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The government is being urged to think again on a raft of measures which critics say are killing pubs and restaurants in the South West.
Pubs, hotels and other hospitality businesses need to be treated fairly by the government, Gideon Amos MP told Parliament on Wednesday.
His comments came during an Opposition Debate which called for the production of a dedicated strategy for the industry.
Mr Amos said the businesses were not just places to eat and drink – “they are the heart of our communities.”
He added: “They provide jobs, keep our high streets alive and make our communities better and stronger, but many of them tell me that they feel abandoned as a result of the government’s policies.
“Across the country, an average of 30 pubs close their doors every week.
“In Taunton and Wellington, Shane Fisher, who runs the lovely Allerford Inn at Norton Fitzwarren, has recently taken on the Racehorse Inn in Taunton town centre.
“He describes policy effects that are simply unsustainable. The business rates he pays are now greater than his lease — than the cost of the building. Business rates at that level simply cannot be right.
“The Castle Hotel in Taunton, an iconic landmark that has been a hotel since 1786 and has famously been run by the Chapman family since 1950, faces similar challenges.
“In 2024-25, it paid £21,000 in business rates; the very next year, it is being asked to pay well over double, £52,000.
“When that is combined with the damaging increase in National Insurance last year and other cost increases, upwards of £200,000 has been added to its costs in a single year.
“The Little Wine Shop in Taunton’s great independent quarter told me that this kind of increase in costs, coupled with VAT, is killing the industry.”
Mr Amos said these kinds of businesses were in survival mode.
“Hospitality businesses need support, not just through fair taxes, but by seeing the benefit of their taxes being invested in public services, such as policing.
“That is why I am delighted that our Liberal Democrat town council in Taunton is introducing street marshals, who will provide reassurance, safety and support to people in the town centre.
“I also welcome the government’s ten extra police officers in Taunton and West Somerset.
He added: “Lifting town centre businesses by providing safe environments that attract customers is hugely valuable.
“Nowhere is that more true than for hospitality, and I encourage the government to go further on that.”A
Later in the debate, Mr Amos said the hospitality sector was not asking for special treatment.
“Rather, it is asking for fairness, a level playing field and the chance to compete, invest and thrive without being penalised by the tax system.
“That is why Liberal Democrats have long called for business rates to be scrapped and replaced with a fairer system – one that shifts the burden from the tenants to the landowners.
“It is why we opposed the rise in National Insurance contributions, which squeezes small firms and workers alike.
“The Government need to listen to the hoteliers, publicans and restaurateurs in towns such as Taunton and Wellington because, unless things change, more doors will close, more jobs will go, and communities across the country will be poorer for it.”
Torbay Liberal Democrat MP Steve Darling told a House of Commons debate that the government had come up with a ‘lethal cocktail’ for the hospitality industry.
And fellow Lib Dem MP Caroline Voaden (South Devon) said many local businesses were being pushed to the brink by the combination of government measures.
Mrs Voaden told fellow MPs: “Hospitality is not a luxury sector but a lifeline, especially in constituencies such as South Devon, where every single village pub, seaside café, family-run restaurant or hotel is a pillar of the local economy.”
She said there were 2,618 hospitality businesses in her constituency, and although the sector was the third-largest employer in the country, it was being overlooked.
She went on: “This summer I visited 52 villages across South Devon on my surgery tour, and over and over again I heard the same message, that the local pub is absolutely vital. They are not just places to eat or drink but a space where communities can come together.
“They also offer a vital first step into the working world for young people. With almost a million young people aged 16 to 24 not currently in education, employment or training, we should be doing everything we can to make sure that sectors such as hospitality are open, thriving and hiring.”
And she said businessman Mitch Tonks, who runs a dozen Rockfish restaurants in locations including Torquay, Brixham, Exeter and Lyme Regis, had told her the government’s recent choices were killing the industry.
Changes to National Insurance had meant extra costs equivalent to opening an entirely new restaurant in one year.
Mrs Voaden went on: “At a time when the country needs jobs and local communities need to be revived, the government should be encouraging hospitality to grow and create jobs, rather than shrinking and restricting hospitality with taxes.”
Mr Darling said Torbay’s annual income of £371million from the hospitality sector was higher than the national average.
But, he said: “I warned last November that the National Insurance hike would rip the heart out of our hospitality industry in the west of England and, sadly, I have been proven right.”
He said there were 84,000 fewer jobs in the sector now, with vacancies also slashed.
He also said zoos and aquariums had suffered as a result of the ‘bum Brexit deal’ which meant they were unable to bring in animals from other zoos across Europe.
He called for a summit meeting for zoos and aquariums to find ways around their economic challenges.
The motion was defeated by 334 votes to 158.
