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Editor's Viewpoint Products and Services
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Property and Professional
ISSUE 217
CLHNews
OCTOBER 2018
Industry Calls on Chancellor For “Targeted Support”
Please call David Hunter of The Bowden Group for an informal chat about how we can HELP YOU
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HOTELS, RESTAURANTS, PUBS & CATERING
UKHospitality and a coalition of leading hospitality businesses have written to Chancellor Philip Hammond to call for targeted support in this month’s Budget that will protect the valuable economic contribution the sector makes to the UK. The hospitality/licensed on-trade industry currently employs 3.2 million people across the UK contributing £130 billion to the economy, and ranks as a top 7 employer in every region of the UK, and accounts for up to 11% of the regional workforce. The letter offers a blunt warning to the Chancellor of a growing crisis in hospitality and the high street, which has resulted in business closures, empty units, job losses and falling investment. The letter states: “On a daily basis the British public are witnessing the impact this is having on their high streets and their local restaurants or pub. The health of the high street is often how consumers and voters judge the health of the economy, regardless of the national picture, and what they are seeing and experiencing is damaging consumer confidence. We believe that we are only at the start of the crisis in hospitality. It is vital, therefore, that steps are taken at the forthcoming Budget to support and sustain this engine of
economic growth and the contribution it makes.” The letter includes 5 clear Budget asks of the Chancellor: 1. Introducing an online revenue tax to freeze business rates increases and introduce enhanced hospitality rate relief over the next two years ahead of the next revaluation to deliver your pledge to level the playing field between ‘bricks and mortar’ and ‘clicks and mortar’ entrepreneurs ahead of root and branch reform – hospitality generates 5% of GDP but pays 20% of all rates, which is unsustainable 2. Doubling the NIC threshold for employers to safeguard youth employment, training and take-home pay – half of all operating costs in hospitality are labour related and we want to have the ability to deliver our pledge to make hospitality the best rewarded sector in the UK and improve productivity 3. Ensure future NLW rates and structure are set independently by the Low Pay Commission, with evidencebased consultation with business taking account of the impact on jobs, the wider economy and take-home pay 4. Re-introduce hospitality capital allowances – and introduce a business rate moratorium after refurbishment – to incentivise regeneration and investment ahead of root
and branch reform of rates 5. Implement the Northern Ireland VAT review on tourism services and extend it to the whole country as well as freezing alcohol duties to promote exports, improve the balance of trade and create new jobs across the country. This latest plea follows an appeal earlier this month by The Wine and Spirit Trade Association (WSTA) who have called on the Chancellor to back British pubs and scrap his punitive plan to raise alcohol duty. According to the WSTA wine and spirit sales in UK pubs account for 36% of the value of alcohol sold, worth almost £6 billion to pubs which is an increase of some £270 million, up 5% on last year. The great British pub has seen a huge increase in sales of sparkling wine and gin in recent years thanks to the popularity of sparkling wine and the ginaissance. In the last five years Brits have bought over 24 million bottles of sparkling wine worth over £600 million in British pubs. Five years ago, pub goers spent less than £200 million on fizz. (CONTINUED ON PAGE 3...)
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If your business IS profitable, but you need it to be MORE Profitable, David Hunter can do this for you. David will ‘’benchmark’’ your business against the current market, and will tell you what SHOULD and CAN be achieved by that particular and individual business. David will work with you and your Team to deliver that essential improvement in Profitability.
We will tailor a package that is realistic… and practical, for you… Please call David Hunter of The Bowden Group about how we can HELP you…
07831 407984 or 01628 487613
HOTELS, RESTAURANTS, PUBS & CATERING
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