I’m calling on the Treasury to protect and support the hospitality industry

Emma Lewell, MP for South Shields, has written to Rachel Reeves, the Chancellor of the Exchequer, ahead of the upcoming Autumn Budget.

The Chancellor will deliver the Budget to the House of Commons on November 26, with Ms Lewell calling for support and protection for the hospitality industry ahead of the announcement next month.

The South Shields MP has written to Mrs Reeves - with the letter being signed by a number of MPs who are calling for the same support.

In the letter, Ms Lewell said: “Ahead of the Budget in November, we are writing to urge you to recognise the vital importance of the hospitality industry, and to take steps that will safeguard its future.

“We appreciated the seriousness and scale of the fiscal challenge that we face as a country.

“However, hospitality is one of the UK’s most socially and economically productive sectors. It contributes £140 billion to the economy, employs 3.5million people, and generates £54 billion in tax revenues for the Treasury every year.

“Unlike many high-growth sectors that are concentrated solely in major cities, hospitality has a presence in every community and in every parliamentary constituency.

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“When hospitality thrives, the benefits are felt locally and nationally; when it struggles, the impact is immediate and widespread.”

In signing the letter, Emma and the other MPs have stated they would like to see the following in the upcoming budget:

Lower business rates - large discounts for hospitality sites in England worth under £500,000 and scrap the proposed surcharge for larger venues.

A cut in VAT on hospitality of approximately 5% - MPs state that it will stimulate demand, encourage investment and help venues remain open.

Reducing NI contributions - By reducing National Insurance contributions, including extending exemptions for young people and those returning to work, MPs say it will protect entry-level jobs and pathways back into employment.

The group of MPs have warned the Chancellor that without action in the Budget, the hospitality industry’s vital contribution to the economy could be lost as more businesses will face closure, resulting in the loss of jobs and vacant premises.