Local MP Tom Gordon has urged the Government to take immediate steps to support the hospitality sector.
His appeal follows concerns raised by local pub and restaurant owners about the rising costs impacting their businesses.
Speaking in Parliament, the Liberal Democrat MP for Harrogate and Knaresborough asked the Minister for reassurance that the Department for Business and Trade is coordinating with the Treasury to address the challenges facing hospitality businesses.
He cited a local constituent, Alison Thompson, who owns several pubs and restaurants and described the pressures of increased National Insurance Contributions, business rates, VAT, and energy bills.
Thompson warned that many hospitality venues may not survive the year without urgent intervention.
Gordon said these concerns reflect wider pressures on the sector, which has faced prolonged difficulties, first due to the pandemic and now the ongoing cost-of-living crisis, which he noted has reduced both disposable income and customer footfall.
In Parliament, Gordon warned that without swift action, many establishments would not be around to benefit from future policy changes, such as proposed reforms to business rates.
Mr Gordon said:
“Hospitality venues are being hit from every direction: higher National Insurance bills, rising business rates, VAT changes, and the continued impact of the cost-of-living crisis. Instead of easing the burden, the Labour Government is adding to it.
“The message from local businesses couldn’t be clearer: these cost hikes are simply not sustainable and without urgent action, more pubs, restaurants, and cafes will be forced to shut their doors.
“This is the UK’s third-largest employer – yet the Government is turning its back on it. It’s time they stepped up and delivered the support this vital sector needs before it is too late.”
Gordon also highlighted the importance of the hospitality and tourism industry to the local economy in Harrogate and Knaresborough, referencing his regular engagement with local organisations such as Harrogate BID and the Chamber of Commerce.
Alison Thompson, Director of Appetite for Life, added:
“I would like to thank Tom for raising this on our behalf. This is the hardest it has ever been for hospitality in that we are still paying for Covid loans and the effect of Brexit and are now hit with a monumental rise in NIC & business rates at the same time.
“Without support from the government or the pub companies, we are unable to make the changes necessary to protect jobs whilst offering customers what they want.”
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