Home Business News Mini budget ‘missed the opportunity for night time businesses who are left ‘out in the cold’ and ‘face bankruptcy and closure’

Mini budget ‘missed the opportunity for night time businesses who are left ‘out in the cold’ and ‘face bankruptcy and closure’

by LLB Finance Reporter
23rd Sep 22 1:46 pm

Night businesses have reacted to the Chancellors mini budget and Kwasi Kwarteng has “missed the opportunity” to help those businesses who face “bankruptcy and closure.”

Michael Kill, chief executive of the Night Time Industries Association (NTIA), said he is very “dissapointed” there is no support for businesses who have been hit the “hardest.”

Kill said, “We are extremely disappointed with the Chancellor’s announcement this morning. It will be seen as a missed opportunity to support businesses that have been hardest hit during this crisis, causing considerable anxiety, anger and frustration across the sector as once again they feel that many will have been left out in the cold.”

Read more on the mini budget:

Industry reaction: ‘This budget is fiscally reckless’ it is ‘Trussmoronics not Trussonomics’ which is ‘too little, too late’

The not so mini budget corporation tax cost will cost tax payers £14 billion in 2023

Truss reforms: UK regulations have ‘suffocated’ London’s competitive edge, warns think tank

Duty rates for beer, cider, wine, and spirits axed

“We have been extremely clear with the Government that the “Energy Bill Relief Scheme”, even with the announcement of the limited tax cuts on National Insurance, Corporation Tax and Duty, is unlikely to be enough to ensure  businesses have the financial headroom to survive the winter, especially with yesterday’s announcement of the rise in interest rates from the Bank of England.”

“I would urge the Chancellor and  Government to reconsider these measures, given the limited impacts of the current tax cuts on the immediate crisis for many businesses across the sector, the extremely vulnerable position the night time economy and hospitality sectors remain in, and re-evaluate the inclusion of general business rates relief and the reduction of VAT within these measures.”

The chief executive of Live, who represents the UK’s live music sector, warned businesses who are already struggling could now “face bankruptcy and closure.”

Jon Collins said, “While we are pleased to see the Government taking steps to alleviate the cost-of-living crisis, today’s announcement delivers little for the UK’s world-leading live music industry.

“Jobs are already on a knife edge, and we agree with the Chancellor that there are too many barriers in sectors like ours where the UK leads the world.

“Combined with the impact of reduced public spending power and rising costs across the supply chain, businesses that are already struggling to turn a profit will face bankruptcy and closure.

“Only the emergency measures that we have suggested to Government will prevent this – injecting cash into the bottom line of struggling businesses through a reduction in VAT on ticket sales, as well as major reform of business rates.”

The night-time economy adviser for Greater Manchester, Sacha Lord, slammed the Chancellor’s package and said he was left speechless.

Lord tweeted, “Speechless. No VAT or biz rate support for hospitality.

“Corporation tax cuts are completely useless if businesses aren’t turning a profit, or worse, closed.

“These announcements will now mean last orders for thousands of hospitality businesses meaning mass redundancies.”

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