Hospitality Sector
What steps he is taking to support the hospitality sector.
It was a pleasure to hear the hon. Member’s contribution in the recent Westminster Hall debate on seasonal hospitality businesses, including those in his constituency. We are delivering permanently lower business rate multipliers for more than 750,000 retail, hospitality and leisure properties. That is backed by a £4.3 billion support package over three years, which includes transitional relief to protect businesses from large bill increases following the re evaluation. We have increased the hospitality support fund to £10 million over three years, building on the previous scheme, to support larger, longer term projects. I am committed to working in partnership with industry and across Government to support growth and resilience, including through targeted support measures and engagement, such as with the Hospitality Sector Council.
As welcome as that is, and I am not crying wolf, the hospitality sector faces a very high risk of substantial business failure in the next 12 months as a result of the tax burdens that it has to face simply for attempting to survive, rather than a tax burden to help it succeed—in other words, shifting from VAT and business rates to corporation tax. Will the Minister look again at this issue before real catastrophe comes to the sector? Will she talk to Treasury Ministers and find a way out of this extremely serious situation?
Unfortunately, we inherited an absolutely dire situation from the Conservatives when they left office. They left deep scars on our economy from a decade of stagnant growth. We know that hospitality thrives when our economy grows, wages rise and people have money to spend, which is why we are absolutely committed to supporting businesses and working closely with them. The hon. Member will know that the Government need to consider a wide range of factors when introducing new tax reliefs, such as whether they support wider Government objectives. He will also know that the Government keep all taxes under review as part of the policymaking process, and the Chancellor will announce any changes to the tax system at fiscal events in the usual way.
The Northampton based McManus Pub Company runs 18 pubs and employs 370 people. I spoke to Tom McManus yesterday, who told me that successive Governments have ignored hospitality and that in the past five years business costs have made it harder for him to turn a profit. Tom has asked me to lobby the Government to cut VAT to 10%. What message does the Minister have for family businesses such as Tom’s?
I thank my hon. Friend for his question, for raising the preferences of businesses in his constituency and for his continued engagement on this issue on behalf of his constituents. He will know of the recent announcements on the temporary great British summer savings scheme, which will reduce VAT from 20% to 5% on selected hospitality activities between June and September. He will also know that we keep all taxes under review. He should say to his constituents, and particularly to his businesses and pubs, that we are absolutely committed to working with the industry and the sector to support them to thrive. They are vital to our local communities, people and jobs, and I know that he knows that too.
Harry Kane’s heroics last night mean that many England fans are looking forward to an early morning or a late night on Monday, depending on one’s perspective. That is a good thing, but pubs risk missing out on a real opportunity to get more money into the till if Ministers do not make a blanket extension to licensing hours. Will Ministers consider that with their colleagues in other Departments so that fans can enjoy the game in the pub?
I pay tribute in this House to the incredible Harry Kane, our captain, for his performance last night—he calmed my blood pressure—and we will be championing the boys on Sunday. The hon. Gentleman will know that pubs can stay open for an extra two or three hours depending on how late the match starts, so that they can still be open when the game finishes. Unfortunately that does not apply to Sunday, given the 1 am start, but going forward we are backing our pubs so that people can watch and support our lads. It’s coming home, hopefully.
Titanic Brewery, based in Stoke on Trent, makes a fabulous pint—I highly recommend the plum porter. However, the Minister will know that as an independent brewery, access to market is quite difficult because of the way that tied pubs insist that landlords buy their products. Could the Minister make an announcement before the summer recess on the access to market scheme, and in particular the guest beer arrangement that would allow 1,500 SMEs access to market? It would not cost the Government anything, and the Minister could find that lots of people raise a pint to her over the summer.
I sincerely thank my hon. Friend for his continued engagement—I know how important the issue of market access for our breweries is to him. I was delighted to meet him and colleagues across this House recently, and I look forward to continuing to engage and work with them as the Government consider the evidence ahead of any announcements.