Retail and Hospitality Sector

Baroness Verma Excerpts

Thursday 22nd January 2026 Lords Chamber

[Baroness Verma (Con)]

My Lords, I join all noble Lords in thanking my noble friend for this debate. I look forward to the remaining maiden speeches and congratulate the noble Baroness, Lady Dacres of Lewisham, and the noble Lord, Lord Forbes, on their excellent contributions to today’s debate. I also refer noble Lords to my interest in the register as a businesswoman for over four decades.

I suspect that, like me, many noble Lords over the past 14 to 15 months have met and spoken with many businesses, a proportionately large number of them from the retail and hospitality sector. According to the House of Lords Library, the number of businesses in hospitality in 2025 was around 176,685. What does the Minister believe the number will be this time next year? Hospitality is the seventh largest of the main sectors and almost all of hospitality—99.6%—is made up of SMEs. Some 7% of all jobs in the UK in 2025 were in this sector. What does the Minister think that number will be this time next year?

Most businesses are started by local people to serve local communities, creating economic wealth and job creation in those communities. Hospitality usually sits in the centre of those communities. They do not just have economic impacts; as other noble Lords have said, their presences brings people together. Hotels help bring in tourism, along with pubs, cafés, restaurants, et cetera. Social interactions bring an abundance of good health and well-being benefits. But we have seen a decline over the past 25 years in the number of pubs, going from 60,800 in 2000 to 45,000 in 2024, as stated by the British Beer & Pub Association.

Sadly, we have seen many of our industries leave our shores; that surely cannot be good for our long-term desire to be a resilient country that can withstand the sort of global shocks that are increasingly impacting on our everyday cost of living. Instead of helping to support these incredibly important sectors, the attack on small and medium-sized businesses has been blood-curdling. I remind noble Lords that most businesses are SMEs—local people investing their hard-earned money into enterprises that very often will take quite a few years to show a return on their investment.

There was a time when we prided ourselves on being world leaders in enterprise. My grandfather started his manufacturing business in 1952 and my father in 1967. They illustrated to us how this great country enabled anybody and everybody to be socially and economically upwardly mobile, part of the economic growth of the nation and to give back to the community. I started my first business in 1980. A brilliant example is the Ugandan-Asian community, who came as refugees from Uganda. They contributed so much to my city, Leicester, even though the then Labour council had advertised for them not to come.

Given the impact of the national insurance hike from 13.8% to 15%, the increase in the minimum wage in April, the level at which employers will have to pay NI going from £9,000 to £5,000, the fact that many businesses in retail and hospitality are facing revaluations, which will see huge increases in their business rates, and the levels of crime and attacks on these sectors, meaning an increase to the costs of insurance, property protection and other added costs, how will the Government provide support to businesses that are already reeling from sluggish growth? Can the Minister tell the House how many job vacancies have been filled with the Pub is the Hub initiative? Does he seriously believe that £1.5 million of support for hospitality is sufficient? What has the response been from the hospitality sector?

Finally, if the Government are serious about helping hospitality, what can they do to help reduce its energy costs? To help the Minister, if the Government are serious about climate change, reducing carbon emissions and, above all, supporting the continued existence of the hospitality sector, maybe, instead of providing advice on how to get to net-zero carbon emissions, the Government could provide products at zero cost, or at hugely subsidised costs.