We voted for change, now we desperately need it in hospitality

Now we have a new Chancellor and a new Government, and with the upcoming Budget, there is a crucial opportunity to reset an increasingly bad situation in the hospitality industry.

Many of us voted for change to bring in this new government. However, the expectation that employer-only National Insurance contributions will increase and talk of changing tax thresholds and increasing the living wage are ringing alarm bells in the hospitality sector, which desperately needs a recalibration.

There is a constant climate of uncertainty with all types of hospitality businesses closing every week – closing permanently because they cannot grow their business any longer. Turnover remains relatively the same overall for many operators I know here in Liverpool and across the UK, but the reality is that making that turnover profitable is getting harder every day.

We need an urgent recalibration of taxes on hospitality, which generated tax revenues worth £54 billion in 2022. In Liverpool, the tourism industry – of which hospitality is a large part – was worth £6.25 billion in 2023. For a city with hospitality It’s in its DNA, and we need to increase this every year; The question remains: how can we here, and across the UK, achieve this?

Because we continue to face an incredibly difficult and draining set of circumstances. So, unless the government really listens, we will see more lockdowns and more layoffs. How many more businesses that rely on fresh food need to be closed to make the new government realize that they are not allowing the hospitality industry to grow, invest, employ and quite frankly survive?

Unless rapid action is taken, the sector is set for failure with post-Covid support long over but debts largely still remaining, coupled with a persistent lack of consumer confidence. And it’s not just restaurants – bars, cafes and more all face the toughest business landscape imaginable, with the perfect set of circumstances for failure.

We would like to grow again and there are many obstacles preventing this growth. Some key pressure points are:

  • High VAT on fresh foods
  • Business rates relief – threat of rate increases ends on 1 April 2025
  • Energy costs
  • Inflation in component costs
  • Increase wages
  • Increase business PAYE and NI contributions
  • Brexit tariffs on the import of wine and international goods
  • Borrowing cost
  • CBIL loan servicing companies were forced to acquire during the pandemic to survive

The most important point is to recalibrate VAT charges on fresh processed foods in line with Europe for new businesses so that we can grow, invest and prosper using artisanal skills and develop our people and business organically, not just working seven days a week. week. There are a wide range of companies across the UK requesting this.

And we need business rates reform to create a level playing field for businesses with physical premises on high streets compared to online businesses and dark kitchens. It makes no sense how business rates are currently assessed and charges are charged, plus the potential end of business rates relief next spring will be another crippling blow.

We voted for change. We are in dire need of it now in the hospitality industry. I really hope the Chancellor and the Government listen.


Paul Askew

Paul Askew is one of the UK’s most pioneering figures in the UK hospitality industry. Chef patron and owner of Liverpool Arts School for the past nine years, Paul creates classic and innovative fine dining experiences while working with many excellent young chefs under his tutelage. His focus remains on bringing the highest level of gastronomy to Liverpool and showing how far the city can go. Paul continues to bring greater appreciation to the city region, and is committed to the field branching out a philosophy that embraces sustainability and seasonality in the School of Art. Over the past two years, Paul has cooked away from his kitchen for the G7 delegation in December 2021, recreated the Art School at The Grand National at Aintree in April 2022 and 2023, won the Turner Prize in December 2022, and is a sponsor of the recent Taste exhibition. Liverpool. The Bordeaux Drinking Festival returns to the city in summer 2024. As part of his wider work, Paul is a Fellow of the Royal Academy of Culinary Arts and its President in the North of England and a disciple of Escoffier. He is also part of the group of chefs who opened Liverpool’s intimate Scouse Brasserie, Barnacle, in December 2021, to great acclaim.

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