Seasonal Hospitality Businesses in Coastal Areas

Edward Morello Excerpts

Wednesday 3rd June 2026 Westminster Hall

[Edward Morello (West Dorset) (LD)]

It is an honour to serve with you in the Chair, Mr Stuart. I congratulate the hon. Member for Isle of Wight East (Joe Robertson) on securing this important debate. West Dorset is home to the world famous Jurassic coast, a UNESCO world heritage site. Tourism contributes more than £320 million annually to the West Dorset economy and supports over 5,000 jobs—all thanks to the 4 million day visitors and 2 million people who stay overnight annually. However, behind the postcard image, many of the businesses that support our economy are under immense pressure.

I have been contacted by countless constituents who run pubs, hotels, restaurants, cafés, campsites and holiday parks. They tell me that they are now operating on margins so thin that a single, unexpected cost increase can put their future at risk. Business rates remain one of their biggest concerns. The George in West Bay told me that its business rates bill increased from £8,000 to £27,000 in a year. That is not a sustainable increase for a local hospitality business trying to serve its community and employ local people.

The Liberal Democrats have long argued that the business rates system is fundamentally broken. We would replace it with a commercial landowner levy based on land values rather than the capital value of buildings. We would also maintain the existing 75% relief for retail, hospitality and leisure businesses until that reform is delivered, while freezing the small business multiplier. Hospitality businesses should be rewarded for investing in their premises and communities, not punished for it.

National insurance increases have also added pressure. The hospitality sector relies heavily on part-time and seasonal workers. Many businesses in West Dorset have told me that the recent hikes have significantly increased their staffing costs. The Liberal Democrats oppose those changes and continue to call for their reversal. Businesses are job creators.

Then there is the ongoing cost of living crisis. Businesses across West Dorset tell me that visitor numbers remain relatively strong, but spending behaviour has changed dramatically. At a hospitality and tourism roundtable that I hosted, West Dorset Leisure Holidays explained that visitors are increasingly making decisions based solely on price rather than quality. Understandably, when households are facing rising costs, eating out becomes a luxury and is often one of the first things that they cut back on.

I welcome the Chancellor’s recent decision to implement the summer savings scheme, but that alone is not enough. That is why the Liberal Democrats have proposed a reduction in VAT for hospitality, accommodation and leisure businesses until April 2027. That would help businesses, support jobs and encourage consumers back into the local economy. Hospitality businesses in West Dorset are doing everything that they can and doing everything right. They create jobs, support communities and welcome visitors to our part of the country from around the world. They deserve a Government who recognise their value.