The government faces mounting pressure to reconsider a series of policies that critics say are devastating pubs and restaurants across the South West. Hospitality businesses—including pubs, hotels, and restaurants—are calling for fair treatment and targeted support to ensure their survival and the well-being of local communities.
Speaking in Parliament on Wednesday, Gideon Amos MP emphasized that these venues are the heart of communities, providing employment opportunities, sustaining high streets, and enhancing social cohesion. However, many operators feel abandoned by current government policies.
Every week, around 30 pubs close nationwide. Locally, Shane Fisher, owner of the Allerford Inn in Norton Fitzwarren and recent proprietor of the Racehorse Inn in Taunton, described business rates as unsustainable, noting that rates now exceed lease costs—an untenable situation. The iconic Castle Hotel in Taunton, operating since 1786 and managed by the Chapman family since 1950, faces a steep rise in business rates from £21,000 to over £52,000 in just one year. Coupled with National Insurance hikes and other cost increases, this has added over £200,000 to their annual expenses.
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Similarly, the Little Wine Shop in Taunton’s independent quarter reports that spiraling costs and VAT are pushing many in the industry to the brink.
Amos urged for not only fairer taxation but also for reinvestment of tax revenues into vital public services, including policing. He welcomed initiatives like Taunton’s Liberal Democrat town council’s introduction of street marshals and the government’s promise of ten additional police officers, measures designed to create safer environments that attract more customers and support local hospitality.
Later in the debate, Amos clarified that hospitality operators do not seek special treatment, but fairness—a level playing field that allows them to compete and grow unburdened by punitive taxes. Liberal Democrats have championed scrapping business rates in favor of a system that shifts taxation from tenants to landowners. They also oppose increases in National Insurance contributions, which squeeze small businesses and workers alike.
Without urgent change, Amos warned, countless businesses will shutter, jobs will be lost, and communities will suffer.
Torbay Liberal Democrat MP Steve Darling described the current government approach as a “lethal cocktail” for hospitality. Fellow MP Caroline Voaden (South Devon) emphasized that hospitality is not a luxury but a lifeline essential to local economies, especially in rural constituencies. With over 2,600 hospitality businesses in her area alone, Voaden underscored how pubs and cafes are community pillars and critical entry points for youth employment—a crucial factor given nearly a million young people aged 16 to 24 are not in education or work.
Businessman Mitch Tonks, who operates a dozen Rockfish restaurants, confirmed that government policies, particularly National Insurance hikes, have effectively imposed costs equivalent to opening an entirely new restaurant annually, squeezing the industry further.
Both MPs highlighted the need for the government to encourage growth and job creation within hospitality rather than imposing restrictive tax burdens that shrink the sector.
Darling pointed out that Torbay’s hospitality sector generates £371 million annually—above the national average—but warned that the National Insurance increase has already caused a loss of 84,000 jobs and reduced vacancies. He also called attention to challenges facing zoos and aquariums due to Brexit-related restrictions, calling for a summit to address these issues.
Despite the passionate pleas, a parliamentary motion calling for measures to support hospitality businesses was defeated by 334 votes to 158.