Mixed Budget reaction from hospitality associations

The hospitality industry has reacted with mixed reviews to the Chancellor’s Budget, some describing the plans as ‘disappointing’ and others commending the possible reduction of tourism VAT in Northern Ireland.

Louise Goalen, HBAA chair, said the association was “disappointed by the absence of specific measures” with regards to hospitality and the help the industry needed.

The HBAA, BHA and UKinbound all welcomed the decision to review cutting tourism VAT in Northern Ireland, with Ufi Ibrahim, the chief executive of the BHA saying that the body hoped “the government will recognise the benefits of a cut to Tourism VAT” and “urge a nationwide reduction”.

Deirdre Wells, OBE of UKinbound said: “The government’s commitment to a Brexit-ready Britain will be undermined if the review does not cover all four corners of the UK.”

The proposal to inject £20m funding into T levels was welcomed by all associations, while all agreed that more needed to be done to attract 16-19 year olds to the sector.

The new tax on plastic waste was also well received and the increase in National Living Wage from £7.50 to £7.83 was applauded.

However, doubts were raised across some organisations. Darren Seward, hospitality specialist at NFU Mutual, said: “Increasing the National Living Wage to £7.83 is positive for workers, but the question remains regarding where the stream of workers will come from after Brexit.”

With regard to business rates, all agreed that while the change was positive, a continual reform was needed to keep up with the rising costs of hospitality businesses.

In the new budget, business rates will be set according to consumer price index (CPI) which is lower than the retail price index (RPI) it is currently measured by. Chancellor Philip Hammond said that this decision would save businesses £2.3bn over the next five years.