#BackHospitality | Caroline Nokes' letter to the Chancellor

Graphic of The Rt Hon Caroline Nokes MP pouring a pint on the right hand side, with the text "#BackHospitality Support my open letter to the Chancellor" on the left handside in a white box, with a dark green gradient in the background.

Since the Budget, I’ve heard from a large number of hospitality businesses across Romsey, Stockbridge and our surrounding villages about the impact recent changes - particularly around business rates - are having on them.

This constituency is incredibly fortunate to have such a rich and varied hospitality sector. Places like Kimbridge Barn near Romsey, the Clos du Marquis in Stockbridge, and the Three Cups Inn - a pub that has been open for around 500 years - are not just businesses, they are part of the fabric of our communities.

But many of those businesses have told me they are now facing significant additional costs, with real uncertainty about how those pressures can be absorbed and what that means for their future.

Hospitality plays a vital role locally. It provides first jobs for many young people, flexible employment for students, and welcoming spaces that help tackle social isolation and loneliness. Above all, these are the places where we come together - to eat, drink, celebrate and spend time with friends and family.

I am writing to the Chancellor to make her aware of the very real worries local business owners have expressed.

Letter below:

Letter reads: Rt Hon Rachel Reeves MP Chancellor of the Exchequer HM Treasury 1 Horse Guards Road London SW1A 2HQ Dear Rachel, Over recent weeks, I have been contacted by pub landlords, restaurateurs, and small hospitality operators across Romsey and Southampton North, all expressing deep concern about the cumulative impact of rising costs and the additional pressures now being placed on them as a result of changes to business rates. For some businesses, increases in business rates alone amount to well over £1,000 a month - a significant burden in a sector that typically already operates on very tight margins. This is a constituency that is fortunate to have an exceptionally strong hospitality offer. Businesses such as Kimbridge Barn on the outskirts of Romsey, the Clos du Marquis in Stockbridge, and the Three Cups Inn - a pub that has been serving its community for around 500 years - are not only essential employers but also social hubs that play a central role in village and town life. They are places where people meet, where friendships are formed, and where loneliness is alleviated. It is clear that their contribution extends far beyond balance sheets. What has come through most clearly in correspondence is a sense of uncertainty and demoralisation. Business owners have told me that they are working harder than ever, facing rising costs across utilities, staffing, food and drink, maintenance and taxation, while feeling increasingly unable to plan their businesses’ futures with confidence. Several have expressed anxiety about whether they can continue to employ staff at current levels, invest in their premises, or even remain viable. Hospitality also remains a crucial entry point into employment. Many young people take their first steps into the world of work through pubs, cafés and restaurants, and the sector provides flexible opportunities for students and those balancing caring responsibilities. These are roles that matter, particularly in rural and semi-rural communities where alternative employment can be limited. I am conscious that the overall fiscal picture is challenging, but I wanted to make sure you were personally aware of the very real worries local business owners have expressed. There is a widespread feeling among hospitality businesses that the pressures they face are becoming increasingly difficult to absorb, and that their role as community anchors is not always fully reflected in how policy changes are experienced on the ground. I felt it was important to pass on these concerns directly, given the importance of hospitality to local economies, employment and community life. I would also very much welcome the opportunity for you to visit Hampshire to meet some of these businesses in person. Seeing first-hand the dedication with which they operate, and the pressures they are currently under, would provide a valuable insight into the realities facing hospitality venues that sit at the heart of their communities. Rt Hon Caroline Nokes MP

 

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