Chancellor says government is helping South East

Rachel Reeves said money had to be raised to improve public finances

The chancellor has said the government is "making it easier" for businesses in the South East to "employ and invest".

This is despite concerns an increase to employer national insurance contributions has affected hiring.

Trade body UKHospitality said since the policy was announced in 2024's autumn budget, 84,000 jobs had been lost in the sector, while job postings for temporary summer work were down 25% year-on-year.

On a visit to the Haven holiday park in Allhallows, Kent, on Monday, Rachel Reeves said her reforms would make it easier for venues to stay open for more hours and to be able to "serve pints on the pavement".

Haven is investing £140m in upgrading facilities at its holiday sites around the country, including £10m in Kent - which the chancellor said was "a vote of confidence" in the British economy.

When asked about the impact of the increase to employer national insurance contributions, Reeves said money had to be raised so that public finances were "on a firm footing".

However, the owners of The Pumproom in Chatham blamed tax increases introduced in October's budget for its restaurant's closure, although its bar remained open.

When asked whether she would encourage people to have their holidays in the UK rather than abroad, to help boost the economy, the chancellor said people could "make their own decisions" but that she would be taking a holiday in Cornwall later in August.

"I love spending time in the British countryside and the British seaside – it's got so much to offer," she said.