By Angela Green: Widespread dismay follows spring statement folly.
As the dust settles following yesterday’s spring statement, dismay is palpable across a hospitality and catering industry forced to look at mitigating further added business costs handed down by Rachel Reeves.
Robert Richardson FIH MI, CEO of the Institute of Hospitality, told us: “The UK government had a chance to course correct on policies that have seen people pushed out of work, the disabled pushed closer to poverty, and stymied growth for one of the largest economic contributors to UK Plc, and they didn’t take it.
“I won’t pretend times aren’t hard, but hospitality is a resilient profession, and will rebuild, because our people are resourceful, hardworking, and determined to adapt, ensuring that this vital sector rises again to drive jobs, community, and economic strength despite the challenges ahead.”
The Night Time Industries Association issued the following statement: “With crushing tax hikes set to take effect in April, the night-time economy now faces a worsening crisis that threatens widespread closures, mass job losses, and economic stagnation. The Chancellor’s failure to introduce meaningful financial relief is not just negligent—it is a direct attack on the viability of an industry that contributes billions to the UK economy.”
Kate Nicholls, Chief Executive of UKHospitality, said: “Growth won’t just happen without a plan. Today’s statement was yet another missed opportunity to avoid an April cliff edge which will level a devastating £3.4 billion annual increase to the sector’s tax bill.”
Ash Corbett-Collins, CAMRA Chairman said: “Pub goers are understandably worried about the future of community locals. Licensees will be hit by extra costs in the coming days from increased National Insurance contributions and a cut in support with business rates for pubs in England.”
Dawn Hopkins, Vice Chair of the Campaign for Pubs said: “The Chancellor Rachel Reeves has completely overlooked the ‘working people’ who keep our pubs & small breweries running across the country. Pubs are being forced to cut staff just to survive, and nothing she has said or done in the Spring Statement will slow the alarming rate of closures.”
Countless similar quotes were received, all displaying similar lines of thought, dismay and disappointment.
Alongside added taxation, cost of living crisis analysis from The Resolution Foundation shows lower income households will be £500 a year worse off over the current parliament, reducing disposable income and consumers ability to spend.
Yesterday’s spring statement also saw the chancellor announce £4.8 billion in welfare cuts, estimated to see around 3 million households lose £1,720 a year in benefits. Without detail of how that might be achieved to avoid people that need such help isolated from incorrect assessments, Labour MPs will find selling that to constituents nigh on impossible.
The economy is in a precarious position, a position largely inherited from the 14 year conservative debacle. It’s time to change that inheritance. Reeves’ attempt to by dressing austerity as the foundations for growth is pure folly.
