Hospitality businesses are vital to our communities and to economic growth in the UK, which is why we plan to introduce permanently lower tax rates for retail, hospitality and leisure properties with rateable values of less than £500,000. In addition, we recently held our first licensing taskforce meeting, which aims to reduce red tape for the sector. Next Thursday, on VE Day, pubs and bars across the country will be able to stay open until late to enable everyone to celebrate all those who served during the second world war.
Pubs and the hospitality industry are by their very nature seasonal businesses and rely heavily on flexible working patterns. I saw this at first hand when being served by many younger staff on my recent pub tour of the constituency. Why is the Minister, through the powers in the Employment Rights Bill, seeking to end the flexible contracts that benefit these young people, which will end up causing pubs to have to close?
I gently remind the hon. Gentleman of the dismal record of the Conservatives when it came to support for the hospitality sector; 10,000 pubs closed between 2010 and 2024. The Employment Rights Bill will not have the effect that he describes. The Bill will help to put money into people’s pockets, which is exactly what we need to do to help the hospitality industry going forward.
In my constituency, 115 pubs and five breweries contribute £40 million to the local economy and support 1,500 jobs. As highlighted by the British Beer and Pub Association, the sector faces a disproportionate business rates burden, with pubs paying a higher share relative to their turnover, so will the Government commit to increasing the upper threshold of small business rate relief in order that these iconic British institutions continue to thrive?
I certainly take the hon. Member’s broader point about the significance of business rates to the hospitality sector, particularly pubs. I have heard strong representations from the industry about the need for business rates reform. The hon. Member will be delighted that this Government have instigated significant business rates reform, which previous Governments over the last 14 years did not do, including a permanently lower rate for retail, hospitality and leisure.
Residents in Buchlyvie in my constituency are losing their only pub, which is being turned into holiday lets. This comes despite the objections of local residents and Stirling council’s planning panel refusing the change-of-use application. The Scottish Government’s planning reporter has stepped in and made what many local people think is a short-sighted decision. Does the Minister agree that local village pubs, like libraries and community centres, are vital to local wellbeing and cohesion and that we should do all we can to help them thrive as key parts of our local economies and social infrastructure?
I completely agree with my hon. Friend about the significance of pubs across the UK, particularly in rural communities such as those he represents. It is one reason why we are in the final throes of agreeing extra funding for the great organisation Pub is the Hub, which supports pubs in rural areas to adapt to changing needs and enables them to continue to be the vital social hubs that they are in communities. I hope that the Scottish Government will have heard my hon. Friend’s comments and will recognise the need to follow the UK Government’s line and instigate significant business rates reform. Certainly, they need to look at provision on business rates relief, which is not as generous in Scotland, thanks to their decisions, as here in the UK, thanks to the generosity of our Chancellor.
I call the shadow Secretary of State.
In a grave and exceptionally rare step, five major business groups, including the Confederation of British Industry, Make UK, the Institute of Directors, and the Federation of Small Businesses, have all written to condemn the Employment Rights Bill, and their views are shared by UKHospitality and many others. They say that the Bill will damage growth and employment. I know that, and the Minister knows that. This Bill will hurt business. Every business tells me this, and they are telling him exactly the same. Does the Secretary of State think that is why so many of his Ministers are unable to name a single business that supports the Bill and his Government’s jobs tax?
I wondered whether the shadow Secretary of State might finally use this set of questions to take the opportunity to apologise for helping to write the Liz Truss Budget, which drove interest rates up fourteen times and did more damage to business than any other single measure in recent times. We had to take difficult decisions to sort out the fiscal inheritance we got, and we recognised that to tackle the cost of living crisis that the Conservatives bequeathed us, we needed to ensure that there is more money in people’s pockets. The Employment Rights Bill will help to do just that.