Seasonal Hospitality Businesses in Coastal Areas
Debate between Ben Maguire and Joe Robertson(1 week, 1 day ago)
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Joe Robertson
I agree with the hon. Gentleman, who is also ahead of me: I will address the tourism tax in my speech.
As I say, the Government have a role in creating an environment for seasonal hospitality to thrive, but in my view this Government have done the opposite. I do not accuse the Government of setting out to make life harder for tourism and hospitality in coastal areas, but I do hold them responsible for being careless about how their policies, in particular taxation, have fallen on communities such as mine. It is time for the Government to recognise that and make amends.
Ben Maguire (North Cornwall) (LD)
I have heard from countless hospitality business in my constituency, be it the Bullers Arms in Bude, which has seen astronomical business rates, or Stir café in Wadebridge, where VAT is a huge struggle. National insurance contributions, wage costs and energy costs are going up. Does the hon. Member agree that the sector needs long-term support from the Government, such as the 5% VAT cut that the Liberal Democrats have proposed?
Joe Robertson
I agree with the hon. Member that there needs to be long-term support, but also immediate relief. Again, he pre-empts some of the points I am going to make—I realise that my introduction was perhaps a bit longer than it should have been, considering that other Members are making all the excellent points that I am about to.
Since the 2024 Budget, the hospitality industry has lost more than 100,000 jobs. Between January and March of this year alone, the equivalent of three hospitality businesses closed every single day. The sector was hit with a £3.4 billion annual cost increase from that Budget. The 2025 Budget added more through business rate changes and wage increases. It is therefore hardly a surprise that we have seen job losses on this scale.
The Government are refusing to take responsibility. How can they do the right thing now if they do not recognise the harm that is being caused and felt from their own tax policies? Some of the most significant damage done by the Government is to the employment opportunities for young people. Youth unemployment is up; indeed, it is now higher than in the period coming out of covid. The Government’s hike in national insurance, extending it to more part-time work, and changes to the minimum wage that reduce the competitive advantage of employing young people are also major drivers of that unemployment. It is not just theory; we are seeing the real-world consequences in the data and in our communities.