Hospitality businesses across Staffordshire have given a cautious welcome to the Government’s decision to cut business rates by 20% for pubs, clubs and live music venues from April – but they have warned that the measures do not go far enough to support the wider sector.
Prime Minister described the reduction as a “first step” of support, and cafés and restaurants have been left out of the relief.
As local businesses wait to discover the final details, they have made fresh calls for broader tax reform, including a reduction in VAT.
Craig Wilkinson, owner of Lunar in Barlaston, said the announcement would do little to ease the financial pressures facing the hospitality industry.
The entrepreneur, who launched a parliamentary petition calling for VAT reform earlier this year, said rising labour, energy and supplier costs, National Insurance changes, VAT complexities and changes to Statutory Sick Pay were placing far greater financial strain on operators.
He said: “Ultimately, it’s good to see some gestures but it’s not enough, too much change in recent years have created more complexities.”
“It makes this simply appear to the industry as a political gesture rather than truly understanding the challenges we really face.”
Chris Lewis, of the Lewis Partnership, which owns the Dog and Doublet in Sandon and the Moat House in Acton Trussell, is waiting to find out if either of his businesses will qualify for the relief.
He Daily Focus: “It is really welcome to see the new Prime Minister and Chancellor recognising that the industry needs some help within the first week of a new government being formed.
“I would like to see that go further and cover the whole of the hospitality industry, where there is a big push for changes to VAT.
“We’ve got the Spring and Autumn Statements to come, so let’s see what happens there.”
Josef Bailey, founder and director of Stoke-on-Trent hospitality group The QUARTER, which is preparing to open its new live entertainment venue, The Warehouse, said the business rates reduction was only “one piece of a much bigger puzzle”.
He said: “If the Government truly wants Britain’s hospitality industry to flourish, protect high streets and preserve thousands of jobs, then it must go further. Meaningful reform of hospitality VAT, a better understanding of employment cost pressures, and recognition of the unique challenges facing independent operators are essential.
“The hospitality industry isn’t asking for special treatment. We’re asking for the opportunity to succeed.”
Burton upon Trent-based Punch Pubs & Co, which operates around 1,300 leased pubs across the UK, described the decision as “a welcome move” and “a clear recognition of the vital role pubs play at the heart of communities”.
Chief executive Andy Spencer said: “At a time when our sector continues to face significant cost pressures, we hope this marks the start of a broader package of measures that recognise hospitality as a key growth sector for the UK economy.
“We are also encouraged by the commitment to return to wider business rates reform at the Budget, including a review of Small Business Rates Relief, as pubs have faced a disproportionate tax burden for many years.
“With a fairer tax and regulatory environment, pubs can unlock even greater investment, support local employment, strengthen communities, and play a leading role in the regeneration of high streets.”
