A hospitality leader has warned that entrepreneurs entering the sector could be “lambs to the slaughter” if they are encouraged to open new pubs, restaurants and cafés while established operators struggle with rising costs.
Craig Wilkinson, owner of Barlaston’s modern fine dining restaurant Lunar, was speaking after the Government launched a £10 million fund designed to help people start hospitality businesses, bring empty premises back into use and train people for careers in the sector.
The three-year Hospitality Grant Scheme is being promoted as a boost for independent pubs, restaurants and cafés, with more than £3 million of the funding earmarked for Pub is The Hub to help rural and deprived communities diversify their pubs.
But Craig has told Daily Focus that the priority should be helping existing businesses survive what he described as extremely difficult trading conditions.
He said: “There is a real irony to this scheme. The Government needs to address the extremely difficult trading conditions that have led to venues closing and investment and training being reduced before leading a new generation of hospitality entrepreneurs like lambs to the slaughter.
“We are seeing good, established businesses close week after week, and experienced operators under extraordinary levels of stress. I simply could not recommend someone enter hospitality in the current climate.”
Craig added: “Before encouraging more businesses to open, the Government must address the incessant cost increases and complexities of doing business, complex VAT and business rates system, rising employment costs and increasingly burdensome legislative environment that are making it so difficult for the businesses already here to survive.”
Craig is behind a Parliamentary petition which called for a 10% VAT reduction for those in the hospitality industry.
The petition had 16,111 signatures when it closed on Saturday (12 September), but the Government had already ruled out the rate cut.
Chef Tom Kerridge is also spearheading the #VATsTheProblem movement calling for the same reduction, and almost 374,000 people have signed his petition.
Staffordshire Chambers of Commerce called for VAT to be cut to 10 per cent in its submission ahead of the Government’s Budget.
Declan Riddell, the Chamber’s policy manager, said: “While any support for the hospitality sector is welcome, and this new scheme will encourage future hospitality entrepreneurs and train staff in the skills needed for the industry, we would really like to see support for existing hospitality businesses who are battling economic headwinds to stay afloat, in a sector which is facing an ‘existential crisis.’”
Announcing the new scheme, Minister for the Future of Work Kate Dearden said: “Hospitality venues are where communities come together and where many people get their first experience of work. They create jobs and help our towns and neighbourhoods to thrive.
“This funding will back local businesses to grow, boost opportunities for people across the UK and support growth in every part of the country.”
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