Chancellor commits to commercial tariffs and energy support, but hospitality remains fearful for the future

Hospitality trade bodies welcomed the announcements, but the industry’s general reaction to the statement – which also included confirmation that VAT will be frozen at 20% until 2026, despite intense industry pressure to reduced – has been lukewarm at best. , with a lack of targeted support leaving many operators worried about the future.

UKHospitality accused the Chancellor of providing no plan for economic growth, while the British Beer and Pub Association (BBPA) warned that more support was needed to mitigate the impact of rising costs.

Elsewhere, Sacha Lord, Greater Manchester’s night economy adviser, has warned that operator squeeze could see venues close at a faster rate than during the pandemic.

It is a very sad situation and there will be many extremely worried business owners in the UK tonight,” he said.

Jeremy Hunt outlines his vision

Speaking in the House of Commons this lunchtime (17 November), the Chancellor warned of tough times ahead, with GDP set to contract by 1.4% next year and inflation to remain above 7%.

A budget in all but name, it announced tens of billions in tax hikes and spending cuts, blaming the economic crisis on global factors, including the ongoing war in Ukraine.

There is a global energy crisis, a global inflation crisis and a global economic crisis,” Hunt said.

​ But today, with this plan for stability, growth and public services, we will weather the storm. We do it today with British resilience and British compassion. Because of the tough decisions we are making in our plan, we are strengthening our public finances, reducing inflation and protecting jobs.

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