Hospitality Sector
Wednesday, 25 February 2026
Contributions
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)Conservative
6. What discussions he has had with the First Minister of Scotland on support for the Scottish hospitality sector.
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)Labour (Co-op)
Scotland’s hospitality businesses, at the heart of our high streets and communities, are the engines of Scotland’s economy. The UK Government have helped businesses across the country by stabilising public finances, focusing on driving economic growth and putting more money in people’s pockets. In Scotland, of course, key levers such as rates, business development, skills and planning are devolved to the Scottish Government. Perhaps hon. Members on the SNP Benches can explain why the Scottish Government have failed so miserably to support Scotland’s hospitality sector in the way that it deserves.
Last week, I met Nick and Trish who own Burts Hotel in Melrose. Like many other people, they explained the immense pressure that they are under as a result of the Minister’s Government’s jobs tax and the SNP Government’s eye-watering hike in business rates. Does she think the Government’s increase in employer national insurance has helped or hindered the hospitality sector?
Our changes to employer national insurance were part of raising the revenue needed for the changes in public services from which his constituents and mine will benefit due to the record settlement for the Scottish Government. I will just say to the hon. Gentleman, however, that protestations of fealty to the hospitality sector would ring more true had 7,000 pubs not shut under the Conservatives.
Patricia Ferguson (Glasgow West) (Lab)Labour
Any support for Scottish hospitality businesses is welcome; however, the recent Scottish Budget simply tinkers around the edges, with many businesses still in line for a 400% tax hike. Does my hon. Friend agree that a fundamental overhaul and redesign of the current system is required so that we can deliver stronger economic growth in Scotland?
My hon. Friend is, as usual, quite right. Scottish businesses are facing eye-watering rate hikes, while the SNP Government tinker around the edges of a fundamentally broken system. Meanwhile, Anas Sarwar has been clear: Scottish Labour would revive our high streets with a fundamental overhaul of business rates. Right now, jobs and businesses are at risk, and we want to reset the balance between our local businesses and the online giants.
Mr SpeakerSpeaker
I call the shadow Secretary of State.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)Conservative
Given that the Secretary of State still expects us to believe that the Prime Minister has faith in Anas Sarwar’s judgment, it is quite clear that the Labour party can still have a laugh—although it does seem to have an aversion to having fun. Why else would it be waging a war against Scottish pubs? Just like Scottish Labour’s election campaign, the sector in Scotland is hanging by a thread. Last year, one pub in Scotland closed every single week. But it is not just pubs: cafés, restaurants and chip shops all face the same. Will he and his Scottish Labour colleagues join Russell Findlay and the Scottish Conservatives in our call for pubs and hospitality businesses to be exempt from business rates rises this year, and will he do what he can to ensure that his Government stand up for Scottish hospitality? That would surely be something to raise a glass to.
I do not know if the hon. Gentleman heard me about the Conservatives’ record: 7,000 pubs lost under their watch. A package of support has, of course, been presented by my right hon. Friend the Chancellor for pubs in England, meaning that there is already extra money for the Scottish Government to spend in this area. I encourage Scottish Government Ministers to step up support for the hospitality sector using the Barnett consequentials that this Government have already provided.
Before we come to Prime Minister’s questions, I welcome to the Gallery the Speaker of the Parliament of Fiji and the President of the European Parliament.
Source: UK Parliament Hansard API. Debate ID: 5241641.
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