BII pens open letter to the chancellor
The BII stresses that planned tax rises are already resulting in job losses, cancelled investment and business failure.
Steve Alton, CEO of the British Institute of Innkeeping (BII), has written an open letter to the chancellor Rachel Reeves on behalf of the pub and bar industry.
In his letter, which can be read in full here, Alton calls for the cancellation of the planned National Insurance Contributions changes, as well as the decreased level of relief on Business Rates bills for pubs until full and meaningful reform is implemented.
"The impact of these devastating tax increases is already being seen in independent pubs, with widespread cuts to staffing, opening hours and investment plans," says Alton. "Despite many BII members reporting better than expected trade in January, thanks to the diversification of their businesses, attracting different types of customers, their already high overheads mean this is simply not translating into profit. In a recent members survey, 80% of operators expect to be unprofitable due to the planned tax rises."
Undermining growth
Alton believes that the choices made by the chancellor are now fundamentally undermining growth, investment and employment in the pub and bar sector, with operators having to make difficult decisions regarding their teams and the future of their businesses.
"Pubs offer so much more than just a brilliant pint, and operators have worked incredibly hard to provide a safe space for everyone to connect, celebrate and socialise, as well as providing vital local employment and diverse career opportunities," he says.
"Cancelling the planned tax increases for pubs, which are in addition to an already unfair tax burden they are facing, will unlock their potential for growth, allow them to expand their teams, providing essential skilled, local employment and prevent unnecessary business failure."
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