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Debate between Gareth Davies and Wendy Morton

Tuesday 7th July 2026 Commons Chamber

[Gareth Davies]

Completely. There is even now a tax on the great British holiday, which impacts my hon. Friend’s constituency, Mr Speaker’s and many others. The overnight visitor levy, known as the holiday tax, threatens my hon. Friend’s area, just as it threatens Whitby, Scarborough, Blackpool, Bournemouth, the Norfolk coast and even my county in the Lincolnshire Wolds. The Government call it “modest”, but the seaside landlady who is struggling to fill her rooms calls it the difference between a season that works and one that does not. UKHospitality has warned that this tax means that consumers visiting destinations in England are charged double the tax of visiting Paris and 70% more than in Barcelona or Rome. In effect, the Government’s half a billion-pound holiday tax represents little more than a self-inflicted trade tariff on domestic breaks, driving holidaymakers overseas.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Is it not the truth that we have a Government who simply do not understand business? They think that they can squeeze and squeeze, tax and tax, legislate against and tangle up in red tape the very businesses that we need to drive our economy, get the growth that the Government say they want and provide jobs and opportunities for working people and young people. They simply do not get it.

[Gareth Davies]

The facts are there for all to see. As I was saying, it is vital that we support the business community, and that includes small businesses. So often the narrative is about large multinationals, but it is SMEs and small business owners who drive our country forward and employ people across the country, especially young people.

Another thing that businesses in this country are facing is the now infamous Employment Rights Act 2025, which has created so much red tape that the corner café has to focus on hiring a lawyer before it hires a waiter. The Government have laid down so many requirements for employers who need to move underperforming employees on. Indeed, their own law says that after six months, employees are protected from unfair dismissal, but I have to ask, where were these protections for the poor old Prime Minister, with whom they dispatched over a single weekend on WhatsApp? He got less probation than a probationary barista. It is one rule for the shop floor and another rule for the Labour Front Bench.