The event bought together MPs, members of the House of Lords and hospitality businesses to discuss the sector’s contribution to jobs, economic growth and local communities.
Daisy Cooper, Liberal Democrat Treasury spokesperson, urged the Government to recognise hospitality’s wider contribution to high streets and communities.
“A high street is the glue that knits our communities together, where we come together to buy and sell and experience life and mark rites of passage,” she said.
“I often say, in conversations about AI, when the robots take over there will only be two sectors that make life worth living. One is social care that gives people independence and dignity, and the other is hospitality, that gives us friendship, connections, good times and good memories.”
Cooper called on the Chancellor to introduce a VAT cut in the Budget, describing it as an “emergency brake” that could “really help” the sector. She also called for business rates reform to reduce the cost of doing business over the longer term.
“This is a sector that we need the government to get behind,” she said.
Julia Lopez, interim shadow secretary of state for business, highlighted the financial pressures facing hospitality operators and warned that busy venues were not necessarily profitable.
“Places being busy doesn’t equal profitability. That’s the problem you’re facing right now,” she said.
Lopez said hospitality was central to thriving communities, both economically and socially.
“As a society, we cannot risk letting the hospitality sector decline,” she said, adding that closures were felt particularly keenly when the social connections they provided disappeared.
She described the industry as a “gateway” to opportunities for young people but said businesses needed to retain more of the money they generated.
“At the moment, they are shouldering a gigantic tax burden...the quickest and easiest way to stimulate employment is to cut those taxes,” Lopez said.
She also criticised the proposed tourist tax and pledged that the Conservatives wanted to take “a large chunk” of the high street out of business rates altogether.
“It is not government that creates growth, it is businesses and it is hospitality,” she added.
Kate Dearden, Minister for the future of work and hospitality, highlighted the sector’s role in providing young people with their first jobs and developing skills. Drawing on her own experience of starting work in a café at the age of 14 before becoming a manager, she said:
“That job gave me more skills and experience than I could ever imagine.
“It showed me the differences an opportunity can make. It’s why I feel so strongly about the challenges facing young people.”
Chris Webb MP opened the reception, which was attended by representatives from across the hospitality industry, including restaurants, pubs, hotels, quick-service restaurants, indoor leisure, late-night venues and contract catering.
The event gave parliamentarians the opportunity to hear directly from businesses about the impact of policy decisions on their day-to-day operations and investment plans.
UKHospitality chief executive Allen Simpson said he hoped the Budget would deliver “real changes” to help businesses recover and create jobs.
The trade body is calling for a 10% VAT rate for hospitality, business rates reform, lower employer National Insurance contributions and a tourism bonus to replace the proposed holiday tax.
The reception took place ahead of the Budget on 28 October.