By Angela Green: 100 hospitality CEOs sign letter calling on government for Budget action.
The Chief Executive Officers of more than 100 hospitality businesses are among the signatories of an open letter urging the Chancellor to take immediate action at the Budget to prevent further business failure.
In the letter, leading trade body UKHospitality and business leaders highlight how rising costs, labour shortages and the cost-of-living crisis has led to an unprecedented surge in closures, among high-profile names as well as local community venues.
The letter coincides with new data that shows that 74% of consumers think hospitality needs and deserves more support from the government. The data from Zonal and CGA by NIQ also finds that 64% of UK consumers believe hospitality plays a vital role in their communities, indicating clear public support for aiding the industry at the upcoming Budget.
Signatories, which include restaurant operators, global hotel brands, pub groups and leisure parks, back UKHospitality’s calls for the Chancellor to:
- Put a cap on business rates increases from April 2024 at 3%: The Autumn Statement 2023 announced a significant 6.7% increase in the multiplier for ‘large properties’. This is likely to be more than double the rate of inflation when it comes into effect, putting further upwards pressure on the headline rate. We also urge the devolved Governments to pass on the relief in full.
- Introduce a temporary cut in the lower rate of Employer National Insurance Contributions to 10%: The sector supports measures to create a higher-wage economy but the record increase in the National Living Wage will create major cost pressures for a labour-intensive sector like hospitality. A share of the burden between Government and industry would reduce the pressures on price increases.
- Review the benefits of a reduced rate of VAT for the sector to 12.5%: The UK’s current rate of VAT is uncompetitive internationally and leads to higher prices. Reducing VAT for hospitality and tourism is a globally recognised tool to boost tourism, support employment and generate growth – while constraining prices.
UKHospitality Chief Executive Kate Nicholls said: “The sector’s message to the Chancellor is loud and clear: without further economic support at the upcoming Budget, we risk losing more of our institutions and doing irreversible damage to our world-leading hospitality sector.
“Extortionate operating costs are making it incredibly challenging to run a profitable business, so it’s vitally important that this is addressed in order to ease ongoing cost pressures and protect businesses from the threat of closure.
“This sector is one of the UK’s leading employers, providing work to more than 3 million people, and contributing more than £93 billion to the economy each year. It not only deserves the support we are collectively asking for, but it needs it.
“I sincerely hope that this letter, supported by leading individuals from across hospitality, will be enough to convince the Chancellor that his actions on 6th March will be make or break for many venues up and down the country.”
UKHospitality’s open letter to the Chancellor can be accessed here.
The letter has been signed by senior leaders from the following 112 hospitality and leisure businesses:
- Accor
- All Our Bars Limited
- ANS Hospitality
- Apex Hotels Ltd
- Arden Hotel, Stratford-upon-Avon
- Aspenlane Ltd
- Association of Indoor Play
- BALPPA
- Beds and Bars
- Beer and Buns Limited
- Big Table Group
- Bistrot Pierre
- BKUK Group
- Boodle’s
- Bourne Leisure
- Butlin’s
- BWH Hotels GB
- Caradog Hotels
- Castlewood Hotels
- Cherwell Boathouse
- Classic British Hotels
- Clermont Hotel Group
- Crerar Hotels
- Crest Hotels Ltd
- Crossace Ltd
- D&D London
- Docklands Restaurants and Bars
- DP Leisure – 360 Group
- Edward Bence Hotels Ltd
- Elior
- ETM Group Ltd
- Fairlawns Hotel & Spa
- Foundation Group
- Fuller’s
- G C Mallen
- Gaucho and M Restaurants
- Georgian House Hotel
- GGHA
- Gisborough Hotels Limited
- Glendola Leisure
- Gravity Fitness Limited
- Gusto Pronto
- Halewood Artisanal Spirits
- Harbour Hotels Group
- Harrison Catering Services
- HIT Training Ltd
- Hollywood Bowl Group PLC
- Houston & Hawkes Ltd
- Hyatt
- Imperial Hotel (Great Yarmouth) Ltd
- Imperial London Hotels Ltd
- Inception Group
- JXL Ltd
- Laine Pub Company
- Leonardo Hotel Cardiff
- Lisini Pub Co Ltd
- Loungers plc
- Lucky Voice
- Maldron Hotel Newcastle
- Marriott International
- Maverick Venue Management Ltd
- Maven Leisure Limited
- Merlin Entertainments
- Mitchells & Butlers
- Nelson Hotels
- Nestbridge Ltd
- North & South Leisure Ltd
- Oakman Group Plc
- Oxford and Cambridge Club
- Park Holidays UK Ltd
- Parkdean Resorts
- Pho
- Pizza Hut Restaurants UK
- Punch Pubs & Co
- Rare Restaurants
- REKOM UK
- Revolution Bars Group
- Rick Stein
- Rosa’s Thai Cafe
- Rossi’s Leisure Limited
- Royal Automobile Club
- Savvy Hotel Group & The Hospitality Hero
- Shottle Hall Developments Limited
- St Austell Brewery
- Stonegate Group
- The Fired Up Collective
- The In and Out Club
- The Inn At Whitewell
- The Inn on the Green Ltd
- The Lane7 Group
- The Lordleaze Hotel
- The Lovat Loch Ness Limited
- The Rissco Collection- Strathaven Hotel
- The Royal Air Force Club
- The Torridon
- The Vineyard Group
- The Wellbeing Farm
- Thorley Taverns Ltd
- Thurlestone Hotel
- Tortilla Mexican Grill PLC
- Tossed
- Town & Country Collective
- Utopia Leisure Ltd
- Wahaca
- Wasabi
- Wells & Co
- WH Pubs Ltd
- Woodhouse Hotel
- WT Hotels Ltd
- Yew Lodge Hotel
- Young & Co Brewery P.L.C.
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