Legislation

Debate moots ‘recovery’ minister

This week’s debate to create a Minister for Hospitality in the UK government ended with a unanimous vote in favour of the motion.

The debate also touched on a minister to oversee the recovery of the sector, which was described as the hardest hit in the UK economy.

The debate was triggered by a petition signed by more than 200,000 people, driven by the Seat At The Table campaign.

Julian Lewis, MP, New Forest East, suggested introducing a temporary hospitality industry recovery minister, which could be made permanent if it proved to be a success.

The sector was currently shared by ministers in the Departments for Business, Energy & Industrial Strategy and Digital, Culture, Media & Sport.

Paul Scully, minister for small business, consumers and labour markets, said: "It’s not within my gift to create a new ministerial post, that power rests with the prime minister, but I can assure you that the two of us are doing all we can within government to understand and represent the interests of the sector."

Catherine McKinnell, MP for Newcastle North, opened the debate by saying: "The petition speaks to a concern than many of us have heard time and time again from local businesses in our constituencies - that government lacks deep understanding of the nature of the hospitality industry and its diversity.

“Hospitality sector businesses are businesses, but they are also a creative art."

Greg Clark, MP, Tunbridge Wells, said that hospitality business  paid their way in taxes and needed support, commenting:  “If they manage to survive, they will thrive in future and repay funds set aside the last few months.”

McKinnell concluded by saying: "Government should want to engage, so a strong voice would be in their interest and I urge the minister to take it away and put it to the Prime Minister."

UKHospitality CEO Kate Nicholls, said: “There was a clear and highly encouraging demonstration of strong cross-part support for an extension of the VAT cut and the business rates holiday. These are going to be crucial if we hope to see businesses survive the year. Announcing an extension of both of these policies, at the earliest possible opportunity, will provide some much-needed stability for our sector and allow businesses to begin planning. Equally clear is that a great many MPs recognise that this additional support will be necessary if the sector is to survive and lead the national revival.

“It was incredibly positive to hear so many MPs being vocal advocates of the hospitality sector. There was unanimous recognition of our importance economically and socially. It was particularly pleasing to hear parts of the sector like nightclubs, wedding venues and conference centres being lauded - businesses that have not grabbed headlines in the way that other sectors have, but are no less important, as the debate recognised. There was also welcome recognition for our critical supply chain.

“It is striking that, in the end, the petition got more than 200,000 signatures. We all understand the importance of what we do and it is good to see the Government recognise the importance of working closely with the sector to ensure that we are properly supported, not just during this crisis but more generally.”

Seat at the Table campaign champion Angela Hartnett said: “Hospitality is the third biggest employer in the UK and deserves a seat at the top table. We need a hospitality hero in government to speak up for the local pubs, coffee shops and restaurants. Someone who understands our businesses and how we work.

“This is about helping us to help the country get back on its feet.  We can’t wait to welcome people back to our bars and dining rooms but we need the government to protect our businesses and these jobs to ensure we are there when this is over.”

 

Insight: The government has resisted calls for a dedicated minister throughout this campaign and continued to do so after the vote, as, with its ongoing failure to address the rates and VAT issues, it shows that it just doesn’t care about the sector which is, it appears, seen as a frippery on the economy and not a source of jobs and income for the economy.

What may provide a route into understanding was Lewis’s proposal for a temporary minister to see it through the tough times. Education is key at this point and while it may sound a shade depressing to focus on a sector at its worse moments, all learning is good learning.

One of the impressions of the sector which may be clouding the government’s judgment is that it will bounce back quickly when everyone is allowed back outside. Not only is this unlikely without rates and VAT support, it’s unlikely because of the recession due as the virus recedes. A recovery minister will ensure that support is given and the sector is not just marked by the closed venues as the world comes back.