Finance (No. 2) Bill

Debate between Steve Darling and Paul Kohler

Committee of the whole House
Tuesday 13th January 2026 Commons Chamber

[Mr Kohler]

Indeed I do. It is death by a thousand cuts. Those who run hospitality businesses have been hit by cost after cost after cost. The Government must listen.

Alcohol duty brought in about £12.5 billion in 2024-25. Hospitality, by contrast, contributed over £60 billion to the economy in 2023 and supported over 2.5 million jobs—over 7% of the workforce. Yet UKHospitality estimates that 89,000 jobs—nearly 100,000—were lost in the nine months after the October 2024 Budget. Official figures show that 366 pubs closed in the year to December 2025. That is one pub every single day. The roots of this crisis lie in years of Conservative mismanagement, Brexit labour shortages, a broken business rates system, energy price shocks, commodity price increases and a cost of living crisis. Many in the sector hoped that the change of Government would bring a change of direction, yet things have only got worse with the rise in employer national insurance contributions.

The cumulative effect is undeniable: rising costs for shorter opening hours and fewer staff. Offering us easier or longer opening hours does not help if we do not have customers coming through the door. Investment is deferred, and too often doors close for good. When that happens, high streets lose more than businesses; they lose employment, footfall and the social infrastructure on which communities depend. That is why the Lib Dems are calling for an emergency cut in VAT for hospitality to 15% until April 2027, real reform of business rates and a proper review of the unworkable wine duty system. Such measures would protect jobs, support high streets and, in time, strengthen the public finances rather than weaken them.

The hon. Member for Edinburgh South West (Dr Arthur), who is no longer in the Chamber, asked where the money will come from. We keep telling Labour: get rid of the red lines and negotiate a customs union with the EU, which would raise £25 billion a year for the Exchequer. Businesses in Wimbledon and across the country are not asking for our pity; they are asking for a tax system that reflects the pressures they actually face. If Ministers are serious about protecting jobs, strengthening high streets and growing the economy, they should reverse this tax increase and introduce an emergency VAT reduction for hospitality.

[Steve Darling (Torbay) (LD)]

I will focus on Liberal Democrat new clause 9, which would require an assessment of the cumulative impact of the proposals on the hospitality industry.

One must bear in mind that, after a medley of challenges, our hospitality industry fears the future—it is in crisis mode—so it is not prepared to invest or take a chance by improving its offer, and it is hunkering down and hoping for the best. I reflect on the international pandemic, which had a massive impact; Torbay’s tourism and hospitality industry has still not recovered to pre-pandemic levels. The outrageous second invasion of Ukraine almost four years ago caused a shock in our energy costs. I am afraid that there have also been self-inflicted wounds, such as the national insurance hike and the ensuing employment challenges.

David from Rock Garden in Torquay told me that his utility bill has risen to £3,000 a month, which dwarfs his rental costs. Ofgem is asleep at the wheel; it must back local businesses and drive the changes that we need. Our hospitality industry is horrified by the proposals for business rates. The Government must apply the full 20% rate of relief to ensure that there are protections. I am afraid to say that many people in the hospitality industry scoff at proposals that simply deregulate around the edges, because if they do not have paying customers in their premises, they are set up to fail.

Bus Services (No. 2) Bill [Lords]

Debate between Steve Darling and Paul Kohler

Report stage
Wednesday 10th September 2025 Commons Chamber

[Mr Kohler]

Those are indeed the issues that we need to address and that are not addressed at the moment—my hon. Friend is absolutely right.

The poorest, who use buses the most, are already struggling with the cost of living crisis. No amount of spin can hide the fact that the Government’s decisions represents a huge fare increase, despite the Prime Minister taking to social media last month to proclaim that he was putting working people first, and that this fare rise would “cut costs” for working families. No, it will not.

[Steve Darling (Torbay) (LD)]

In Torbay, which is sadly one of the most deprived constituencies in the south-west of England, bus travel is the primary form of public transport. The £2 price cap was valued by young people and by those of working age in navigating Torbay. Does my hon. Friend agree that its reinstatement would help oil the wheels of our communities, such as Torbay?

[Mr Kohler]

That is hugely important. If we want to get people back on the buses and help the most deprived in our society, we need to reinstate the £2 bus cap.

Fares have risen to the point where many households simply cannot afford to use the bus regularly. A £2 fare cap would make a tangible difference to low-income families, students and modest earners, while also helping to reduce congestion and cut emissions by getting more people out of their cars. Sadly, new clause 1 has not been scheduled for a vote, so we will support the Conservatives’ more modest proposal, amendment 23, requiring the Secretary of State to conduct an impact assessment of the ending of the £2 bus cap.

Another clause that will not be pressed to a vote is our new clause 48, which would have provided free travel for uniformed police officers in order to provide greater reassurance to the travelling public. Antisocial behaviour—and not just headphone dodging—is on the increase across the bus network, and the sight of more police officers on buses would only help to reduce that menace. Currently, there is a patchwork of different schemes covering some, but not all, bus operators, and requiring officers to produce a variety documentation to access free travel, which is not infrequently denied. Our new clause would have provided a simple baseline requiring no bureaucracy, allowing every officer in uniform to travel freely on any bus. I again ask the Minister to consider accepting that costless improvement to the safety of the bus network.

I now turn to a hugely consequential cross-party amendment tabled by my hon. Friend the Member for Harrogate and Knaresborough (Tom Gordon), whose work on the Bill has been thoughtful and persistent. His new clause 2 would require the Secretary of State to remove time restrictions on the use of disabled concessionary travel passes. It is supported not just by Liberal Democrats but by Members across the House, including on the Government Benches. Disabled passengers, forced to travel at restricted times under current rules, face unnecessary barriers to jobs, appointments and social inclusion. Removing time restrictions would allow them to use the bus network when they need it. It is right that the House should support this new clause, and I warmly congratulate my hon. Friend on bringing it forward.

Rigid time slots reflect outdated thinking. Disabled people deserve travel choices that reflect real-life needs. If, as they claimed during their ill-fated attempt to reduce personal independence payments before the recess, the Government really want to help more disabled people back into work, removing such restrictions would be a wonderful place to start. I am delighted that Mr Speaker has selected new clause 2 for a vote, and I ask Members across the House to bear witness to the cross-party support that it has already received by voting together in support of it.

In conclusion, my party welcomes the Bill, which will make a real difference to our bus network, but I call on the Government and the Minister to not allow petty party rivalry and tribalism to stand in the way of making this legislation even more effective by voting against the sensible amendments and new clauses that we have proposed.