Now that we have a new chancellor and government, with the incoming budget there is a significant opportunity to reposition the deteriorating hospitality industry.
Many of us voted for change to bring in this new government. However, the expectation of an increase in National Insurance contributions only for employers and talk of changes in tax limits and increases in living wages are sending sharp blows to the tourism sector, which is in dire need of restructuring.
There is a constant climate of uncertainty with all kinds of hospitality businesses closing every week – closing permanently because they can no longer make their business more profitable. Turnover remains the same compared to most when it comes to most operators I know here in Liverpool and the UK, but the reality is that turning this profit into a profit is getting harder every day.
We need an urgent overhaul of the hospitality tax, which will generate £54bn in tax receipts by 2022. In Liverpool, the tourism industry – with hospitality making up a large part – was worth £6.25bn by 2023. In a town with hospitality in its DNA. , we need to increase this each year; the question that remains is how do we do it here, and across the UK, to make this happen?
Because we continue to face very difficult, stressful and difficult situations. So unless the government really listens, we’re going to see more closures and more layoffs. How many more new food-led businesses need to be shut down to make the new government realize that they are not allowing the tourism industry to grow, invest, hire and live without hesitation?
Unless urgent action is taken, the sector is on the brink of collapse due to post-Covid support long gone but debt still high, and a continued lack of consumer confidence. And it’s not just restaurants – restaurants, cafes, bars and more are all facing the most difficult business environment imaginable, with a complete set of failure scenarios.
We would like to grow again and there are many obstacles preventing this growth. Some important stress points are:
- Higher VAT on fresh cooked food
- Business rate relief ends – threat of rate hikes on April 1st 2025
- Energy costs
- Inflation of ingredients is expensive
- The salary increases
- Increase in business PAYE and NI contributions
- Brexit tariffs on imported wine and international goods
- Borrowing costs
- Working for CBIL loans businesses are forced to take during the pandemic to survive
One very important point is to re-evaluate the VAT charge on fresh food prepared to be in line with Europe for new businesses led again to grow, invest and succeed using skills and develop our people and business in general, not just learning every week. a week. There is a chorus of businesses across the UK asking for this.
And we need a change in business standards to create a level playing field for businesses with physical locations on the high street compared to online businesses and black kitchens. It makes no sense how business rates are currently assessed and fees charged, plus the possible end of business rates relief next spring could be another crippling blow.
We voted for change. Now we need you very much for hospitality. I really hope that the chancellor and the government are listening.
