The hospitality and on-trade sector has slammed the Chancellor’s Spring Statement as a ‘missed opportunity’ to solve the mounting crisis in Britain’s pubs and bars.
The statement offered no support to the higher national insurance contributions (NICs) national minimum wage or business rate increases or any extra support for the sector, despite pleas from the industry.
The failure to address changing employer National Insurance Contributions will stifle employment in critical sectors like hospitality.
UKHospitality said that the lack of a clear growth plan for hospitality puts high street jobs at risk and has called for the Government to urgently bring forward a plan that allows hospitality to unlock growth and jobs, for everyone, everywhere.
Missed Opportunity
Kate Nicholls, Chief Executive of UKHospitality, said:
“Growth won’t just happen without a plan. Today’s statement was yet another missed opportunity to avoid an April cliff edge, which will level a devastating £3.4 billion annual increase to the sector’s tax bill.”
“The Government’s own analysis shows the failure to address the employer NICs threshold will force businesses to freeze recruitment, reduce hours available for staff and reduce employment levels in the very sectors the Government needs to achieve its goal to get people off welfare.”
“If the Government is serious about getting Britain working, it needs hospitality. When we were backed after the financial crash and the pandemic, we proved how we can help drive economic recovery.”
“Our new research this week proves that hospitality and the foundation economy are essential to the Government’s plan to create jobs where they’re needed, not just in clusters in the South East.”
“There is still time for the Chancellor to act and avert this disaster. Now is the time to back hospitality, delay the changes to employer NICs and work with us to bring forward a plan for the high street that can deliver socially productive growth and opportunities to get people back into work.”
Incredibly Disappointing
Steve Alton, BII CEO commented:
“Today’s statement was incredibly disappointing, delivering nothing to allay the fears of operators in our essential sector. Pubs are the very fabric of our society, and despite encouraging trading for many of our members at the beginning of the year, their profitability has been threatened yet again.”
“Incredibly successful operators, who serve their communities, provide flexible employment and incredible career opportunities, can be part of the growth that was at the heart of this government’s manifesto. But the current approach of taxing small businesses to the hilt, means that growth will be impossible, as operators desperately try to manage ever rising costs, being forced to cut services, opening hours and staffing levels to ensure they survive.”
“Without support via a fair and reduced taxation on these bricks and mortar businesses, we stand to lose so much. They support social mobility, allowing people of all ages and from all backgrounds to access flexible employment, with incredible opportunities for career growth, regardless of qualifications.”
“They are so often the key to improving mental health and social connectivity, offering local community groups a home, sponsoring grass roots sports teams, raising vital funds for charity, and caring for older and more vulnerable local people.”
“We have been crystal clear and consistent in our messaging to government. If you remove the barriers to growth, pubs will rapidly deliver revenue, local employment and support for supply chains and communities. Without recognition of the pressure the Autumn Budget put onto our sector, uniquely placed at the heart of every town, city and high street in the UK, they have failed communities everywhere.”
Fairer System
Ash Corbett-Collins, CAMRA Chairman said:
“Pubgoers are understandably worried about the future of community locals. Licensees will be hit by extra costs in the coming days from increased National Insurance contributions and a cut in support with business rates for pubs in England.”
“In light of these worries, it is disappointing that there weren’t any announcements in the Spring Statement to support pubs, breweries or consumers. Pubgoers and the people running pubs were crying out for the Chancellor to think again on the Employer National Insurance hike for pubs; to speed up the new, fairer system of business rates for pubs in England; for cuts to duty and VAT on beer and cider served in pubs.
“CAMRA’s 145,000 members will continue to fight for better consumer choice and support for UK pubs and brewers leading up to the Autumn Budget.”