The Labour government’s first King’s Speech has been broadly welcomed by the hospitality sector for introducing measures aimed at achieving a 6% annual growth potential.
Main proposals include reforms to the Apprenticeship Levy and the planning system, which were major requests from industry body UKHospitality.
Kate Nicholls, Chief Executive of UKHospitality, said: “The next session of Parliament will be essential in kickstarting the growth needed to achieve the Government’s objectives. It’s positive to see significant measures announced today that can help hospitality achieve its growth potential of 6% a year.
“With Bills addressing Apprenticeship Levy reform and improvement of the planning system, I’m pleased that key asks of UKHospitality are being delivered on and that our concerns have been heard loud and clear by the new Government.
“With no mention of business rates in today’s King’s Speech, the autumn fiscal statement is now all the more important to drive the Government’s plan for national renewal and to show clear progress on delivering its manifesto commitment to fix the broken business rates system. Particularly as businesses are facing an end to 75% rate relief next April if action isn’t taken.
“It’s pleasing to hear that the Government will deliver much-needed reform of the Apprenticeship Levy, a priority for hospitality businesses for years. Flexibility on how to spend funds through a new Growth and Skills Levy will greatly enhance training opportunities, as well as free up funding to support rollout of our successful skills pilot to help those unemployed into roles in hospitality.
“Planning approvals have been in freefall since 2013 and has been one of the major barriers to business growth. I’m pleased to see the inclusion of this Bill to reform the system, putting growth at its heart.
“A new system that delivers faster decisions can drive business expansion, create more homes and develop local infrastructure – all critical elements to regenerating of our towns and cities.
“As a sector that provides jobs and opportunities for everyone across the country, hospitality businesses are passionate about how to make those jobs work for everyone.
“Working mums, carers or students who are juggling jobs and busy lives every week want and need flexibility, and we want hospitality to remain the job of choice for them. We’ve been pleased to work with Labour on its proposals and look forward to continuing that productive dialogue during the passage of this Bill.
“UKHospitality has worked extensively with the Government in developing Martyn’s Law and working on a flexible approach that allows venues in the ‘standard’ tier to create bespoke plans.
“I’m pleased to see Martyn’s Law included in the Government’s plans and look forward to continuing our work with the Home Office. Hospitality businesses stand ready to deliver their role in achieving the aims of this legislation; to keep our staff and customers safe.”
Policy Chair of the Federation of Small Businesses (FSB), Tina McKenzie, said: “Today’s King’s Speech announcements fell short on the central challenge – getting growth back into the economy and ensuring wealth creation in every local community.
“Small businesses and the self-employed expected more on these, with their key issues instead overlooked. The Government’s 105-page briefing document doesn’t mention ‘small business’ once – suggesting Labour may not keep its promises to drive growth in the real economy.
“Apart from ambitious-sounding planning reform, there was no sign of delivery of the small business plan promised by Labour in opposition.
“The lack of promised legislation to tackle late payments and poor payment practices by bigger businesses to their small business suppliers is the most serious omission for our community and will hold back economic growth. This scourge hampers cashflow and stifles investment, and we call on the Government to look again and deliver on the promise it made.
“The move from an Apprenticeship Levy to a Growth and Skills Levy will risk small business apprenticeships unless the Government quickly follows up with its promised unequivocal commitment to protect Government co-investment for apprenticeships at small employers.
“Similarly, the Industrial Strategy Council commitment omits mentioning the need for a small business voice, to prevent it being dominated by large corporate incumbent interests.
“At the same time, small businesses are increasingly worried about the developing employment rights package. More than nine out of ten small employers say they are concerned about the prospect of increased costs and risks when they employ people, and there were no commitments within this to look after small employers who will struggle the most.
“It is small businesses which take on those furthest from work and who must be the solution to labour market participation. Small firms must be given the right platform to recruit those out of work, create new jobs, and expand. There was nothing on this today, which suggests early signs of complacency on the need to back small businesses to resolve economic inactivity.
“The Government has before pledged to consult widely and openly on measures it has announced, and FSB will be working intensely on this over the coming months, and helping our community to deal with the more difficult challenges.
“As we look towards the Autumn, today’s speech piles pressure onto the Chancellor and Business Secretary for the Budget where progress must be made to achieve economic recovery and growth. Small businesses and the self-employed can drive this, but only if the right conditions are there.”
John Webber, Head of Business Rates at Colliers said: We are very disappointed that there has been no mention of business rates reform in the King’s Speech today since this indicates this is not a priority for the new government and goes against its pledge to abolish the tax and support the high street.
After more than 30 years of mismanagement from successive governments, we now have a system with a multiplier at over 50p in the pound, which effectively means a 50% tax on property occupation, a complicated relief system with business rates deserts in some parts of the country and an appeal system that’s inefficient, lacking transparency and increasingly difficult for businesses to negotiate without an adviser. The current system is just not fit for purpose. This situation is unsustainable.
With declining high streets across the country, there is no excuse for the new government to avoid addressing the business rates problem or to introduce significant reform. We urge them to act soon.”
Michael Kill – CEO, Night Time Industries Association (NTIA:) said: “We welcome the swift action of the New Government represented within the King’s Speech, outlining the new government’s legislative priorities.” The NTIA appreciates many of the initiatives outlined by the New Government, consistent with some of the asks within the NTIA Night Time Economy Manifesto “Darkest Before the Dawn,” especially those that affect the night-time economy and cultural sectors.
A key highlight is the long-awaited focus on the reduction of crime against women and girls, with the introduction of a specific crime for spiking, which the NTIA and other advocates have championed over the past few years. “This legislative change, one of the key asks from the previous Government by the NTIA at the House of Lords Select Committee, will significantly enhance the role of the police. By providing a robust data source to address this issue and focusing on direct intelligence to capture perpetrators, we can better protect our patrons and ensure safer environments in our venues”.
“We also applaud the landmark bill to boost workers’ rights. The potential ban on exploitative zero-hour contracts, immediate rights for workers upon starting a job, and a crackdown on fire and rehire practices will greatly benefit employees in the night-time economy, fostering a more stable and fair working environment, and aiding retention.”
The Government’s planning reforms must be balanced and consider the protection of cultural and social spaces.” Implementing the ‘agent of change’ principle in primary legislation ensures new developments adapt to existing venues, promoting coexistence through robust mitigations.” Affordable housing in urban centres supports the night-time economy by allowing workers to live near their jobs, reducing commutes and fostering sustainability. These measures are essential for creating inclusive, vibrant, and balanced urban centres, enhancing the quality of urban life.
The implementation of Martyn’s Law represents a major leap forward in public safety. Named in honour of Martyn Hett, this legislation mandates that venues and event organisers create and execute terrorism preparation plans to prevent similar incidents.” It is crucial that this law harmonises with existing legislation, supports and improves current operational practices, and remains cost-effective in today’s economic environment”. The NTIA has long advocated for enhanced security measures and fully supports this legislation to protect everyone who participates in and works within the night-time economy.
The wide-ranging crime bill is a welcome initiative. “Safety is paramount for our night-time economy, and these measures will help create a more secure environment for both patrons and employees, allowing our venues to thrive”.
The introduction of a new offence for assaulting a shop worker is a welcome step in providing additional protection for businesses and their employees. However,” it is crucial to acknowledge the severe impact of verbal and physical assaults in the night-time economy and hospitality sectors. Over 90% of security personnel in these areas face physical and verbal abuse during every shift”. Therefore, explicitly including protections for the night-time workforce is essential as a deterrent to potential perpetrators.
Labour’s pledge to reform the Apprenticeships Levy by creating a flexible Growth and Skills Levy is a positive step. Ensuring that skills and training needed to access apprenticeships are not ignored will help develop a skilled workforce, vital for the continued growth and innovation of the night-time industries.
Lastly, the “take back control” bill, which devolves powers over energy, transport, skills, and planning to local authorities, is another critical measure. “By giving local governments the ability to reinstate late night transport infrastructure after midnight and set affordable fares, we anticipate improved access to night-time venues, making it easier for patrons and staff to travel safely and affordably. ”This is vital for extending the reach and appeal of our night-time offerings.
“It is important to note that there is still a significant amount of work that needs to be done in terms of the economic recovery, and feel the Autumn budget will be a tougher test for the new Government. Key asks will be expected within the Autumn budget around Business Rates Relief / Reform, VAT Reduction & Support for SMEs, and culture over the coming 12 months to aid recovery.”
“The NTIA is optimistic about the government’s swift and comprehensive approach to addressing key issues that affect the night-time economy and culture. We are committed to working alongside the New Government, Mayors and local authorities to implement these initiatives, ensuring that the UK’s night-time industries continue to grow, innovate, and contribute to the nation’s cultural and economic prosperity.”
Emma McClarkin, CEO of the British Beer and Pub Association said: “Britain’s beer and pub sector will welcome the Government’s renewed focus on achieving greater and sustained economic growth as outlined in today’s King’s Speech. Our nation’s brewers and pubs are drivers of local economic growth and high street revitalisation across the UK.
“The BBPA will work closely with ministers as they set out plans to reduce energy costs, along with plans to reform workers’ rights and the apprentice levy, and establish the best practices for venues like pubs to be safe from external threats like terrorism, without the burden of disproportionate cost and bureaucracy.”
