Liz leads debate on local hospitality sector

3 Dec 2024
Liz and local landlady

Liberal Democrat MP Liz Jarvis has secured and led a debate on the hospitality and pub sector in Eastleigh, raising concerns of local businesses owners in the wake of the Budget.

Jarvis raised the story of Lorriane Reeves, the landlady of The Master Builder Pub in West End. Her heating costs are around £3,000 a week, placing an unsustainable strain on her business. Lorraine is questioning how much longer she can keep her doors open while working over 90 hours a week to make her business work.

The hospitality sector has been left in a precarious position after the Government introduced £3.4 billion of cost increases, including rises in employer National Insurance Contributions and increases to the National Minimum Wage in its November Budget.

Liberal Democrat MP for Eastleigh, Liz Jarvis said:

“Hospitality is not only a significant economic driver but also the beating heart of our high streets and communities. From the pubs that act as social hubs to the restaurants and cafes that bring people together, this sector is central to our economy and way of life.

“Yet, despite the remarkable community contribution our hospitality industry generates, the sector is under immense pressure. Nationally, hospitality employs 3.5 million people, generates £140 billion in economic activity, and pays £54 billion in taxation. The government’s budget, however, introduced £3.4 billion of cost increases, including rises in employer National Insurance Contributions.

“Every closed hospitality venue is not just a lost business but a lost opportunity for social connection and local employment. This government must step up and deliver policies that support hospitality and ensure a brighter future for our high streets and the communities they serve.”

Jarvis has also called for the Government to review the Business Rates System and requested on Ministers work with hospitality advocacy groups, such as Hospitality UK and pub trade bodies, including The Campaign for Real Ale and the Campaign for Pubs, on how the sector can be better supported.

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