Asked by
To ask Her Majesty’s Government what plans they have to appoint a
dedicated minister for the hospitality sector.
The Parliamentary Under-Secretary of State, Department for
Business, Energy and Industrial Strategy () (Con) [V]
Responsibility for hospitality is currently split between BEIS
and DCMS. Both departments are working closely together to ensure
that the sector’s interests are strongly represented in
government. The power to create a new ministerial post rests with
the Prime Minister; however, whatever is decided, we will work to
ensure that the sector is in the best possible place to bounce
back from Covid-19 so that it plays a leading role in the UK’s
economic and social recovery.
(Con)
My noble friend is well aware of the crucial importance of the
hospitality sector to our economy, to employment and to our
general quality of life. While I completely acknowledge the
unprecedented levels of support provided by this Government, the
sector still faces massive uncertainty and challenges when we
finally emerge from this terrible pandemic. Rather than
responsibility being split between different departments, is
there not now an overwhelming case for it to be brought under one
dedicated senior Minister whose sole focus is to work with the
entire sector on recovery? The sector is asking for this through
its online petition, which has now attracted 209,000 signatures.
(Con) [V]
I well understand the point my noble friend is making but, as I
have said, BEIS and DCMS work closely together. The split in
responsibilities reflects the fact that most hospitality
businesses are SMEs, and BEIS is very experienced in supporting
them. However, hospitality accommodation is more closely aligned
with the responsibility DCMS has for tourism. We are
co-ordinating our activities closely.
(Con)
My Lords, throughout the pandemic the Government have recognised
the importance of the hospitality sector and provided funding
accordingly. I would be interested to know why they have so far
resisted the idea of a dedicated Minister, as we have for sports
and the arts. Will the Government at least consider an interim
position, as suggested in the other place, of an industry
recovery Minister, which could then be made permanent if it were
found to be working well?
(Con) [V]
As I said in my previous Answer, the responsibility for creating
new ministerial positions rests with the Prime Minister. I think
he has responded in writing to some of these questions from the
Liaison Committee on that matter.
(CB) [V]
My Lords, the hospitality industry has suffered more than just
about any other sector over the last ten and a half months, being
closed for more than half that period. Does the Minister agree
that the Government should provide a road map, as the CBI—of
which I am president—has recommended? This would guide businesses
on the opening up of the economy, including whether a tier system
is going to return and the use of rapid mass tests. Does he also
agree that business support needs to be extended for the
hospitality industry in particular, including extending the
furlough scheme until the end of June and the business rates
holiday, so that there is no March cliff edge?
(Con) [V]
An unprecedented package of support has been given to the
industry; unfortunately it is impossible for us to say at this
stage when hospitality and entertainment businesses will be able
to open safely and therefore it is impossible to have a road map.
We are hoping to set out more details as we go through this month
and the data becomes clearer.
(Lab)
[V]
My Lords, as I am sure most noble Lords know, the hospitality
industry is worth £150 billion a year to the UK economy. This is
not counting the wider supply chain. It provides entry-level jobs
as well as livelihoods for older workers. With the prospect of
foreign holidays receding, this sector could play a major role in
the start of a recovery. Therefore, will the Government consider
establishing a forum with employers and unions to help secure the
future of the sector and a bargaining council composed of Unite
the Union and industry representatives to find sector-wide
solutions?
(Con) [V]
[Inaudible.]—in new solutions, but I very much suspect that only
a small minority of workers in the industry is actually
represented by Unite in particular. We have regular meetings with
the sector, many of which are small businesses, and I totally
agree with the noble Baroness’s point that they will have an
important role to play in the recovery.
(LD)
[V]
VAT and business rates have already been mentioned, which are two
important issues to be clarified as soon as possible. There have
also been several extensions to the Coronavirus Job Retention
Scheme. Is it not time to state clearly that it will be extended
until the end of the year, particularly for businesses that
continue to be restricted by either social distancing rules or
travel restrictions? Given the advice of the WHO, that a 1 metre
distance is as effective as 2 metres, are there any plans to
consider that as part of the opening-up strategy?
(Con)
We are keeping matters closely under review and if there are any
extensions, the Government will want to announce them as quickly
as possible. We are dealing with a fast-moving situation, but we
recognise that the past few months have been very challenging for
businesses in a wide variety of sectors and hospitality
businesses in particular. We have provided an unprecedented
package of support for businesses during this time of crisis.
(Lab) [V]
My Lords, I think the Minister might acknowledge it has been
rather more than challenging, because UKHospitality found that
sales in the sector fell by 54% in 2020 and now 650,000
businesses fear collapse over the next three months. Will the
Government bring forward a comprehensive national plan for the
hospitality sector as a matter of urgency, so that the recovery
is not choked off? Are the Government actively considering an
extension of the VAT cut to 5% for a further month? If a recovery
plan is generated by the Government, can they please consult
extensively across all sectors and ensure that nations and
regions are considered?
(Con) [V]
We keep all of these recovery measures under constant review and
if we need to extend them further, we will of course do so. With
regard to the recovery plan, it is impossible to say at the
moment when we will be able to reopen the sector, but we should
be able to be clearer on this towards the middle of this month.
(Con)
[V]
My Lords, hospitality matters for so many reasons. It provides
jobs and opportunities for business and it offers social
interaction, enjoyment and stimulation for our well-being. Does
my noble friend the Minister agree with me and other noble Lords
that we need a clear road map for the hospitality industry—a
route showing how we can ensure that hundreds and thousands of
businesses can survive through these challenging times and emerge
through to the other side?
(Con) [V]
My noble friend is totally correct in terms of the importance of
the hospitality sector. I can assure her that we will not keep
restrictions for a day longer than is absolutely necessary, but
we cannot have a road map at this stage because we do not have
enough data as yet to know exactly how soon it would be safe to
reopen. The picture should, I hope, be clearer by mid-February.
Lord Dodds of Duncairn (DUP) [V]
My Lords, I heartily endorse the call of the noble Lord,
, for a
hospitality Minister, who could co-ordinate the national response
right across the United Kingdom. In the meantime, can I urge the
Minister with responsibility to take on board the need to extend
the VAT cut, which has applied from July through to 31 March?
Most hospitality businesses have been closed for a large
proportion of that time, and it would not make any sense that, as
they reopen, that cut would not be available to help them through
the very grave difficulties that they will face.
(Con) [V]
The noble Lord made his point very powerfully, and I will ensure
that his comments are passed on to the Chancellor.
(Lab Co-op) [V]
My Lords, I have had a look at the websites of the two
departments that are supposedly responsible for the hospitality
industry—BEIS and DCMS—and there is a total of 13 Ministers,
including three in the House of Lords. Whereas the noble
Baroness, Lady Barran, has responsibility for ceremonials and the
noble Lord replying has responsibility for the Ordnance Survey,
not one of the 13 is listed as having responsibility for
hospitality. Is this not embarrassing for the Minister and his
department, and what will he do about it?
(Con) [V]
There are two Ministers—Minister Huddleston in DCMS and Minister
Scully in my department—who look after the interests of
businesses and others in the sector, so the noble Lord need have
no fears: the concerns of the hospitality sector are well heard
in two government departments.
(Con) [V]
My Lords, I welcome the additional support made available by the
Government for the hospitality sector in the form of the closed
business lockdown payment and the additional restrictions grant,
but both of these do not appear to support many of those working
in the wedding hospitality sector. While I hear what my noble
friend has said about planning, could he tell the House what
engagement the Government have had with the wedding sector in
particular? What plans, if any, do they have for allowing
weddings beyond the current arrangements, which allow them only
in the most exceptional circumstances?
(Con) [V]
My noble friend makes a very powerful point. My ministerial
colleague, Minister Scully, is closely working with the sector to
hear its concerns. He has had a number of meetings with the
sector—if that is not right I will correct that for my noble
friend—to listen to concerns, hear about plans for reopening and
do whatever we can to work with it in this extremely difficult
and challenging time.
