Government told to prioritise hospitality if it wants growth

The government has been told to back hospitality and scrap increases to employer National Insurance contributions if it wants to achieve its goal and “deliver for the economy, jobs and communities”.

 

Industry body UKHospitality urged the government to rethink the contentious policy after chancellor Rachel Reeves vowed to go “further and faster” to kick start the economy.

 

Reeves yesterday told regional and business leaders that economic growth is the number one mission of this government while unveiling a number of long-term infrastructure projects, including a potential third runway at Heathrow.

 

Following the speech Kate Nicholls, chief executive of UKHospitality urged the chancellor to also look at sectors such as hospitality that can deliver immediate growth under the right conditions.

 

Nicholls said: “Big infrastructure projects are much-needed but the benefits won’t be realised for years or decades to come. In comparison, hospitality and the foundation economy can deliver growth now, if it is properly backed.

 

“Hospitality was the biggest driver of economic growth in November, demonstrating that we are already on the strongest growth path, despite the intense cost pressures our businesses face.

 

“We need a clear growth plan for the foundation economy, which can deliver change everywhere and for everyone, as one of the largest employers in the country. Backing hospitality is an investment in vibrant towns, cities and communities – an essential component of creating investment hotspots.

 

“That plan has to start with reassessing the changes to employer NICs, which hammer sectors like hospitality and will be the single biggest blocker to growth and investment.

 

“The chancellor recognised the power of businesses to drive growth, create new jobs and generate new opportunities. My message is to back a sector like hospitality that can do that now, and deliver for the economy, jobs and communities.”

 

Within her speech Reeves had said: “For too long, we have accepted low expectations, accepted stagnation and accepted the risk of decline. We can do so much better.

 

“Low growth is not our destiny. But growth will not come without a fight. Without a government that is on the side of working people. Willing to take the right decisions now to change our country’s course for the better.

 

“That’s what our Plan for Change is about. That is what drives me as chancellor. And it is what I’m determined to deliver.”