A joint member survey by UKHospitality, the BBPA, BII and Hospitality Ulster has revealed that one in seven hospitality businesses will be forced to close this month as swathes of cost increases come into effect, with 64 percent of businesses planning to cut jobs as a result.
A member survey jointly undertaken by UKHospitality, the BBPA, BII and Hospitality Ulster has revealed one in seven UK hospitality venues will be forced to close as a result of April’s rising costs, while 64 percent of businesses will cut staff numbers.
Highlighting the “billions of pounds” worth of additional outgoings necessitated by high VAT, business rates, Employer NICs, energy and supply costs, the trade bodies urged ministers to act on reducing the sector’s tax burden or face mass closures.
“Yet again, hospitality businesses enter April facing billions of pounds in additional costs, which will force many to make heartbreaking decisions,” stated the trade bodies. “Despite the necessary and welcome support for pubs on business rates, neighbourhood restaurants, local hotels and independent cafes all face their bills rising in the thousands.”
The picture is equally grave for the high street arcades and family entertainment centres, whose burden has been exacerbated by five- and six figure contributions to the Gambling Levy and a proposed 30 percent increase in fees to the Gambling Commission. Worse still for the amusements and gaming sector is the restrictions imposed on them to raise prices – the stakes and prize levels for the industry haven’t been adjusted since 2014.
The strain across the hospitality landscape from amusements to restaurants was served up on a plate of stark reality to the government. The joint statement stated: “Hospitality’s tax burden – the highest in the economy – is suffocating the sector. The impact is clear: more lost jobs, less investment and business closures. The jobs, communities and livelihoods we support are hit once again.”
The hospitality survey revealed that 51 percent of businesses have cancelled investment plans as a direct result of rising costs, while 42 percent have reduced trading hours.
In their responses, 89 percent of members called for a reduction of VAT for the sector, 74 percent wanted permanent reform of business rates, and 65 percent urged changes to Employer NICs.
“Hospitality businesses are clear that cutting their costs through a lower rate of VAT, business rates reform and changes to employers’ national insurance contributions will deliver new jobs, investment and growth.”
Upping the stakes and prize levels for the amusements and gaming sector after 12 years of stagnation sounds almost unbelieveable in this context.
Closures are coming
Joint hospitality statement said… “Hospitality’s tax burden – the highest in the economy – is suffocating the sector. The impact is clear: more lost jobs, less investment and business closures. The jobs, communities and livelihoods we support are hit once again…
