Hospitality Sector

Edward Leigh Excerpts

Wednesday 3rd September 2025 Commons Chamber

[Chris Bryant]

They don’t like it up ’em, do they, Madam Deputy Speaker?

The shadow Business Secretary then said,

“We think they’re the right plans because those plans make our economy competitive.”

The problem with the argument that he has made today is that he has not learned a single thing since that mini-Budget. He still wants us to tax less and spend more at the same time. Yes, of course he wants to reverse the national insurance increase, but does he point to where the money should come from? No, of course he doesn’t. He likes the additional spending on the NHS, he approves of our spending on prisons, he supports more spending on policing, and he clamours for more spending on defence—and, no doubt, on trains, telecoms, universities and schools—but he does not want to pay for it, which is why it is as plain as a pikestaff that he has not changed a bit. He would re-run the Truss mini-Budget in the twinkling of an eye. It was doolally economics when Truss introduced it and it is doolally economics today. I give you, Madam Deputy Speaker, the Minister for doolally economics. Let me deal with two specific points that he made.

[Sir Edward Leigh (Gainsborough) (Con)]

Will the Minister give way?

[Chris Bryant]

I will make a couple of points; then of course I will give way to the Father of the House.

The shadow Business Secretary condemned what he calls the reduction in retail hospitality and leisure business rates relief from 75% to 40% for 2025-26. Does the House note the sleight of hand there? When the Conservatives left office, they had no plans to extend the business rates relief beyond the financial year, and hospitality was facing a complete cliff edge, going from 75% relief to zero relief—so I am proud that our Chancellor introduced the 40% relief. I am also proud that the Government are creating a fairer business rates system that will protect the high street, support investment and is fit for the 21st century. The Conservatives had 14 years to do that. Did they bring in any amendment that would have improved the situation for hospitality? Nary a one.

We recognise the vital role that hospitality businesses play in driving economic growth and strengthening economic cohesion across the country. That is why from 2026-27, this Government intend to introduce permanently lower tax rates for retail, hospitality and leisure properties with rateable values of less than £500,000. That is a permanent tax cut to ensure that hospitality benefits from much-needed certainty and support.

[Sir Edward Leigh]

This is all good, amusing, knockabout stuff—nothing wrong with that—but will the Minister say a few words of comfort to the small family businesses that are closing all over the country and about whether, as the Minister with responsibility for hospitality, he is making representations to the Chancellor to relieve some of those small businesses from such taxes in the Budget?

[Chris Bryant]

I will be very straightforward with the right hon. Gentleman: of course we recognise the problems that small businesses are having—I have heard from many—and I am about to come to the issue of national insurance contributions, which I accept, of course, have provided difficulties to many different businesses. However, it is all very well everyone campaigning against the tax, but if they are not prepared to say where the billions are to come from otherwise, then they will the ends but they do not will the means.