United Kingdom | UKHospitality has voiced its disappointment regarding funding for the industry following the latest budget announcement.
Chief executive, Kate Nicholls, said the Chancellor missed an opportunity to support the hospitality industry and the pain endured by business owners.
“He had a chance to accelerate and unlock hospitality, but instead, he has delivered a cut-and-paste Budget, maintaining the status quo which continues to act as a drag on recovery," said Nicholls.
“Over the past year, we have had a Budget for growth and an Autumn Statement for investment – neither have delivered because they were not correctly targeted."
Nicholls said that the recent cut to the National Health Insurance was intended to boost disposable income to generate growth, and it didn't make an impact. She expected there would be a big shake-up this time around. Nicholls has called on the Government to take a different approach, and to focus on what she described as 'never-ending' rising of costs, which have forced businesses to shut their doors for good. UKHospitality is concerned that this will take away people's livelihoods and will rob communities of vital assets.
“Increases to business rates and jobs taxes in April will only increase bills further and contribute to inflation, as venues will be forced to pass these costs onto consumers," said Nicholls.
“The entire sector was united behind UK Hospitality’s requests to lower the rate of VAT, cap business rate increases, and reduce employer wage costs."
Nicholls said that a lower rate of VAT would have been a bold reform that would drive economic growth, keep prices down, and unlock investment in the sector. The hospitality sector was, in fact, expected to grow six times faster than the economy as a whole. This would have been beneficial for business, the public, and the economy.
“Hospitality is a sector proven to be a catalyst for growth across the entire nation, as the foundation of the everyday economy."
