Seasonal Hospitality Businesses in Coastal Areas

(Limited Text - Ministerial Extracts only)

Wednesday 3rd June 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

It is a pleasure to serve under your chairmanship, Mr Stuart. I congratulate the hon. Member for Isle of Wight East (Joe Robertson) on securing this important debate on Government support for seasonal hospitality and leisure businesses in coastal areas. I thank all hon. Members for talking about businesses in their communities and constituencies. I could really hear their passion as they championed their local areas and businesses.

The debate is important because the sectors are important. They provide accessible jobs, drive tourism and generate significant economic activity. They support local economies, particularly in coastal and seaside communities, where tourism, hospitality and leisure form the backbone of economic activity. They support wider social objectives, creating vibrant places where people want to visit, work, live and invest.

Creating the economic and social environment that hospitality and leisure businesses need to thrive cuts right across Government. Members have raised so many issues that cut across the responsibilities of many Departments, and I thank them for that. Co-ordinated action from the Department for Businesses and Trade and myself, the Department for Culture, Media and Sport; the Ministry of Housing, Communities and Local Government, the Home Office and His Majesty’s Treasury is required to ensure that the great British seaside has a secure and prosperous future.

That is especially important when many coastal communities are entirely dependent on hospitality and leisure businesses to provide the vast majority of employment and opportunity for local people. They prop up the vital local government services that residents rely on, too. These businesses are not simply part of the local economy; they are the local economy.

[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

Last year, I worked with some of the businesses in my coastal community to develop a local economic growth plan. Would the Minister meet me to discuss that plan and some of the policies that we would like to see?

[Kate Dearden]

I am always happy to meet my hon. Friend and his brilliant local businesses. I thank him for his intervention.

I regularly meet local businesses from across the hospitality sector, and I hear at first hand about the pressures that seasonal and coastal operators face. I recognise the importance of hospitality businesses in our coastal communities. I have been delighted to meet many hon. Friends representing coastal towns and cities to understand the challenges that hospitality and leisure businesses in their constituencies and across the UK face.

I recently spent the day visiting Blackpool with my hon. Friend the Member for Blackpool South (Chris Webb) to meet business owners, workers and residents who have come together to extend their peak season and reduce the structural issues of operating seasonally. Visiting in April came with a breeze, but that was never going to stop the magic of going up Blackpool tower, having delicious fish and chips and talking all things hospitality. I thank my hon. Friend for his hospitality on that day. It was particularly useful to meet those leading Blackpool’s tourism sector who are using hospitality as a launch pad for social mobility, high-quality employment and local regeneration.

It is clear, both in Blackpool and across the UK, that future-proofing our coastal communities is only possible by developing those strong partnerships between public, private and third sector organisations. I have taken the learnings from meetings with colleagues and from contributions to the debate, and I will continue to do so with my colleagues across Government. I assure hon. Members that I will work with them and their communities to continue to deliver for coastal towns and communities.

I thank hon. Members for raising the issue of business rates with me on numerous occasions on behalf of businesses in their constituencies. Members will know that we have introduced permanently lower business rates multipliers for eligible retail, hospitality and leisure properties. I know that the Conservative party put temporary relief in place, so it is right that we give businesses permanent relief. We did not think that was right, which is why we stepped in and made our announcements. In addition, we have provided support to pubs and live music venues.

[Jim Shannon]

I thank the Minister for her replies to all our questions. We need to encourage more people from the United Kingdom of Great Britain and Northern Ireland to take home holidays. Looking at all the problems across the world, we should encourage our own people to have their holidays at home. Does the Minister think that that is a good idea?

[Kate Dearden]

I am always happy to hear suggestions of how we can do things better and raise awareness of the support that is available. I am really happy to take the hon. Gentleman’s points on board, and I thank him for them.

We will ensure that the business rates system better reflects the realities faced by businesses in the visitor economy. As part of that, the Government are committed to reviewing the methodologies used to value pubs and hotels and will, if necessary, make changes at the next revaluation to ensure valuations accurately reflect the rental market for these properties. Unfortunately, the Conservative party did not take that approach, but we will. We have worked with businesses since we came into government, and will do so in the coming years, to get that right.

On labour costs and workforce models, I recognise the concerns about the potential impact of changes to employment rights on businesses that rely on seasonal and flexible staffing. We have talked about that topic at length, and I thank the shadow Minister for raising it today. It is important that we get the balance right to support workers while ensuring that businesses can continue to operate and create opportunities, which is why we will consult closely with businesses, trade unions and workers over the coming months to understand the impacts in full.

I recognise the strength of feeling a number of hon. Members expressed on such proposals as the overnight visitor levy. As they will know, those powers have been devolved to local metro mayors, and although many have already clarified how they plan to use them, all measures that may be introduced will be subject to consultation with local stakeholders, including hospitality and leisure business owners and advocacy groups.

Members will know about the wider support measures the Government are taking, from our small business strategy to make sure that we create the conditions for short-term resilience and long-term growth, to raising the employment allowance, replacing the apprenticeship levy with the new growth and skills levy, tackling late payments and reviewing the licensing system, alongside our upcoming high street strategy.

[Ben Lake (Ceredigion Preseli) (PC)]

I extend to the Minister a warm invitation to visit the wonderful Ceredigion Preseli coastline in the summer. We have heard much mention this afternoon of a possible reduction to the rate of VAT for hospitality and tourism businesses. Would the Government consider that? It would give many hospitality businesses not only a hope of survival but confidence that they might be able to invest in their businesses.

[Kate Dearden]

I would have a busy diary if I said yes to everyone in the room, but I will take the hon Gentleman’s kind invitation away with me. He will know about our recent announcements on boosting summer demand, delivering temporary and targeted VAT cuts for family-focused hospitality and leisure businesses, alongside our wider cost-of-living support measures. Those are really important, because when money is back in people’s pockets, they can spend and support our local high streets and brilliant hospitality businesses. As he will know, the Government keep all taxes under review as part of the policy-making process, and the Chancellor will announce any changes to the tax system at fiscal events, in the usual way.

I will finish on the high street strategy before moving on to further points that were raised by Members. We are delivering more than £150 million to turn the tide on the challenges and pressures facing our high streets, including those in the coastal communities that need it most. Getting those back to being the proud economic hubs of towns and villages is really important; once again we want to see thriving businesses and communities, and a true sense of pride in place. The Government will shortly publish our visitor economy growth strategy, which will establish an ambitious, long-term plan to increase visitor flows, boost value and deliver sustainable growth for the entire UK, including our coastal and rural communities.

Supporting growth in hospitality and leisure sectors through both tourism and skills is absolutely essential to the Government’s approach. This debate has reinforced the importance of tourism as a driver of economic activity in coastal communities. Visitor spending support jobs, sustains local businesses and underpins the vitality of many seaside towns. That is essential, and will maintain the UK’s position as a competitive and attractive destination, while ensuring that local areas have the tools that they need to support sustainable growth.

As has been mentioned, hospitality and tourism sectors also play a crucial role in providing accessible employment, particularly for young people and those entering the labour market. As colleagues may know, my first job was in hospitality—that was the route that I started on, as it was for many Members here today and across the House. It gives skills for life. That sector is valuable for young people: it is the third largest employer in the UK, with 3.6 million people working in the sector, and plays a crucial role in providing those jobs. Given that nearly 40% of the wider visitor economy workforce is aged 16 to 24, the sector will play a key role in the Government’s plan to reduce the number of young people not in education, employment or training. If I had more time, I would talk to hon. Members about the youth guarantee, national insurance relief for those under 21 and those under 25 in apprenticeships, and so much more that we are working on through Skills England and the apprenticeship levy.

Only two minutes of the debate are left and I know that the hon. Member for Isle of Wight East will want to wind-up shortly, so to conclude, we recognise where we can further support different communities all across our economy. That is why we have, for example, significantly increased the hospitality fund. That will provide lots of opportunities to help rural areas in particular, and I am keen to work closely with colleagues on that. It will be £10 million over the next three years, which is significant funding. I assure Members and industry that this Labour Government recognise the importance of hospitality and leisure businesses, and we will work closely with them and colleagues across Government to do so. As the proud Minister with that responsibility, I assure them that I will work tirelessly in the time ahead to represent sector interests, including those of businesses at the heart of our coastal communities.