Sector reveals hopes and fears in Budget lead-up
The Morning Advertiser spoke with trade bodies and operators at the recent MA Leaders Club event in Oxford about their feelings leading up to the announcement.
The British Institute of Innkeeping (BII)’s Steve Alton and UKHospitality (UKH)’s Allen Simpson outlined the need for business rates support while McManus Pub Company’s Tom McManus said he “wasn’t overly excited” by the Budget.
In recent days, intelligence firm Altus Group estimated hospitality, retail and leisure firms are set to pay £2.66bn more in business rates.
Concern cause
Relief is set to end on 31 March next year and Altus stated the continuation of it hasn’t been factored into the Office of Budget Responsibility fiscal forecasts.
Meanwhile, operator Gavin Drew of Urban Village Pubs said he was nervous about the outcome of the fiscal event and Hand Pulled Pub Co’s Tim Tomlinson outlined how a rise in minimum wage would be the biggest cause of concern for his business.
Recently, UKH warned a hike in national insurance contributions would “hammer” the industry.
The rise, which Prime Minister Keir Starmer refused to rule out in an interview with BBC News, would be a tax on jobs, according to UKH chief executive Kate Nicholls.
Wage hikes
“Hospitality businesses are much less able to stomach yet another cost increase when they’re already managing increases in other areas like wages, food, drink and energy,” she said.
“But it is hospitality that is most likely to support people from economic inactivity back into the workforce.”
This followed industry bosses warning that rising wage costs were threatening to become the biggest challenge for operators.
Liberation Group CEO Jonathan Lawson called for a stronger challenge to national living wage (NLW) increases at the MA Leaders Club event.
A NLW hike was also cited as a factor in the erosion of pub profitability by the British Beer & Pub Association in its recent letter to the Chancellor, which called for action to prevent “widespread pub closures.”
Video credits : Getty/code6d Getty/SolStock
