But that doesn’t take away its importance for the sector.
The new Labour Government has a big majority and a big mandate, and perhaps the only surprise was the sheer amount of bills it plans to get through in the next parliamentary session.
The 41 bills it has put forward is the most since 2005, meaning a busy time ahead for the new government, and for hospitality.
There is lots in there to be positive about. The Skills England Bill will deliver the promised apprenticeship levy reform, which is desperately needed to give employers the flexibility they need to use levy funding to best train and upskill their staff.
The Planning and Infrastructure Bill will hopefully deliver the seismic planning reform the Chancellor has spoken of, which would be an enormous relief to pub businesses which have experienced first hand the turgid planning system we currently have.
Crucial flexibility
There are also bills that we are working hard with the Labour Party to ensure work for the sector – the Employment Rights Bill, in particular.
As a sector, our flexibility is what makes us the employer of choice for so many people. Working parents, students, carers and older workers all value how a job in hospitality can work around their busy lives.
Keeping that flexibility is crucial. The concerns we raised about an outright ban on zero-hours contracts have been listened to and there has been a shift to focusing on ‘exploitative’ zero-hours contracts. This will ensure that staff who want these types of contracts will have access to them.
The biggest question over employment changes is affordability, particularly when it comes to wage costs and proposals to abolish age bands.
The rises this year to minimum wage rates were incredibly challenging for businesses to absorb, on top of cost rises in every other area of the business and little mitigation in other areas.
Continuing to pile costs onto businesses is not the solution to a sustainable sector.
Good and fair wage
The Low Pay Commission, which determines wage levels, has a remit for next year to maintain wage rates at 66% of median earnings and not to abolish age bands. When I gave evidence to that body on behalf of the sector just last week, I urged them to stick to that remit.
We all believe in paying our staff a good and a fair wage, but if wages are to continue going up, then there needs to be significant cuts to costs in other areas.
Which brings us neatly onto what was not in the King’s Speech – business rates.
As a more fiscal measure, it was always more likely to be addressed in the next Budget. In fact, it must be addressed then.
It was a manifesto commitment to replace the broken business rates system and we expect to see swift progress towards that goal. With a looming cliff-edge in April too, where relief is set to expire, we need to see that addressed to ensure businesses won’t lose 75% relief.
Our long-running campaign for VAT to be cut continues too, where we will be making representations to all MPs about the enormous benefit such a cut could deliver. When economic growth is one of this government’s main goals – it’s a clear tool to unlock growth in hospitality.
There were a lot of warm words and commitments during the election campaign about the new Government’s commitment to pubs, hospitality and high streets. We’ve seen some evidence of that in the King’s Speech, but the Budget will be the moment we’re all watching with bated breath for concrete action to help pubs up and down the country.
