Chancellor or Rachel Reeves has been urged to implement vital measures to help the hospitality on trade sector in her first budget on October 30th.
The chancellor confirmed yesterday (July 29) the date of the budget, Labour’s first since taking office after the election on 4 July, during a statement in the Commons in which she accused the previous Conservative government of misleading the country about the amount of public money they had planned to spend.
Ms Reeves made her statement following an urgent a Treasury review into the government finances, which she said had uncovered a £22bn black hole.
The budget, which sets out the government’s plans for the economy, will be held alongside “the full economic and fiscal forecasts from the Office for Budget Responsibility”, Ms Reeves said, and would be “a budget to fix the foundations of our economy”.
“It will be a budget built on the principles that this new government was elected on,” she added.
The chancellor promised to “treat taxpayers’ money with respect by ensuring that every pound is well spent”.
Ms Reeves added that she will ensure all public spending “represents value for money”.
And she promised to not raise taxes “on working people”.
“That means we will not increase national insurance, the basic, higher or additional rates of income tax or VAT,” she said, repeating what Labour said during the election campaign.
Calling for urgent sector support British Beer and Pub Association CEO Emma McClarkinsaid: “The beer and pub sector is committed to serving communities, creating jobs and providing critical economic growth across the country. In order to deliver this we need to see a reduction in the cost of doing business.”
“During the election campaign the Chancellor highlighted the importance of supporting Britain’s beer and pub sector when she announced a five-point plan for pubs. Central to that plan was the need to reform the business rates system that currently penalises bricks and mortar business like pubs that pay five times more than their share of turnover. While the Treasury work out the details of how best to implement this critical reform, we need the Chancellor to confirm that the vital 75% relief will be maintained so that one of the core cost components of doing business can be controlled.”
“Likewise, to make sure that the price of a pint remains affordable, the Chancellor needs to cut beer duty, especially after the European football championship brought into sharp focus just how much British beer drinkers are been taken advantage of, especially when you consider that British duty rates are twelve times those of Germany or Spain.”
“As the Chancellor prepares for her first Budget over the summer, we have also called on her to examine what the optimal VAT rate should be for pubs selling soft drinks and food as part of a fair and sustainable tax and regulatory framework for pubs that both supports economic growth and underpins the social and community value that pubs uniquely provide to local communities.”
Michael Kill, CEO of the Night Time Industries Association said: “Following today’s address by the Chancellor of the Exchequer regarding the £20 billion deficit left by the previous administration, we are closely monitoring the developments and potential solutions being considered. As we anticipate the new government’s Autumn budget, scheduled for 30th October, today’s narrative indicates that difficult decisions lie ahead.
We are relieved that, for now, our sector remains unaffected. However, we must emphasise that the night-time economy is extremely fragile. Any abrupt changes in the upcoming budget, such as reductions in the current relief on Business Rates or increases in taxation, could have catastrophic consequences for our industry.
What we urgently need is a comprehensive budget that fosters stability and generates growth, considering the unique challenges faced by property-led businesses through business rates and cultural businesses through a potential new VAT cut. This support is crucial to help us navigate the period between reaching the recently achieved 2% inflation rate and the time it takes for this figure to show tangible reductions in current operating costs, thus supporting frontline businesses grappling with exorbitant expenses.
As we await the Autumn budget, we urge the government to recognise the delicate state of the night-time economy and to implement measures that will sustain and support our industry through these challenging times.”
Allen Simpson, Deputy Chief Executive of UKHospitality, said: “The Chancellor’s announcement today makes investing in growth more important than ever. Our sector is well placed, with presence in communities across the UK, to help the new Government get the economy moving, provide more people with jobs, invest in the future, and bring in the taxes needed.”
“Hospitality is the right lever to pull because the effect is so quick and reaches the whole of the country. We hope in the October Budget, the Chancellor will deliver on the manifesto promises to back the sector’s growth.”
