Government delivers 'cut-and-paste Budget'

The hospitality industry has been left high and dry by the government, after the Spring Budget delivered no respite for the sector.

Venues from across the UK, which are still being haunted by the amount of closures around the country, had been hoping for vital support around key areas such as business rates, a lower rate of VAT and Employer National Insurance Contributions. 

However, the chancellor Jeremy Hunt made no reference to any of those topics.

In his only mention of hospitality, Hunt announced that the government is extending the alcohol duty freeze from August 2024 to 1 February 2025. 

While such action will be positive news for the industry's drinks suppliers, Kate Nicholls, CEO of UKHospitality, was quick to point out that "this doesn’t directly help hospitality businesses".

'A cut-and-paste Budget'

"The chancellor missed a real opportunity today to show that he backs hospitality and understands the real pain that operators are enduring," Nicholls later added.

"He had a chance to accelerate and unlock hospitality, but instead he has delivered a cut-and-paste Budget, maintaining the status quo which continues to act as a drag on recovery.

"Over the past year, we have had a Budget for growth and an Autumn Statement for investment – neither have delivered because they were not correctly targeted. The National Insurance cut earlier this year was intended to boost disposable income to generate growth and didn’t have an impact. A different result can’t be expected this time around."

Nicholls and UKHospitality believe that the government needs to take a different approach in order to bear down on the never-ending rising costs that are forcing businesses to shut their doors for good.

"Increases to business rates and jobs taxes in April will only increase bills further and contribute to inflation, as venues will be forced to pass on these costs onto consumers. The entire sector was united behind UKHospitality’s asks to lower the rate of VAT, cap business rates increases and reduce employer wage costs.

"A lower rate of VAT would have been a bold reform that would drive economic growth, keep prices down and unlock investment in the sector, one that was projected to grow six times faster than the economy as a whole. It would have been good for businesses, the public and the economy. Hospitality is a sector proven to be a catalyst for growth across the entire nation, as the foundation of the everyday economy. When we perform, the entire economy performs. It’s a great shame that the Chancellor has not recognised that today."

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