Chancellor Rachel Reeves did not announce any economic updates in the Spring Statement, in line with the Government’s commitment to deliver one major fiscal event a year at the Budget.
While the hospitality sector was absent from the address itself, it quickly became a flashpoint in the political fallout, with Tory Shadow Chancellor Sir Mel Stride raising concerns over job losses.
However, speaking at the House of Commons on Tuesday 3 March, Reeves pledged to tackle youth unemployment.
Following the address, British Beer & Pub Association (BBPA) CEO Emma McClarkin said: “With half of our workforce made up of younger people, we are a fundamental part of the job market and give many their first step on the career ladder.
Unemployment spike
“With unemployment set to spike we can help solve this problem but, if we’re to keep putting money in workers’ pockets, our businesses need to be viable which means cutting the heavy cost of doing business.
“Key to this is the Government taking a sustainable approach to the National Living Wage rises, which will mean we can keep creating those precious opportunities, jobs, and skills.”
UKHospitality chair Kate Nicholls urged the Government needed to recognise hospitality is the sector “best placed to deliver growth across the country”.
Nicholls called on the Chancellor to urgently reduce the cost-of-doing business for the sector, including a reduction in VAT and business rates reformation.
Echoing Nicholls, Night Time Industries Association (NTIA) CEO Michael Kill said “meaningful action” must follow the Spring Statement.
“The Spring Statement talked about stability and cautious optimism. But this is not a stable moment - and businesses will not be reassured by rhetoric after two years of relentless pressure”, he continued.
Exhausted margins
“Across the UK, major brands and corporates are collapsing at pace. Confidence is fragile. Margins are exhausted. Investment has stalled.
“At the same time, we are heading toward another energy price shock and the cost-of-living remains high. Youth unemployment also remains a serious concern.”
The Chancellor also shared updated figures from the Office of Budget Responsibility (OBR) during the Statement, claiming inflation rates were falling and that people will be £1,000 better off a year by the next election.
Society of Independent and Associates chief executive Andy Slee told The Morning Advertiser (The MA): “The Chancellor said in her statement it’s important for people to feel better off at the end of the parliament than the beginning - one way to do so is through being able to visit the pub and enjoy a drink with family and friends.
“With this in mind we hope the Chancellor will bring forward ways to reduce duty on beer through increasing draught relief and tackling business rates in the drink budget.”
