MP urges caution on employment rights bill with pubs in Shropshire 'more than £3k worse off each year'

Mr Anderson has urged caution over a new Employment Rights Bill, a piece of legislation designed to improve living standards for the lowest paid workers, which he believes could deliver a fresh blow to 370 hospitality businesses in the constituency.

The hospitality sector supports 3,700 jobs and adds £108 million to the South Shropshire economy every year, according to research by trade body UKHospitality. 

In March, the Government announced business rate relief for pubs and hospitality businesses was set to be cut from 75 per cent to 40 per cent, leaving businesses in the sector facing a potentially sharp hike in business rates.

As part of the spring budget announcement, chancellor Rachel Reeves said lower rates are on the way for 2026 - when business rates for retail hospitality and leisure properties would be cut permanently. 

But Conservative MP Stuart Anderson says the changes have withdrawn £1.5 million in financial support for businesses in his constituency in South Shropshire, with taxes raised for county pubs by £3,640 on average in the meantime.

Mr Anderson's calls came in the wake of a new report from UKHospitality on the "social productivity" in the industry, the value which is created in society by the hospitality trade. The report said the proposed changes, alongside hikes to national insurance and minimum wage rates, were "putting the brakes on growth" in the sector.

"I was delighted to meet with UKHospitality, the trade body for hospitality businesses," said Mr Anderson. 

"Their new report... showcases the incredible opportunities that this sector provides. South Shropshire is testament to these benefits. It is proudly home to 370 hospitality businesses. 

"This sector offers unparalleled flexibility, which enables employees to work around other commitments as carers, parents, or students. I am worried that the Employment Rights Bill will undo these benefits." 

The Government says the Bill, which includes legislation to end zero-hours contracts and tackle so-called 'fire and re-hire' schemes, will represent "the biggest upgrade in employment rights for a generation".

The bill is set to be introduced into law later this year - but the legislation has attracted criticism from hospitality trade bodies, who believe it will make it more difficult for pubs and hotels to hire staff.

"It’s clear that economic warning signs are flashing and the impact of April’s cost increases are having exactly the impact that was predicted," said Kate Nicholls, chief executive of UKHospitality.

“GDP figures can be volatile but an immediate shrinking of the economy and more than 100,000 jobs lost in just a month shows that the huge increase to employer NICs is putting the brakes on growth.

“Hospitality is a resilient sector and businesses are doing all they can to trade their way out of these challenges, but it has the potential to be the engine for growth if it is properly backed.

“The economy only grows when hospitality is strong. The Government needs to take these warning signs seriously and urgently review and reverse the changes to NICs, while bringing forward clear plans to empower hospitality and the high street.”