The recruiter claims this is especially vital for businesses in London and the South East, which are in the front line of deriving foreign revenue from the many business and leisure travellers who flock to the UK and increasingly look to enjoy world-class cuisine in and around the capital.
Craig Allen, founder and director of The Change Group, said, “Phillip Hammond should prioritise the pub and restaurant sectors in his Autumn Statement as this is the fourth largest employer in the UK and one of our fastest growing sectors. According to the BHA, hospitality businesses employ 10% of the UK work force and are the sixth largest contributor to export earnings.
“A weaker pound has strengthened tourism and this is good for hospitality. But recruitment is still a challenge, and may become worse depending on the terms of Brexit. Plus employers are facing higher costs because of the increase to the minimum wage and inflation and the Business Rate reviews. The Chancellor needs to do more to help this vital industry and quickly to boost confidence.
“High rates favour large national chains and make it harder for innovative independent bars and restaurants to compete. The result is that every high street looks the same, and are much less appealing for the customer, which eventually leads to a reduction in footfall for everyone.”
The Change Group has outlined a number of measures to support the hospitality sector:
- Boost consumer spending by maintaining consumer confidence. There is a risk that high inflation combined with fears over a post Brexit recession and reduced domestic demand will dampen consumer spending, which is as vital to UK hospitality as income from tourists.
- Keep level or bring down excise duty on wines and beers given the impact of exchange rates on the price of imports. This is especially important for pubs that are struggling in the face of rising wine and beer costs.
- Consider reducing Employers’ National Insurance for under 25s to encourage employers to offer opportunities to young and inexperienced people. This will help develop a stronger pool of experienced British hospitality talent for the future.
- Support high street retail as shopping and hospitality go hand in hand. In particular introduce measures to control business rates, which can represent 30-40% of retail property costs. The Chancellor should also look at measures that improve access to retail and in particular, easing restrictions on parking which can encourage people to shop online rather than in person.