David Reed MP: speeches

Speeches

• 7 Jul 2026 · Summer Jobs · Hansard source

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  Most hon. Members would agree that I have a beautiful constituency. That fact is no secret. Many people visit our corner of Devon, and catering for that tourism means that seasonal work is vital to our local economy. Last year, I visited Devon Cliffs and Ladram Bay, which are two of the largest and most popular holiday parks in the area. Such sites support hundreds of jobs, and their impact reaches beyond the parks themselves, sustaining local suppliers, tradespeople, retailers and service businesses across the constituency. They give young people their first opportunity to step into the world of work. It is an opportunity to contribute, to earn their own keep, to learn customer service, to work in a team and to lead one, and to develop confidence grounded in real experience. We can all agree that those are skills and experiences that form the foundations of a good society, but the accumulation of taxes levied on those businesses has forced them into an impossible position: they must either absorb those costs by cutting jobs or pass them on to the consumer. Tourism is a price-sensitive market. Families choosing a holiday will simply go elsewhere if prices rise. Either way, the result is the same—fewer jobs—and it is the young seasonal workers who are first out the door. That is how this Government’s tax policies have deepened the youth unemployment crisis. Tackling the growing number of young people not in education, employment or training must therefore be a priority for the Government. Youth unemployment has reached the highest level in a decade outside of the pandemic, and too many young people are leaving education without a pathway into work. Alan Milburn’s report found that 84% of young people genuinely want a job. They want to be in education or training, yet this Government’s policies are making that harder to achieve. We all know that the longer someone remains out of work, the harder it becomes to find lasting employment. That point has been raised by multiple Members today. Prolonged unemployment damages confidence, limits prospects and increases the risk of long-term reliance on state support. At the very moment we need the sector to be creating opportunities for young people, businesses within it face mounting pressures: rising wage bills, higher national insurance contributions and business rates, and the burden of excessive red tape. Those are all compounded by unsustainably high energy costs, as my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) mentioned. On top of that, accommodation businesses already face a 20% VAT rate on stays. That is double the rate charged in France, Italy, Spain and Portugal, and the 2024 autumn Budget imposed a £3.4 billion tax on the hospitality sector. The consequences have been serious, and we have all seen them in our constituencies. More than 100,000 jobs have been lost in the hospitality sector since that Budget. Against that backdrop, the proposed holiday tax would add yet another burden. I recently met representatives from the Professional Association of Self-Caterers, who warned that businesses would have no good options. They can absorb that levy and cut back further or pass the cost on in the price that hard-working families pay for an affordable holiday. Rather than giving this vital sector the confidence and breathing space it needs to invest and create jobs, the Government are proposing yet another charge, and it will be left to the discretion of mayors to decide whether to implement it in their area. That will create stark disparities, with areas that choose not to impose the tax gaining an advantage over those that do. Tourism contributes £147 billion to the United Kingdom economy and supports jobs and growth in every corner of our country. It should be encouraged to grow, not be weighed down by ever-increasing costs. It is not just holiday parks and hospitality businesses feeling the strain. The newly passed Employment Rights Act 2025, combined with the sharp rise in the national living wage for 18 to 20-year-olds—the very people who rely on Saturday jobs, summer jobs and Christmas jobs—are compounding the problem. The new zero-hours contract rules actively deter employers from taking on 16 to 24-year-olds for fear of being locked into offering permanent hours. We have heard similar stories from Members in the House today. Businesses need the flexibility to take on extra staff over the summer or at Christmas, and the 2025 Act takes that flexibility away. The legislation creates not job security, but job insecurity. The young people of Exmouth and Exeter East do not want handouts; they want a first job, a first wage and a first step. Businesses in my constituency stand ready to give them that chance, but they cannot do so while this Government tax, regulate and burden them at every turn. I urge the Minister to scrap the proposed holiday tax, ease the pressure on hospitality and restore the flexibility that seasonal employers need. We should give our young people back the ladder of opportunity before this Government kick it away entirely.