Editor’s Viewpoint: Entrepreneurial Spirit Must Never Be Talked Down
By Peter Adams, Editor, CLH News
When a government adviser suggests that we may not need any more restaurants, which has been described as “ill-advised” it really does raise both concern and anger!
The recent comments attributed to Ms Depledge – and the ensuing backlash have understandably struck a nerve across the hospitality and licensed on-trade sector.
Of course, any individual is entitled to champion the sector they represent.
Advocacy is part of public life. But why on earth make a dismissive comment about not needing any more restaurants? And from someone advising government, no less.
Hospitality in the UK has always been built on entrepreneurialism.
It thrives on it. Ours is a sector fuelled by ambition, graft and no small amount of courage. Chefs and operators cut their teeth in kitchens and bars up and down the country – and often across the world – honing their craft, absorbing influences, and returning to open businesses that enrich our towns and cities with global cuisines and fresh ideas.
Some go on to create restaurants that earn international acclaim. Others build much-loved neighbourhood establishments that become the backbone of local communities.
Here in Bournemouth, we are blessed with an extraordinarily diverse and vibrant restaurant scene. Independent operators sit alongside established brands, offering everything from authentic regional cuisines to cutting-edge contemporary dining.
It is not government advisers who decide which of these businesses succeed. It is customers. Market forces dictate who thrives and who falls by the wayside – as they always have. That is the essence of enterprise.
To her credit, Ms Depledge has apologised. That is welcome. But the episode highlights a deeper issue: a worrying disconnect between policymakers and a sector that contributes billions to the economy, employs millions nationwide, and plays a defining role in Britain’s social and cultural fabric.
This disconnect is further illustrated by the latest HMRC figures (see page 5) showing alcohol tax revenues falling by £285 million despite duty increases.
It will come as absolutely no surprise to many operators. When you increase the tax burden on products and services, you suppress demand.
Suppressed demand leads to lower volumes. Lower volumes can – and often do – mean lower overall revenue.
Economists such as Thomas Sowell and the late Milton Friedman have long argued that ever-higher taxation does not automatically equate to ever-higher receipts.
Hospitality has been living that reality for years. With VAT on hospitality higher than almost all comparable European destinations, and with mounting cost pressures across energy, labour and supply chains, the idea that the sector can simply absorb further fiscal burdens defies commercial logic.
The proposed introduction of tourist taxes in parts of England risks compounding the problem. As Kate Nicholls, Chair of UKHospitality, rightly stated: “This is the wrong policy at the worst possible time.” Accommodation providers are already battling enormous cost increases and fragile consumer confidence. Layering additional charges onto family holidays, business travel and inbound tourism risks making England less competitive internationally at precisely the moment we should be encouraging growth, investment and job creation”
Hospitality does not ask for special treatment. It asks for understanding. It asks for a level playing field. And above all, it asks not to be talked down by those who appear to underestimate its value.
Restaurants, pubs, bars and hotels are not surplus to requirement. They are incubators of talent, engines of local economies and ambassadors of British creativity.
The UK’s hospitality success story has always been written by entrepreneurs willing to take risks, invest their savings and work punishing hours to bring their vision to life.
We need more of that spirit, not less. And we certainly don’t need anyone in government suggesting otherwise.
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