Both UKHospitality Cymru (UKHC) and UKHospitality Scotland (UKHS) made the demands to their respective countries after both countries enter new eras of government.
UKHC said the new Welsh government should look to hospitality to drive growth, regenerate high streets and support communities across Wales.
Rhun ap Iorwerth, the new First Minister and leader of Plaid Cymru, has repeated his belief in hospitality, committing in its manifesto to cutting business taxes for hospitality businesses.
UKHospitality Cymru has recommended in Serving Wales: a manifesto for growth the new Welsh Government make a top priority of reforming or replacing business rates to achieve a permanent, lower rate for hospitality businesses.
Power of hospitality
It also called for a new tourism and hospitality governmental review, improved partnership between government and industry, and measures to back investment to achieve a new deal for the visitor economy.
UKHC executive director David Chapman said: “Throughout our engagement, it’s clear the new First Minister understands the power of hospitality to drive growth, create jobs and support Welsh communities.
“He understands our local pubs, restaurants and hotels, to name a few, are a vital part of our Welsh identity and culture, but that they have been overwhelmed with cost and red tape.
“I’ve been pleased to work with the First Minister and Plaid Cymru in opposition and was delighted at its commitments to reduce our sector’s tax burden, particularly when it comes to business rates.
“I hope actions to unshackle the potential of hospitality will be one of the first acts of this new Welsh government and I very much look forward to working with the First Minister and his team to make their manifesto commitments a reality.”
Key objectives within 100 days
Meanwhile, UKHS said reforming the broken business rates system should be the top business priority for the new Scottish government.
Outlining its priorities for the Scottish government, UKHS has identified two key priorities to be accomplished in its first 100 days:
- Reforming business rates – introduce a permanent, lower poundage rate for hospitality, funded by rebalancing the burden to reflect the rise of the online economy
- Invest in hospitality skills – create sector-based work academy programmes to help people back into work and ensure Apprenticeship Levy funds support hospitality.
Hospitality has one of the highest tax burdens in the economy and fixing the broken business rates system would be a key measure to deliver a fair and progressive system of taxation.
A focus on developing hospitality skills and providing pathways into work would support its objective to create a skilled Scotland that meets the challenges of the future and provides opportunities for rewarding careers.
UKHS executive director Leon Thompson said: “An incoming Scottish government has a prime opportunity to hit the ground running and take decisive action to fix the decades-old problem that is the broken business rates system.
“Delivering a fair and prosperous Scotland starts on our high streets and in our communities. Backing the hospitality businesses that are so central to our economy, society and culture should be a priority.
“Committing to a lower poundage rate for hospitality would very quickly help to achieve fairer taxation while giving hospitality the financial headroom it needs to create jobs, drive economic growth and lead regeneration.
“This is the moment, at the start of a new Scottish parliament, to send a clear message that Holyrood and the new Scottish government will back business, back hospitality and back Scottish high streets and communities.”
