Leading hospitality businesses demand action at upcoming Budget
Trade body UKHospitality has called for action ahead of the upcoming Budget in an open letter backed by 345 hospitality businesses.
The letter, which is supported by a coalition of pubs, restaurants, hotels, bars, leisure parks and more, said that the impact of the last Budget was “immediate, concentrated and retrogressive”.
It claimed the sector was left “taxed out”, with businesses forced to close, 80,000 jobs lost, reduced opportunities for young people and higher prices for consumers.
Signatories of the letter include Big Table Group, Butlin’s, Fuller’s, Greene King, IHG Hotels & Resorts, KFC UK & Ireland, Loungers, Stonegate Group and Marstons, among others.
Kate Nicholls, chair of UKHospitality, commented: “This extraordinary coalition demonstrates the united view of hospitality that there needs to be urgent action at the Budget.
“The impact of the last Budget was devastating. Business closures, job losses, curtailed investment, consumer price rises and lost opportunities for young people are all direct impacts of the choice made to inflict £3.4 billion of additional annual cost on our sector. Without action, we will see these impacts continue and intensify.”
The letter urged the chancellor to make three major changes in the next Budget. In a move it claimed would help ‘revive’ high streets, it asked for lower business rates through granting hospitality properties under £500,000 rateable value the maximum discount, along with applying no penalty charge to larger hospitality properties. It also asked for targeted support for employers hiring young people and people returning to work, in order to ‘fix’ NICs.
The statement encouraged the chancellor to cut VAT on hospitality, aiming to drive investment and make the UK more competitive with the rest of Europe.
The letter said: “We are writing in advance of your forthcoming Budget as a sector united behind one message: deliver change for hospitality at this Budget so that we can get back to growth.
“Nothing shapes society’s sense of whether their country is on the right path like the health of hospitality and the high street.
“Today, hospitality has the highest tax bill in the economy. The impact has been immediate, concentrated, and socially regressive. Over 80,000 jobs have been lost and nearly 6 in 10 hospitality businesses are pessimistic about the sector’s prospects over the next year, negatively affecting jobs and investment.
“We are asking for urgent action at the Budget, so we can support your goals to get young people and the economically inactive into work, regenerate high streets and boost tourism and, ultimately, drive economic growth.”
The full letter, with a list of all signatories can be read here.
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