In response to Chancellor Rachel Reeves’ Spring Statement, leaders from the hospitality sector have expressed deep disappointment and concern. The statement failed to address the sector’s pressing issues, notably the impending tax increases that will hit hospitality businesses with a £3.4 billion bill from April.
Both Stephen Montgomery from The Scottish Hospitality Group and Kate Nicholls from UK Hospitality called for urgent action to support the sector, including reversing the rise in National Insurance Contributions (NICs) and developing a comprehensive plan for high street growth.
Responding to the Chancellor the Exchequer’s Spring Statement, Stephen Montgomery, Director of the Scottish Hospitality Group, said: “This statement does absolutely nothing to support the hospitality sector in Scotland or across the UK.
“In fact, the Chancellor did not even mention the hospitality industry once in her statement despite speaking for more than half an hour.
“The reality is hospitality businesses up and down the country are facing a tax bombshell next week of nearly £3.5B, and the Chancellor of the Exchequer’s statement has done nothing to allay the danger of job losses and closures across the nation’s pubs, hotels, and restaurants.
“The hospitality sector is increasingly losing confidence in the Chancellor of the Exchequer – it will only be regained if she finally listens, acts and helps the hospitality industry to grow and thrive.
“Our door remains open for talks, and the Chancellor can still do the right thing, and reverse the NIC rise ahead of the April cliff edge.”
UKHospitality said that the lack of a clear growth plan for hospitality puts high street jobs at risk.
It called for the Government to urgently bring forward a plan that allows hospitality to unlock growth and jobs, for everyone, everywhere.
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.”
