Hospitality Sector

Judith Cummins Excerpts

Wednesday 3rd September 2025 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Judith Cummins)]

The House will have seen that many Members are seeking to catch my eye. After the next speaker, there will be three-minute time limit.

[Mr Peter Bedford (Mid Leicestershire) (Con)]

As Members of Parliament, we receive campaign email after campaign email every week on dozens of issues, from environmental matters to recent calls for a general election. Amid all that, there is one concern that continues to cut through: support for our pubs and the wider hospitality sector. Why? Because the UK’s hospitality sector is more than just about business. It is a vital part of the social fabric of our communities. Whether it is the Nook café in Anstey, the Ex-Servicemen’s Club in Groby or the Coach and Horses in Markfield, these are not simply places to eat and drink; they are places of refuge from everyday life, places where people come together and places that sustain the spirit of our towns and villages.

Yet what do we see from this Government? With Starmer the pub harmer at the helm, it seems they are determined to call last orders on our fantastic hospitality sector. Since the general election, we have witnessed a series of reckless decisions that have shattered business confidence. Take the Chancellor’s disastrous autumn Budget, which slashed the rates relief for the retail, hospitality and leisure sectors and imposed damaging rises in employer’s national insurance contributions; or look at the Secretary of State for Business and Trade attempting to push one of the most damaging employment Bills in a generation through Parliament—and I know so, because I sat on the Bill Committee. The legislation will do more to hinder job creation than to help workers.

In my own constituency, I have spoken to countless publicans and small business owners who are feeling the strain—none more so than the Royal Oak in Kirby Muxloe, which recently won my Mid Leicestershire best pub competition. Local hospitality businesses in Mid Leicestershire pose the same questions to me time after time. Should they raise their prices and risk losing customers, or should they cut staff and reduce their opening hours just to stay afloat? Neither choice is fair and neither is sustainable. Across the country, we have seen the consequences: 83,000 hospitality jobs lost as a direct result of this Government’s actions. And what for the future? We know the Chancellor is facing a self-inflicted £40 billion black hole as a result of her Budget, and with the recent reshuffle at No. 10, with supporters of high taxes and high spending being promoted, there is a worry among businesses in Mid Leicestershire that the worst is yet to come.

It does not have to be this way. If the Government would only listen to industry experts such as UKHospitality and the British Beer and Pub Association, or to brewers such as Punch Pubs and Everards, we could actually help the industry rather than hinder it. I urge the Government to act boldly and continue to cut business rate reliefs for the hospitality sector, reduce duty on draught beer and lower VAT on products sold in hospitality settings, just as many of our European neighbours do. It is time that the Government stopped punishing the sector and listened to the rational arguments of those who work in and care so much about the industry they love.

[Madam Deputy Speaker (Judith Cummins)]

Order. I remind Members that we do not refer to other Members by name in this Chamber.

[Antonia Bance (Tipton and Wednesbury) (Lab)]

In the spirit of the Minister’s invitation, I invite any Member to come to one of our brilliant Black Country Desi pubs, or to come and eat orange chips with me next to the canal.

Everyone in this Chamber wants high and rising wages, and for their constituents to feel that they can just take the family out for a curry on a Friday night. That is why I was so disappointed to see in the wording of the motion before us today an attack on the Low Pay Commission—a piece of settled government machinery that has served Governments of all parties well. The commission is tripartite, representing business, unions and academics; it consults business closely, visits employers and talks to both managers and workers. If Conservative Members were to read the report of the last session of the Low Pay Commission, they would find that it visited hospitality businesses in the city of Glasgow, speaking both to workers and to the people running those businesses. It is one of the very best, most consensual ways of forming Government policy, and I am disappointed in the attack on it, especially as it is at present chaired by a Conservative peer.

I stand here today, as I always do, representing workers. Many hospitality workers are represented by my union, Unite. I am proud of the record of our Government, for far from being a Bill that attacks the hospitality sector, the Employment Rights Bill is written with the hospitality sector in mind. The extension of day one rights is a policy tailor-made for the hospitality sector; as 50% of all hospitality workers do not have two years’ service, they can be hired and fired at will, as if we were America. That is not what we want in our economy. Why should it be possible for someone who has worked faithfully for an employer for a year and 11 months to lose their job overnight, with no process and no reason, meaning they cannot pay the rent next month? We will stop that.

Ditto zero-hours contracts, on which 18% of hospitality workers are employed—the highest of any sector. Let us remind ourselves of the reality of that. Workers on zero-hours contracts cannot set things up because they do not know when they will be working. They may get a text message when they are stood at the bus stop on the way to their shift saying, “Sorry mate, we don’t need you today. Don’t come in.” We will ban those contracts.

My last point is on sick pay. Some 279,000 workers in the hospitality sector earn below the lower earnings limit, and we will make sure they are entitled to sick pay. This is Labour delivering for workers.

The Tories and the Lib Dems, along with their mates in Reform, have ganged up together in the House of Lords to try to gut the Employment Rights Bill, but we will not have it. I do not want the hospitality workers serving me a curry on Friday night—

[Madam Deputy Speaker (Judith Cummins)]

Order. I call Damian Hinds.

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[Matt Vickers]

The hon. Member for Tipton and Wednesbury (Antonia Bance) should not shake her head—that is true. It is a fact.

In the last Parliament, I campaigned for the 75% discount on business rates for leisure, hospitality and retail businesses. It was game changing for many, but with the stroke of a pen, the Chancellor stood at the Dispatch Box and ended that lifeline thrown to many employers. With the average pub having seen its business rates increase from £3,938 to £9,451, and the average restaurant from £5,051 to a whopping £12,122, the Government are taxing the sector to death. Two hospitality businesses are closing every day and it is thought that more than—

[Madam Deputy Speaker (Judith Cummins)]

Order. I call Christine Jardine.

--- Later in debate ---

[Madam Deputy Speaker (Judith Cummins)]

Order. The wind-ups will start at 6.40 pm prompt.

[Liz Jarvis (Eastleigh) (LD)]

The hospitality industry in Eastleigh contributes £113 million every year, generates £56 million in economic value, employs 1,805 people and sustains 84 pubs, cafés, restaurants and hotels.

My constituent Lorraine, the landlady of the Master Builder pub in West End, saw her wage bill rise by £1,500 compared with the same month last year despite having no extra staff. She now works 70 hours a week, earning the equivalent of £5 an hour, and in the past two years she has had just five days off. Jane is the manager of the Holiday Inn in Eastleigh, a popular base for those wishing to watch cricket at the Utilita Bowl and for families wanting to explore Peppa Pig World at Paultons Park nearby. She tells me that they have been unable to fill vacancies because of the increased payroll burden from national insurance hikes.

David, the owner of Steam Town Brew Co, tells me that for a part-time member of staff doing just 10 hours a week, costs have risen by more than 9% year on year. For small breweries such as his, these increases make it harder to keep staff on, to recruit and to invest in local jobs. Does the Minister acknowledge that the changes to employer national insurance contributions act as a disincentive for small, labour-intensive businesses—

[Madam Deputy Speaker (Judith Cummins)]

Order. I call the shadow Minister.

--- Later in debate ---

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

On a point of order, Madam Deputy Speaker. Earlier today at Prime Minister’s questions in relation to the Norwegian Government’s £10 billion investment in the Scottish defence sector, the Prime Minister stated, “I am perplexed that the First Minister of Scotland has not welcomed this deal.” The problem for the Prime Minister is that the First Minister did in fact welcome the order from the Norwegian Government to Scottish shipbuilding, meaning that the Prime Minister’s statement today was untrue.

The First Minister said:

“The announcement by the Norwegian Government of their intention to buy frigates from BAE is obviously a significant boost to employment and opportunity in the defence sector in Scotland. It’s an indication of the steps that have to be taken to ensure that countries are able to defend themselves. And I welcome the investments in Glasgow.”

This is an open and shut case and a serious one where the Prime Minister of the United Kingdom was today engaged in advancing a completely false accusation against the First Minister of Scotland. I seek your advice, Madam Deputy Speaker, on how we might get the Prime Minister to come to the House to correct the record.

[Madam Deputy Speaker (Judith Cummins)]

I thank the hon. Member for giving me notice of his point of order. The content of Members’ speeches or responses by Ministers are not matters for the Chair. However, the Treasury Bench will have heard the Member’s point of order, and I am sure that if there is a need to correct the record, the Prime Minister will do so.