Yesterday in Parliament, I shared serious concerns about the scope of the devastation caused to local businesses following the Government’s reduction in support for the Hospitality sector, less than one year on from Kier Starmer taking office.
I started a Westminster Hall Debate to call for additional support for hospitality businesses. This follows the Government’s changes to fiscal policy implemented in recent months; Including scrapping Business Rates Relief, increasing the national living wage and the rate of National Insurance paid by employers. According to UK Hospitality this is forecast to cost the sector a minimum of £3.4 billion.
The Office of National Statistics has confirmed that since the Labour Budget in October, the hospitality sector had already shed 69,000 jobs even before the latest figures from HMRC - meaning the overall economy had lost 1.2% of jobs in just nine months.
In a proactive effort to hear directly from local entrepreneurs, I visited a range of hospitality businesses across his Kingswinford and South Staffordshire constituency, where business owners spoke candidly about the relentless challenges they continue to face.
“From pubs and restaurants to hotels and leisure centres, hospitality is more than just a convenience, it's the beating heart of our communities.
‘The cut in business rates relief from 75% to 40% has driven otherwise viable businesses into the red. Pubs like The Green Man in my constituency [have] seen business rates bills rise from about £140 a month to nearly £350 a month. And that's before a single customer being served, or a single pint being pulled.
‘Tax rises did come in at exactly the same time as the increase in National Living Wage, adding even more pressure for smaller businesses. Employers like the tea room at Ashwood Nurseries in my constituency [are] already operating on tight profit margins.’
Mike Wood MP is the Member of Parliament for Kingswinford & South Staffordshire and opened the Westminster Hall debate on Government Support for the Hospitality Sector on 1st July 2025.
