Budget hasn't helped North West bars and restaurants say hospitality bosses

Hospitality bosses across the North West say they're extremely disappointed with the lack of support offered to them in the Chancellor's Spring Budget.

"I'm not a happy bunny. It's done nothing at all" said Tony Callaghan, who runs a number of bar and restaurant chains across Cheshire, Lancashire and Manchester.

"The hospitality sector was expecting substantial help, potentially a 20% cut in the VAT but we didn't get it. Yet again another nail in the coffin from the government."

Among measures to help employees like a 2% cut to National Insurance, Chancellor Jeremy Hunt announced a freeze to alcohol duty in the autumn statement until August this year, commenting that it would have been due to rise by 3% without his extension to February of next year.

The freeze will save consumers 2p on a pint of beer, 1p on a pint of cider, 10p on a bottle of wine and 33p on a bottle of spirit.

"It hasn't done enough to help us."

Kate Nicholls, Chief Executive of UKHospitality, said: “The Chancellor missed a real opportunity to show that he backs hospitality and understands the real pain they are enduring.

“He had a chance to accelerate and unlock hospitality, but instead he has delivered a cut-and-paste Budget, maintaining the status quo which continues to act as a drag on recovery.

“Over the past year, we have had a Budget for growth and an Autumn Statement for investment – neither have delivered because they were not correctly targeted.

“The National Insurance cut earlier this year was intended to boost disposable income to generate growth and didn’t have an impact. A different result can’t be expected this time around.

“Government needs to take a different approach. It needs to bear down on the never-ending rising costs that are forcing businesses to shut their doors for good – taking away people’s livelihoods and robbing communities of a vital asset.

“Increases to business rates and jobs taxes in April will only increase bills further and contribute to inflation, as venues will be forced to pass these costs onto consumers."

"It’s a great shame."

Kate added: “The entire sector was united behind UKHospitality’s asks to lower the rate of VAT, cap business rates increases and reduce employer wage costs.

“A lower rate of VAT would have been a bold reform that would drive economic growth, keep prices down and unlock investment in the sector, one that was projected to grow six times faster than the economy as a whole. It would have been good for businesses, the public and the economy.

“Hospitality is a sector proven to be a catalyst for growth across the entire nation, as the foundation of the everyday economy."

“When we perform, the entire economy performs."

Others within the industry, specifically firms responsible for the production and distribution of alcohol have welcomed the extension of the alcohol duty freeze as "some much-needed certainty and stability" for the industry and consumers alike.

Miles Beale, chief executive of the Wine and Spirit Trade Association, said: "The wine and spirit sector will be relieved that the Chancellor has spared them a further duty hike. This will help to keep price rises down for consumers for a period."

"However, the benefits of a freeze will be short-lived for wine businesses who are fuming after confirmation that costly and fiendishly complex new taxation rules will come into force from February 1 2025."

Scotch Whisky Association chief executive Mark Kent said: "The industry welcomes the Chancellor's recognition of the benefits of continuing the duty freezes beyond August this year.

"That decision supports the Scotch whisky industry, will incentivise investment and, as with previous cuts and freezes, boost Treasury revenue.

"With cost pressures hurting our bars and pubs, not to mention hard-pressed consumers, the Treasury has provided some much-needed certainty and stability for the year ahead."

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