Bath MP calls for economy to broaden beyond tourism at business event
Business owners raised concerns about rates and rents at a Business West event
Bath's MP has called for the city's economy to broaden beyond tourism and heritage during an event for local business leaders.
Wera Hobhouse, the Liberal Democrat MP for Bath, was the special guest at the latest quarterly members' event of the Bath & North East Somerset Business West Initiative on 1st October.
According to Business West, the event brought together business leaders and civic figures to discuss how local enterprise and government can work together to support regional growth.
Hobhouse gave an address, and Councillor Paul Roper, B&NES Council's Cabinet Member for Economic, Cultural and Sustainable Development, gave an update.
Hobhouse then took part in a conversation and question-and-answer session with Business West chief executive Douglas Ure.
The discussion covered local authority budgets, national scale-up funding, energy security and regional devolution.
Moving beyond tourism
Hobhouse spoke about the challenges facing local businesses in recent years.
She listed post-Brexit trade friction, labour shortages, sharp rises in energy prices and supply chain inflation.
She said hospitality and heritage tourism remain the base of Bath's economy, but there is a growing need to move towards higher-margin industries.
Hobhouse pointed to the importance of deeper partnerships with Bath's two universities and Bath College.
She said linking academic research, vocational training and local business needs could help build sectors such as engineering, green technology, creative digital and professional services.
She said this would create well-paid careers that keep talent in Bath.
Council budgets and local development
Roper outlined the financial pressures facing Bath and North East Somerset Council.
He pointed to inflation and rising demand in adult and children's social care.
The council has to find £28 million in capital savings over the next three years, he said.
Roper said the council remains focused on supporting commercial growth.
He named two priorities.
One is the redevelopment of Bath Quays North to provide commercial office space.
The other is bringing forward a 34-acre site along the Bath to Somer Valley corridor for light industrial and expansion space.
Roper and Hobhouse both said combined authorities have an important role in securing government funding for transport upgrades and housing.
Calls for sector-specific support
Hobhouse cautioned against one-size-fits-all economic policies, saying blanket national measures do not reflect differences between industry sectors.
She said there is no framework for the kind of first-of-a-kind commercial scale-up Bath hopes to attract.
Early-stage startups can benefit from initial grants, she said, but mid-sized firms in advanced manufacturing, green hydrogen and defence often struggle to access large amounts of scale-up capital.
She said this leaves British technologies vulnerable to foreign acquisition.
Hobhouse also described two-year government procurement contracts as a barrier to workforce planning and investment.
She urged the government to adopt longer contracting periods.
She also called for targeted government support for apprenticeships at micro and small businesses.
Hobhouse said:
"Government policy cannot be done on a one-size-fits-all basis. What local enterprise needs is tailored sector support, long-term policy continuity, and procurement contracts that give businesses the confidence to invest and scale."
Questions from members
During the question-and-answer session, members raised concerns about business rates revaluations and high commercial rents in Bath.
They said these put financial pressure on independent retail and hospitality traders.
Hobhouse described official valuations as out of touch with local trading conditions.
She pledged to raise business rates reform in Parliament.
The discussion also covered the need for affordable social housing and the long-term funding of social care.
According to Business West, those attending said frequent ministerial turnover and short-term political thinking had made 10 to 20-year strategic planning harder.
The organisation said there was hope for greater stability and long-term thinking in areas including energy independence, net zero and regional infrastructure.
Hobhouse concluded:
"Employers like these are the backbone of our local – and regional – economy, providing jobs, opportunities and investment in our communities. If we want Bath and North East Somerset to thrive, we need to give local businesses the stability, skills and infrastructure they need to grow. That means working in partnership — across business, education and government — and taking a long-term view of the opportunities in front of us.
"They can be assured of my support in whatever way possible to achieve this."
Business West describes itself as a business leadership and support organisation.