UKH: Industrial Strategy a missed opportunity to support hospitality
The government’s announcement of its new Industrial Strategy has been met with frustration from figures inside the hospitality trade. UKHospitality has noted that the sector is among the industries not included in the Strategy’s energy bill reduction plan.
The plan is set to cut bills by up to 25% for over 7,000 businesses across the UK. From 2027, the initiative, named the British Industrial Competitiveness Scheme, is set to cut costs by up to £40 per megawatt-hour for manufacturing firms.
The support these energy-intensive firms will receive will not extend to sectors such as hospitality.
Kate Nicholls, chief executive of UKHospitality, is frustrated with the energy policy's limited scope.
She commented: “Lowering energy bills for certain sectors is clear recognition from the Government that the energy market is broken and a major barrier to investment.
“We now need a clear roadmap and timeline for when the Government will fix the energy market for the rest of the economy.”
Nicholls also laid out her frustration with the Industrial Strategy’s lack of overall support for hospitality.
She added: “This is not an industrial strategy that will deliver growth equally across the UK. In fact, by ignoring 70% of the economy it is at odds with the Government’s ambition to create jobs and help people into work.
“Once again, growth will be distributed unevenly and centred around small industrial clusters that have high barriers to access – hardly a recipe for driving social mobility.
“We were desperate to see a plan for hospitality and the high street, which together employs over 7 million people. We were disappointed.
“How can national renewal be properly delivered if 70% of the economy is excluded from the Government’s flagship plan for growth?
“Critical foundational sectors of the economy, like hospitality, leisure and tourism, are central to creating jobs, yet overlooked. This is the same approach which led to this year’s employer NICs changes hitting part-time, flexible and accessible jobs hardest, while protecting jobs in the industrial strategy.”
UKHospitality also warned recently against Westminster City Council's introduction of a light-night levy against certain businesses. Though supporting much of the Council's proposed changes to nightlife policy, including the introduction of Late Night Entertainment Zones which encourage businesses to operate in designated areas, the body warns against any additional taxes for businesses in the popular nightlife district.
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