The Bank of England has cut interest rates by 0.25 percentage points, from 5% to 4.75%. It is the second cut by the Bank this year.
Our response
Kate Nicholls, Chief Executive of UKHospitality, said: “This interest rate cut is positive news in the short-term for hospitality businesses, particularly those still struggling with pandemic debt repayments, and consumer confidence.
“However, the short-term benefit of this cut is significantly overshadowed by the looming £3.4 billion worth of cost increases that will hit the sector in April.
“Those changes will impact the potential for future interest rate cuts too, with forecasts already revised down following the Budget.
“We need the Government to take action to mitigate these increases. particularly the lowering of the employer NIC threshold.
“Lowering the threshold to £5,000 suddenly brings in thousands of part-time staff, and that disproportionately hits hospitality.
“Government action to reduce the devastating cost impact in April is essential.”
