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13 Mar
Question
Hospitality Industry

The question session in the House of Commons centered on the support for the UK hospitality industry. This area includes businesses such as restaurants, pubs, hotels, and other services that are crucial to the economy, particularly after the economic strains of recent years.

Main Contributions:

  1. Gareth Thomas (Minister) emphasized the government's efforts to assist the hospitality sector by creating a fairer business rates system and reducing alcohol duty on draft products.
    • Mentioned the forthcoming small business strategy aimed at further support for high street businesses.
    • Highlighted the role of the Hospitality Sector Council in addressing key issues like high street regeneration and sustainability.
40%

Discount offered to retail, hospitality, and leisure properties to ease business rates.

  1. Sir Edward Leigh raised concern over the abolition of the furnished holiday letting scheme and suggested restoring it to support countryside economies.
    • Offered personal interaction by inviting the Minister to witness Lincolnshire's hospitality firsthand.
2026

Year when a permanently lower business rate multiplier will be implemented.

  1. David Reed cited the example of the Crusty Cob bakery's closure, attributing it to rising costs and government policy on national living wages and employer contributions. He posed a direct question to the Minister on what message to give to affected employees.

Replies and Follow-ups:

  • Gareth Thomas acknowledged the concerns by expressing willingness to examine Sir Edward's proposal. He reaffirmed existing support measures and provided a counterpoint to Reed's critique by mentioning a 40% business rate discount and forthcoming reforms.

Outcome

The session underscored governmental intentions to provide long-term structural support to the hospitality sector, although specific longstanding issues remain unresolved. The government's refusal to inquire about restoring the holiday let scheme or directly altering rising costs suggests continuing dialogues without immediate policy shifts.

Key Contributions

Mr SpeakerN/A
N/A

Directed proceedings and called speakers.

Sir Edward Leigh
Conservative

Inquired about support measures for the hospitality industry.

David Reed
Conservative

Questioned the impact of government policies on the hospitality sector.

Gareth Thomas

Outlined steps to create a fairer business ecosystem for hospitality.

Original Transcript
Mr Speaker

I call the Father of the House.

Sir Edward Leigh
Gainsborough
Con
Question
UIN: 903170

10. What steps he is taking to support the hospitality industry.

David Reed
Exmouth and Exeter East
Con
Question
UIN: 903179

15. What steps he is taking to support the hospitality industry.

The Parliamentary Under-Secretary of State for Business and Trade
Gareth Thomas
10:03

We are creating a fairer business rates system, reducing alcohol duty on qualifying draught products, and our forthcoming small business strategy will set out our plan to further support small businesses on the high street and beyond.

In addition, through the Hospitality Sector Council, we are addressing, with business, strategic issues related to high street regeneration, skills, sustainability and productivity, and we have recently saved the pint.

Sir Edward Leigh
10:03

Obviously the Minister is working very hard, but he looks a bit tired, so may I offer him some Lincolnshire hospitality? Will he come and stay for a glorious weekend in one of our farm cottages, to enjoy our great skies and bracing air, and help our distressed farmers? Frankly, they need the income.

The problem is that the Government have abolished the furnished holiday letting scheme, which was a tremendous encouragement for the countryside. I do not expect an answer now, but will he consider approaching his right hon.

Friend the Chancellor to see if we can reinstate that in the Budget, to help our farmers and the countryside?

Gareth Thomas
10:03

Unusually for the Conservative party, the right hon. Gentleman has made an extremely generous offer. I am almost as tempted by that as by the offer from my hon. Friend the Member for Doncaster Central (Sally Jameson) to visit Doncaster.

I am happy to look at the issue he raises and I will write to him with more details.

David Reed

The Crusty Cob bakery has been a constant in east Devon for the past 55 years, but last week the family-run business closed the doors on all nine of its shops, making over 100 local people redundant.

The owners stated a panoply of issues, from manufacturing costs to reduced high street footfall and energy prices, but the kicker is the decision that this Business Secretary’s party has made to slam companies with increases to the national living wage and employer national insurance contributions.

The effects of this Labour Government’s decisions are setting in and literally destroying working family businesses. Will the Business Secretary and the Minister please give a message to the Crusty Cob team who have just lost their jobs?

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All content derived from official parliamentary records