THE HOSPITALITY INDUSTRY HAS BEEN LEFT HIGH AND DRY BY THE GOVERNMENT.
The hospitality industry has been left high and dry by the government, after the Spring Budget delivered no relief for the sector.
UK venues which are still being plagued by the amount of closures around the country, had hoped for some support around key areas such as business rates, a lower rate of VAT and Employer National Insurance Contributions. In fact, the chancellor Jeremy Hunt made no reference to any of them. His only mention of hospitality was to announce that this failing conservative government is extending the alcohol duty freeze from August 2024 to 1 February 2025…big whoop!
While such announcements will be mildly positive news for the industry’s drinks suppliers it doesn’t directly help hospitality businesses.
On a Knifes edge
This April brewers and pubs still face a £450m cliff edge of spiralling wage costs and business rates increases, particularly those pubs that are larger or food-led.
It is disappointing that the chancellor didn’t go further and introduce a duty cut, reduce VAT or cap the increase to the business rates multiplier, which would have helped alleviate the huge cost of doing business in 2024. Pressures on the hospitality sector remain serious with margins being pushed to the point where it is likely that a further 500-600 pubs are likely to close this year on top of the 530 that closed in 2023.
The Spring Budget statement delivered no support for independent pub businesses in every village, town and high street across the UK. The duty freeze until February 2025 will not really benefit pubs, who have been facing huge escalation in every area of their business, soaring energy costs, rise in wages and a reduction in footfall from consumers, who in turn are facing their own cost of living crisis.
You are on your own
NTIA – The Night Time Industries Association – has voiced real unhappiness and worry over the lack of significant support for the struggling sector. Characterising the chancellor’s message as ‘You are on your own!’.
The economic challenges faced by the hospitality sector are catastrophic, and following the spring budget announcement, the lack of support will have a massive impact on hospitality business for years to come.
The hospitality industry has been left high and dry by the government, after the Spring Budget delivered no relief for the sector.
UK venues which are still being plagued by the amount of closures around the country, had hoped for some support around key areas such as business rates, a lower rate of VAT and Employer National Insurance Contributions. In fact, the chancellor Jeremy Hunt made no reference to any of them. His only mention of hospitality was to announce that this failing conservative government is extending the alcohol duty freeze from August 2024 to 1 February 2025…big whoop!
While such announcements will be mildly positive news for the industry’s drinks suppliers it doesn’t directly help hospitality businesses.
On a Knifes edge
This April brewers and pubs still face a £450m cliff edge of spiralling wage costs and business rates increases, particularly those pubs that are larger or food-led.
It is disappointing that the chancellor didn’t go further and introduce a duty cut, reduce VAT or cap the increase to the business rates multiplier, which would have helped alleviate the huge cost of doing business in 2024. Pressures on the hospitality sector remain serious with margins being pushed to the point where it is likely that a further 500-600 pubs are likely to close this year on top of the 530 that closed in 2023.
The Spring Budget statement delivered no support for independent pub businesses in every village, town and high street across the UK. The duty freeze until February 2025 will not really benefit pubs, who have been facing huge escalation in every area of their business, soaring energy costs, rise in wages and a reduction in footfall from consumers, who in turn are facing their own cost of living crisis.
You are on your own
NTIA – The Night Time Industries Association – has voiced real unhappiness and worry over the lack of significant support for the struggling sector. Characterising the chancellor’s message as ‘You are on your own!’.
The economic challenges faced by the hospitality sector are catastrophic, and following the spring budget announcement, the lack of support will have a massive impact on hospitality business for years to come.
