Both the FT and the Telegraph report that The Chancellor has stated that only pubs will receive tax relief from the Government’s recent business rates U-turn. This leaves other hospitality businesses without the support they need. She was speaking at the World Economic Forum in Davos. She went on to say “The situation the pubs face is different from others in the hospitality sector.” Not surprisingly this decision has drawn criticism from industry leaders. They point out that the circumstances pubs face are not unique. The challenges, including economic and tax cost pressures, all of those are common across the whole hospitality sector. Kate Nicholls, the chairman of UKHospitality points out that that the specific issues on business rates that pubs face are also shared by hotels, “A whole hospitality problem needs a whole solution. The package needs to be substantive, and it needs to be sector-wide, otherwise it risks being too little, too late. More businesses are going to be closing.”
iBOSS Comment:
Ms Nicholls is basically right in that support is needed across the board for many hospitality businesses. Whilst it has recently been reported that on average one pub is closing each day in the UK, hospitality in general is suffering. Looking forward it is questionable whether this situation will improve soon with the present economic uncertainties. If you have a hospitality-oriented business and are struggling to survive, let alone grow, then contact us at iBOSS and request one of our free consultations on how we may be able to help. We have considerable experience in the hospitality industry. Simply call phil on 07876 503830 or e-mail him at phil@theiboss.co.uk.