Pubs sign letter to chancellor, as Budget looms

Ahead of the Budget in just over two weeks’ time, leading pub and bar businesses have signed an open letter to the chancellor calling for urgent action to support hospitality. 

The letter, written by UKHospitality and backed by a broad coalition of pubs, restaurants, hotels and bars, says the impact of the last Budget was “immediate, concentrated and socially regressive”. 

It said it left the sector “taxed out”, with businesses forced to close, more than 80,000 jobs lost in the sector, opportunities for young people reduced and prices increased for consumers.  

In the letter, operators are urging the chancellor to lower business rates to revive high streets, by delivering the maximum discount for hospitality properties under £500,000 rateable value and applying no penalty charge to larger hospitality properties; fix National Insurance Contributions (NICs) to boost jobs; and cut VAT on hospitality to drive investment and make the UK more competitive with European counterparts.

"This extraordinary coalition demonstrates the united view of hospitality that there needs to be urgent action at the Budget," says Kate Nicholls, chair of UKHospitality. "From pubs, restaurants and hotels to leisure parks, visitor attractions and contract catering, hospitality is being taxed out. 

"In two weeks’ time, these businesses and the millions of people they employ need to see measures to reduce hospitality’s cost burden and back our sector. Hospitality is clear: lower business rates, fix NICs and cut VAT to support hospitality, affect change on our high streets and support the renewal of the country."

Dear Rachel Reeves...

The letter states: "We are writing in advance of your forthcoming Budget as a sector united behind one message: deliver change for hospitality at this Budget so that we can get back to growth.

"Nothing shapes society’s sense of whether their country is on the right path like the health of hospitality and the high street.  

"But the last Budget left our sector taxed out. Today, hospitality has the highest tax bill in the economy. The impact has been immediate, concentrated, and socially regressive. Over 80,000 jobs have been lost and nearly 6 in 10 hospitality businesses are pessimistic about the sector’s prospects over the next year, negatively affecting jobs and investment.

"Many businesses have either closed or cancelled planned expansion. Young people and those who work part time have seen their opportunities narrow and the benefit bill has grown as a result. Towns and rural and coastal areas have been hit harder than the big cities due to the prevalence of hospitality. Consumer prices have risen. 

"We are asking for urgent action at the Budget, so we can support your goals to get young people and the economically inactive into work, regenerate high streets and boost tourism and, ultimately, drive economic growth."

You may also be interested in…