Speaking in the House of Commons on Wednesday 26 March, Chancellor Rachel Reeves announced the Spring Statement.
The Chancellor did not reveal any changes around VAT ,national insurance contributions or the reduction in business rates relief meaning employment costs and business rates all set to increase from April.
Following the address, the Night-Time Industries Association (NTIA) shared its “outrage”.
CEO Michael Kill said: “Once again, the Government has ignored the mounting evidence of economic devastation in our sector, doubling down on disastrous fiscal policies instead of taking decisive action to foster genuine growth and stability.”
Collectively difficult
Operators expressed their opinions on the statement, describing the announcements as “something we all have to live with now”.
Co-owner of the Black Bull in Cumbria, Nina Matsunaga said: “Businesses that are small and medium sizes are going to be affected, even potentially more than larger businesses because we just don’t really have that buffer of falling back on size.”
Matsunaga explained she anticipated that managing customers expectations going forward, along with mounting cost prices would prove to be difficult for business.
“People still also expect a certain amount of service and choice and they want what they had before. This is may be without realising or understanding that it’s not quite as easy for the sector at the minute,” she added.
“It would have been a great help if there was a reduction in VAT which didn’t happen, which should have helped us and it could still help the industry.”
Further touching on size and effective communication with customers, she added: Being a smaller business, it is easier as you are able to describe your issues to customers quite clearly and its more personable, but for medium sized ones or larger it isn’t as easy as that.”
Responding to the statement, UK Hospitality described it as a “missed opportunity” not only to support businesses but to also avoid April’s cliff edge”
The Morning Advertiser (MA) also spoke to owner of the Dog at Wingham, Marc Bridgen.
He commented: “Nothing’s changed, has it? I mean people say no news is good news. But no, no news just means the bad news is coming.”
Draconian measures
Bridgen explained he was having to be draconian in his attitude going forward: “We’re estimating our increased cost from the the NI threshold and the NI increase is about £50,000 to £60,000 a year. We are trying to minimise labour costs, we’re trying to minimise hours, we’re cutting hours, we’re having to be draconian.
“Our customers are under pressure because of cost of living cost utilities and increased cost of borrowing against their mortgages.
“We’re having pressure on footfall, spends are down and our cost keep increasing. I’m afraid there isn’t really any anything positive to say about anything at the moment.”
British Beer & Pub Association (BBPA) CEO Emma McClarkin also previously described the statement as a “missed opportunity” to plant the seeds of economic growth.
Co-owner of the Barking Cat Alehouse, in Poole, Dorset Mark Ambrose also addressed his concerns around the announcements. He said: “They [the Government] didn’t do anything they needed to protect the industry. We’re in a reasonably good situation where we’re financially stable, but we don’t make huge profits and we’re now going to make less profits.
“Going forwards, we’re probably not going to take on any extra members of staff.
“Customers are going to come in and they’re just going to buy less. They’re coming for two instead of three pints. Especially the people that come in daily, it’s part of the community, you know, the pub is like a central hub for us.”
Ambrose explained the pub is a social beacon for a lot of community members and that he believes every pub will be affected by the announcements.
He said: “We’ve got lots of people that come into the pub and it’s just their place where they meet people. I think It’s going to affect every pub, but I can’t see anyone at all saying this is a glorious day for the on trade...
“In the announcement, this trade wasn’t even mentioned. It wasn’t even even part of it. So, you know, she’s just stuck to what she’d done in the past. And and that’s what we’ve all got to live with now.”
