Covid-19: Hospitality Industry

Baroness Laing of Elderslie Excerpts

Wednesday 24th March 2021 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP) [V]]

This pandemic has posed challenges for all of us and for every business, not least the hospitality sector. This very important but beleaguered industry—the third largest employer across the UK—will take some time to recover from this health pandemic. Parts of the industry are on the verge of collapse and it was a mistake for the UK Government not to provide the kind of sector-specific support that it so desperately needed. The VAT cut is welcome, but the industry faces a cliff-edge in September, which could prove a death-knell to those barely hanging on. The importance of extending the VAT cut until at least the end of the year must not be overlooked if we want to save as many businesses and jobs in the sector as possible. Many hospitality businesses operate on a seasonal basis, and therefore may have to wait until next year before their balance sheet starts to begin to look healthy again.

Despite my repeated representations, no consideration has been given to the unique challenges facing operators of hospitality businesses in island communities—such as Arran in my constituency, which has at times during this pandemic been subject to higher restriction levels than mainland communities—which are concerned that islands may not necessarily be able to exit the pandemic at the same time as mainland communities.

The Scottish Government are doing all they can with the limited powers they have, and their year-long hospitality rates relief remains more generous than the three-month relief offered in England. Indeed, Scotland has the most generous non-domestic rates regime in the UK, but we also need business interruption loan schemes to be converted into grants, something I called for last April, in order to save businesses and jobs. The pressing need for that grows by the day. From April the hospitality sector, already on its knees, will be expected to repay these loans, however gradually, and it is clear that many businesses in the sector will be unable to do so and will only add to the debt and job crisis that we face. So I ask the Minister: extend the VAT cut until at least the end of the year. Look at what additional support can be given to our island communities, given their unique circumstances. Convert business interruption loans to grants and continue furlough for as long as restrictions remain in place. The UK Government surely understand the need to avoid business failures across the sector, as well as mass job losses. That does not need to happen, and I urge the Minister to do all he can to help us avoid that outcome.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Thank you. How we wish we could really go to Ayrshire—well, at least I do. But now we go to Cheadle, and Mary Robinson.

[Mary Robinson (Cheadle) (Con)]

Thank you, Madam Deputy Speaker, and welcome to Cheadle.

I am glad to thank my hon. Friend the Member for North Devon (Selaine Saxby) and the hon. Member for Brentford and Isleworth (Ruth Cadbury) for securing this debate and giving us the opportunity to reflect on the difficulties that hospitality has faced during the pandemic. Those difficulties have been particularly hard-felt by businesses in areas such as Greater Manchester, which were placed under local restrictions and in higher tiers during the autumn, and have suffered for longer. The Government’s unprecedented support has certainly been welcomed, with the bounce back loan scheme, the coronavirus business interruption loan scheme and the furlough scheme, which have been lifelines for many; but we must now look forward and ensure that hospitality recovers and thrives as we emerge from the pandemic.

The wedding sector in particular has faced—and still faces—unique challenges, and the end remains some way off. While weddings in non-exceptional circumstances will be allowed from Monday, only six people including the couple will be able to attend, and outdoor receptions with more than 30 guests and any indoor receptions must wait until at least 21 June. Even sporting events and concerts could get a head-start on them.

Couples have understandably been reluctant to confirm wedding dates, fearing that the 21 June date might get delayed, leading some wedding businesses to say that there is no light at the end of the tunnel. All this is causing a backlog of weddings, and a demand that will need to be accommodated. For wedding venues it is not just about getting back to normal; it is about going faster than normal, so that couples do not have to wait years for their big day.

One possible solution I would like to put forward is for more early weekday weddings. We know that Mondays to Wednesdays are traditionally less popular days to tie the knot, so, just like with the Eat Out to Help Out scheme, could the Government consider support to encourage early weekday weddings?

It is vital that we help this unique part of the hospitality sector recover from the pandemic because it serves such an important social purpose. Weddings bring together families and communities that for the last year have only been able to see each other and gather online; and the marriages they celebrate are the foundation of our families and our society. That is also why it is so important that when weddings come back, they come back for good. Large gatherings would be the first casualties of any resurgence in covid cases, so it is vital for wedding venues that we get this virus firmly under control. But I am confident that we will do so, and secure the future of our wedding venues. We must give hospitality and the wedding sector the support and certainty that it needs to restart and thrive.

[Madam Deputy Speaker (Dame Eleanor Laing)]

We now go to Grahame Morris.

[Grahame Morris (Easington) (Lab)]

rose—

[Madam Deputy Speaker]

Oh, I am sorry. We don’t go anywhere. Grahame Morris is here.

--- Later in debate ---

[Selaine Saxby]

This is obviously the time of the evening when we should all be going to the pub or to our much-loved bars here in the House, where I probably owe colleagues who did not get to speak today a pint. I know they would have spoken with passion in support of their hospitality businesses and whetted appetites with their tantalising take-outs.

I thank the Minister for his response. He knows that a cold beer is on the bar whenever he wants to visit North Devon; I hope that the duty on it will reflect the calls made across the Chamber today. As the self-appointed one-woman tourist board for North Devon, I invite all Members to visit when the time is right. I hope that they will then understand why I am quite so passionate about ensuring support for the sector here, across the country and particularly in North Devon. I thank everyone for taking part today.

[Madam Deputy Speaker (Dame Eleanor Laing)]

The Question is as on the Order Paper. As many as are of that opinion say “Aye.” [Hon. Members: “Aye.”] I was looking for a more enthusiastic “Aye!” about pubs opening. Shall we do it again? As many as are of that opinion say “Aye!” [Hon. Members: “Aye!”] To the contrary “No”—the Ayes have it.

Question put and agreed to.

Resolved,

That this House has considered support for the hospitality industry throughout the covid-19 pandemic.