Latest news with #UKHospitality
BBC News
36 minutes ago
- Business
- BBC News
Trade body wants Liverpool 'tourist tax' pause during appeal
A trade body which represents the hospitality industry said a so-called "tourist tax" on hotel guests in Liverpool should not be levied while an appeal against the plan is being £2-per-room per-night charge was introduced on Sunday after it was approved in a ballot by hotels which are part of the city's Accommodation Business Improvement District (ABID).The aim of the fee, which is officially known as a "visitor charge", is to raise money to support Liverpool's visitor scheme is facing a challenge from Whitbread plc, which owns the Premier Inn chain of hotels. Whitbread has not publicly revealed the reasons for its opposition to the charge. Trade body UKHospitality said it had written to Liverpool's ABID to suggest the introduction of the charge be paused for eight weeks, pending the appeal outcome.A spokesperson said: "UKHospitality is clear that as these decisions are made, the ballot process must be fair, timely and transparent."We have been made aware of an appeal against the Liverpool Accommodation BID and we have therefore written to the BID with a suggested eight-week delay to its introduction to allow for the appeal to run its course." 'Not a tax' Bill Addy, chief executive of the Liverpool BID Company, which manages the Accommodation BID, suggested using the phrase "tourist-tax" was not helpful. He said: "This is not a tax. Local authorities raise taxes, central government raises taxes. "This visitor charge is an industry-led effort to boost the visitor economy, to have a say in how the hospitality sector is supported, and tackle the challenges it faces. "This has been a process entirely guided by the private sector board of hoteliers – who are using Business Improvement District legislation to make a difference for their industry and their city."Mr Addy added: "It's in the very DNA of Business Improvement Districts to support business and make cities thrive, and this is at the heart of this. "It isn't a political issue, it's far more important than that." The government has told the BID there was no requirement to pause the collection of the levy while the appeal process is considered. Were the Secretary of State to declared the results of the earlier ballot void, money raised would be returned to everyone who paid it. Listen to the best of BBC Radio Merseyside on Sounds and follow BBC Merseyside on Facebook, X, and Instagram. You can also send story ideas via Whatsapp to 0808 100 2230.
Telegraph
3 days ago
- Business
- Telegraph
One in three hospitality businesses losing money after Reeves tax raid
One in three hospitality businesses, including restaurants and pubs, are operating at a loss in the wake of Rachel Reeves's tax raids, industry leaders have warned. A survey commissioned by the main trade bodies found that April's increase in employers' National Insurance had a devastating impact on the sector. UKHospitality said the Chancellor's decisions had added an extra £3.4 billion to firms' costs, meaning one-third were now losing money. Before the change, 11 per cent had said they were losing money. It warned that the effects were so dramatic that Ms Reeves' target of bringing the employment level up to 80 per cent was 'doomed to fail'. The survey, for UKHospitality, the British Institute of Innkeeping, the British Beer and Pub Association and Hospitality Ulster, also found that six in 10 firms have had to cut jobs, while 63 per cent have reduced the number of hours available to staff. In a joint statement, the trade bodies said: 'The Government seems to be setting itself up to miss its own targets with these most recent cost hikes for the hospitality sector. 'Hospitality is vital to the UK economy but is under threat from ongoing costs rises, which the April increases have only exacerbated. Jobs are being lost, livelihoods under threat, communities set to lose precious assets, and consumers are experiencing price rises when wallets are already feeling the pinch. 'The Government must act urgently to mitigate for the changes to Employer NICs and also deliver on its promise of root and branch business rates reform. 'The overall tax burden on our sector must be reduced, including consideration of the long-standing ask of a VAT cut for the sector, so the hospitality industry can return to investment, job creation, and growth in communities the length and breadth of the country.' In last year's Budget, Ms Reeves increased the employer rate of National Insurance by 1.2 per cent to 15 per cent, adding £1 billion in costs for the hospitality industry. At the same time, increases in the minimum wage imposed £1.9 billion in costs. Another £500 million came from reduced business rates relief. The survey, undertaken in May, found that more than half of operators had been forced to cancel investment. Some 76 per cent said they had had to increase prices, and there was also a knock-on effect on consumers and the wider economy. Operators called for a reversal of the employer National Insurance rise, a VAT reduction for hospitality, and reforms to business rates. Ms Reeves decided to increase NI on employers last October, so that it did not break the letter of Labour's manifesto commitment not to increase taxes on working people. As well as the increase in the rate, the threshold at which it comes in has also fallen from earnings of £9,100 a year to £5,000. The Chancellor admitted the increase would be difficult for many firms to absorb. Last week, Tesco announced it would close some stores an hour early - 10pm instead of 11pm - after being hit by the rise in NI.
The Sun
3 days ago
- Business
- The Sun
Pubs and restaurants are ‘under threat' after Labour's tax hikes — with a third now running at a loss
PUBS and restaurants are being driven into the ground by Labour's tax hikes - with a THIRD now operating at a loss. A damning industry survey reveals the number of boozers at risk of closure has increased 11 per cent in the last three months. Landlords are now warning punters that putting up drink prices is the only way they can survive. The average price of a pint has already soared to £5.17 in Britain, and The Sun's Save Our Sups campaign is calling for more support for the countries' embattled locals. In a rare joint intervention, four trade bodies have come together today to warn hospitality is 'under threat' due to April's National Insurance rises and Business Rates whack. They are demanding urgent relief for the pub and restaurant sector which they claim was saddled with £3.4billion extra costs. As well as a third of bosses disclosing they are in the red, their survey also revealed six in 10 have been forced to cut staff to save money. Sounding the alarm are UK Hospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster. They said: 'Hospitality is vital to the UK economy but is under threat from ongoing costs rises, which the April increases have only exacerbated. 'Jobs are being lost, livelihoods under threat, communities set to lose precious assets, and consumers are experiencing price rises when wallets are already feeling the pinch.' Meanwhile, a separate report showed private sector activity is at its weakest since 2022. The Confederation of British Industry also blamed Rachel Reeves' £25billion NICs hikes for hurting businesses. Locals Heartbroken as Auchenmalg's Only Pub, The Cock Inn, Closes Down 1
Daily Mail
3 days ago
- Business
- Daily Mail
Chancellor's Budget hangover leaves pubs in red
Rachel Reeves has been warned her tax hikes risk a wave of pub and restaurant closures as one in three hospitality firms are now loss-making. The proportion of businesses in the sector in the red for the first three months of the year was a sharp increase on the previous quarter. And six in ten firms said they have been forced to cut jobs to stay afloat, after £3.4billion in extra costs hit the industry in April. That was according to alarming research from industry bodies including UKHospitality and the British Beer and Pub Association. The survey also found that just over three in four operators have had to increase prices. In a plea for Government help, the groups said: 'Jobs are being lost, livelihoods under threat, communities set to lose precious assets, and consumers are experiencing price rises when wallets are already feeling the pinch.' They said it was 'the first indication of the devastating effects of the changes that hit the sector in April'. At her first Budget last October, the Chancellor whacked the sector with increases in employers' National Insurance Contributions and the national minimum wage, as well as business rates changes, which all took effect in April. The industry has called on the Government to help by reversing the NICs increase and offering a VAT cut on food and drinks sold in hospitality venues. They also want to see the business rates system reformed. The figures come as a separate gloomy report from the Confederation of British Industry (CBI) found private sector confidence is at its weakest since September 2022 – at the time of Liz Truss's mini-Budget. Alpesh Paleja, deputy chief economist at the CBI, said firms were looking to the Government to take 'decisive action to restore business confidence and boost growth' as it prepares to unveil its spending review and industrial strategy. That was echoed by Make UK, which represents British manufacturers. In a separate report it urged Labour to pledge to slash industrial energy costs, which it said are now four times higher than in the US and 46 per cent above the global average. Boss Stephen Phipson said: 'If we do not address the issue of high industrial energy costs in the UK as a priority, we risk the security of our country. We will fail to attract investment in the manufacturing sector and will rapidly enter a phase of renewed de-industrialisation.'
Business News Wales
5 days ago
- Business
- Business News Wales
Capturing the Local Impact of Hospitality in North Wales
When you live and work in North Wales, the value of hospitality and tourism is not something you need to be told – you see it every day. It's in the young people gaining skills and confidence through a college course or first job. It's in the family running a rural pub that holds a community together. And it's in the visitors who return year after year, not just for the scenery but for the welcome. But showing that value – proving it in a way that's recognised by decision-makers – hasn't always been straightforward. That's why I see the introduction of UKHospitality's Social Productivity Index as such a significant step forward. It gives us a way to capture not just the economic impact of our sector, but its social value, too. And for those of us working across hospitality in North Wales – whether through training and education or directly in our communities – that shift in how we measure impact is long overdue. At Grŵp Llandrillo Menai, we work with learners, businesses and communities across the region. Tourism and hospitality are key sectors for us, not only because of the number of jobs they support, but because of the opportunities they offer. We've recently secured Growth Deal funding for a Tourism Talent Network project – now called Academy Croeso – which supports people into the sector and helps them progress once they're in it. This isn't just about frontline roles. It includes leadership and management, digital skills, sustainability, and wider development – the sort of wraparound support that allows people to grow into long-term careers. That wraparound support matters most when it's rooted in the local community. We're working directly with businesses across the region and running a programme that includes engagement with schools, both primary and secondary. It's about making opportunities visible early on – not just for young people but for parents and teachers, too. When people see clear pathways, they're more likely to see the sector as a viable, worthwhile career and stay in the communities where they grew up. That local focus is something I've also seen first-hand through my involvement with Yr Eagles, a community pub in Llanuwchllyn near Bala. When the owners decided to retire, the village came together to buy the pub – not because it was a business opportunity, but because it was a vital part of community life. It's where groups meet, where events are held, and where neighbours connect. We established a community benefit society – Menter Gymunedol Cyf – raised funds through a community share offer and were able to secure additional grant funding to make it happen. Any income generated now goes back into the community, supporting, for example, the local after-school club, which in turn supports the viability of our village school. This is what social productivity looks like in practice – local action, local benefit, and long-term value. But it takes time, skills and support to get there. One thing we've learned is the need for greater capacity building at community level. These kinds of projects can't happen in isolation. They need to be recognised, supported, and enabled through wider policy frameworks. That's especially important in rural parts of Wales, where tourism and hospitality are particularly important for delivering real potential to spread prosperity. They offer work to a diverse workforce, help keep the Welsh language vibrant and connect directly with other foundational sectors like food, agriculture and energy. For example, we've run Agritech and Agrifood programmes from our Food Technology centre on Anglesey for many years, and are building a critical mass and momentum around land based knowledge transfer at Coleg Glynllifon. The links between the food and drink sector and the visitor economy are clear and mutually reinforcing. This is about systems and systems thinking/delivery, not silos and the Social Productivity Index helps us reflect that. The challenge now is not just to measure this impact, but to lock it in. That means ensuring the value created through tourism feeds back into the infrastructure communities need, from housing and transport to broadband and public services. It also means recognising that this sector plays a foundational role in attracting inward investment. High-quality hospitality and vibrant communities make a place investable, not just visitable. There are already encouraging signs of change. Strategies like the new sustainable tourism plan for Gwynedd and Eryri focus on reducing seasonality and spreading benefits more evenly and sustainably across the year. We've seen similar approaches elsewhere in Europe, and there's much we can learn from how others link tourism income to reinvestment in communities. But to build momentum, we need tools that can help us make the case. That's where the Index comes in. It provides the evidence base to support what many of us already know: that hospitality brings economic, social and cultural value in a way few other sectors can. That's where the real opportunity lies – in using it to inspire, to influence, and to invest in the future of a sector that plays such a central role in the life of our region. Gwenllian Roberts talks about this and more in the Business News Wales Tourism & Hospitality podcast episode How Should We Measure the Impact of Hospitality? Listen to the podcast HERE
