Event professionals have welcomed "some small positives" in Rishi Sunak's spring statement, but lamented the chancellor's failure to address the sector's specific cash flow issues.
Sunak's mini-budget on Wednesday (23 March) offered some tax cuts, such as a £3,000 increase in the threshold for national insurance contributions and as 5p-a-litre off fuel duty. It also introduced management and apprenticeship training subsidies aimed at helping address skills shortages.
Simon Richards, treasurer of beam and managing director of Convenus said: “Beam welcomes many of the new measures that the Chancellor has announced today. Many will benefit either all of us or beam members who are small businesses; but we will have to keep on campaigning for the specific recognition that the business events, accommodation and meetings sector needs to address the cashflow issues that are hindering its recovery.
“The reduction in fuel duty and raising the threshold for NICs are good news, so too is the increase in the Employment Allowance. But, as we announced before the Budget Statement, the industry needs greater flexibility and understanding from HMRC about payments. Although many businesses in the sector have bookings for events in the near future, they still have significant cost liabilities but very little income - and they won’t be paid until those events have taken place. On top of this, they are now repaying bounceback loans and about to pay higher NI and VAT.
“It is evident that the need for all business events sector companies to join the BVEP campaign and register under one of three SIC Codes, particularly 82302, is even more urgent so that the Government has the data to recognise the sector’s issues more clearly.”
UKinbound CEO Joss Croft welcomed some of the chancellor's measures but called for “more fiscally smart policies” to aid the UK's post-Covid recovery.
Croft said: “Todays’ Spring Statement brings some small positives for inbound tourism – a sector that is worth more than the UK’s vehicle export and oil export industries. The fuel price reduction and national insurance allowance increase will help the bottom lines of some – but not all – of our members, and both the management and apprenticeship training subsidies will help address some of the skills shortages facing the sector. We are also pleased with the positive steps taken toward helping the UK become a more accessible and sustainable destination.
“We welcome the new temporary 50 per cent business rates relief for eligible retail, hospitality and leisure businesses, but it is imperative that the eligibility criteria includes all tourism businesses in the whole supply chain if the sector is to provide a world-class welcome and experience for international visitors during this Jubilee year.
“As the second round of the Levelling Up Fund is launched, we urge Government to recognise and capitalise on the recovery opportunities that inbound tourism, the UK’s second largest service export industry, can bring to our economy. Through bringing in vital new export money and creating thousands of jobs in all corners of the UK, our sector has played a crucial role in supporting the country’s economic recovery after past global crises and there is no reason why it can’t do so again – as long as the right policies are in place. We need to see more fiscally smart policies that will bring a surplus to the exchequer, such as the reintroduction of VAT Free Shopping and a more accessible and competitive visa scheme. We also need a major boost in the promotion of the UK abroad as a safe and welcoming destination to encourage would-be visitors to come and spend their money here.”
M&IT editor Paul Harvey is a journalist with more than 15 years of experience. He began his career in the local press, working for various titles across the north. Since joining M&IT in 2013, he has become a trusted and respected voice in the sector, championing event professionals and reporting on all aspects of the events industry for the brand.
