Hospitality Sector

Llinos Medi Excerpts

Wednesday 3rd September 2025 Commons Chamber

[Llinos Medi (Ynys Môn) (PC)]

Diolch, Madam Dirprwy Lefarydd. I declare an interest as the chair of the all-party parliamentary group for hospitality, events, major food and drink businesses in Wales.

The hospitality sector in Wales has enormous economic value. It contributes £4 billion to the Welsh economy and employs more than 165,000 people. It also has immense social value, creating strong communities and providing opportunities for local people, often young people whose first job is in hospitality. However, the tax changes introduced by this Government have placed huge pressure on the sector.

This summer, a report by Family Business UK showed that on Ynys Môn changes to business property relief and agricultural property relief could result in a more than £10 million reduction in gross value added, as well as the loss of 167 local full-time equivalent jobs. That pattern is seen across Wales. The report also finds that Wales will see some of the steepest forecast declines in investment, turnover and employment due to the changes to BPR and APR.

Beyond the statistics are the real impacts on family-run businesses, such as Kingsbridge caravan park in Beaumaris, which has been family-owned for 26 years. Those running it say that the increases to employer national insurance have already forced them to reconsider employing wardens next year and have affected their ability to reinvest in the caravan park.

Analysis by UKHospitality Cymru shows that of the 164,641 job losses in the UK since the Budget last October, some 89,000 have been in hospitality. About 2,600 of those are in Wales—roughly equivalent to the number of jobs lost at Port Talbot due to the closure of the blast furnace, but spread across our communities throughout Wales. The sector is crying out for the Government to recognise the urgent situation and to acknowledge that many businesses are barely treading water, unable to invest or grow.

Hospitality is an important source of skills and growth for Ynys Môn and Wales, yet this Government are putting the brakes on that growth through short-sighted decisions. Thousands of jobs have already been lost and future investment has been cut. To prevent a bad situation from getting worse, the Government must rethink their damaging increases to employer’s national insurance contributions and the upcoming changes to business property relief, and give the Welsh hospitality sector the breathing room it needs to flourish.