Hospitality Sector

We recognise the vital role hospitality plays in driving growth and strengthening all our communities. That is why we have committed to permanently lower business rates for the sector from 2026-27 and announced a hospitality fund to co-invest in projects that boost productivity and help community pubs adapt to local needs. It is also why we have launched an industry-led licensing taskforce to reduce red tape and other barriers.

I regularly meet the Harrogate business improvement district and the chamber of commerce, and we have a thriving hospitality and tourism sector in Harrogate and Knaresborough. I recently met Alison, a constituent who runs a number of local bars and restaurants, and she is worried that with the increase in employer NICs, rising energy costs and the other pressures that this Government are not getting to grips with, businesses like hers will not be there to see the benefits of business rates reform. What is the Minister doing with Treasury colleagues to support local hospitality?

One of the most important measures that will help the hospitality sector is business rates reform. We have set out our commitment to do that, and we are working with all the different parts of the business community, including the hospitality sector, to get our reform proposals right. As I alluded to in a previous answer, we will publish an interim report giving more detail of our thinking on business rates reform, and the Chancellor of the Exchequer will confirm our plans in the Budget later this year.

I hope the Minister will join me in thanking all the hard-working hospitality staff who are about to have a very busy summer, particularly in Edinburgh West, where they are about to be immersed in the Edinburgh international festival, to which the Minister and the Secretary of State—all the Ministers, in fact—are, of course, invited. We are very hospitable in Edinburgh. The hospitality industry is worth £198 million to my constituency, but businesses are suffering because of the national insurance changes, and in Scotland we will not benefit from business rates reform. With the national insurance changes and the impacts of Brexit and covid, it is a very uncertain time. What else will the Minister do to help businesses across Scotland that will not have the benefit of business rates reform?

I thank the hon. Lady for her kind invitation. It is possible that I will be darkening the door of businesses in her constituency this summer. We are determined to continue working with hospitality businesses, whether in Scotland or in the rest of the country. As I said in an earlier answer, we have set out plans for a licensing taskforce to look at what else we can do to lower the cost of red tape and regulation. As the hon. Lady rightly says, we are taking measures to reform business rates, and perhaps the Scottish Government might like to follow our example.

In my constituency, Lydia and Frankie both run businesses that employ around 50 individuals. They both have covid loans and energy loans on top of the usual business pressures they suffer. Beyond maintaining the current discount on business rates, may I urge the Government urgently to review business rates reform, which is so desperately needed?

I recognise that my hon. Friend is a great champion of businesses in his constituency, and I was pleased to meet one of them when I was there recently. I absolutely recognise the significance of business rates reform. The Chancellor has been very clear that she is committed to business rates reform, and we will set out further detail on our plans in the Budget later this year.

Despite public transport linking people from the Braes, Bonnybridge, Bainsford and beyond to Falkirk, the high street has been dwindling over the past 20 years. SNP and Tory councillors decided to cut the “free after 3” parking scheme for Falkirk town centre businesses and further drive footfall away from our high street restaurants, cafés and pubs. In the forthcoming small business strategy, will the Minister consider looking at how this Labour Government can support accessible and cheap parking in Scottish town centres?

I very much sympathise with my hon. Friend’s frustration about what both the SNP and the Conservatives have done to free parking in his constituency. I sympathise because the Tory-run council in my constituency has taken similar steps to curtail free parking, which has undoubtedly had an impact on the town centre. I hope that the concerns my hon. Friend has articulated today will be heard loud and clear in his constituency, and that action will be taken. Our SME strategy will set out a range of steps that we are determined to take to back small businesses and help entrepreneurs across Britain.

I call the Liberal Democrat spokesperson.

The value that hospitality businesses bring to their local communities goes far beyond their economic contributions: they also provide a vital social value and essential entry-level jobs. Flexible hours and conditions in the sector help those with other responsibilities, such as carers and new parents, to access work, while also offering many young people their first jobs. However, retail and hospitality businesses have been hit hard by tax changes in the October Budget, and they are reporting reduced hours, cancelled investment and closures; there have been nearly 70,000 hospitality job losses just since October. As economic strategies are rolled out, what steps is the Minister taking to ensure that Department for Work and Pensions goals to get people back to work are not being undermined by policies that shrink job opportunities in these sectors?

I completely agree with the hon. Lady about the huge importance of hospitality to all our communities and to helping many people who have difficult routes into employment to get their first steps back into a job. One of the steps we have taken is to set up our hospitality fund, working with the great organisation Pub is The Hub, to help landlords to diversify what they offer and drive more footfall into the pub. The fund also supports charities that are working with those furthest away from the jobs market to get into jobs. It is strongly supported by hospitality businesses through the Hospitality Sector Council. As I have said, we have a commitment to a small business strategy and we will set out further measures to help hospitality in that regard.