Tourism Industry

Saqib Bhatti Excerpts

Thursday 20th March 2025 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Sir Edward. I want to praise some of today’s fantastic contributions. I congratulate my hon. Friend the Member for Mid Bedfordshire (Blake Stephenson) on securing the debate and making a passionate speech, not least in respect of what he called “Universal Studios Bedfordshire”, with which I wish him all success. I thank the hon. Member for Dudley (Sonia Kumar). As someone who was born and brought up in Walsall, not too far from Dudley, I can attest to the wonderful Black Country and what Dudley has to offer. She made a wonderful case for that.

The hon. Member for Colne Valley (Paul Davies) took us on a tour of the whole of the UK—the urban and the rural—and that was very much appreciated. My hon. Friend the Member for South Northamptonshire (Sarah Bool) gave a wonderful tour of her constituency. If I visit her there, I am torn between driving a tank, visiting Silverstone, or doing something at a much gentler pace and visiting some of the churches. The hon. Member for South East Cornwall (Anna Gelderd) talked about the important issue of coastal towns and sustainable tourism. Our good friend the hon. Member for Strangford (Jim Shannon)—a friend of all of ours—made a wonderful case for his constituency. He made the case for wild-water bathing—I guess the clue is in the name—golf and whiskey, which sounds like a perfect holiday. I am sure someone will take him up on that.

I want to single out my right hon. Friend the Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell), who gave a wonderful, succinct tour of his constituency. Although I noticed that I did not get an invite to the spa, I recognise how much of a one-man tourism champion he is for his constituency. I hope Gabriella Bennett was listening; hopefully she will reconsider her views—and maybe he will give her a tour of the constituency as well.

As we heard from a number of hon. Members, tourism is at the heart of our local economies across all four corners of the UK. Each region’s unique history and heritage draws people from all over the world to visit the UK. Whether it is a golf trip to Scotland, a visit to the incredible Titanic museum in Belfast, a walking holiday in the stunning Welsh hills, or a trip to London—or anywhere else in England—there is something exciting to do wherever people are in the UK.

Just yesterday, in the glorious spring sunshine, the shadow Secretary of State and I visited the Charterhouse in central London, which has a fascinating history dating back to the 14th century. The Charterhouse now acts as a museum, a charity caring for people over the age of 60, and a venue for many different events, with the museum gaining support from the national lottery heritage fund. As evidenced by my visit yesterday, we have a thriving heritage sector—in my view, unrivalled the world over.

There are so many other reasons to visit the UK. We have a wonderful hospitality and nightlife economy across the United Kingdom, incredible sports venues and competitions, and some of the most remarkable natural landscapes in the world. In England alone, the tourism sector contributes more than £70 billion to the UK economy annually and employs more than 1.6 million people directly, with millions more benefiting indirectly.

For many of those people, those jobs are essential lifelines. There are thousands of students and other part-time workers who work hard all summer to give themselves that extra bit of cash over the academic year. Some of our retirees busy themselves during the week by volunteering at a local museum or a stately home. Put simply, the UK’s tourism sector impacts us all and we should be incredibly proud of it.

That is why English Tourism Week is a critical opportunity to celebrate, and I thank my hon. Friend the Member for Mid Bedfordshire again for tabling this debate at such an apt time in the calendar. The Government have an ambition to achieve 50 million visits; I support them in that ambition, but they are yet to unveil a clear strategy, so I look forward to hearing more; I am sure the Minister will enlighten us on how he is progressing with the release of that strategy. There are many thousands of businesses that rely heavily on a thriving tourism sector, and it is urgent that the Government do all they can to help champion it.

As my hon. Friend the Member for South Northamptonshire alluded to, I must also look at the impact of the recent Budget. Many hon. Members from across the House have championed tourism in their constituencies, but it is impossible to ignore the dark cloud that looms over the tourism industry. Inevitably, the disastrous Budget by the Chancellor has created a perfect storm for the UK’s tourism sector.

The shadow Culture, Media and Sport team hosted a roundtable in February and heard from representatives across the UK tourism sector who were deeply concerned about the rising cost of national insurance contributions. It is estimated that the hospitality industry will incur an extra £1 billion-worth of costs for 774,000 workers who will be newly eligible for employer national insurance in April when the Chancellor’s tax rises kick in. In particular, it appears that the lowering of the threshold will cause enormous damage to the industry—but do not take it from me; take it from the chief executive of UKHospitality, Kate Nicholls, who said:

“The change to employer NICs is one of the most regressive tax changes ever.”

Perhaps the Minister can comment on that, because it is a serious concern that many people in the hospitality and tourism sector are raising. My hon. Friend the Member for Mid Bedfordshire raised the important issue of pubs, and I hope the Minister will talk about those concerns too.

It is not just the rise in national insurance contributions that will have a huge impact on the tourism sector, however. The shadow Culture, Media and Sport team have also heard from representatives of the UK’s most recognisable historic houses and stately homes at our recent roundtable, where they articulated the devastating impact of both business and agricultural property relief changes. Given that the Government have set a target of 50 million annual visitors by 2030, and that almost a quarter of respondents in VisitBritain’s most recent sentiment tracker said they would visit a heritage site on their next trip, we cannot afford to put our heritage at risk—but I fear Labour is doing exactly that.

A survey in December 2024 by Historic Houses found that 87% of respondents would be impacted by the changes to BPR and APR, meaning that cash will be diverted from business investment, salaries, repairs and maintenance. Staggeringly, 41% of respondents said they will have to make redundancies or freeze the hiring of new staff. That might mean that some of our most beloved heritage sites are less sustainable and attractive to foreign visitors, less able to recruit local staff—often in rural areas—and less likely to remain open for the public to better understand Britain’s rich history. Many of these sites are vital to rural communities and now they are being put at risk, which puts those communities at risk too.

With many businesses in the tourism sector already on the edge, it is deeply concerning that the Chancellor’s decisions last October may push them over the cliff edge. The rising cost of national insurance contributions, minimum wage increases, union-enhancing legislation reminiscent of the 1970s and the reduction in business rates relief could have a terrible impact on businesses in the sector: that is what they are telling us. More importantly, it could mean that thousands of people looking for part-time work this summer, especially in rural and coastal communities, will struggle to find it. That could have terrible consequences for the Government’s No.1 mission of economic growth.

I consider the Minister to be a good man; I believe he is sincere in his ambition to increase visits to the UK, but I have asked him before about an impact assessment as a result of the Chancellor’s Budget and he has not been forthcoming with that, so perhaps today will be the day that he will share some of those figures on the impact of that Budget on the tourism sector. Across this House, we all agree that tourism is vital for our constituents, and we support his ambition to attract 50 million visitors to the UK by 2030, but the actions that his Government are taking may well do the complete opposite. I hope he can reassure the House and the sector that he will fight for the tourism industry, because we Conservatives will continue to do so.