THE government is being urged to think again on a raft of measures which critics say are killing pubs and restaurants in Devon.
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.
The local MPs spoke during a debate which heard claims that the government had left the hospitality sector out of its industrial strategy, increased the cost of pavement licences, cut business rates relief and raised employers’ National Insurance contributions.
They were described as ‘catastrophic choices’ which had caused fewer people to be hired and had led to the closure and downsizing of pubs, restaurants, hotels and hospitality businesses.
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.
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