Why the Budget is Pivotal for the Hospitality Industry

Picture by Harriet Pavey/ No 10 Downing Street

The Chancellor will later today announce the new Budget, unveiling the plans to move the country forward after the challenges thrown at us during the pandemic.

AGO Hotels – a hotel leasing platform with a portfolio across England, Scotland and Wales is calling on the Chancellor to provide a fair lifeline for all companies still trying to find their feet.

There are, they say three key points on its Budget wish list:

  1. Prolonged business rate relief in place, so all companies are provided the chance to get back up and running. This will allow companies much needed breathing room to continue a sustainable bounce back.
  2. VAT for the hospitality industry should remain at its current rate of 12.5%. If VAT is increased to 20%, then naturally companies will have to increase their prices to meet margins, meaning consumers will be faced with higher costs. At a time, when the general cost of living is increasing, it is essential to maintain a lower VAT level, so consumers are not discouraged by increasing prices at hotels, restaurants, and bars.
  3. Staffing shortages remain a severe challenge within the industry. A review of the country’s visa scheme would help to tackle this growing issue. We would welcome a temporary visa scheme for the hospitality sector, to prioritise the need facing our sector, and to ensure hotels and all hospitality businesses can service the business demands of guests with adequate staffing levels.