Liberal Democrat leader Ed Davey tackles the arcade in Torbay

Liberal Democrat leader Ed Davey visited Torbay at the weekend as part of a campaign to exempt the hospitality industry from a  planned national insurance increase.

Sir Ed dived into arcade games and tackled dinosaur crazy golf on Paignton Pier on Saturday, February 8. He was joined by Pier director Jolene Wallis and Torbay MP Steve Darling.

The Lib Dems say the South West tourism industry is facing an unsustainable tax burden. The government's employer national insurance increase, set to take effect in April, is expected to cost the region’s hospitality sector nearly £390 million over the next five years.

Research by the Lib Dems claims that hospitality businesses  are likely to see a £75 million hike in their tax bill for the 2025-26 financial year, rising to around £80 million in 2029-30.

Over the next five years, pubs, restaurants and hotels in the region could pay an eye-watering £390 million in total, while the UK-wide hit to hospitality could reach a whopping £4.5 billion in total by the end of the decade.

Above: Mr Davey with his arcade prize

In Torbay, the Paignton Pier Leisure and Chippy company has warned that the national insurance increase will disproportionately affect businesses like theirs that rely on seasonal work employment contracts.

Seasonal work patterns mean that staff earn most of their income in the first six months of the year, quickly surpassing the national insurance threshold.

This leads to higher employer contributions as theirs are not spread evenly over salaries across 12 months. There is currently no provision in the national insurance rise to guard against this for seasonal businesses.

The business said that it may have to limit opening hours in off-peak months and could reduce opportunities for employment in the winter months.

Sir Ed told the Torbay Weekly: “We didn’t want the national insurance hikes in the first place. However, if the government insists on proceeding, the tourism industry must be exempt due to its seasonal nature. We are also campaigning for exemptions for other services, including GPs, pharmacies and hospices.”

Above: Ed Davey and Steve Darling posing with 'seagulls' on Paignton Pier

He added: “I think this is one of the most poorly designed tax changes I’ve ever seen. I think the government simply doesn’t understand the impact it will have on charities, vulnerable people and community pharmacies. It really is shockingly ill-thought-out.”

Mr Darling, who has tabled an Early Day Motion in Parliament to recognise the vital role tourism plays in Devon’s economy, said: “Tourism is the lifeblood of many communities across the South West. We cannot afford to underestimate the vital role this industry plays in the region, especially here in the English Riviera.”

Sir Ed was also highly critical of the government’s delay over critical repairs for Torbay Hospital.

He said: “The government has been incredibly disappointing. The Conservatives promised a lot but failed to deliver. There was no budget, but we had hoped the Labour Party would fulfil their promises on the NHS. Yet, so many hospital projects — both new builds and refurbishments — have been shelved across the country.

“North Devon Hospital is in desperate need of rebuilding and Torbay is literally being held up by scaffolding. It’s quite shocking.”