Hospitality Sector

Luke Evans Excerpts

Wednesday 3rd September 2025 Commons Chamber

[Andrew Griffith]

My right hon. Friend makes an important point. It is about the numbers, and it is important that we should be instrumented. This is a sector that is extremely well instrumented, and groups such as UKHospitality do a great job at calling out the impact. But it is not just about the numbers, because behind every one of those numbers is a story: a family, a striver, a risk taker, an entrepreneur, a community or a high street whose life is being sucked out of it by this Government. Hospitality is where the character of our nation lives, in the welcome of a restaurant host, the laughter in a dining room and the clink of a glass, and it is the fact that that life that is being extinguished that is so tragic.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

One thing that is not picked up in the figures is the fact that cafés and businesses up and down Hinckley and Bosworth are having to reduce the man-hours that people are working to reduce their staffing costs because of the taxes that are being put in place. This is a real problem. Does my hon. Friend agree that we are not getting the growth that we want in this country because people are having to deal with this toxic concoction of legislation and tax?

[Andrew Griffith]

I do agree. My hon. Friend puts it extremely well. It has been an enormously difficult summer. The weather should have been a tailwind, but the tailwind was not significant enough to offset the headwind of the impact of that jobs tax. And who does it hit? Labour Members say that they stand up for opportunities for young people and the most vulnerable, but the change to national insurance thresholds in particular—the reduction from £9,100 to £5,000—has hit the part-time workers, the young mums trying to balance the responsibilities of family life and the young people trying to get their very first step on the ladder.

In her first Budget, the Chancellor said that she had made her choices. Well, we warned her, businesses warned her and even the Office for Budget Responsibility warned her, and what has happened? As my hon. Friend the Member for Gosport (Dame Caroline Dinenage) said, 84,000 jobs have been lost in hospitality since the Chancellor took office. That is a Wembley stadium’s-worth of livelihoods shredded by this Labour Government, affecting the most vulnerable in society, those trying to juggle other commitments and young people trying to have their first shot in the world of work. If this Government are about protecting working people, I have to say they have a very odd way of showing it. It is not just us saying this. Last month, Kate Nicholls, the chair of UKHospitality, said:

“More than half of all job losses since October occurring in hospitality is further evidence that our sector has been by far the hardest hit by the Government’s regressive tax increases.”

--- Later in debate ---

[Chris Bryant]

One of the first things I did when I became the Minister was to set an ambitious target of reaching 50 million international visitors to the UK by 2030; we are at something like 43 million visitors at the moment. If we are going to get to that target of 50 million visitors, we will have to ensure that we have the mix of accommodation across the whole United Kingdom. That poses some challenges around how we deal with short-term lets to ensure that there is more of an even playing field and that coastal areas and areas that are heavily dependent on tourism do not end up being completely denuded when the tourists go away at the end of the season. We need to do more to extend the season so that it is not just the summer months. We can do a whole series of things to ensure that that happens, but this is not just about international visitors.

When an international visitor comes to the UK, they bring dollars, euros, yen or whatever it may be to the UK. That is a net gain to our economy, but I argue that when a domestic visitor decides, “You know what? I’m not going to go to Spain this year, because I know that there is so much here,” they will then stay in the UK, and that is a net gain for us as well. Frankly, there is also a climate in the summer in the UK that is rather more agreeable for human beings nowadays. We need to explore all those different elements.

My hon. Friend referred to the east end of London. Of course, quite a lot of sporting events happen in the east end of London, and sport is just as much of an intrinsic part of why people come to this country. The number of international visitors who come to the UK solely for a premiership match is very large, but the number of people who went to the theatre last year in the UK is double the number who went to a premiership match, so we need to get the whole of this sector moving as much as we possibly can. We need to make sure that there is investment in the right parts of the sector, and that that investment takes place across the whole of the United Kingdom.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

Will the Minister give way on that point, very quickly?

[Chris Bryant]

It will not be quick—I know it will not, least of all my answer—but anyway.

[Dr Evans]

Wales has introduced a tourism tax, or is planning to do so. In light of what we are talking about today, can the Minister rule out the UK introducing a tourism tax in the upcoming Budget?

[Chris Bryant]

I am not going to do the Chancellor’s job, but we have no plans to introduce a tourism tax. Of course we are looking at different places in the country that have gone forward in different ways—Manchester, for instance, has a system that has been voluntarily agreed, and there is the situation in Scotland and in Wales, which the hon. Gentleman referred to. We want to look at how all of that progresses, but many people in the sector have made the point to me that they feel taxed enough. I do not know that we would want to add any more to that.

As I say, there is a job of work to be done on short-term lets, because it seems intrinsically unfair for somebody who is effectively providing hotel-like accommodation to not be subject to any of the same rules, or the same taxation, that a hotel—even a small hotel—would be. That is one of the areas in which we want to take forward the work that was done by the previous Government.