UK: More than 300 hospitality businesses have signed a letter to the UK government ahead of the Autumn Budget later this month, calling for urgent action.
The letter sent by UKHospitality and backed by a broad coalition of pubs, restaurants, hotels, bars, leisure parks, visitor attractions and more, said the impact of the last Budget was “immediate, concentrated and socially regressive”.
It said it left the sector “taxed out” with businesses forced to close, more than 80,000 jobs lost, opportunities for young people reduced, and prices increased for consumers.
Among the signatories are BWH Hotels GB, Cycas, Exclusive Collection, Greene King, Hilton, IHG, Malmaison and Hotel du Vin, Native, Staycity, Supercity, Warner Hotels, and many more.
The letter calls on the government to:
- Lower business rates by delivering the maximum discount for hospitality properties under £500,000 rateable value, and applying no penalty charge to larger hospitality properties.
- Fix national insurance contributions (NICs) through targeted support for employers hiring young people and those returning to work.
- Cut VAT on hospitality to drive investment and make the country more competitive with European counterparts.
Kate Nicholls, chair of UKHospitality, said: “This extraordinary coalition demonstrates the united view of hospitality that there needs to be urgent action at the Budget.
“The impact of the last Budget was devastating… [inflicting] £3.4 billion of additional annual cost on our sector. Without action, we will see these impacts continue and intensify.I n two weeks’ time, these businesses and the millions of people they employ need to see measures to reduce hospitality’s cost burden and back our sector.”
In a separate letter, Champa Magesh, managing director of Access Hospitality, has also urged the government to lower NICs and VAT.
Additionally, she calls for hospitality businesses to be included in Innovate UK’s AI Adoption and productivity schemes, and to establish a Hospitality Digital Transformation Fund to accelerate uptake of smart technology.
Magesh said: “Unlocking potential requires fiscal and technological support that enables rather than restricts innovation. Just as government backing has transformed the automotive and manufacturing industries, similar strategic support for hospitality would empower operators to thrive.”
Highlights:
- Over 300 hospitality businesses have signed a letter urging government action ahead of the Autumn Budget.
- The letter, led by UKHospitality, warns that the last Budget imposed £3.4 billion in extra annual costs, resulting in closures and job losses.
- Businesses are calling for lower business rates, reduced NICs, and a VAT cut to restore sector competitiveness.
- Access Hospitality has separately called for a digital transformation fund and government support for AI adoption in hospitality.