EDITOR ’ S CHOICE
The first 100 days – what hospitality needs from the new government ’ s plan
- EVANS & CO -
Following Sir Keir Starmer ’ s election victory in July , leaders from all sectors have urged the incoming Labour Government to fulfil its pledge of prioritising economic growth . Gareth Evans – former chef and founder of Evans & Co Hospitality Accountants – tells us what the industry needs from our new Government ’ s plan .
An Immediate Reduction in VAT To rejuvenate the hospitality industry swiftly , a reduction in VAT rates is essential . Without this adjustment , there is no quick fix to mitigate food inflation or address the ongoing challenges such as tax burdens , supply chain issues , staff recruitment from Europe , PAYE , and pandemic-related debts .
Passing these increased operating costs onto customers is not feasible , particularly as they are already enduring financial strain from the cost of living crisis over the past three years .
Business Rates Relief Extended Increased food and utilities costs and a pending NMW rise are squeezing margins more tightly than ever , and there ’ s no doubt that an extension of the existing Retail , Hospitality and Leisure Business Rates Relief scheme which provides eligible businesses with 75 % relief in Business Rates would certainly be welcomed .
Realistic Energy Price Caps Whilst households benefit from energy price caps , there has never been a scheme in place for businesses , and several of our clients have seen their utility costs quadruple over the past few years Instead , the government introduced the Energy Bills Discount Scheme which offered discounted energy rates on eligible non-domestic energy contracts , but since this scheme ended in March 2024 , no further government support has been announced
Alcohol Duty Reform 20 % VAT is levied on food sold in pubs , but not in supermarkets , which in turn allows these retailers to subsidise artificially low beer prices . As figures show that consumers are spending less money in pubs and bars than at any time since the lockdown ended , this feels to many like yet another penalty at the expense of the struggling hospitality sector .
A Dedicated Minister for Hospitality All of these issues and more need a strong voice at the highest level and whilst there ’ s been a lot of talk about a dedicated minister for the Night Time Economy , we believe the Hospitality sector as a whole needs a dedicated voice in Parliament . Implementing such a move would establish a national network of industry representatives to assist policymakers in navigating the sector ’ s unique challenges , showcasing a commitment to representation for the sector .
www . evansandco . uk
- 24 -