Lord Sharpe of Epsom (Con)

My Lords, Amendment 168 is in my name. I will also speak briefly to my Amendment 196, which is in the next group, but the subject matter is broadly similar. I am very grateful to my noble friends Lord Brady of Altrincham and Lord Naseby and the noble Baroness, Lady Fox, for signing these amendments. These amendments, taken together, would serve the purpose of providing safeguards and guarantees for the hospitality sector within the Tobacco and Vapes Bill. I should be clear that they would not tie the hands of government in any way. They would not create carve-outs or specific loopholes, with the exception of a very narrow exemption in Amendment 168. They merely propose a requirement to consult specifically with the hospitality, retail and entertainment industries before making regulations in these areas. I ask noble Lords, when thinking about these amendments, to consider the broader burdens currently faced by the hospitality industry. It is well known that the sector has been exposed to a number of challenges as a result of government policy in recent months and some aspects of this Bill have the potential to substantially add to these challenges. It is worth looking at the broader context, because the hospitality sector contributes £93 billion to the UK economy each year. It is the third-largest employer, with 3.5 million people employed in the sector. Since the 2024 Budget, over 89,000 jobs have been lost, which accounts for roughly 53% of all job losses in the economy. That is before the impact of the Employment Rights Act, which 49% of business leaders have said will make them less likely to hire new staff. On business rates reforms, pubs have been granted a limited stay of execution, but, in the wider hospitality sector, the estimate is that it will cost the industry an additional £150 million, or the equivalent of about 12,500 jobs. The beer tax in the 2025 Budget has forced up the price of a pint by effectively eliminating the profit margin on beer through the alcohol hike of 3.55% from last month. That is all before the increases to national insurance, which have driven up operating costs across the board, as well as sky-high energy prices. This is an industry that is under considerable existential pressure. It is important to reiterate these facts in light of the briefings from many of the public health charities that have been campaigning on this Bill. They claim that these amendments are not necessary. But every single UK hospitality industry association, including UK Hospitality, the British Beer and Pub Association and the Night Time Industries Association, has warned about the damages this Bill could do to the sector. These amendments are therefore needed because the industry has said that it has absolutely no more capacity to absorb additional costs. While the Government have said that it is not their intention to legislate for smoke-free and vape-free places for the hospitality industry as it is not the right time, that statement carries the clear implication that they might choose to do so in the future. To be clear, these amendments would not stop the Government legislating in this area. They would merely require that they guarantee consultation, with an impact assessment, before doing so. Why the guarantee? It is because too often we see sectors with concerns around this area being dismissed for having vested interests—we have heard many arguments this evening around the same subject—and the Government heeding only the submissions of organisations that tell them what they want to hear. In view of this, we suggest that these amendments and safeguards are extremely important.