Stuart Anderson MP Supports UKHospitality #TaxedOut Campaign
Stuart Anderson MP has thrown his support behind South Shropshire's hospitality sector, which adds £222.8 million to the local economy.
On Tuesday 15th July 2025, Stuart made an intervention in an Opposition Day Debate on government tax rises which have led to the biggest peacetime job losses since records began.
Figures released in June show 276,000 people have lost their jobs since the Autumn Budget, which announced the £25 billion Jobs Tax. This has pushed unemployment to the highest since the pandemic.
In Parliament, Stuart said:
"Across my constituency, I've spoken to small businesses who are really feeling the impact of last year's tax rises. They are really concerned about the uncertainty moving forward and actually not setting out clarity. Does he really understand the impact that last year a tax on small businesses are having and how devastating they are for the local constituencies?"
Prior to his intervention, Stuart had attended a reception with trade body UKHospitality. They have warned that up to 200,000 jobs could be lost by April 2026 - unless the government changes direction.
Hospitality is the UK's third largest employer, with 3.5 million people employed directly in the sector. This accounts for 10% of all jobs in the UK.
In South Shropshire, the sector employs 3,761 people across 944 hospitality venues. Yet, last year's budget has cost the hospitality sector 69,000 jobs, which were cut between 23rd October 2024 and 1st May 2025.
This stands at three times the harm seen in the wider economy. In the previous year, hospitality businesses created 18,000 new jobs between 23rd October 2023 and 1st May 2024.
The hospitality sector contributes £140 billion in economic activity and £54 billion in tax receipts to fund essential public services every year.
A recent survey of hospitality businesses shows that a third are now operating at a loss and the same number have restricted their opening hours.
The survey has also found that two-thirds have reduced hours available to staff, while more than seven in ten businesses have had to increase their prices.
The hospitality sector invests more than £7 billion in high streets and local communities per annum. Stuart has said that the Chancellor must not inflict further harm on this sector, after reports of further tax hikes emerged over the weekend.
The Chancellor is reportedly planning a £1.7 billion tax raid on retailers that could push Britain's high streets into further decline. Business rate reforms could affect almost 17,000 business premises.
As part of the campaign, Stuart is calling on the Chancellor to protect hospitality businesses from having their business rates raised.
To support job creation and reduce the benefits bill, Stuart has also called on the Chancellor to extend exemptions from employer's National Insurance Contributions (NICs) to include young people and those returning to work from welfare.
UK hospitality businesses pay the full 20% on VAT. Meanwhile, the EU average VAT on hospitality is almost half, standing at between 10% and 13%.
Economic analysis shows that, with the right policies in place, the hospitality sector can outgrow the national economy at six times the pace. This would create 500,000 jobs by 2030, particularly benefitting rural areas.
Stuart is supporting the campaign as part of his long term aim to unleash rural prosperity in South Shropshire. He wants to ensure the right economic environment for every business to thrive.
Stuart Anderson MP said:
"Labour's tax rises are pushing our pubs, restaurants, hotels and cafes to the brink. The Government must do the right thing and scrap the prohibitive Jobs Tax, which charges employer's an extra £800 for each employee. I am backing UKHospitality's #TaxedOut campaign to support hospitality in South Shropshire. I have seen first-hand how these issues are impacting businesses. I have written to the Chancellor and called for urgent tax reform to support the survival and growth of our local hospitality sector, which employs 3,761 people across 944 hospitality venues in our local community."
