By Denis Sheehan, Publisher, H&C News: Inaction from chancellor on record inflation drives ambitions groundward.
UK inflation has climbed to 9% in April as energy and fuel prices soar further fueling the cost of living crisis. The UK’s consumer prices index is now at the highest since measurements began 25 years ago.
For hospitality businesses inflation is not only driving up the cost of supplies and energy, but also labour. Currently vacancy levels in hospitality are at circa 170,000 jobs, alongside the lowest unemployment rate since 1974.
Neil Manhas, Managing Director and Chief Financial Officer at Pizza Hut UK and Ireland, said: “Today’s ONS inflation figures call for more detail on how the government plans to tackle inflation and ease economic pressures on the hospitality industry, as we await a likely double-digit inflationary pressure across most aspects of our supply chain.
“As a global business, we can withstand the challenge ahead, however, small and independent businesses will struggle if support isn’t provided today.
“The key to resolving our economic difficulties is achieving nationwide growth, and hospitality is instrumental to this. At Pizza Hut, we want to continue delivering on this growth, but we can only do this with government support. That’s why we need government to lower the VAT back to 12.5% – to help the sector protect jobs, stave off higher inflation, and keep our economy moving.”
Data from the Office for National Statistics show an upward inflation spiral that is accelerating, as government show no attempts to intervene.
Chancellor Rishi Sunak is now facing growing pressure from every direction, including his own party to intervene.
Shadow chancellor, Rachel Reeves is now urging parliament to back Labour’s call for Sunak to initiate an emergency budget.
The chancellor is ignoring any and all calls but is quick to point to global economic pressures saying: “We cannot protect people completely from these global challenges but are providing significant support where we can, and stand ready to take further action.” US Inflation was 8.3% in April, and 7.5% in the eurozone.
The chancellor’s meteoric rise when he first emerged and created initiatives like the furlough scheme is already on a trajectory back to earth. Whilst he may have got away for now with his non-dom tax affairs, inaction when it is needed most will see his ambitions hit the ground with a bump.