The UK's hospitality sector, comprising businesses such as food markets, restaurants, cafés, pubs, hostels, and hotels, has expressed its concerns and demands to all political parties ahead of the upcoming general election.
Following prime minister Rishi Sunak's announcement of a general election on 4 July, industry trade bodies have urged recognition of the sector's strategic importance.
Kate Nicholls, CEO of UKHospitality, emphasized that hospitality businesses are at the heart of every constituency in the country.
"Hospitality businesses lie at the heart of every constituency in the country. In serving Britain, the sector creates places where people want to live, work and invest."
Kate Nicholls
These establishments not only serve Britain but also create vibrant places where people live, work, and invest.
Nicholls highlighted the challenges faced by the sector, including the reinstatement of VAT to the standard 20% rate in April 2022 and the increase in the salary threshold for skilled worker visas from £26,200 to £38,700 in April this year.
Michael Kill, CEO of the Night Time Industries Association (NTIA), welcomed the election announcement and encouraged political parties to address these issues.
Hospitality businesses have been crucial during challenging times like the Brexit referendum in 2016 and the Covid-19 pandemic, with the Conservative Party in power for the past 14 years.
The Impact of VAT and Skilled Worker Visas on the Hospitality Sector
The reinstatement of VAT to its standard rate has increased operating costs for businesses, affecting their ability to remain competitive and potentially resulting in price increases for consumers.
Similarly, the higher salary threshold for skilled worker visas makes it more difficult for establishments to hire staff from overseas, limiting their workforce capabilities.
The Role of Hospitality in Boosting Local Economies
Despite these challenges, hospitality businesses continue to contribute significantly to local economies by providing jobs and attracting tourists.
Political parties must address the concerns raised by trade bodies and implement measures that unlock the sector's potential, ensuring its continued growth and success.