Over 50% of NI Hospitality Businesses To Reduce Investment & Staffing Without Business Rates Support & VAT Reduction

A survey by Hospitality Ulster has revealed that more than half of hospitality businesses will reduce investment and staffing levels without business rates and VAT reduction support from the UK government.

Colin Neill, Chief Executive of Hospitality Ulster has called on the UK Chancellor to prioritise the concerns of the hospitality sector and address business rates and VAT at the Autumn Statement.

The survey, conducted by CGA, also shows that business optimism in Northern Ireland has plummeted to 22%, down 10% from the summer while over 15% of businesses have said they are at risk of closure within the next 12 months.

The recent survey also found that:

• 69% of operators have increased their menu prices, but over half have not passed on the full cost of increases in food and drink supplies to consumers.
• Energy prices are a significant concern for 62% of hospitality operators, as they have seen an average increase of 41% in monthly bills.
• Members would most benefit from VAT and business rates relief, as well as a reduction in alcohol duty rates.
• The Christmas trading period is a boost which almost half of members are optimistic about, but 44% have seen fewer advanced bookings than this time last year.

Speaking ahead of the Chancellor’s Autumn Statement, Colin Neill, Chief Executive, Hospitality Ulster, said: ‘The results of this survey lay bare the potential impact that inaction at the Autumn Statement would have on our hospitality sector.

‘It is staggering that just 22% of our members feel optimistic about the future, especially coming up to what is usually the busiest and most profitable season for our hospitality businesses. Our pubs and restaurants are only able to absorb endless cost rises for so long, which means businesses have had no other choice but to pass these costs onto the consumer, who do not have bottomless pockets either.

‘The Chancellor must listen to our concerns. As Northern Ireland’s fourth largest employer, we urgently need to see relief for the hospitality sector, business rates dealt with, and steps to reduce the overall tax burden on the sector in relation to VAT and excise duty. Reducing investment and slashing staffing levels before Christmas is the last thing that business owners want to do. But without support, their hands will be tied.

‘These are businesses in the heart of our communities and high streets across Northern Ireland. They generate economic growth and drive investment across our cities and towns, and they deserve to be recognised, and their concerns acknowledged. Without hospitality, our economy cannot grow. The UK Government must act immediately to underpin this growth and ensure the survival of our pubs and restaurants.’

Featured image: Colin Neill, Chief Executive of Hospitality Ulster ©Press Eye/Darren Kidd