Reactive statement from Hospitality Ulster on UK Budget

Colin Neill, Chief Executive of Hospitality Ulster, said:

“The Budget announcements will take time to fully assess, and we will be looking closely at what they mean for hospitality businesses in Northern Ireland.

“Measures introduced specifically to support hospitality elsewhere in the UK, such as the increase of the threshold in small business rates relief and the freezing of rate increases to the rate of inflation for two years, should generate additional funding for Northern Ireland through the Barnett formula. It is essential that this money reaches our sector. Hospitality businesses here face significant financial pressures, and any funding arising from hospitality-specific support should be ringfenced to deliver direct benefits for local operators.

“We recognise that the increase in wages will help people facing the cost-of-living crisis, but there is also a cost of doing business crisis and therefore this cannot be done in isolation. The Government cannot continue to raise wages without addressing the excessive taxation of the hospitality industry which is now over 40%. Put simply, we cannot pay from an empty purse. Higher wage bills without lower taxation will result in less hours for staff and less employment in the industry as businesses struggle to balance the books.

“We recognise the financial pressure on the UK Government and the NI Executive but they must also recognise the unsustainable financial pressures on hospitality businesses, especially in Northern Ireland, pressures that have been recognised by the NI Affairs Committee, who have recommended a VAT cut to 10% for a four-year pilot.”

“We will continue to fight for our industry and push for the action on VAT and business rates that is needed to ensure our businesses and their staff can thrive. On this basis, we will continue to engage with government and political representatives as the detail becomes clearer, to ensure that the interests of Northern Ireland’s hospitality industry are properly represented.”