In the wake of former Chancellor Kwasi Kwarteng’s resignation, announced Friday 14 October, Night-Time Industries Association (NTIA) CEO Michael Kill said the Government had already “lost the confidence of the sector”.
Furthermore, Kill urged the ingoing Chancellor, former Foreign Secretary Jeremy Hunt, to “get up to speed” with current policy decisions to save time the industry "doesn’t have".
He said: "The British Government has all but lost the confidence of the sector, businesses are on the verge of collapse, with many facing an uncertain future leading to the critical golden quarter.
Critical to survival
"[The] new Chancellor will need time to get up to speed with current policy decisions, time which the Night-Time Economy and Hospitality sectors do not have.
"We have already seen through recent polls that under the current support package, over 70% of businesses are either barely breaking even or losing money, any delay will be critical to their survival.
"The Government must not delay the upcoming budget, or they will see thousands of businesses and jobs lost before the end of the year."
Additionally, Prime Minister Liz Truss also announced corporation tax would increase from 19% to 25% next April, prompting UKHospitality (UKH) chief executive Kate Nicholls to state the current rates system placed an “unfair burden” on the hospitality sector.
She said: “The UK’s hospitality sector has enormous potential to turbocharge the everyday economy; delivering value, creating jobs, and driving economic growth.
Unfair burden
“Prior to the energy crisis, which is proving to be so devastating, the sector was forecast to grow by 3%.
“We’re pleased the Government has stepped in to provide key relief to businesses to help weather this storm, but there is real desire from our dynamic hospitality businesses to return to those levels of growth.
“To achieve this growth, we now need to see Government take a longer-term look at what will boost businesses and inspire confidence to invest.
“Addressing pre-profit taxes by reforming the business rates system, which is currently not fit for purpose and places an unfair burden on hospitality businesses, and introducing a lower rate of VAT would be two galvanising actions from the Government to enable hospitality businesses to grow and also reward the consumer.”
