Stuart Anderson MP has championed South Shropshire's hospitality sector in Parliament. Stuart attended an event organised by UKHospitality - the national trade body for hospitality businesses.
Their CEO, Kate Nicholls, has recently warned that the government has "unleashed a financial tsunami upon the hospitality industry." This results from increased statutory employment costs including hikes in employer's National Insurance Contributions (NICs), which adds £800 per employee.
At the event, Stuart expressed his support for the sector. He was briefed about hospitality economic data for South Shropshire and the recently released 'Social Productivity Index'. The report is the first of its kind and demonstrates why hospitality ranks highest for socially productive growth.
The sector finishes first based on an average of 12 indicators included in the Index. It performs particularly well on providing jobs for a diverse workforce across the country. The results show the incredible opportunities that hospitality provides - employing 3.5 million people in a range of roles from first jobs to routes into leadership and skilled crafts.
In the index, hospitality came first for part-time work, access for non-graduates and employment of under 25's. It also came second for the proportion of non-graduate managers and fourth for its geographic spread.
CEO Kate Nicholls has said that social productivity represents a "new paradigm for growth, which balances raw economic productivity with broader social productivity with brings opportunities for all." This represents a new way of thinking about growth by measuring the positive economic and social impact that a sector can have.
UKHospitality has expressed concerns about some of the measures in the Government's Employment Rights Bill. It has said:
"We are therefore concerned that some of the broader measures in the Bill seem intent on making it more difficult for our sector to hire people that want to work flexibly."
Given these concerns, Stuart believes that social productivity must inform evaluation of the Bill. He has written to the Deputy Prime Minister Angela Rayner MP and requested details of how plans to incorporate social productivity into legislation.
To help the hospitality sector, Stuart has also previously called for a permanent reduction in the rate of VAT on food and hot beverages sold in hospitality venues to 12.5%. A petition that Stuart launched in January 2025 received more than 100 signatures.
UK Hospitality has estimated that the change could create 21,971 jobs across the West Midlands over a ten year period, generating additional turnover ot £544 million. Stuart has also slammed reforms to business rates, which will strip Shropshire's hospitality businesses of support worth £1.5 million.
The hospitality sector is largely made up of SMEs and supports 3.5 million jobs, while contributing £93 billion to the UK economy. This includes 166 local pubs and 4 breweries in South Shropshire. supporting 2,040 jobs and adding £63 million to the economy.
A reduction in support available via the Retail, Hospitality and Leisure (RHL) Relief Scheme reduces the 75% discount on business rates to 40%. Stuart said that the change has raised tax liabilities for pubs in Shropshire by £3,640 on average.
This withdraws support worth £1.5 million from the sector in Shropshire and £925 million on a national scale. The call is the latest stage in Stuart's campaign to support South Shropshire's hospitality businesses. It is part of his campaign to unleash economic prosperity in rural areas.
Hospitality businesses contribute £140 billion in economic activity and £54 billion in tax receipts every year. South Shropshire is home to 370 hospitality businesses, making up 6.3% of all local enterprises.
Stuart Anderson MP said:
"In Parliament earlier in June, I was delighted to meet with UKHospitality, the trade body for hospitality businesses. Their new report, 'The Social Productivity Index', showcases the incredible opportunities that this sector provides. South Shropshire is testament to these benefits. It is proudly home to 370 hospitality businesses. This sector offers unparalleled flexibility, which enables employees to work around other commitments as carers, parents, or students. I am worried that the Employment Rights Bill will undo these benefits. Given these concerns, I have urged the Deputy Prime Minister to incorporate social productivity into legislation."
