Hospitality Sector

David Mundell Excerpts

Wednesday 3rd September 2025 Commons Chamber

[Andrew Griffith]

I do agree. My hon. Friend puts it extremely well. It has been an enormously difficult summer. The weather should have been a tailwind, but the tailwind was not significant enough to offset the headwind of the impact of that jobs tax. And who does it hit? Labour Members say that they stand up for opportunities for young people and the most vulnerable, but the change to national insurance thresholds in particular—the reduction from £9,100 to £5,000—has hit the part-time workers, the young mums trying to balance the responsibilities of family life and the young people trying to get their very first step on the ladder.

In her first Budget, the Chancellor said that she had made her choices. Well, we warned her, businesses warned her and even the Office for Budget Responsibility warned her, and what has happened? As my hon. Friend the Member for Gosport (Dame Caroline Dinenage) said, 84,000 jobs have been lost in hospitality since the Chancellor took office. That is a Wembley stadium’s-worth of livelihoods shredded by this Labour Government, affecting the most vulnerable in society, those trying to juggle other commitments and young people trying to have their first shot in the world of work. If this Government are about protecting working people, I have to say they have a very odd way of showing it. It is not just us saying this. Last month, Kate Nicholls, the chair of UKHospitality, said:

“More than half of all job losses since October occurring in hospitality is further evidence that our sector has been by far the hardest hit by the Government’s regressive tax increases.”

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

On that point, does my right hon. Friend agree with my constituent, Stephen Montgomery, who is the director of the Scottish Hospitality Group, that the very circumstances he is setting out have brought the industry to the brink, and that unless the Government start listening, it is going to go over a cliff edge?

[Andrew Griffith]

As it happens, I was in Edinburgh yesterday, talking to representatives of the hospitality sector and the hard-pressed tourist sector, and they made exactly the same point to me.

This is unnecessary. It did not need to be this way. And to what end? An increase in the jobs tax to fund tax cuts for Mauritians and cookery classes for illegal migrants, or to let the bloated public sector work from home another day a week? If proof were needed of where hospitality ranks in the priorities of this Government, we need look no further than the pages of their own industrial strategy, because in 160 pages of closely typed text and hundreds of thousands of words, the word “hospitality” features just three times, one of which was a typo where they misspelt the word “hospital”. Let’s be frank, their attitude to hospitality is lamentable, and the bad news just keeps coming.

No Government that understood business would ever come forward with the Employment Rights Bill. Tony Blair did not. Gordon Brown did not. It is 330 pages that prove this Government are not serious about growth. They have zero appreciation for the seasonal and flexible work that suits the workers and the hospitality and tourism businesses alike. They are conscripting pub landlords into an attack on freedom of speech with a banter ban on overheard remarks—not harassment, but remarks that somebody could construe, misdirected at them, as offensive.

Any small business owner will say that the two words they fear the most in the English language are “employment tribunal”, yet the Government want to legislate to grow even further the half a million cases that are already in the employment tribunal backlog. There is no point concocting and cooking up additional workplace rights if people cannot find a job in the first place. That is why the top five business groups in the UK—almost exceptionally—wrote an open letter saying that the impact on growth will be deeply damaging and lead to job losses and recruitment freezes. That is here right now; that is what is happening on our high streets and in our communities across this country thanks to this Government damaging the hospitality sector.