By Peter Adams, Editor, CLH News.
In the ever-challenging world of UK hospitality, any sign of relief is welcomed, however small.
The Chancellor’s move to cut red tape for businesses will no doubt be well received across the board.
Of course, many would have preferred a break on taxes instead, but in this day and age, one must be grateful for small mercies!
Yet, time and time again, we find ourselves subjected to the whims of so-called “experts” rather than those on the front lines of the industry.
Take, for instance, the now-infamous attempt to reduce the standard pint measure to two-thirds. The idea, backed by academic research, suggested that shrinking the size of a pint would curb alcohol consumption.
Quite rightly, many publicans refused to participate in such a study, and Wetherspoon’s chairman Tim Martin hit out last October, questioning the common sense of the proposal.
As he pointed out, such a move would do little to curb drinking habits but would only drive more consumers to drink at home—an already growing concern as the government continues to tighten the screws on the sector.
Instead of these ill-conceived measures, CAMRA called for a 20% tax differential between pints served in pubs and alcohol sold in supermarkets to encourage pub-going.
A logical and necessary move? Absolutely. But given the government’s track record, one can only wish them “good luck with that.”
Meanwhile, in deeply concerning news, St Austell Brewery in the South West is facing the harsh reality of the government’s planned increases in April, with 40 jobs now at risk.
The brewery, which employs over 2,000 people across the region, has entered a 30-day consultation period, calling the decision “difficult” but “necessary” to ensure future success.
Unfortunately, this is a trend we’ve been reporting on for weeks. The consequences of these heavy-handed increases are plain for all to see.
I was in London back in February, covering a protest by the care sector, which is also expecting devastation due to these financial pressures. Farmers were there too, echoing the same fears.
And it’s not just businesses feeling the squeeze—the public are tightening their belts as well.
Just this week, I attended a trade event in Birmingham, a yearly tradition since 2009. Normally, this trip is capped off with an excellent dining experience at one of the city’s top Asian restaurants, a place known for its luxurious setting and consistently full tables.
This time, however, I arrived at 7:45 pm to find just two other diners. When I left at 9:45, not another soul had walked in. If that isn’t a stark indictment of the times we’re in, I don’t know what is.
With businesses struggling, consumers cutting back, and now further job losses looming, it’s hard to see how the Treasury expects to maintain, let alone increase, revenue.
You cannot tax businesses into profit, nor can you spend your way out of a recession. It’s a lesson that Ms. Reeves and the government will likely learn the hard way, and sooner rather than later.
I can always be contacted at edit@catererlicensee.com