Eventprofs have reacted with dismay to the lack of
sector-specific support in the government’s spring statement – and accused chancellor
Rachel Reeves of having ‘done nothing’ to reassure the industry that the
country will grow.
The Meetings Industry Association (MIA) chief executive,
Shonali Devereaux, said the Office for Budget Responsibility’s decision to cut
the UK’s growth forecast for 2025 from 2 per cent to 1 per cent highlights the
urgent need for government to recognise the role of events in stimulating
economic growth.
She said: “Business meetings and events don’t just generate
direct revenue, they underpin growth across multiple industries, from
pharmaceutical and technology to automotive, finance and beyond.
“To stimulate UK economic growth, policymakers must
acknowledge and support the vital role of the events industry, often the
invisible industry, as a catalyst for business, trade and inward investment.”
She added that the
business meetings and events sector is uniquely affected by the upcoming rise
in National Insurance contributions for employers due to its reliance on a
flexible workforce, including part-time and temporary staff to meet fluctuating
event demands.
She said: “Higher employment costs could discourage
businesses from maintaining these vital roles at a time when staff shortages
are already a major challenge.
“At the same time, rising costs may limit an organisation’s
ability to offer competitive salaries, making it even harder to retain
experienced professionals. Without intervention, we risk losing more skilled
workers to other industries, as seen during the pandemic, while also
diminishing the sector’s appeal to the next generation considering their career
paths."
She added that the MIA remains committed to presenting
innovative solutions that support the sector, including a sector-specific
Employment Allowance, and will be writing to MPs directly to ensure the sector
has a voice in decisions that affect how it operates.
Sabine Edwards, chair of the Alliance of Independent Event Agencies (AIEA), said that while there may
have been no new tax hikes, the lack of business rates support and the
continued impact of NI increases will have a lasting effect on many businesses.
She said: “Chancellor Rachel Reeves’ spring statement,
delivered in a concise 25-minute speech, kept to her pledges—she didn't
introduce new tax measures, but she also didn't help reduce the impact of tax.
For SMEs and households facing rising costs, I see little to no relief.”
She added that within the AIEA the most talked about issue
has been the rise in National Insurance from the autumn budget.
Fellow AIEA member Kerry Walsh from Hatch Events said: “If
the government is serious about driving growth, then support for our sector
must be part of the plan. The National Insurance increase is a source of
considerable concern for the whole industry not just small agents. We find
ourselves stretched to the limits already, we urgently need relief from rising
costs to stay competitive and continue bringing in much needed economic growth.”
Alison Best-Dufour from Best Options said that the spring statement
has done nothing to reassure the industry that the country will grow.
She said: “You can see the effects on the hospitality
business with companies needing to make
redundances. Pubs are closing daily. The hospitality industry is the
third largest employer in the UK, if spend within the industry falls this will
have a direct effect to people's jobs which means no income, no VAT or tax for
the Government, and ultimately no growth.
“Perhaps the Government should have looked at supporting
small businesses and families by targeting those who actively avoid paying into
the UK economy. The ongoing global economic and political volatility will no
doubt continue to impact our industry and daily lives but hey - there's a 1p
saving on a pint thanks to the 1.7% alcohol duty decrease.”
David Watt, CEO of CI Group said: “It is very disappointing
that, from a Government apparently committed to growth, there is nothing in the
chancellor’s spring statement that directly supports our £61bn industry which
is so effective in boosting the economy nationwide.
“However, as a
business that is helping many organisations to make the most of the
opportunities that AI can bring them, we’re pleased that the chancellor
announced that AI will be playing a key role in its development plans for
several sectors of the economy.”
