Devon MP's fears for hard-hit tourist trade

'I fear this will rip the heart out of the tourist trade'

A Devon MP has warned that planned changes to National Insurance could ‘rip the heart out of’ tourism in the county.

Torbay Liberal Democrat MP Steve Darling said he had spoken to a number of businesses across the bay since the budget last week.

In it, chancellor Rachel Reeves pledged not to raise National Insurance contributions for employees, but instead announced the levy paid by employers will rise by just under nine per cent, although some smaller companies will pay less.

Mr Darling said he had ‘reached out’ to more than a dozen businesses in the area.

“They were disappointed that business rates had not received the reform that we Liberal Democrats had hoped for,” he said.

“It needs root-and-branch reform. Tinkering with it is not the answer. Businesses have seen their utility bills treble. A number of businesses are struggling with covid debts that remain outstanding.

“A manufacturer —we do not have many of those in Torbay—told me that he is fearful that the business’s top office elsewhere in the world will ask it to consider offshoring to Taiwan some of the manufacturing that happens in Torbay at the moment.”

He conceded that the new government had inherited an ‘economic shambles’ from its predecessor. And, he said, he was particularly interested to hear from businesses in the hospitality sector.

He went on: “Hotels and B&Bs are all really concerned that we will see a significant reduction in employment, and Paignton Zoo tells me that the National Insurance threshold being lowered to £5,000 [of an employee's salary] will hit them hard.

“I fear that these National Insurance proposals will rip the heart out of the tourism industry in the west of England.”