Hospitality bosses back UKH’s call for action at upcoming Budget

Hospitality CEOs from groups including Mitchells and Butlers, Accor Hotels, Stonegate Pubs and Crerar Hotels have signed an open letter urging the Chancellor to take immediate action at the budget to prevent further business failure.  

In the letter, UKH and a total of 112 business leaders highlighted how rising costs, labour shortages and the cost-of-living crisis has led to an unprecedented surge in closures, among high-profile names as well as local community venues. 

The letter coincides with new data that showed 74% of consumers think hospitality needs and deserves more support from the government. The data from Zonal and CGA by NIQ also finds that 64% of UK consumers believe hospitality plays a vital role in their communities.

Signatories, which include restaurant operators, global hotel brands, pub groups and leisure parks, back UKH’s calls for the Chancellor to put a cap on business rates increases from April 2024 at 3%; introduce a temporary cut in the lower rate of Employer National Insurance Contributions to 10%; and review the benefits of a reduced rate of VAT for the sector to 12.5%.

Kate Nicholls, chief executive of UKH, said: “The sector’s message to the Chancellor is loud and clear: without further economic support at the upcoming Budget, we risk losing more of our institutions and doing irreversible damage to our world-leading hospitality sector.

“Extortionate operating costs are making it incredibly challenging to run a profitable business, so it’s vitally important that this is addressed in order to ease ongoing cost pressures and protect businesses from the threat of closure.”  

She added: “I sincerely hope that this letter, supported by leading individuals from across hospitality, will be enough to convince the Chancellor that his actions on 6th March will be make or break for many venues up and down the country.”