The leader of the Liberal Democrats, Sir Ed Davey, has emphasized the pivotal role of the tourism sector in many communities across the South West. He has warned that the ongoing cost of living crisis has significantly reduced footfall and caused basic operational expenses to skyrocket.
In a bold move to draw attention to the issue, Sir Ed Davey recently climbed aboard a rollercoaster at a Devon theme park, indicating the urgency of government action to address tax hikes and escalating costs, as reported by DevonLive. The Liberal Democrats have raised concerns that the proposed National Insurance increase by the government could have a devastating impact on tourism in the South West. They estimate that hospitality businesses in the region will face a substantial £75 million rise in their tax bill by the 2025-26 financial year, which is projected to increase to £80 million by 2029-30.
According to Sir Ed Davey, “Tourism is the lifeblood of many communities across the South West. These family-run businesses not only bring joy to local residents and visitors from all over the country but also form the backbone of the economy. They have suffered through years of neglect in the face of the cost of living crisis, which has led to reduced footfall and uncontrollable running costs.”
The Liberal Democrat leader visited the BIG Sheep theme park in Torridge alongside Ian Roome, MP for North Devon, to call for an emergency summit regarding the future of tourism in the region. He has urged the relevant government officials to organize a meeting before the summer season, bringing together council leaders, ministers, MPs, tourism experts, and business owners to devise a strategy for safeguarding jobs and sustaining the region’s visitor economy.
Previously, Sir Ed Davey advocated for the hospitality industry to be exempt from the impending tax hike, highlighting the reliance of many businesses on seasonal work contracts and the compounded effects of the cost of living crisis. The combination of declining visitor numbers and rising operational costs has left numerous family-run attractions struggling to survive.
In response to these concerns, David Hoare, Conservative County Council Candidate for Barnstaple South, expressed skepticism and criticized the Liberal Democrats while also calling for government action to support businesses in the sector.