Seasonal Work

Debate between Nigel Huddleston and Alison Griffiths

Wednesday 10th December 2025 Commons Chamber

[Nigel Huddleston]

Again, my right hon. Friend is correct. Of course, it is not just the tax policies, but the wraparound—the devil in the detail of what can and cannot be included in various exemptions—that causes some perhaps unintended or indeed intended consequences. I think we all care very much about the future of our high streets, which is exactly why, at conference, we announced the retail, hospitality and leisure relief.

As I have said, the Chancellor had the brass neck to say she was helping the hospitality industry with business rates. The Government were doing no such thing; they were increasing business rates considerably. While hospitality is the UK’s largest employer of 16 to 24-year-olds, these cost pressures directly threaten in particular youth employment. New analysis from UKHospitality reveals that small hospitality venues alone will see business rates rise by £318 million over three years, and subsectors—such as pubs, which are often mentioned in this debate—will see a whopping increase. The average pub’s business rates, even with the reduced multiplier and transitional relief, will increase by 15% next year, which is an extra £1,400. In 2027-28, an average pub’s rates will be £4,500 higher, and in 2028-29, £7,000 higher. In total over three years, the average pub will pay an extra £12,900. An average hotel will be paying an extra £28,900 in rates next year. In 2027-28, it will be £65,000 higher, and in 2028-29, £111,000 higher. In total over three years, an average hotel’s rates bill will increase by over £200,000—just in time, no doubt, for it also to face the dreaded new tourism tax.

Labour’s unemployment Bill will do nothing but impose thousands of pounds in extra costs on businesses across the country—not to mention the ricochet impact on temporary and seasonal jobs.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

On the tourism tax, which will come on top of the increase in business rates, I spoke last week to Catherine, from the Navigator hotel, who is in despair at these additional costs. She fears for the future of her hotel and, indeed, for the 10 employees who work in that hotel. What reassurance can my hon. Friend give her?

[Nigel Huddleston]

The tourism tax is an appalling tax, which we have said will do immense damage to an already overtaxed industry. As my hon. Friend will be aware, a consultation is going on, and we all need to encourage our constituents, particularly those working in these sectors, to participate in that consultation to ensure that Labour does not do the damage we fear it may do to an already hit sector.

Of course, many sectors of the economy rely on seasonal employment during peak times, whether that is food production sectors during peak picking and growing seasons, retailers in the run-up to Christmas, or the hospitality and tourism industry over peak summer season and during school holidays. However, if the Minister and Labour MPs had actually been engaging with and listening to businesses in their constituencies or across the country since they came to power, they would know the frustration that so many of those businesses feel. They want to employ more people, especially young people, and to give learning and skills development opportunities—perhaps providing people with their first job—but they have been unable to do so because Labour’s policies are making it unaffordable for them to do so.

My hon. Friend the Member for Isle of Wight East (Joe Robertson) pointed out how bizarre is it that the Government announced plans over the weekend—note, Madam Deputy Speaker, over the weekend, not to this House—to help young people with skills building opportunities in hospitality, care and construction through taxpayer-funded Government schemes. Those are the very industries that the Government are undermining with their own tax policies. If the Government did not attack these industries, businesses would be generating such opportunities and jobs of their own volition, not needing Government handouts. Rather than spend £820 million using public money to help create jobs that may not be sustainable, surely it would have made more sense not to have taxed the hospitality, construction or care sectors in the first place. Even hospices were not exempt from the national insurance increases.