UKH: ‘Labour needs to deliver on its commitments, and quick’

UKHospitality chief executive Kate Nicholls has said that “we need to see Labour deliver on its commitments, and quick,” after the party secured a landslide victory at the general election.

The UKH boss said within the first 100 weeks, the sector needs to see reduced employer National Insurance Contributions to help sector businesses with their staffing costs and to help drive net zero, green investment in the sector “needs to be better supported”, through the introduction of investment credits.

Nicholls also said that in this parliamentary term, planning reform needs to take place to “allow the sector to invest, grow and regenerate our towns and cities,” adding that too often, expansion plans are curtailed by “arcane and arduous planning laws”.

The Labour party won a landslide victory with over 400 seats and a majority of around 170 with a small number of seats still to declare at the time of writing.

Many business leaders have now called on Starmer to deliver on his manifesto promises to help hospitality to flourish and prosper.

Saxon Moseley, partner and head of leisure and hospitality at RSM UK: “There are three quick wins that the new government could deliver to support the hospitality industry now. Firstly, replacing the business rates system to alleviate the biggest burden for hospitality businesses, and stimulate growth.

“Second, reduce the threshold for visas within hospitality roles to close the skills gap and help recruitment for key jobs such as experienced chefs which the industry is currently lacking. Thirdly, cut VAT on food and drink sales to help businesses who have seen margins eroded in recent years.”

Meanwhile, Steve Jones, CEO of Wyboston Lakes, said: “The arrival of a vast number of new MPs offers a major opportunity and need for the meetings and events industry to educate them about our industry and the challenges it is facing.

“Along with the tailwinds of Brexit and the Covid pandemic there are more recent challenges around high inflation, in part caused by the ongoing war in Ukraine and the knock-on energy costs, and higher wage rates being expected by the tens of thousands of hard-working team members.”

He concluded: “It is also having to adapt to compressed working weeks with more and more administrative and professional workers either working less days/hours or spending some of their week at home, meaning the demand for key dates is leaving unfilled space on other dates. It is clear to see that this vibrant industry which is used by every other sector in the economy, bar none, is not without its challenges and already struggling operators may choose to exit the sector, repurposing their facilities.