Backing Hospitality for Growth and Jobs

Pubs, restaurants, cafés, and hotels don’t just contribute billions to our economy - they create local jobs, support vibrant town centres, and bring people together.

But the hospitality sector has been hit hard. Years of workforce shortages, the Covid pandemic, the energy crisis, and poor economic management under the Conservatives have taken a heavy toll. And now, the Labour Government’s policies are making things worse.

Rachel Reeves’ hike in Employer’s National Insurance Contributions is hitting hospitality particularly hard. Recent surveys show 1 in 3 hospitality businesses are running at a loss, 6 in 10 have cut jobs, and many have reduced staff hours.

The Government’s changes to business rates also shift the burden unfairly, forcing independent small and medium-sized enterprises to subsidise large corporate chains. On top of this, energy market failures continue to push up bills, with little competition to drive prices down.

Liberal Democrats believe that hospitality is vital for economic growth, jobs, and thriving communities. That’s why our members have today passed new policy:

• Abolishing business rates and replacing them with a fair Commercial Landowner Levy that supports small businesses.
   
• Helping small and medium-sized businesses invest in training, digital technology, and energy efficiency to become more competitive.
   
• Reforming the apprenticeship levy into a more flexible system that truly supports skills development in hospitality and beyond.

We are also calling on the Government to act urgently by:

• Exempting hospitality small and medium-sized enterprises from the Employer’s National Insurance Contributions increase to ease their cost pressures.
   
• Consulting on a new, lower NIC band for the portion of workers’ salaries between £5,000 and £9,100, to support part-time workers
   
• Making sure the Review of Electricity Market Arrangements delivers real improvements so hospitality businesses can access better energy deals.
   
• Speeding up apprenticeship reforms and empowering Skills England to be truly independent and employer-focused to tackle skills shortages.

If we want a growing economy and flourishing communities, we must back hospitality, not leave it to struggle under unfair policies.