Hospitality bosses urge chancellor to invest in sector ahead of Spring Budget

An open letter urging the chancellor to take “immediate action” at the spring Budget has been signed by the bosses of 155 hospitality businesses. The letter, coordinated by trade body UKHospitality, received signatories from leading brands to single-site operators of local pubs and leisure parks. It warns the government about the ongoing inflation, debt pressures and energy costs which have become deterrents to the economic growth of the sector. The letter states: “This crisis forced us to increase prices, fuelling inflation and curtailing our investment and growth potential. While trade remains relatively stable, our businesses simultaneously face rising costs that erode margins and force prices up, and debt repayments that stifle investment. Yet hospitality can instead be part of the solution to inflation.” Ahead of the spring Budget which will be announced on the 15 March, the signatories are urging the chancellor to invest more in people through apprenticeships and incentives for people out of work as well as places, via licensing and planning reform and structural reform of commercial rents. Other requests include reforming the outdated business rates system and tackling debt to boost liquidity. In the letter, the signatories argue that the hospitality sector can achieve Government objectives and that these reforms would “allow us to rapidly deliver growth and investment, bringing many more people back into work and creating prosperity in communities right across the country.” UKHospitality chief executive Kate Nicholls said: “If the chancellor puts his faith in hospitality, the sector will repay it many times over. We have seen it time and time again – hospitality drives economic growth and creates jobs. “I hope the collective voice of hospitality is enough to convince the chancellor that his actions on 15 March will, quite literally, be make or break for many venues across the country.”