The trade association, which is the authoritative voice for over 730 companies operating around 85,000 venues, has announced its support for the support package to be centred around business rates relief in order to protect thousands of hospitality jobs in Wales.
Crunch time
UKHospitality Cymru executive director David Chapman said: “The Welsh Government’s Budget is now about a week away and it represents a crunch time for hospitality. A generous business rates relief package could help save thousands of jobs in Wales.
“The Welsh Government’s foresight in providing 100% business rates relief for the last two financial years, alongside other economic support measures, has helped keep many firms afloat and their staff in jobs.
“New relief for 2022-23 will be vital to keeping our businesses alive. It is now clear that trading in November and December - traditionally when hospitality makes profits to see it through the fallow months to follow - is falling way short of viability.”
Stretched to breaking point
Pre coronavirus, 3.2m people were employed in the sector, which creates £130bn in economic activity, generates £39bn of tax for the Exchequer, represents 10% of UK employment, 6% of businesses and 5% of GDP; making it the third largest private sector employer in the UK.
The announcement from UKHospitality Cymru comes after the Scottish Government announced its 2022-2023 Budget last week, which included business rates relief for the hospitality, retail, and leisure industries to continue at 50% for the first three months of 2022/2023.
Chapman added: “Every Welsh hospitality business will be stretched to breaking point just to try to trade through to April, when they will face colossal cost hikes from full business rates, VAT reverting to 20 per cent, new higher National Insurance contributions and food and energy inflation.”
