Pub and Hospitality Sector

Valerie Vaz Excerpts

Tuesday 22nd October 2024 Westminster Hall

[Several hon. Members rose—]

[Valerie Vaz (in the Chair)]

Right hon. and hon. Members will notice that a lot of Members want to speak and it looks like it is standing room only. I am going to impose an informal two-minute time limit. That does not stop hon. Members from intervening. I call Kim Johnson.

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[Tom Hayes (Bournemouth East) (Lab)]

I am thrilled that the Labour Government value the role of pubs, cafés, restaurants and more in serving Bournemouth and Britain. When I speak with publicans and people involved in the hospitality sector, they tell me that they want Bournemouth to be seen not as a sleepy seaside town, but as a thriving and bustling place to invest, work and live.

Let us take as an example the stretch of Charminster Road between the Broadway pub and Creams. There are 17 different types of cuisine on offer, which are as diverse as the communities that call Charmy home. We have four pubs—the Richmond Arms, the Fiveways, the Broadway and The Dancing Jug—and more than 80% of vendors are independent.

If we move to Boscombe—I know that hon. Members would want to—we have Boscanova. Started by the team behind Bad Hand Coffee, it is a fantastic place that I visited recently and remains a bustling spot for great food made from ingredients sourced in Dorset and Hampshire, and some of the best coffee in Bournemouth. I cannot dwell on Boscombe without talking about Flamingo and Joy Cafe, and Cafe Riva and the Hush Club. The Hush Club almost stopped visiting Cafe Riva because of issues with the council and licensing complaints. I am pleased to have brought people together in recent weeks to keep that going.

If we move over to Southbourne, as again I know hon. Members would want to, there are fantastic places to visit, such as Wild & Ginger, Little Perth, Ludo Lounge, Brewhouse & Kitchen, The Wight Bear, Syd’s Slaps, The Larder House, Dicky’s, Harry’s—I could go on. Moving quickly over to Moordown, if hon. Members fancy a good fish and chips on a Friday night, they might have to queue up, but I recommend they go to Malvern Road Fisheries. Lastly, in Muscliff and Strouden Park, perhaps the best kebab in the whole of Bournemouth East, if not the whole country, is found at Noor. I encourage any and all people to come, any day of the week.

I thank the business improvement districts for all they do to fuel economic growth and the people of Bournemouth East, who invest, set up businesses and help to fuel the hospitality economy, because they are making Bournemouth the amazing place that it is.

[Valerie Vaz (in the Chair)]

I remind hon. Members that I expect to begin the wind-ups at 10.28 am.

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[Blake Stephenson (Mid Bedfordshire) (Con)]

It is a pleasure to serve under your chairmanship, Ms Vaz, and I thank my hon. Friend the Member for Mid Leicestershire (Mr Bedford) for securing this important debate.

Pubs and hospitality are at the heart of communities such as mine in Mid Bedfordshire, which is home to 157 hospitality businesses that support 2,229 local jobs and contribute £66 million to our local economy. That includes everything from big chains such as Center Parcs to the Woburn Safari Park and the local pubs, of which there are many to choose from, such as The White Hart in Ampthill; The Chequers in Westoning; The Musgrave Arms in Shillington, affectionately known as the Muzzy; or the award-winning Woolpack inn— the Wooly—in Wilstead.

One of the best ways we can encourage people to visit Mid Bedfordshire and boost our local pubs and hospitality is for the Government to do everything they possibly can to support the inward investment by Universal Studios in my constituency. Universal would be a £50 billion gamechanger to our local economy, and the biggest single boost to turbocharge hospitality in Mid Bedfordshire. But beyond Universal, in the short term, our hospitality businesses need support. They need the Government to protect them by maintaining their manifesto commitment not to raise national insurance, recognising that job-creating small business owners in places like Mid Bedfordshire are working people too, and that employers’ national insurance is a tax on them. Our pubs and hospitality businesses also need the Government to extend the small business rates relief, ensuring that it is viable for them to continue to serve our communities, and our village pubs need the Chancellor to extend the freeze on alcohol duty.

I will conclude by urging the Government to consider the role of pubs and hospitality in making a place in our communities. Wherever houses are built, hospitality must follow; otherwise we risk building expensive dormitories, rather than places people can be proud to call home.

[Valerie Vaz (in the Chair)]

Last but not least, we have two speakers, so if you could each take a minute and a half, we can get the wind-ups in.

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[Patrick Spencer (Central Suffolk and North Ipswich) (Con)]

Thank you for calling me, Ms Vaz. It is a pleasure and a privilege to serve under your chairmanship. I start by paying tribute to my hon. Friend the Member for Mid Leicestershire (Mr Bedford) for securing this important debate—important because, like many people who have come before me, I have a constituency with a rich tradition in the world of food and drink. I will save everybody the verbal tour of my constituency and all the pubs, bars and clubs we have all frequented there, but I will say that in the east of England the hospitality and pub scene supports about 250,000 jobs, creates about £2.5 billion of economic value and pays £1.2 billion to the Exchequer every year. It is not just important in terms of economic value and taxes—it supports our critical tourism industry, and within that 11,000 full-time jobs and £700 million in economic value. But there is social value as well—let us not forget the many old people who do not have people to go to at home, who use the pub to speak and have a natter with people in their local community. It also provides an opportunity for young people to get jobs—their first chance to get on the job ladder.

So, why oh why would we take the opportunity to hammer an industry that has been so badly impacted by covid-19, the smoking ban, rates relief, VAT, national insurance contributions, and inhibitive employment rules and regulations, all of which are mad and bad?

In preparing for this speech I came across a quote from Sally, the manager of The Duke in Ipswich, who said:

“All the landlords and ladies I know are in the business to make a living, not a killing!”

So, please let’s not push more of them over the edge.

[Valerie Vaz (in the Chair)]

I call the Lib Dem spokesperson, Sarah Gibson, to speak.

[Sarah Gibson (Chippenham) (LD)]

It is a pleasure to serve under your chairmanship, Ms Vaz.

I thank the hon. Member for Mid Leicestershire (Mr Bedford) for securing this important debate and I share his concerns about the issues that the hospitality sector faces. Having a background in architecture and construction, I find myself agreeing with him about the need to reform planning and licensing.

I also share the concerns that my hon. Friend the Member for Honiton and Sidmouth (Richard Foord) and the hon. Member for Stoke-on-Trent South (Dr Gardner) expressed about local village pubs. The land they are located on is so valuable for development that there needs to be stronger legislation to secure community assets.

I thank the hon. Member for Southend East and Rochford (Mr Alaba) for noting the importance of this sector in creating entry-level jobs. It is clear from the range of constituencies represented here that pubs and hospitality are important from the top of Scotland down to the south coast of England, and of course to Strangford.

As my hon. Friend the Member for South Devon (Caroline Voaden) mentioned, we all seem to recognise the challenges that this industry faces, from rising energy costs to supply chain issues to a shortage of staff. Despite the support for the industry across the House, we seem to continue to uphold a broken business rates system that is crippling our local pubs. According to the Campaign for Real Ale, our pubs are overpaying on their rate bills by approximately £500 million a year. Therefore, the Liberal Democrats urge this new Government to boost small businesses in the hospitality industry, such as our locally owned pubs, by abolishing business rates and replacing them with a commercial landowner levy.

The previous Conservative Government promised in their 2019 manifesto to review the business rates system and to ease that tax burden. However, on 17 October 2022, the then Chancellor of the Exchequer, the right hon. Member for Godalming and Ash (Jeremy Hunt), told the House that that commitment was:

“Another of the promises I now vainly wish I had not made”. —[Official Report, 17 October 2022; Vol. 720, c. 430.]

Businesses are tired of being treated with such cynicism, and I truly hope that this new Labour Government will not treat businesses like that. After all, reforming the rates system is not just about boosting businesses; it is also about saving our local pubs from disappearing completely. In the last three years, 45 pubs in Wiltshire have stopped trading, which is devastating for the economies of small rural communities, such as those in my constituency.

[Valerie Vaz (in the Chair)]

I call the Opposition spokesperson, Mike Wood.

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[Gareth Thomas]

I am happy to confirm to the right hon. Lady and the whole House that I will ensure that the Treasury and the Chancellor are aware of the comments made in this debate. She will understand that crucial to the future of pubs and the hospitality industry is getting growth going in our country—in particular, getting more disposable income into the pockets of potential customers of pubs and other hospitality venues.

That is one reason the Prime Minister has made growth the number one mission of the Government. It is why we have already taken a series of steps to underline the significance of growth, from publishing a Green Paper on industrial strategy through to the success of the investment summit last week. It is also why we have introduced the package of measures to make work pay, including the Employment Rights Bill, which the House debated yesterday.

I want to pick up one or two specific points hon. Members made, in particular the reference by the hon. Member for North Norfolk to training. He may know that there has been much frustration across the business community, including from pubs and hospitality businesses, about how the apprenticeship levy works. We have committed to reforming that levy and to giving more focus to the skills needs of businesses.

That is one reason we have already established Skills England, which will have a new partnership with employers at its heart and will transform the existing apprenticeship levy into a more flexible growth and skills levy, to support business and boost opportunities for those living and working in the UK—something the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) will be pleased to hear.

Interventions from the hon. Gentleman, my hon. Friends the Members for Cumbernauld and Kirkintilloch (Katrina Murray) and for Edinburgh East and Musselburgh and the hon. Member for North East Fife (Wendy Chamberlain) provide me with an opportunity to suggest gently that the Scottish Government might want to think again about their decision not to pass on the business rate relief to pubs that the Treasury in London sends them—

[Valerie Vaz (in the Chair)]

Order. Could the Minister start winding up his remarks?

[Gareth Thomas]

Lastly, Ms Vaz, Ofgem has announced a series of measures to protect non-domestic energy customers from poor behaviour by energy suppliers, which I hope will address some of the concerns that we heard on that issue.

[Mike Wood]

On a point of order, Ms Vaz. I should have drawn attention to my entry in the Register of Members’ Financial Interests before I spoke. I hope you will help me to get that on the record.

[Valerie Vaz (in the Chair)]

Yes, thank you. I call Peter Bedford to wind up.