Hospitality Industry

Baroness Twycross Excerpts

Tuesday 24th January 2023 Lords Chamber

Asked by

[Baroness Twycross]

To ask His Majesty’s Government what assessment they have made of the impact of the current economic situation on the hospitality industry.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, officials at the Department for Business, Energy and Industrial Strategy use a range of data sources, including the ONS, Statista and IBISWorld, to assess the impact of the current economic situation on hospitality businesses. In addition, Ministers and officials work closely with hospitality businesses and the main trade bodies, including UKHospitality, the British Beer and Pub Association, and the British Institute of Innkeeping, which provide us with valuable data on levels of trading and economic performance.

[Baroness Twycross (Lab)]

My Lords, the cost of living crisis is causing hardship not only to individuals and families but to the businesses that employ millions of people in the UK hospitality sector. Many of those businesses are on the brink of closure, not least due to food inflation and spiralling energy costs. Will the Government reverse their decision to reduce support for the sector in relation to energy bills and retain a permanent lower rate of 12.5% VAT? Will the Government also commit to updating their hospitality strategy, published in 2021, to ensure that the sector can meet the challenges that it now faces?

[Lord Callanan (Con)]

The noble Baroness makes a good point. We will certainly keep the hospitality strategy under review. It is worth recognising that we have offered considerable support to the sector, as we have to all businesses. I am afraid that we cannot continue to provide such levels of support. Nevertheless, support is available through business rates relief and other policies, and we continue to liaise closely with the sector.