Tourism: Northumberland

Saqib Bhatti Excerpts

Tuesday 19th November 2024 Westminster Hall

[Saqib Bhatti (Meriden and Solihull East) (Con)]

It is a great privilege to serve under your chairmanship, Sir Roger. As I make my debut as the shadow Minister for DCMS, it is great that I am now shadowing my friend, the hon. Member for Rhondda and Ogmore (Chris Bryant), as he shadowed me in the Department for Science, Innovation and Technology. I hope we will have a constructive debate today and going forward.

I want to thank the hon. Member for Hexham (Joe Morris) for securing this debate and for his illuminating speech about what his constituency, and the whole of Northumberland, offers in the way of tourism. We should all aspire to nurture the tourism industry in our constituencies. I look forward to visiting his constituency in Northumberland in the near future.

We should all recognise the immense contribution of the tourism industry to our economy, our constituencies and our local communities. Tourism is a vital sector, contributing more than £70 billion to the UK economy annually and employing more than 1.6 million people directly, with millions more benefiting indirectly. Indeed, brand Britain depends on a thriving tourism industry.

The latest annual Scarborough Tourism Economic Activity Monitor report on the economic impact of tourism shows that the Northumberland visitor economy has experienced strong year-on-year growth. In 2023, it recorded its highest ever gross value contribution of £1.262 billion, a 7.9% increase from 2022, with Northumberland welcoming more than 10 million visitors. That demonstrates that Northumberland’s tourism industry is continuing its post-covid recovery, thanks in part to the support provided by the previous Government’s tourism recovery plan. I put on record my thanks to the former Members who contributed to that plan, Guy Opperman and Anne-Marie Trevelyan, who are greatly missed on the Conservative side of the House.

However, it is now up to the new Government to demonstrate how they plan to support the tourism sector in sustaining its post-covid recovery. During the general election and throughout their time in power, we have seen no indication yet of a comprehensive, long-term strategy. Can the Minister outline when the Government will present a sector-wide support plan to help counties such as Northumberland, and the businesses that rely so heavily on tourism?

Many businesses in Northumberland are heavily dependent on seasonal tourism in particular, which poses significant challenges when it comes to retaining experienced staff and making long-term investment in their businesses. To truly support local economies such as Northumberland, it is crucial that we shift towards a year-round tourism model, which provides the stability and growth opportunities that our businesses need. Can the Minister confirm whether the Government’s tourism plan will consider specific support for businesses to operate year round, helping them to overcome the seasonal challenges that they face?

The increase in national insurance contributions for businesses, made by the Chancellor in the last Budget, will have a profound impact on the hospitality sector. The sector is vital for the success of tourism-dependent businesses, as we are continually hearing. As noted by many industry leaders, including UKHospitality, it could force many small, tourism-related businesses—including those independent ones previously mentioned—to close, reduce employees’ hours, or even scale back their expansion plans.

Tourism businesses, including hotels, restaurants and attractions, rely on part-time and seasonal workers to meet demand during peak times. The changes in NICs may make it more difficult for those businesses to retain or take on staff, limiting their capacity and ability to make a profit. That is especially concerning for Northumberland, where tourism clearly not only contributes to the local economy, but plays a key role in sustaining small businesses and preserving local jobs.

Given the ongoing recovery of the tourism sector following the pandemic, those additional financial challenges may well threaten to undo much-needed and well achieved progress, particularly for small businesses struggling with already thin margins. Therefore, it is essential that the Government consider how those new cost pressures will affect tourism and hospitality businesses, and that they work to provide support to help those businesses navigate the challenges in that sector successfully.

To unlock Northumberland’s full tourism potential, we must prioritise investment in key supply-side areas such as transport infrastructure, as rightly pointed out by the hon. Member for Hexham . Improved connectivity, whether by road or rail, is vital for attracting domestic and international visitors. Enhancing access to Northumberland’s iconic sites—from Hadrian’s wall to Alnwick castle—will enable more people to experience the county’s rich cultural and historical heritage.

In addition, strengthening digital infrastructure is crucial. Many rural areas in Northumberland suffer from limited broadband, which affects not only local businesses but tourists’ experience. Will the Minister clarify the Government’s commitment to improving Northern Rail and investing in digital infrastructure as part of its tourism strategy?

Northumberland’s tourism industry has demonstrated exceptional resilience in its recovery from the pandemic. However, the Government’s recent changes to national insurance contributions could push small tourism and hospitality businesses to the brink. It is crucial that the Government provide the necessary support to the tourism sector, particularly in counties such as Northumberland, to help them to absorb those additional financial pressures and work towards returning to pre-pandemic levels. I look forward to hearing the Minister’s plans for the future of tourism in the UK and in Northumberland, and for the communities that depend on the industry to thrive.