Trade associations have welcomed the extension of business
rates relief in the chancellor's autumn statement.
However, there is concern at the cost increases attached to Jeremy Hunt's announcement of a 9.8 per cent rise in the National Living Wage to £11.44 per hour, and disappointment
that specific asks on apprenticeship funding and VAT refunds for international
visitors have not been addressed.
Simon Richards, finance director of beam, said: “It’s a
great relief to our industry that the Chancellor has extended the 75 per
cent discount on business rates up to £110,000 discount for retail, hospitality
and leisure businesses for a further 12 months. The saving that many of
our members have been making has been crucial as they recover from the pandemic
and they still need it for at least another year.
“The freeze on alcohol duty will also be valuable but the increase
in the National Living Wage to £11.44 per hour and including 21 and
22-year-olds for the first time will add to costs.
“What was disappointing was that there was no support for
investing in people. We think control of apprenticeship funding should be
given to the employer instead of the training provider as this would be a great
help in developing apprentices.”
Meetings Industry Association chief executive Kerrin MacPhie
said: “The Meetings Industry Association welcomes the Chancellor of Exchequer’s
extension of the 75 per cent business rates discount for retail, hospitality
and leisure (RHL relief) for another year, which will help offset against a
small proportion of the rising costs experienced across the sector.
“However, as a sector that works to longer lead times, we
need to be in a position to anticipate future increases in costs.
“Therefore, having reinforced this as a temporary support
measure, it’s essential that government is transparent with its future plans
for rates in retail, hospitality and leisure moving forward, so that
organisations can carefully manage what are already highly sensitive budgets.”
“The 9.8 per cent rise in the National Living Wage presents
significant cost increases for the sector, a consistent theme for 2023. Having
continued to raise its prices to counteract soaring costs over the last 12
months, the sector is running out of room to manoeuvre when it comes to
maintaining profit levels and the appetite for UK meetings and events –
especially from those overseas.
“If marketed well, the National Living Wage increase could,
however, help support the next generation along the pathway to a career in
business meetings and events. Now expanded to include those aged 21-22, this
move can help increase the appeal of the sector to the younger generation, with
the added incentive to work helping address the staff shortages reported by 49
per cent of organisations in our most recent mia Insights.”
MacPhie added that the chancellor’s welfare reforms could
also provide an opportunity for the business meetings and events workforce.
“With staffing and recruitment challenges within the sector
well-documented and highlighted again in our mia Insights, out-of-work welfare
recipients will now have greater incentive to look for work, and we can offer
flexible opportunities in business meetings and events,” she said.
“Alongside the £63m spring budget investment in
‘Returnerships’ – encouraging adults over the age of 50 to get back into work
and embark on exciting new career ventures – these two initiatives could change
the makeup of the sector and help support a more diverse workforce. This
includes £34m of additional investment in Skills Bootcamps and Sector-based
Work Academy Programs (SWAPs), which we continue to look for ways for the
business meetings and events sector to engage with.”
And she also welcomed the news that the tax break allowing
businesses to deduct 25 per cent of machinery and equipment costs from their
tax bill has been extended.
“This will provide organisations in the sector with the
certainty that they can continue to confidently invest for less under the
government’s ‘permanent full expensing’ policy,” she said. “For every £1 that
an organisation invests in IT, machinery and equipment, organisations can claim
back 25p in corporation tax.”
Joss Croft, CEO of UKinbound, was disappointed that the
chancellor failed to bring back VAT refunds for international visitors.
“Today’s Autumn Statement fails to harness the substantial
economic growth potential of the UK’s inbound tourism industry, disregarding
the sky-high price of international travel, which leaves us one of the most
expensive countries in Europe to visit,” said Croft.
“The UK is at a significant competitive disadvantage but
with the right support from Government, international tourism to the UK could
immediately and significantly boost businesses and local economies throughout
the four nations.
“The failure to bring back VAT refunds for international
visitors is a significant oversight and one that will hit UK high streets and
boost those in France, Germany and Italy.
“We remain committed to working with the Government to boost
UK economic growth via inbound tourism, but today’s Autumn Statement is a
missed opportunity that must be corrected in as quickly as possible.”
