Jim Shannon

It is a real pleasure to serve under your chairship, Mrs Hobhouse. I give big thanks to the hon. Member for Meriden and Solihull East (Saqib Bhatti) for raising this issue. As always, I will give a Northern Ireland perspective on the issues. I speak for the small villages, the crossroads and the tight-knit rural communities where the pub is not merely a commercial business but a vital community hub. It is the village town hall, the local meeting place and the frontline defence against rural isolation; it is a cornerstone of our £2 billion tourism economy. However, those historical institutions are hanging by a thread, suffocating under a mountain of unsustainable operational costs. We have heard the warnings loud and clear from the industry’s frontline. I pay special tribute to Colin Neill MBE, the chief executive of Hospitality Ulster, who I have met on numerous occasions. All Members in the Chamber have probably met him—I know that the Minister has. Colin has been a tireless champion for our publicans, masterfully making the case both at Stormont and here in Westminster. He has warned the Government in no uncertain terms—forgive me for being graphic, Minister, but we must be factual in presenting this case—that our local hospitality sector is in deep distress as a result of the cumulative impact of soaring energy bills, skyrocketing national insurance contributions and upcoming business rates revaluations. Colin has rightly pointed out that the current tax burden is squeezing the very life out of local employment. Hospitality Ulster data shows that nearly half our operators have been forced to reduce staff numbers. We are looking for economic growth and job creation, but we have lost them—this is a full-blown crisis. Our rural pubs face a unique structural disadvantage compared with the rest of the United Kingdom. In Great Britain, pubs have benefited from various configurations of business rates relief, but publicans in Northern Ireland face the terrifying prospect of massive hikes in their rates bill—a move that Colin Neill has warned would be the “ruination” of our hospitality industry and, by extension, a severe blow to the Northern Ireland economy. Furthermore, our traders are forced to compete on an uneven playing field with the Irish Republic right across the border, where the Government have previously used targeted VAT reductions to protect their hospitality trade, to our disadvantage in Northern Ireland. We cannot stand idly by and watch our rural heritage be wiped out by fiscal inertia. The sector accounts for four of every five tourism jobs in Northern Ireland, so we cannot deny or ignore that it is critical. If the Department for the Economy is to meet its growth targets—the Minister will want to encourage Northern Ireland to grow and meet them—it needs a thriving hospitality sector to anchor it, so, alongside my DUP colleagues and the Minister back home, I call on the Chancellor and the UK Government to co-ordinate directly with the Stormont Executive on delivering a targeted and ringfenced package of fiscal interventions. We need three things: a reduction in the hospitality VAT rate to lower the structural burden on food and drink operators, energy cost reform to protect rural businesses that do not have the footfall of Belfast establishments, and a reformed, reality-based rates system that treats hospitality as an economic driver to be supported, not as a cash cow to be milked until it is dead, which is what I see happening. The hospitality sector is asking for the chance to survive and grow, and I echo that sentiment. I ask the Government to give our publicans the breathing room that they deserve—especially for rural pubs that cannot work on economies of scale—and to deliver the fiscal support that rural economies desperately need, before the lights go out for good in rural pubs. I thank the hon. Member for Meriden and Solihull East for bringing this issue to the Chamber. I hope that the Minister can give us the answers that we desperately need.