This came after Chancellor Rachel Reeves delivered her ‘scene setter speech’, where she claimed at her Budget later this month (26 November), she will “make the choices necessary to deliver strong foundations for our economy”.
She also claimed last year’s Budget “fixed the foundations...” and “began rebuilding our economy”.
UKH chair Kate Nicholls said: “The Chancellor’s statement acknowledges the economic challenges we face but it’s clear hospitality, the UK’s most socially productive sector, is currently being taxed out of existence.
“It is vital the Government delivers the full package of business rates support our sector needs, not just for some, but for all hospitality businesses.
“This is essential to help rebalance the playing field and avoid further price increases for consumers.”
Immediate lever
Last month (October), the Government confirmed details of the upcoming business rates reform, which will come into effect next April.
Nicholls warned this could not be the only form of support for the sector from the Government.
She added: “Business rates reform is the most immediate lever the Government can pull to provide relief, but it cannot act in isolation.
“The reality is spiralling employment and energy costs remain the biggest pressures on hospitality businesses.
“Without action on these fronts, including fixing NICs and cutting VAT, the sector’s ability to invest, grow and create jobs will be severely constrained.”
Government ambitions
She added the sector can boost economic recovery but requires the tools and support to do so.
“Many high-productivity sectors deliver limited social value, while foundational sectors like hospitality are uniquely placed to drive inclusive, geographically dispersed growth,” the UKH chair said.
“We create accessible jobs in every part of the country, support social mobility and help people move from welfare into work, all essential to delivering the Government’s ambitions for a fairer, more resilient economy.”
Moreover, fellow trade body the Night-Time Industries Association (NTIA) accused the Government of failing to match public expectations ahead of the Autumn Budget, warning a “gulf” has opened between what voters see as fair and the decisions made in Westminster.
