Seasonal Hospitality Businesses in Coastal Areas

Rebecca Paul Excerpts

Wednesday 3rd June 2026 Westminster Hall

[Rebecca Paul (Reigate) (Con)]

It is a pleasure to serve under your chairmanship, Mr Stuart, and to be responding today on behalf of His Majesty’s Opposition. I begin by sincerely congratulating my hon. Friend the Member for Isle of Wight East (Joe Robertson) on securing this debate, and I thank all Members who have spoken so passionately about their constituencies.

As my hon. Friend is well aware, hospitality is far from just another part of the economic picture in coastal Britain; in many coastal towns, it is the local economy. Whether the café on the seafront, the family-run hotel, the pub overlooking the harbour, the fish and chip shop or the restaurant by the beach, these are businesses that come to life when the sun comes out and, more often than not in this country, even when it does not.

[Jim Shannon (Strangford) (DUP)]

I can testify that, for Northern Ireland, cost increases have forced almost 90% of hospitality businesses, many of which are found on our coastlines, to operate at below 90% of the required capacity. Tax rises have forced 50% of hospitality businesses to cut their workforces, and 68% have had to increase their prices, limiting the growth of this sector. Does the hon. Lady agree that the Government must step in? Wherever we are in the United Kingdom, we are all under pressure.

--- Later in debate ---

[Rebecca Paul]

I agree with the hon. Gentleman, as I often do. Hospitality businesses are valued employers, community anchors and, for many young people, the first step on the career ladder. I think we all agree that such businesses should be supported right across the country—a point that the hon. Gentleman just eloquently made—but that support especially matters in coastal areas, as has been highlighted so clearly.

The first point I want to make is that seasonal hospitality is, by definition, seasonal. That may sound obvious, but from studying the Government’s approach to employment regulation, one sometimes wonders whether Ministers have grasped it. A seaside café does not have the same staffing needs on a wet Tuesday in January as it does on an August bank holiday. A hotel in a resort town cannot pretend that February occupancy and summer occupancy are the same thing. This sector hinges on the weather, the school holidays, domestic tourism and the reality that coastal footfall rises and falls sharply across the year.

When Ministers push forward employment laws that make flexible and seasonal working harder, they are striking at the operating model that has sustained the coastal hospitality sector for generations. The Employment Rights Act 2025’s approach to guaranteed hours puts seasonal employers in an impossible position. The Opposition have warned the Government of this, which is why a future Conservative Government would repeal every job-destroying, anti-business, anti-growth measure in the Act as a matter of urgency.

Additionally, the Government’s national insurance rise has made it more expensive to employ people. The threshold has fallen, the rate has risen and labour-intensive businesses, especially hospitality, have been hit particularly hard. At the same time, business rate relief for retail, hospitality and leisure was cut from 75% to 40%, and it is next set to end entirely. For seasonal businesses of all types, that is a brutal combination. Tragically, and infuriatingly, I know that many will not survive it.

The truth is simple: this Government are hammering hospitality left, right and centre, with higher employer national insurance, higher business rates, more regulation, more risk and more costs piled on to the very businesses they claim to support. Ministers say they want growth, but their policies are doing the opposite. Businesses are closing. Pubs that have stood at the heart of their communities for generations are wondering how much longer they can last. Cafés and restaurants are looking at the bills landing on their doormats and asking whether they can afford to open their doors at all.

However, there is a better way. This Government could adopt our policy of taking 250,000 high street businesses, including pubs and hospitality businesses, out of business rates entirely. That would make an immediate difference—for many, it would be the difference between thriving or closing up for good. We would also repeal the family business tax, because family firms should be able to last across generations, rather than being bled dry by the Government when one generation tries to pass a business on to the next.

I will be visiting the Isle of Wight myself later in the summer for my friend’s wedding at Osborne House, which I know will be the wedding of the year. My friend has deep ties to the communities there, and she has told me much about the brilliant local businesses—from the Gossips Café in Yarmouth to traditional rural pubs such as the Horse and Groom and the Chequers Inn, whose owner, Mark Holmes, has been commendably vocal in calling for more support so that pubs can survive. These are exactly the sorts of unique places that give coastal and island communities their character.