Chancellor Jeremy Hunt announced yesterday (Wednesday 26 October) the statement detailing a plan for UK tax and spending, originally due Monday 31 October, had been delayed until Monday 17 November, leaving businesses “on the edge” once again, according to Night-Time Industries Association (NTIA) CEO Michael Kill.
Kill said: "Night-Time Economy Businesses across the UK are on the edge, with thousands at risk as the Government delays the main budget announcement once again.
"The drop in disposable income has seen trade down 15% on average across the board compared to 2019. Costs are up over 30%, pushing thousands of independent businesses closer to insolvency.
Irreversible damage
“The energy relief subsidy is confusing and unworkable, with many energy companies capitalising on the scheme, and businesses still paying extortionate energy costs, with most living hand to mouth.
“Without immediate and comprehensive support for businesses in the coming budget, we will see irreversible damage."
Hunt said his top priority was “economic stability and restoring confidence that the UK is a country that pays its way”.
Furthermore, the Chancellor claimed delaying the statement, which has reportedly been upgraded to be a full Autumn statement, would mean it would be based on more “accurate” economic forecasts, which some hoped meant the fiscal decisions made would “not cut so deeply”.
UKHospitality (UKH) chief executive Kate Nicholls shared on social media “If the credibility premium is halved the difficult tax and spend decisions may not cut so deeply and households will also see the impact via mortgages”.
However, the delay means the Bank of England’s next decision regarding interest rates on Thursday 3 November will be made without knowing the Government’s plans, though according to the BBC, the Chancellor had discussed the delay with the Bank of England governor.
Support for pubs
This follows Hunt’s first statement as Chancellor on Monday 17 October in which he announced the freeze on alcohol duty increases, put in place by his predecessor Kwasi Kwarteng, was to be scrapped, which the British Beer & Pub Association (BBPA) stated was a “huge blow” for the sector.
In response to the fiscal statements delay, a spokesperson for the BBPA stated the trade body was more interested in the statement’s contents rather than the delay and called on the Government to make changes to business rates and VAT.
The spokesperson said: “We are more interested in what measures will be included within the statement more so than the fact that it has been delayed for two weeks.
“We are calling on the Chancellor and new Government to reinstate the freeze on alcohol duty and introduce alcohol duty reforms that support British pubs and beer as a lower strength product, lower business rates for pubs so they are equitable to other similar businesses and reinstatement the lower rate of VAT for food and beverages sold in pubs with a view to making this permanent.”
