Chorus of industry bodies laments April price hikes
Fresh survey data from four leading hospitality trade bodies reveals that as a result of the government’s 1 April cost hikes 64% of on-trade businesses will cut jobs.
The research – conducted by CGA by NIQ – surveyed members of UK Hospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster, representing over 20,000 hospitality sites. The cost rises introduced today include increases to national living wage, national minimum wage and business rates.
Further revelations from the survey include that 51% of those businesses will cancel investment plans and 42% will reduce trading hours as a result. Potentially the most concerning statistic is that one-in-seven hospitality businesses said they will be forced to close as a consequence of the cost increases.
Energy costs were also a significant concern with 93% of such businesses having said that energy costs were hurting their profitability – data gathered before the US-Israel war on Iran.
Members were also surveyed on the policies they would like to see from the government including a VAT reduction for hospitality (89% wanting the policy introduced), permanent reform of business rates (74%) and changes to national insurance contributions (65%). Hospitality businesses detailed that in response to such policies they could ramp up their investment.
A joint statement for the four industry bodies can be read below.
Yet again, hospitality businesses enter April facing billions of pounds in additional costs, which will force many to make heartbreaking decisions.
Despite the necessary and welcome support for pubs on business rates, neighbourhood restaurants, local hotels and independent cafes all face their bills rising in the thousands.
Hospitality’s tax burden – the highest in the economy – is suffocating the sector. The impact is clear: more lost jobs, less investment and business closures. The jobs, communities and livelihoods we support are hit once again.
The worrying situation facing the business energy market has the potential to accelerate all of these impacts.
Even before the conflict in Iran and the Middle East began, increasing energy prices were already impacting profitability and the government should be prepared to support vulnerable businesses if they are thrown into yet another crisis.
Hospitality businesses are clear that cutting their costs through a lower rate of VAT, business rates reform and changes to employer NICs will deliver new jobs, investment and growth.
The benefits of backing our local pubs, restaurants, hotels, leisure and tourism businesses are obvious and if the government works with our sector we can keep people in jobs, make our high streets flourish, and drive growth.
Keywords:
Search
Digital Editions
56-58 Church Walk, Burgess Hill, West Sussex, RH15 9AN
Registered in England No. 6646125. VAT No. 938 4452 95
