Home Business News Chancellor’s Spring Budget is telling the hospitality sector that ‘you are on your own’

Chancellor’s Spring Budget is telling the hospitality sector that ‘you are on your own’

by Thea Coates Finance Reporter
6th Mar 24 2:14 pm

In the wake of the Spring Budget announcement, the Night Time Industries Association (NTIA) voices profound disappointment and concern over the lack of substantial support for the struggling sector.

Characterising the Chancellor’s message as “You are on your own!,” the NTIA emphasises the dire economic challenges facing its members and warns of lasting consequences without adequate assistance.

Michael Kill, CEO of the NTIA said, “The economic challenges faced by our sector are catastrophic, and following today’s spring budget announcement, the lack of support will have a profound impact on this sector for years to come.

“For months, the entire sector has been providing the Government with critical information outlining our precarious situation and the urgent need for supportive measures to sustain businesses through these turbulent times.”

The decision to freeze duty on alcohol and fuel, the increase in VAT threshold while appreciated, falls woefully short of addressing the comprehensive financial support required by businesses.

The NTIA warns that the budget’s inaction will only worsen losses, leading to widespread job cuts and economic hardship. This neglect, compounded by the sector’s fragility over the past four years, threatens to push it further into crisis, with long-term implications for employment and tax revenues.

He added, “Even the autumn budget last year, which extended business rates relief, was marred by the Government’s use of it to offset increases in the National Living Wage, demonstrating a pattern of giving with one hand and taking with the other.”

The NTIA accuses the Government of prioritising political posturing over the well-being of businesses, suggesting that the budget is more about positioning for the upcoming election than addressing the sector’s needs.

Such disregard for the livelihoods and economic contributions of the night-time industry is unacceptable, asserts the NTIA, calling for immediate action and expressing readiness for an early election to effect meaningful change.

Kill said, “In simple terms, it’s time for change. We have lost faith in the Government.

“The livelihoods and businesses we represent are not political pawns but vital contributors to community well-being across the UK.

“It is imperative that the Government recognises this and takes decisive steps to support the sector.”

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