Emma Lewell

It is a pleasure to see you in the Chair, Mr Efford. I thank the right hon. Member for East Hampshire (Damian Hinds) for securing the debate. South Shields is a beautiful coastal town that really comes alive in the summer months. The overall borough of South Tyneside has nearly 6 million visitors each year, adding millions to our local economy. Sandhaven beach in South Shields is a Sunday Times beach of the year and the famous Great North Run has its finishing line on our Leas. When tourists visit us, they get the best hospitality that the UK has to offer, the cosiest of places to stay, and a welcome like no other. We are naturally a friendly bunch who love our little part of the north-east and are proud to call it our home. Given the context of rising energy costs, high business rates, employer national insurance contributions, minimum wage increases and high VAT, a tourist tax is the wrong tax at the wrong time. I understand that some of those issues are beyond the Government’s control. I know all too well that the decline in communities like mine, which suffered under the last Tory Government, will not be reversed overnight. I understand that national insurance contributions were necessary to fund key public services and I absolutely support the national minimum wage; its introduction under the previous Labour Government transformed my life. I have been vocal, however—and I continue to be, along with colleagues—about working with the Government on a business rates reduction across all hospitality and a VAT cut. As a sector, hospitality is being hit hardest by the accumulation of those costs. Despite those ongoing discussions, the new, unexpected development of a tourism tax has felt like a kick in the guts for me and my local businesses. It is one burden too many for us, and it will result in job losses and more boarded-up businesses in the centre of my town. That extra burden is very likely to tip hotels, B&Bs and small providers over the edge, and will be felt most acutely by low-income visitors. It feels as though the tax is simply a quick win to divert more money into regional coffers, but with drastic long-term consequences and adverse impacts locally. It feels like short-termism at its worst and does not feel very strategic. UKHospitality modelling estimates that the tax will lead to 33,000 job losses, just short of £2 million in lost tourism spending and a reduction in tax receipts to the Treasury of £688 million. Hospitality is the largest employer in South Shields. We also have high levels of unemployment, which is rising for those aged between 18 and 24. The tax seems at odds with the Government’s aims for growth, youth employment and reviving local economies such as mine. That is why it was never in our manifesto. Just last year, the Government were continuing to rule the tax out. I believe that the legislation that will enable the tax is currently going through the House of Lords in the English Devolution and Community Empowerment Bill. I implore my hon. Friend the Minister to revert to last year’s sensible position, because I have yet to meet a single business, trade body, operator or member of the wider public, especially in South Shields, who supports the proposal.