Pub and Hospitality Sector

Caroline Dinenage Excerpts
Tuesday 22nd October 2024

(2 months ago)

Westminster Hall
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Caroline Dinenage Portrait Dame Caroline Dinenage (Gosport) (Con)
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I pay tribute to my hon. Friend the Member for Mid Leicestershire (Mr Bedford) for raising this important debate. We can see from the number of people here how much this touches every single one of us. In my constituency, local venues, pubs and restaurants are seeing a triple whammy of pressure with increased wage costs, increased energy costs and the significant rise in business rates as rates relief comes to an end. That is having a massive impact. Nationally, these venues are closing at a rate of 50 a month.

I am reminded of work by the Culture, Media and Sport Select Committee earlier this year looking at grassroots music venues, because of course many pubs and restaurants are live music venues as well. They are also the R&D department of our globally successful music industry—they are vital to it—and they are closing at the rate of two a week. Two things the Committee advocated in our report were, first, a levy to go between the big arenas to the small, independent venues and, secondly, a time-limited and very targeted VAT cut. I would like to make the argument for such a cut for small independent hospitality venues.

I do not want to take the argument purely into numbers, because these venues are so important in the way they make us feel—they can regenerate communities and can address social isolation and loneliness—but they are vital for our local economy and for jobs. In the Gosport constituency alone, these venues employ 2,000 people across 146 venues. They are vital. The knock-on effect of venue closure can be devastating. A time-limited and very targeted VAT cut could be a lifeline for some of the venues that are struggling and still have not got back up to speed and back to pre-pandemic opening hours.