While this week’s Budget includes some welcome measures for hospitality and foodservice, these represent only a small step towards addressing the challenges.
The expanded business rates relief and tariff reductions on selected imported goods are encouraging, alongside the continued freeze on fuel duty. However, the 3.9% increase in the National Living Wage will add further pressure to labour costs, affecting not only our own business but also customers and suppliers across the supply chain.
While the additional business rates support is positive, it will not benefit all businesses equally, more likely offering some protection against closures rather than a material hospitality boom.
Combined with continued pressure from energy and fuel costs along with the decision to ignore industry calls to reduce hospitality VAT, the financial burden on businesses remains significant. Against a challenging economic outlook, greater certainty and support is needed to protect jobs, invest in growth and keep prices affordable.
If the Government is serious about delivering growth in every postcode, it must do more to support. As two industries that genuinely do operate in every postcode, hospitality and wholesale are major employers and vital contributors to communities across the country and the wider economy.
