OPINION: I hope the Government has listened

Don’t get me wrong, salary rises for hospitality sector workers is a good thing, however, after recent trading nightmares post-Covid, energy hikes and food and other cost increases for operators, I am flabbergasted as to how we will be expected to cover the expense of a national insurance raise and taxation on workplace pension contributions.

I am writing this before the Budget announcement and I fully understand Labour banging on about the “big hole” [in finances] and being left with a mess, etc. but I fail to see how they plan on growing the economy when the hospitality sector/pubs have to close because they cannot afford these taxation hikes.

Unless Government is blindly ignoring the fact small hospitality business also don’t have any money, it is quite staggering they expect us to somehow miraculously find the money from somewhere.

In hospitality, we cannot just hike up our prices like in the same way they seem to be able to raise taxes.

Helping hand​

Families are already struggling to make ends meet and going out to remote rural destination pubs like us is becoming a luxury and a special treat rather than usual weekend run-out to the country and bite to eat, like it used to be.

Government is raising the national minimum wage, pension contributions and taxing us on that to better the working person’s life but nowhere do we see any relieve or helping hand for us.

Businesses employ people and, without businesses, there’s no money in the coffers. With no helping hand for employers, I cannot fathom how the workforce will remain in employment.

The beloved pub or neighbourhood restaurants will die out slowly but surely. Every day, there are closures. Would the new Government wake up and take note?

When business close and employees are out of work, zero contributions are made. You really don’t need to be Einstein to work this out.

Massive deficit​

I am all for rebuilding the economy and for the Government to fix the massive deficit but hammering employers with more liabilities is really not going to work. 

Hospitality was just coming back from the brink, in fact, some would say it’s still at breaking point and barely recovered, another added liability can only bring more closures, less employment and create a bigger “hole” in Government finances.

In my very humble opinion, if Rachel Reeves goes through with this, beware the last nail in the coffin for many operators out there.

Reducing VAT for hospitality, remodelling the archaic business rates system and regulating energy and operating costs will help hospitality businesses recover.

We are, after all, the largest tax collectors. Until then, this is a very precarious situation for all.

I suppose we should be thankful there are rumours the Government has knocked the reported no-smoking-outside ruling on the head.