UKH – ‘Budget ignores large operators’

Yesterday’s Budget includes some welcome changes but ‘utterly ignores’ larger operators, UK Hospitality CEO Kate Nicholls has said.

In a statement released yesterday, Nicholls welcomed many of the coronavirus emergency measures.

She applauded measures including the year-long suspension of business rates for small hospitality business, the interruption loan scheme of up to £1.2m to support SMEs and 14 days statutory sick pay refunded for businesses with fewer than 250 employees, but said larger operators had been ignored at a time of crisis.

“While the measures announced today may give smaller hospitality businesses some breathing room, it’s vital to recognise larger operators, and the huge number they support, but which have today been utterly ignored at a time of business crisis,” she said.

Nicholls recognised announcements of a business rates review Autumn completion date and a rise in pub discount to £5,000 as ‘positive steps,’ in the Government acknowledging of the need to modernise and improve, and recognising the importance of the hospitality industry.

“That said,” she added, “many of the hardest hit businesses will not benefit, either because they have rateable values above £51k (or above £100k for pubs) or because state aid rules mean that venues in bigger chains - the larger employers - will be ineligible, so more will likely be needed between now and implementation of a new system.”

Nicholls also welcomed both the freeze on beer duty and the remit issued to the Low Pay Commission, two issues it has heavily campaigned for, and said the increased in NIC threshold to £9,500 “should help put money back in the pockets of consumers without increasing costs for businesses, which is to be applauded.”

“It is disappointing, though, that there has not been a similar increase for employers which would have helped boost business investment and jobs, especially given the rises in wages costs.”

Another point of approval was in the governments decision to spend £1.5 billion of new capital, over five years, for Further Education colleges.

“Such education establishments are a vital pipeline into hospitality careers and require the sorts of capital investment of which the Chancellor spoke,” she said. “Along with a promotion of our industry’s careers, including via the sector deal, we hope that hospitality – and those entering our great industry - can benefit.”