Hospitality Sector Support
Thursday, 15 October 2026
Contributions
Sir Julian Smith (Skipton and Ripon) (Con)Conservative
15. What steps he is taking to support businesses in the hospitality sector.
The Minister for the Future of Work (Kate Dearden)Labour (Co-op)
Hospitality businesses are at the heart of our high streets, communities and local economies, supporting jobs and growth across the UK, and we recognise the pressures that many continue to face. That is why we are providing targeted support for pubs, clubs and live music venues, including 15% business rates relief in 2026-27, and an additional 20% discount from April next year, while reviewing pub and hotel valuations to help ensure a fairer and more predictable business rates system. We are also investing £10 million through a new hospitality grant scheme to support growth, create jobs and strengthen local economies.
As the Minister knows, in areas like mine, the hospitality sector provides the bulk of employment for young people. Can I urge her to look at the Opposition Front Benchers’ proposals, and proposals from UKHospitality, for a lower NICs rate to be provided at the upcoming Budget, to allow those businesses to employ more young people?
I thank the right hon. Member for raising this. Hospitality, as he mentioned, is an absolute key employer of young people in the economy, providing rewarding routes into work. It is a critical sector to help us resolve the NEETs—not in education, employment or training—crisis. That is a key priority for this Government, and we want to work closely with the sector on providing those solutions. I am sure that he will welcome the announcement today of our significant intervention and partnership with the hospitality sector; we are working closely with UKHospitality. We are working on providing job opportunities and new work experience programmes to turn this around, and hospitality is key to that.
Jacob Collier (Burton and Uttoxeter) (Lab)Labour
I thank Ministers for their engagement following Carlsberg’s devastating news about the closure of Marston’s brewery next year, which risks 310 jobs and the future of heritage ales from Burton, such as Pedigree and Bass. Hospitality relies on brewing, but brewing was left out of the industrial strategy and industrial energy schemes. Will that now be changed?
My heart sank when I heard the news, and I pay tribute to my hon. Friend, not only for raising this today, but for all his work in the sector on behalf of his constituents since first coming to this House. I spoke with the chief executive of Carlsberg Britvic yesterday, and I know that the proposal to close the brewery has not been made lightly. He reassured me that the team at Burton have shown exceptional commitment, skill and professionalism, and have made an enormous contribution to Burton upon Trent’s proud brewing tradition. This proposal is not a reflection on them or the quality of their work. Consumer tastes are constantly evolving, and this proposal reflects the particular long-term challenges relating to cask ale, which I have spoken to my hon. Friend about, and on which I will continue to work with him closely. I know that this will be a concerning time for workers at Marston’s. We recognise the impact that these proposals may have on those workers, their families and the local community as the company begins consulting, and I look forward to discussing this further with him.
Madam Deputy Speaker (Ms Nusrat Ghani)Conservative
I call the shadow Minister.
Bradley Thomas (Bromsgrove) (Con)Conservative
The hospitality sector provides around 300,000 jobs for young people every year and contributes £96 billion annually to the economy. Despite that, the Government continue to hammer it with a series of blows, to the extent that the sector has the highest effective tax rate of any sector in the economy, paying the equivalent of 82p in taxes for every £1 of pre-tax profit made. That eclipses the 50p average rate across our economy’s 11 main sectors. What steps are the Government taking to tangibly lower business costs, so that hospitality businesses can employ more young people?
My first job was in hospitality; I remember it fondly. It has given me skills that I have used throughout my career and life, and it supported my family when we really needed it. I absolutely know the significance and importance of this sector to our economy, and the difference that it can make to people’s lives. It is a key employer of young people across the country—in the hon. Member’s constituency, in mine and in the constituencies of colleagues across the House. It provides a rewarding route into work and is a critical sector to resolving the NEETs crisis and many challenges that we face across the country. As we grow our economy, we want to grow the hospitality sector. I work really closely with the sector and the Hospitality Sector Council to ensure that we look at all the challenges, and at how we can work together to provide more opportunities and jobs and grow the sector in every constituency across this country. I am determined to deliver that.
Source: UK Parliament Hansard API. Debate ID: 5417813.