Have your say!
Increase the pressure on the Government to take action on business rates, by using our ‘Write to your MP’ tool – either as your own business or by sharing with your franchisees, tenants, lessees or peers.
Proactive action at Autumn Statement can help the hospitality sector to realise its potential, in turn delivering on Government’s key objectives of delivering economic growth and halving inflation.
Three key aims:
- 1
Unlocking investment
We recommend that Government freezes the business rates multiplier, extends the 75% relief for a further year and increases the cap to £2 million per business. Failure to act would increase business rates for hospitality by around £1 billion, fuelling inflation.
- 2
Growing the sector
Government proposals to reform planning for businesses must crucially deliver swifter, more collaborative outcomes, and these reforms should be implemented rapidly. Our sector previously invested £10 billion per annum in communities, and we want to return to, and exceed, that level.
- 3
Meeting demand
While vacancy levels have declined by around a third since last year’s peak, they are significantly above pre-pandemic levels and are restricting hospitality’s ability to meet demand. The Adult Education Budget must have the right level of flexibility to give people the skills they need to access and stay in work. We urge Government to pursue and finalise YMS with appropriate overseas nations.
Join us in calling for action by writing to your MP.
As the sector’s leading voice into government, we’re continually working to help your business and your support on this is crucial.
We’re making it as easy as possible with our template.
Medium term strategy for growth
Beyond the three key aims, there are pragmatic steps that would unleash hospitality’s growth, employment and skills potential.
The imbalance with our nearest neighbours means the UK becomes uncompetitive and enforces higher prices on its domestic population. We urge HMT to work with the sector on a cost-benefit analysis of a reduced VAT rate VAT for hospitality and tourism.
Hospitality strongly supports apprenticeships and skills development but could deliver more with greater flexibility over the Levy. This would include freeing up funds to be used for non-apprenticeship training and a modular approach for learners who can build towards an apprenticeship.
The inequities within the business rates system necessitate the need for unpredictable reliefs which deter business investment. There needs to be a new approach to business rates with a reduced multiplier for consumer-facing sectors.
Full-expensing was welcomed by the sector but many businesses are unable to access any investment incentive as they are not yet turning a profit, due to Covid debt and rising costs. We propose a new system that provides tax credits for investment in future years.
Hospitality is at the heart of our communities and it’s essential we do all we can to protect them and the value they bring, from driving economic growth to creating jobs.
It’s imperative that the Chancellor takes clear action at the Autumn Statement to extend the current relief measures for a further year to protect the vital community assets that make up the UK’s vibrant hospitality sector.
Kate Nicholls OBEUKHospitality CEO