Speaking in a Conservative-led debate on the hospitality sector, James Wild MP called on the government to change course and back the sector, think again about the doubling of business rates, and amend the damaging Employment Rights Bill to protect seasonal and flexible work.
The hospitality sector is a vital part of both the national and local economy. Across the UK, it employs 3.5 million people, including over 5,000 in North West Norfolk, contributing £136 million to the local economy. From cherished village pubs and family-run restaurants to hotels, these businesses provide employment, services, and social spaces that are central to community life.
However, the sector is facing mounting pressures. National insurance contributions have increased to 15%, with the threshold lowered to £5,000, while business rates relief has fallen from 75% to 40%. The impact is significant: nearly 90,000 hospitality jobs have been lost nationally, over a third of businesses are operating at a loss, three quarters have raised prices, and almost two thirds have reduced staff hours or frozen recruitment.
During the debate James spoke about the resilience of the hospitality sector:
“Our hospitality firms are resilient, and they need to be with all they are having to weather. This Government are putting them under the cosh. With creativity, investment and the high-quality staff across the sector, hospitality firms can attract customers and support our local communities.”
He also quoted the owner of the Crown and Mitre in Lynn:
“As the owner of the Crown and Mitre pub in King’s Lynn, which I highly recommend, recently put it in the local Lynn News: “How many rising costs can you face before collapsing face-first into the till?”
“Will’s grim humour says it all. He says that costs are piling up faster than a “bad souffle in an over-heated oven”.”
James also praised local hospitality businesses in his constituency, highlighting their dedication and success despite the challenges:
“I have seen many impressive hospitality businesses in my constituency, including ones that have newly reopened - the Ship in Brancaster, the Chequers in Thornham, the Pub in Clenchwarton, and new enterprises such as Nopa and VinedMe, which are also in Thornham - but the Government are making it far too hard for firms like those to thrive and grow.”
Finally, James called on the Chancellor to think again before the November Budget:
“With borrowing costs at a 27-year high, hospitality businesses cannot afford for a Government to be making such damaging economic choices. Ahead of the Budget, the Chancellor and her team of tax raisers should listen to employers and take action to live within our means, otherwise more pubs, more venues and more jobs will be lost.”
