'One-size-fits-all decisions' in the Budget could harm economic growth

Ahead of the Budget on Wednesday 30 October, Lord urged the Treasury to “carefully consider” the intricacies of all sectors before making sweeping “one-size-fits-all decisions” that could hinder economic recovery for all industries.

He said: “For too long policies have been made by those with little-to-no understanding of the sector, or without considering their impacts through proper consultation of those operating within it.
"If we are to recover from the economic bashing of the past decade, we must look at each individual industry in silo, whether that concerns the stark differences in business rates between physical and online retailers, or in hospitality - the VAT differences between supermarkets and pubs.

Benefit and growth 

“Both examples illustrate how broad-brush measures can benefit one sector while harming another.

“This new Government has the chance to work more closely with those who have skin-in-the-game, and to reassess how policies are developed and tailored to ensure they work for the benefit and growth of all industries."

Lord further warned wider economic growth would not be possible without investment into “core industries” like hospitality, which employs more than 3.5m people and contributed £54bn to the Treasury in 2022, according to UKHospitality.

"While we understand the scale of financial difficulties that the UK economy is in, we cannot achieve growth without investing in our core industries.

Untenable cost hikes

“This sector, which was so unrelentingly beaten down throughout the pandemic, needs reassurance that this new Government recognises its enormous contribution to the economy - from job creation and investment to boosting tourism - and its importance to the day-to-day lives of the communities and employees it serves”, Lord continued.

The NTE advisor, who is also chair of the Night Time Industries Association (NTIA), implored the Government to recognise the “magnitude” of hospitality and extend the current business rates relief as part of its upcoming fiscal address to avoid more venue closures and job losses.  

He said: "Without this single measure alone, landlords will see untenable cost hikes, many in the region of more than £30,000, an increase which is simply un-survivable.

"We are already losing hundreds of venues each quarter and if pub, restaurant and nightclub closures continue at current rates, not only will we see unemployment skyrocket over the next 12 months but the UK's cultural tourism will be poached by other global cities who recognise this sector's importance and who are investing accordingly.”