, as they tend to spend their money where they study. A place’s ability to attract students from other parts of the country will therefore affect the strength of its economy, and the night-time economy would definitely attract the student population. Moreover, as the UK continues to specialise in more highly skilled, knowledge-intensive activities, the extent to which cities can attract and retain skilled graduates will have a big impact on their economic performance.
As constituency MPs, we know that hospitality and nightclubs are important, and clearly that is why my hon. Friend brought this matter to the House. Nationally, hospitality employs 2.4 million people, and there are 167,000 hospitality businesses, creating £83 billion in revenue in 2021.
Dean Russell
Given that I am debating my private Member’s Bill on tips on Friday—I just want to give it a plug—I want to point out the importance of the hospitality sector. It is important that staff can keep the tips that are given to them, and I hope the Minister agrees with me on Friday when she is at the Dispatch Box.
Jane Hunt
I welcome the introduction of my hon. Friend’s private Member’s Bill. Ensuring that tips go to workers is the right thing to do. It is a policy that my Department has worked hard on, and I look forward to responding to him on Friday.
We are working to make permanent many of the regulatory easements that we introduced during the pandemic, which not only provided hospitality businesses with greater flexibility to trade but helped to create the vibrant, bustling outdoor spaces we need to encourage people back into our town and city centres. In July 2021, we published the first ever hospitality strategy, which set out our ambition for the recovery and future resilience of the sector, and we have established a Hospitality Sector Council to oversee its delivery. We did all that because we recognise the importance of hospitality not just nationally but locally. If we are to maximise the potential of hospitality to support our local economies and communities, stimulate inward investment and tourism, and help levelling up across the country, we need to cultivate and nurture our local high street ecosystems. We have talked about those things.
As I say, the planning mechanisms are the way forward, and unfortunately they are not with the Department for Business, Energy and Industrial Strategy but with the Department for Levelling Up, Housing and Communities. However, I understand that DLUHC is bringing forward planning matters that could be dealt with through the Levelling-up and Regeneration Bill, which might include an auction after a year if a building remains empty. I am not sure whether that would happen in this case, but it is still worth bearing in mind for colleagues across the country.
I congratulate my hon. Friend on securing this important debate and giving us an opportunity to discuss this issue in Parliament. Although this is very much a local planning issue, it raises important questions about how we manage the transition of our high streets from being fundamentally retail centres to being more experiential spaces where we meet the needs of local residents and attract new footfall. I believe that, in this case, that can best be achieved by local authorities working closely together with local delivery partners—clearly, that has happened with the bid—interested groups, businesses and landlords. I thank my hon. Friend very much indeed for bringing this matter forward.
Mr Philip Hollobone (in the Chair)
I congratulate the hon. Member for Watford (Dean Russell) on securing the debate and the Minister on her debut performance.
Question put and agreed to.