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‘There is no capacity to pass the costs onto customers’: Over 220 hospitality businesses sign letter to the Chancellor
The letter criticised the "unsustainable" and "regressive" changes to the employer National Insurance Contribution (NICs) threshold.
The board members of UKHospitality, as well as a further 209 hospitality businesses, have collectively warned of job cuts and closures as a result of the rise to employment costs.
In a letter to the Chancellor, the bosses of Fuller’s, Stonegate Group and Whitbread, among others, stressed the industry will suffer as a result of the upcoming £3.4b bill in April.
Hospitality is also disproportionately affected by the changes to employer National Insurance Contributions (NICs), which were announced in the Budget last month.
Analysis by UKHospitality revealed the increases to employers’ NICs and wages will hit hospitality the hardest, with a 10% rise in the cost of employing a worker, amounting to at least £2,500 per employee.
The industry warned of small business closures within a year; a decline in investment plans; drastic job cuts; reduced hours and struggling contract caterers.
The signatories have therefore urged the government to either create a new employer NICs band from £5,000 to £9,100 with a lower rate of 5% or implement an exemption for lower band taxpayers working fewer than 20 hours per week, with the aim of supporting part-time and lower paid workers.
The letter said: “The changes to the NICs threshold are not just unsustainable for our businesses, they are regressive in their impact on lower earners and will impact flexible working practices which many older workers and parents rely upon. Unquestionably they will lead to business closures and job losses within a year.
“The threshold change brings many team members into employer NICs for the first time. We estimate the threshold change may be four times the cost of the new headline rate.”
It added: “There is no capacity to pass the costs onto customers. Businesses would be reluctantly forced to raise prices by 6-8%, fuelling inflation, yet could not realistically do so as our customers are at the end of their ability to pay more.
“We understand that these proposals come at an immediate financial cost, but we are absolutely firm in our belief that the lost growth potential which would result from inaction would be substantially more expensive, for the economy, for society and for the public finances.”
Signatories to the letter are:
UKHospitality board members:
Simon Emeny, chief executive, Fuller’s
Paul Flaum, group chief executive officer, Bourne Leisure Ltd
Stephen Holmes, CEO, Azzurri Group
Bob Ivell, non-executive chairman, Mitchells & Butlers
Ranjit Mathrani, chairman and co-owner, MW Eat
David McDowall, CEO, Stonegate Group
Kate Nicholls, chief executive, UKHospitality
Dominic Paul, chief executive, Whitbread
Rob Pitcher, CEO, The Revel Collective
Steve Richards, CEO, Parkdean Resorts
Catherine Roe, chief executive, Elior
Robin Rowland, partner, TriSpan LLP
Alexander Salussolia, managing director, Glendola Leisure Group
Chris Wayne-Wills, chief executive officer, Crerar Hotels
A further 209 hospitality businesses:
|
Abokado |
Mark Lilley |
|
Advocate Group |
Paul Weeks |
|
Agility Marketing |
Anita Waddell |
|
All Our Bars Limited |
Paul Wigham |
|
Anglian Country Inns |
Cliff & James Nye |
|
ANS Hospitality |
Alistair Sandall |
|
Apex Hotels Limited |
Angela Vickers |
|
Arc Inspirations Limited |
Ciara Allan |
|
Bailiffscourt hotel & spa |
Pontus Carminger |
|
Bartlett Mitchell Ltd |
Angus Brydon |
|
Beer and Buns Limited |
Maurice Abboudi |
|
Best Western Claydon hotel |
Khurram Saeed |
|
Bidfood UK |
Andrew Selley |
|
Big Table Group |
Alan Morgan |
|
Bistrot Pierre |
Nick White |
|
Bleeding Heart Restaurants |
Robert Wilson |
|
Blunsdon House hotel Ltd |
Chris Clifford |
|
Bone Daddies Ltd |
Steve Hill |
|
Brewhouse and Kitchen |
Kris Gumbrell |
|
BWH hotels |
Tim Rumney |
|
BWH hotels GB |
Russell Imrie |
|
Calcot Health and Leisure Limited |
Paul Sadler |
|
Castlewood Hotels |
Daniel Sangiuseppe |
|
Chopstix Group |
Jon Lake |
|
Clayton Hotel Glasgow |
Hazel Galloway |
|
Congham Hall |
Nicholas Dickinson |
|
D&D London |
David Loewi |
|
Da Vinci hotel |
Paul Metcalf |
|
Dart Marina hotel |
Paul Downing |
|
Drake & Morgan |
Jillian Maclean |
|
Eastbourne Reymar |
Nick Samuels |
|
Empire Hotel Llandudno |
Elyse Waddy |
|
English Lakes Hotels, Resorts & Venues |
Matt Stanaway |
|
ETM Group Ltd |
Ed Martin |
|
ETM Group Ltd / Maven Leisure Limited |
Landen Prescott Brann |
|
Exclusively Eastbourne Holiday Homes |
Carl Stanger |
|
G C Mallen & Co |
Garry Mallen |
|
Glasgow Grosvenor hotel |
Michael Balman |
|
Gravetye Manor hotel & restaurant |
Apal Shah |
|
Greater Glasgow Hotel Association |
Janice Fisher |
|
Greene King |
Nick Mackenzie |
|
Gusto Pronto |
Roxane Marjoram |
|
Harbour Hotels Group |
Michael Warren |
|
Harrison Catering Services Ltd |
Claire Aylward |
|
Heartwood Collection |
Chris Guy |
|
Hippodrome Casino Ltd |
Simon Thomas |
|
Historic Sussex Hotels Ltd |
Pontus Carminger |
|
Hospitality Ulster, on behalf of 100 NI businesses |
Colin Neill |
|
HwS Ltd (Pizza Hut Restaurants) |
Jens Hofma |
|
Hyatt Hotels UK |
Arnaud de Saint-Exupery |
|
Hyatt Place Heathrow |
Stephen Brown |
|
Hyatt Regency London – the Churchill |
Georges Moura |
|
IHG Hotels & Resorts |
Joanna Kurowska |
|
International Golf & Resort Management Ltd |
Michael Longshaw |
|
JD Wetherspoon |
John Hutson |
|
JXL Ltd T/A Jump Xtreme & That Fun Place |
Cliff Nicholls |
|
La Gaffe |
Lorenzo Stella |
|
Lavval Restaurants Ltd (t/a Spaghetti House) |
Isabel Montes de Oca |
|
leaf Hospitality |
Richard Farrar |
|
Legacy Hotels & Resorts Ltd |
Andy Townsend |
|
Livelyhood Venues Ltd |
Emma Semple |
|
Loungers |
Nick Collins |
|
Lucky Voice |
Charlie Elek |
|
Malmaison and Hotel du Vin |
Scott Harper |
|
Marston’s PLC |
Justin Platt |
|
Menagerie restaurant |
Karina jadhav |
|
Milsom Hotels and Restaurants |
Paul Milsom |
|
Nelson Hotels |
Andrew Nelson |
|
Netherwood Hotel and Spa |
Rachael Tise-Tigwell |
|
North Shore Hotel and Golf Club |
William Mitchell |
|
North Wales Tourism Ltd |
Jim Jones |
|
Nusa Kitchen |
Karen Cunningham |
|
Oak Taverns Ltd |
David Collinson |
|
Oakman Inns |
Peter Borg-Neal |
|
Only A Pavement Away |
Greg Mangham |
|
Paris Baguette UK Co., Ltd |
Nicolas Gaillot |
|
Pho restaurant |
Patrick Marrinan |
|
Petwood Hotel Ltd |
George Kane |
|
Port Kitchen at Shoreham Port |
Polly Child |
|
Poste Hotels Ltd |
Michael Evered |
|
Reignite Purpose |
Stella Amor |
|
Schloss Roxburghe Hotel & Golf Course |
Bruno De Schuyter |
|
Sidmouth Hotels & Inn Ltd |
Jo Watson |
|
St Austell Brewery |
Kevin Georgel |
|
The Genuine Dining Co. |
Chris Mitchell |
|
The Hand At Llanarmon Ltd |
Jonathan Greatorex |
|
The Lancaster Landmark Hotel Company Ltd |
Marina Aleksandrovic |
|
The Lovat Loch Ness Limited |
Caroline Gregory |
|
The Queensberry Hotel and Olive Tree Restaurant |
Laurence Beere |
|
The Restaurant Group |
Andy Hornby |
|
The Restaurant Group Concessions |
Jonathan Knight |
|
The Wellbeing Farm |
Celia Gaze |
|
The Wildhive Collection Limited |
Charles Randall |
|
Thunderbird Fried Chicken |
Paul Gilchrist |
|
Thurlestone Estates Ltd |
Graham Grose |
|
Thurlestone Hotel |
Tim Hassell |
|
Tortilla |
Andy Naylor & Brandon Stephens |
|
Tossed |
Neil Sebba |
|
Town & Country Collective |
Fred Hitchcock |
|
UKHospitality Cymru |
Dave Chapman |
|
UKHospitality Scotland |
Leon Thompson |
|
Vacherin |
Phil Roker |
|
Valiant Pub Company |
Gerry Carroll |
|
View Hotel Eastbourne |
Matt Huddart |
|
Voco Grand Central Glasgow |
Marcello Ventisei |
|
Wahaca |
Mark Selby |
|
Wasabi |
Henry Birts |
|
WH Pubs Ltd |
Brian Keeley-Whiting |
|
WT Hotels Ltd |
Shaun Whitehouse |
|
YHA (England and Wales) |
James Blake |
|
Young’s |
Simon Dodd |
|
Z Hotels |
Rosamund Young |
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