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The Bristol Hoteliers Association have raised concerns about the chancellor’s announcement that the National Living Wage will be raised by almost 10% from April 2024, as they fear it will “put further pressure on their businesses”.
While the business rates relief scheme has been extended, the association’s chair Raphael Herzog said it is “cold comfort” in face of increased wage costs and the continuing high prices for energy, food and drink.
The association has noted that people are still being cautious with their money, having noticed that Christmas books are at a similar level to last year, but “nowhere near” where they were pre-pandemic.
Herzog said: “The fact that the Chancellor chose to freeze alcohol duty is one less cost for us to take on but it’s only a temporary reprieve, until August next year. We need longer-term support if our businesses are to be sustainable. Industry bodies have, for some time, been calling for reductions in VAT and employer contributions to National Insurance.
“The rise in living wage is higher than was forecast in March, and effectively blows out of the water any ‘benefit’ to our businesses through the extension of business rates relief. While any reprieve from increasing costs is going to help, we need long-term support and solutions, not quick-fixes.”
The chair maintained that a reduction in VAT would be the most effective way the government could ease hospitality’s tax burden.
Herzog added: “It would be a significant show of support and vote of confidence in our sector.”
