Contribution
I thank the Leader of the House for the clarity he has given us on the business of the House, and in particular for the rescheduling of the Diego Garcia Bill immediately after it was going to be debated, following the changes made to the Hillsborough law.
I know the whole House will want to join me in expressing our continuing concern for the people of Iran in the face of the vicious repression that they have faced and apparently may continue to face.
If I may, I want to raise two issues: one that is big and one that is small but, in its own way, also big. First, on defence and security, the Chief of the Defence Staff was in front of the Defence Committee this week. He revealed that the strategic defence review was not fully costed, despite all the assurances that were given to the Committee and to Parliament at the time.
As a result, the defence investment plan has been repeatedly delayed—until March, as it appears—because the Treasury is apparently seeking to come to terms with the fact that we are in a pre-war situation and that the actual cash spending power of many of our armed forces will barely grow over the next two years. This is an enormously important topic for the whole House. I would be grateful for the assurance of the Leader of the House that he will speak to No. 10 and the Cabinet Office to ensure that my shadow Cabinet colleagues continue to receive the appropriate security briefings that they require to do their job.
Secondly, the issue of pubs and hospitality has consumed so much of the power, concern and interest of the House. We are always apt to get lost in generalities. In a way, that is a condition of politics: we debate the laws and the general issues of the country. It is also important, however, to zero in on a particular factual situation from time to time and use that to get a wider sense of what is happening.
I will put before the House the facts of a specific case relating to hospitality. In my constituency, the Bay Horse Inn is a great country pub that sits on the outskirts of Hereford. It supports local people and serves my constituents. From April, its business rates are scheduled to rise from £31,000 to over £51,000 a year—a 67% increase. The landlord Neil tells me that energy costs have also risen to £5,500 a month. Unlike households, there is no price cap for commercial energy. Indeed, pubs are charged risk premiums and are locked into prices of nearly 40p a unit, while domestic customers pay around 28p.
The pub already pays above the minimum wage. Neil estimates that the rise in the national living wage will add £18,000 a year to his costs. Meanwhile, monthly national insurance contributions have risen by nearly 170%, and that is made worse because the higher employer contributions now exhaust the employment allowance more quickly. That is a direct tax on employing people, especially young people, and it lands hardest on small, labour-intensive businesses such as pubs. Neil has a few guest rooms at the Bay Horse, so he does not even know if he will be helped by the latest rumoured U-turn on rates support.
That is the reality of the Government’s unwillingness or inability to join up policy in relation to a key set of sectors in the economy that affect hospitality. All those increases are the result of current ministerial decisions. Every Member of the House—including every Government Member—will have pubs and hospitality businesses in their constituency in the same situation.
The Bay Horse is not just a business: it has raised over £60,000 for the Hereford Lions club; it installed a defibrillator at the landlord’s expense; it provides a place for supervised, responsible drinking; and it supports schools, the hospice and local causes year after year, yet Government policy treats it as expendable. When will Ministers start talking to each other? When will they put away the rhetoric of helping and actually get on with assisting small businesses? Can we have a debate in the House that goes into not just the specific issue of hospitality, but the generality of all the different Government policies across different Departments that make life so difficult for these hard-working, struggling local businesses?