More than two-fifths of firms not confident in Labour Gov
A recent snap poll by the Morning Advertiser (MA) revealed 42% of operators did not feel very confident Labour would prioritise the sector.
Two-fifths (40%) of the 141 respondents were not at all assured the new Government would prioritise hospitality firms, while 16% of voters were somewhat confident. Just 1% of participants felt very confident.
Licensee of the Plough and Hewlett in Cheltenham, Emma Gibbon, told the MA: “I can understand the lack of confidence that the sector will not be a top priority for the Government.
“They have a lot of challenges ahead and we didn't feature much in the Labour party manifesto, but it's important that as an industry we keep pushing.
Economic stability
“Pubs and hospitality are a real channel for economic growth and we need to get new MPs in to our pubs to show just what an important role they play for the economy and in communities.
“There's so much more that pubs can do to help the new Government with their main target of economic stability. We just need to get them to listen."
Meanwhile owner of Cheshire Cat Pubs & Bars Tim Bird added the potential end to the business rates discount introduced by the Tories would wipe out profits for pubs.
He said: “Labour haven’t said this discount will remain until a time when they can fully review the rating system, so one has to assume come April next year massive amounts of profit will be removed from many small pub companies because the rates will revert to 100%.
“Add to this Labour’s view of alcohol consumption in this country and you have yet another area in which the industry will be ‘punished’.
“It is little wonder the mass majority of the industry are worried. I feel we simply need to crack on and do our very best and realise it’s only going to get tougher under Labour.”
Another area operators shared their concerns on was staffing, after the King’s Speech this week revealed Labour’s proposal to abolish zero-hour working contracts and further changes to minimum wage.
Managing director of the Three Hills at Bartlow in Cambridgeshire, Emma Harrison told the MA: “Perhaps I’m missing something, but I don’t see how any of this is positive for hospitality.
“How can banning zero hours contracts and taking away the ability of our business to respond to changing demand be anything other than detrimental to the industry?
“The pub and restaurant business is highly cyclical. There is no predicting what may happen on a day-to-day basis.
“As such, we need the flexibility to roster staff in a way that not only suits our business but also suits them.
“Take that away and all you are doing is adding further costs to an already overburdened industry and removing our ability to run our businesses in a way that works for us and our employees."
Harrison added the measure of a “well-run business” could be demonstrated by the longevity of its staff, adding many hospitality workers value the flexibility afforded by variable working conditions.
“Our employees stay because we allow them to work when it suits them. We employ university students during their holidays, part-time mums, older workers who want reduced hours, youngsters just starting their first jobs - they come and go according to their preferences", she continued.
In addition, the managing director noted the speech did not include any mention of a VAT reduction for hospitality firms, something the sector desperately needs.
“The importance of a well-run pub to its community cannot be overestimated."
Harrison further commented: “The importance of a well-run pub to its community cannot be overestimated. All pubs are struggling, and many don’t deserve to. These measures will only make it worse.”
Other measures outlined in the Monarch’s address included tighter laws around drink spiking, reformation of the Apprenticeship Levy and devolving powers on planning to local authorities.
Industry leaders shared their optimism following the speech but warned there was still “significant work to be done”, in particular as many firms continue to struggle against rising costs as demonstrated in the latest inflation figures from the Office for National Statistics.
Owner of the Unruly Pig in Bromeswell, Suffolk, Brendan Padfield commented: “While I continue to always hope for the best, I don’t think it’s realistic for the sector to expect very much from Labour.
“We are the third largest UK industry that collects and produces sizeable taxation income for his Majesty’s Government and the country is broke, with borrowing at an all-time high.
“Labour already cannot deliver the pounds in taxation to pay for important policies that are close to their heart, for example scrapping the two-child benefit cap.
“Rachel Reeves is therefore hardly likely to alter anything that reduces taxation at what is a critical time for an incoming Government wanting to achieve ‘change’.”
Not all doom and gloom
However, Padfield added it was “not all doom and gloom”.
“The early overtures to Europe have lifted my heart and given me just a little hope that this may eventually lead to some additional European labour resource to help with the acute shortage - a situation that doesn't appear to be materially improving”, he concluded.
Moreover, owner of the Tamworth Tap in Staffordshire, George Greenway, said pledges to invest in the construction, rail and energy sectors to stimulate economic progress should be “mirrored” in other growth sectors such as hospitality or be considered a” missed opportunity”.
He continued: “I do sincerely hope this and future Governments recognise the significance of the hospitality industry and its contribution to the growth of the economy.
“I am however cautious to declare certainty of any overwhelming support from our new Government as there are priorities which trump our needs as an industry.
“The continuation of the current rate relief along with a commitment to reform beer tax and a lower duty for beer sold in pubs with a reversal of higher take-out rates would be at least a start in supporting the sector.”
