News / Bristol Hoteliers Association
‘Pleas have fallen on deaf ears and we’ve been left out in the cold again’
Hoteliers in Bristol have said the spring budget has once again left their businesses out in the cold and warned of the “extremely challenging times ahead”.
As a result of chancellor Jeremy Hunt’s autumn statement, the National Living Wage is set to increase, which struggling hospitality businesses say will put even more pressure on their finances.
Trade body UKHospitality had warned that “irreversible damage” could be caused to the nation’s “world-leading” hospitality sector if the spring budget did not offer some comfort.
Raphael Herzog, chair of the Bristol Hoteliers Association (BHA), said: “Before the budget, more than 40 MPs signed a letter to Jeremy Hunt calling on him to support the hospitality and tourism industries in the budget.
“UKHospitality and more than 100 businesses wrote an open letter to the chancellor outlining the support needed to help secure their survival.
“These included a temporary cut to the lower rate of employer national insurance contributions and reducing the rate of VAT for the sector, as the Government did during the pandemic.
“But it appears as if all those pleas have fallen on deaf ears and we’ve been left out in the cold again.”
Herzog continued: “We will, of course, continue to do everything we can to continue to keep going but it’s going to be a lot harder without the government recognising the massive contribution hospitality makes to the national economy, as well as how beneficial it is to people’s mental health.”
In announcing an extension of the freeze on alcohol duty until February 2025, the chancellor said, “We value our hospitality industry and are backing the great British pub.”
But Herzog said the industry is not feeling valued, adding: “Especially when our costs are set to increase further in order to pay the imminent higher National Living Wage.
“The day after the budget, we had our annual Night of the Stars event, where we recognise the heroes of the hospitality sector in Bristol, those who are going above and beyond to make a positive difference.
“The icing on the cake would have been to also be able to celebrate a vote of confidence in our sector from the Government, with some renewed support, but sadly, that has not happened.
“It will not spoil our party; it will not diminish our determination to keep fighting to save the sector we love; we will grit our teeth and continue to do everything we can to meet the challenges facing us.”
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Regarding the spring budget, Phil Smith, director at Business West, pointed out the lack of long-term plans for the region despite some initiatives local business can benefit from.
He said: “The budget offers some initiatives that we expect our region’s businesses will benefit from. The creative and hospitality industries, which are significant contributors to the South West’s economy, should welcome the chancellor’s specific tax measures to support them.”
He added: “However, what the region is still lacking is a long-term strategy that helps support a strong economy, and our businesses and communities to thrive. We need initiatives that address fundamental structural issues, such as low productivity and sluggish growth.
“We know our region’s businesses want significant action on key issues like transport, housing and infrastructure, something that was lacking in this spring budget.”
Main photo: BHA
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