Oral Answers to Questions
Debate between John Whittingdale and Kate Dearden(2 weeks, 6 days ago)
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Kate Dearden
I understand that rising energy prices and the wider supply chain effects can place particular strain on sectors such as pubs and the wider hospitality sector, which often rely on that discretionary spending, and operate on tight margins. I have met lots of such businesses up and down the country over recent weeks, and I know that the current situation with energy prices, especially given what is happening in Iran, is causing a lot of concern. Across Government, we are considering carefully this area as part of our ongoing assessment of economic conditions and support mechanisms. We absolutely want to support our pubs and the hospitality sector, as they are vital to our local communities and high streets. It is vital that we provide the economic stability that we have shown this year, ensuring that the economy can keep growing, wages can rise, and people can have money to spend to support our pubs and our hospitality sector.
Sir John Whittingdale (Maldon) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
The Government recognise the vital role that hospitality plays in keeping high streets vibrant, driving footfall, supporting local jobs and sustaining town centre services. We know that many businesses, including the Swan Hotel, Bar and Grill in Maldon, are still facing real pressures, which is why we have delivered permanently lower business rates for over 750,000 retail, hospitality and leisure properties, alongside a £4.3 billion support package, including transitional relief, to help firms to remain on the high street, invest and grow. Later this year, we will bring forward a new high streets strategy, developed with businesses, to support regeneration and help town centres to thrive.
Sir John Whittingdale
Despite what the Minister says, hospitality businesses in my constituency, and the constituencies of my hon. Friends, are reeling from the impact of higher energy costs, and increased national insurance contributions and business rates. These businesses are making it clear that if there are any further increases, they will simply not survive. Why are the Government pressing ahead with another tax in the form of the overnight visitor levy, and will she talk to businesses before proceeding with that?
Kate Dearden
The right hon. Gentleman will know that the decision on the overnight visitor levy is down to mayoral authorities. They will work really closely with businesses and stakeholders in making that decision, but he raises an important point. I recognise the significant pressures facing pubs, hospitality businesses and breweries, which are facing sustained cost increases. We are closely monitoring the potential impact of disruption to trade and the wider economy, because our priority is to keep prices down for households and businesses. Going forward, we will build on our work to cut energy bills and crack down on unfair profiteering. The new framework that we have announced will help regulators spot trouble early and protect consumers, and we will work with businesses on that. We understand and recognise the pressures, and we will work really closely with businesses to support them.