The UK Government needs to protect the hospitality industry

Earlier this month I called on the UK government to exempt the hospitality industry from their proposed national insurance hike which may well risk many hospitality businesses going to the wall.

My party the Liberal Democrats conducted some research which showed that the Scottish hospitality industry is facing a £369.3 million tax blow over the next five years due to the UK Government’s National Insurance hike.

The data we uncovered showed that in 2025-26 the additional tax bill for hospitality businesses is estimated at around £71.8 million.

It goes without saying the alarm bells are ringing loud and clear about the consequences of this to hospitality businesses and the industry at large.

With times being so hard for so many, it is solutions we need.

We have also called on the UK Government to negotiate a Youth Mobility Visa scheme with the EU so that businesses can recruit the workers they need to fill vacancies.

In South Queensferry is a mecca for tourists not just from across the UK, but beyond our shores as well.

After a punishing few years, restaurants, pubs and hotels shouldn’t have to be warning the Government they are putting their businesses and livelihoods at risk.

Local businesses are the beating heart of our communities, but many are struggling after years of Conservative economic vandalism and poor growth under the SNP. This jobs tax would hammer them again, hitting growth and putting thousands of jobs at risk.

To get our economy growing strongly, we should be helping our hospitality sector, not hurting it.

That is why Scottish Liberal Democrats secured substantial business rates relief for hospitality in the Scottish Budget.

The UK Government needs to do far more to support hospitality. Instead of ploughing ahead with this misguided tax hike, the Chancellor needs to listen to local businesses and scrap it now before it’s too late.