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News & Press: General

Wage increases must be mitigated by business tax cuts, says UKHospitality

31 December 2019   (0 Comments)
Posted by: Pernille Thomsen
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Following today’s announcement of April’s minimum wage rates, UKHospitality has urged Government to cut business taxes to support higher wages.

Commenting on the Government's adoption of the Low Pay Commission's recommendations for rates from April 2020, Kate Nicholls, CEO, said "Hospitality operators absolutely want to reward the great work of their staff. In order to make that growth sustainable, other measures are needed to mitigate cost growth.

"UKHospitality has long argued that business rates place an unfair burden on hospitality. It is now critical that rates are cut for the sector in April, to provide relief while the Government's commitment to a more fundamental review of business taxation is delivered.

"The new Government must also address employer National Insurance Contributions (NICs) so that business can pay higher wages while continuing to invest in their businesses and future jobs.

"We welcome the continued oversight of the LPC in ensuring that future wage rates are set independently and safeguard the economy. This is particularly important outside of London where it is harder to mitigate wage increases with price increases. We look forward to working with the LPC to deliver on industry and Government’s shared ambitions for the workforce."

-ENDS-

Notes to editors

  • UKHospitality is the trade body representing the UK’s hospitality sector, established following a merger approved in February 2018 between the Association of Licensed Multiple Retailers (ALMR) and the British Hospitality Association (BHA)
  • UKHospitality is the authoritative voice for over 700 companies, operating around 65,000 venues in a sector that employs 3.2 million people
  • The body speaks on behalf of a wide range of leisure and ‘out-of-home’ businesses, from FTSE 100 enterprises to niche groups and independent single-site operators
  • For the first time, the sector has a single voice bringing together businesses from all aspects of hospitality; coffee shops, hotels, serviced apartments, pubs, restaurants, leisure parks, nightclubs, contract caterers, entertainment, stadia and visitor attractions
  • Engaging with government, the media and the public, UKHospitality works to develop a robust case on how to unlock the industry’s full potential as the biggest engine for growth in the economy and ensure that the industry’s needs are effectively represented
  • The sector creates £130bn in economic activity and generates £39bn of tax for the Exchequer, funding vital services
  • Hospitality represents 10% of UK employment, 6% of businesses and 5% of GDP
  • Hospitality is the 3rd largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined.

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