At the Skipton and Ripon Area Committee meeting on 4 December, Rt Hon Sir Julian Smith KCB CBE MP addressed councillors on several issues, including the economic challenges facing local businesses.
In his opening remarks, Julian highlighted the mounting pressures from rising energy costs, business rates, and taxation, warning that these factors are threatening the viability of small businesses, the backbone of employment in the constituency.
Julian expressed particular concern about the Chancellor’s proposed tourist tax - a policy giving regional mayors in England the power to introduce a levy on overnight stays at hotels, holiday lets and B&Bs - which he said would hit the hospitality sector hard at a time when many businesses are already struggling to stay afloat.
He also raised issues around the impact of increasing business rates and the rise in the minimum wage, which he believes could make it harder for young people to enter the jobs market.
Julian said:
"As councillors will have found, particularly in the hospitality industry, amongst almost all small businesses which make up the bulk of employment in the area that we all represent, there is huge pressure coming from energy costs, coming from taxation, coming from business rates, to the point where businesses that are turning over large amounts of money are struggling even to make a profit."
On the proposed tourist tax, Julian warned:
"I think this tourist tax proposal by the Chancellor is a hammer blow to hospitality businesses in this area and I'll be fighting that every step of the way. We cannot add to the burden on these women and men that are creating wealth. That is what we rely on for jobs."
Julian also addressed concerns about young people and employment:
"We also have a major attack coming not only on business rates, where there's huge increases on the way, but also unfortunately on the rise of the minimum wage, which is pricing out young people"..."Many of you will have friends or family members who are leaving university and unable to get jobs. We need to make it easier for young people to get onto the jobs market."
Julian concluded:
"I will be fighting on the side of those people that are taking risk to create jobs and create wealth."
You can watch Julian's full remarks and answers to Councillors' questions at the Area Committee here.
