Tourism: Covid-19

Matt Western Excerpts

Thursday 10th September 2020 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

I also add my congratulations to the hon. Member for North Devon (Selaine Saxby) on securing this important debate. The domestic tourism sector is what I want to concentrate on in my remarks this afternoon. I sort of view it as being a network of distinct micro-economies mutually supportive of each other. Just in Warwick and Leamington some 4,000 people are employed in the sector, and in south Warwickshire the number is 13,000. That accounts for three quarters of a billion pounds in GDP, so it is a significant contribution to our local economy.

We have in the constituency Warwick castle, which is clearly a destination of choice—perhaps preferable to other castles in the north of the country where certain people choose to go. I campaigned for its reopening back in June because it was being held back by legislation that was preventing the operation of its food and beverage outlets. Fortunately, the Government and local authority saw the sense in allowing the castle to reopen, but it lost half its key trading period and is now operating at 60% of capacity.

Nearby, we have the Royal Shakespeare Company in Stratford, which is not in my constituency but is mutually supportive of the local micro-economy. The RSC has really struggled, losing 75% of its income. Most worrying of all is that it now has to face going into a formal consultation with its staff and the unions from October.

I mentioned the local economic system or ecosystem; both the hon. Member for Angus (Dave Doogan), and the hon. Member for Sedgefield (Paul Howell) mentioned the coach industry, which sort of lubricates the tourist sector. I spoke to Ridleys, which is based in Warwick. Some 75% of its business was in the touring sector; it has now had to switch to providing services for schools. Ridleys has been lucky—other coach companies have gone to the wall—but the staff there are really angry because they do not see any consistency from the Government. Why is it that 300 people can get on an aeroplane and sit cheek by jowl for three hours, but people cannot get on a coach and do the same thing? I urge the Government to revisit that issue urgently; it would be one of the simplest things they could do to support the industry.

In summary, I would like to see more targeted support—specifically, the extension of the furlough scheme—and I urge the Government, as have others in the Chamber, to extend the VAT cut beyond January next year. In fact, I ask the Government to consider a permanent VAT cut, sitting at 10% going forwards. That is the sort of thing that could underpin the tourist and hospitality sector for the future.