UKH calls for a Foundation Economy Sector Council
The budget ‘disproportionately’ impacts hospitality but will have a comparatively minimal impact on larger sectors the strategy is built around, like financial services
UKHospitality has called for the creation of a Foundation Economy Sector Council, in response to the consultation on the Industrial Strategy.
It comes after the impact of the autumn budget on sectors like hospitality is said to demonstrate “the risks of focusing only on a small number of high economic productivity sectors”.
The new council would ensure foundation sectors – like hospitality – can thrive and contribute to the success of the eight sectors identified in the Industrial Strategy.
According to EY’s Attractiveness Survey from June earlier this year, hospitality is essential in making the UK internationally competitive, as in-bound investors list ‘quality of life’ as a larger driver of investment location than the tax environment, regulation or infrastructure.
The industry also provides jobs and opportunities to people across the UK.
However, UKH has warned that policies which favour the eight prioritised sectors over the wider economy would risk the success of the strategy and limit its impact on the breadth of the UK.
The trade body highlighted the “regressive” nature of the changes to employer NICs in the budget, which “disproportionately” impact hospitality but will have a comparatively minimal impact on larger sectors the strategy is built around, like financial services.
Allen Simpson, deputy CEO of UKH, said: “The focus on only eight high economic productivity sectors, in only some parts of the UK, risks meaning that the majority of the people in the country are shut out. We saw from the impact of the Budget on lower earners what happens when we forget the everyday economy.
“It also risks the success of the strategy itself. Investors tell us that quality of life is a bigger driver of investment decisions than anything like tax or regulation. To put it simply, companies want good pubs, good restaurants, good coffee and good places to live. Hospitality delivers that.”
He added: “That’s why a Foundation Economy Sector Council is crucial to retain that focus and utilise hospitality’s ability to create places where people want to live, work and invest.”
