Industry awaits Budget announcement
Hunt will announce the details of the plan from about 12.30pm this afternoon in the House of Commons.
Earlier today, the Government revealed the household energy bills support had been extended for an extra three months as part of its cost-of-living support that is set to be announced in the Spring Budget.
However, there have been warnings wine could see its biggest price rise in half a century if Hunt doesn’t freeze of reduce alcohol duty.
Moreover, a number of voices from the hospitality industry have called for the Chancellor to show the trade support in the Budget in a bid to stem further business failures.
Growth plan needed
Research from the Night-Time Economy Report that showed the late-night sector had lost more than 33,000 jobs as well as £10bn in GDP and £3.1bn in GVA.
Furthermore, it also revealed the number of businesses dropped from 425,000 in 2018 to 392,000 in 2021 while the number of jobs fell from 38,000 to 34,000 in the same time frame.
Earlier in the month (March), the British Beer & Pub Association (BBPA) warned 2,000 pubs were at risk of closure if the Budget doesn’t show a “plan for sustainable growth”.
Chief executive Emma McClarkin said: “It is crucial the Government shows in this Budget it understands the pressures the sector is facing and just how much our pubs and brewers mean to communities everywhere across the UK.
“We urgently need the Chancellor to deliver a plan for sustainable growth with fair, modernised tax rates and a focus on skills and training needed to ensure pubs and breweries can thrive.”
Intervention required
Meanwhile, more than 155 hospitality firms signed an open letter, calling on the Chancellor to implement measures to “unshackle” the sector.
The letter, which was co-ordinated by UKHospitality (UKH), warned ongoing inflation and debt pressures have held the industry back from delivering economic growth and stated without action, there could be further business failures and job losses.
UKH chief executive Kate Nicholls said: “From some of the largest hospitality businesses in the UK to the local community pubs and hotels, the sector is united in its message to the Chancellor – intervene in the Budget or lose businesses for good.
“No one wants to see that happen. It would mean the loss of jobs and livelihoods, ripping the heartbeat out of the communities and robbing the economy of a powerful force for growth, employment and recovery.”
The trade body has previously urged the Chancellor to reform the apprenticeship levy, in a bid to enable funding to be used for other forms of trading in its Budget asks.
It also called for minor, short-term reforms to immigration, which it stated would counter the sales being lost as a result of labour shortages.
