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Hospitality Industry: West Dorset

Asked by Edward MorelloLiberal DemocratDepartment for Business and TradeTabled Answered 7 May 2025UIN 49261

The question

To ask the Secretary of State for Business and Trade, what assessment his Department has made of the potential impact of increased labour costs on employment levels in the hospitality industry in West Dorset constituency.

Answered by Gareth Thomas

Hospitality businesses are at the heart of our communities and play a vital role in supporting economic growth across the UK.

Raising the revenue required to fund public services and restore economic stability requires difficult decisions on tax, which is why we are asking employers to contribute more.

The Government will protect the smallest businesses by increasing the Employment Allowance to £10,500. This means that this year, 865,000 employers will pay no NICs at all, more than half of employers see no change or gain overall from this package and employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs.

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