Pub and Hospitality Sector

Caroline Voaden Excerpts
Tuesday 22nd October 2024

(1 month ago)

Westminster Hall
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Caroline Voaden Portrait Caroline Voaden (South Devon) (LD)
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I am grateful for the opportunity to contribute to today’s debate about the vital support needed for our pubs and our broader hospitality sector, and I thank the hon. Member for Mid Leicestershire (Mr Bedford) for securing it.

In South Devon, the hospitality industry is more than just a business; it is the lifeblood of our communities. Our area boasts over 700 pubs and restaurants, so there are far too many to name. I will not single any of them out, but they are all brilliant and they employ more than 12,000 people. This sector does not merely create jobs; it fuels our local economy, contributing over £500 million every year. However, we know that many of those venues are at breaking point.

I also want to raise the issue of business rates relief. One family-run hotel in my constituency has been in operation for over 127 years and faces an uncertain future. If the business rates relief cap is lifted, it will be forced to find an additional £110,000 a year just to keep its doors open. For a business that has served our community for generations, that is a real threat to its very survival, and that situation is not unique to South Devon. Across the country, pubs are closing at an alarming rate. Covid presented a huge challenge to the industry, but the fallout from Brexit is still keenly felt. Disrupted supply chains and the increased costs of importing goods, as well as severe staff shortages due to the end of free movement, have all compounded the difficulties for our pubs and restaurants, many of which are now having to shut their doors a couple of days a week, which has a knock-on effect on local communities.

In response to all those mounting challenges, I have written to the Chancellor to urge the Government to extend rate relief for the hospitality sector. Temporary reliefs on business rates and alcohol duties are welcome but insufficient to address the long-term sustainability of the sector. We need bolder reforms that will give our hospitality venues the breathing room they need to invest in their people, their properties and their future. The Liberal Democrats are committed to real and lasting reform, including business rates relief and increasing the employment allowance for small businesses. Policies such as those are not just a lifeline for businesses but an investment in the future of our people, our economy and our communities.