UKHospitality (UKH) has written to the chancellor calling for an additional support package to accelerate the sector’s revival in 2021.
The trade organisation asked the government to consider enacting further business rates holiday for hospitality businesses and an extension of the VAT cut to 5% for a further 12 months, in order to stimulate the economy.
Furthermore, UKH requested that the government use the forthcoming Budget to announce additional financial support for businesses, including deferring tax payments to December 2021 and assisting the hospitality sector with supply chain disruptions.
Kate Nicholls, UKH’s chief executive, said: “The Budget provides the government with a fantastic opportunity to deliver a bold package of support to tee hospitality businesses up for a year of rebuilding.
“Some businesses have inevitably and sadly gone to the wall, and we have lost around 650,000 jobs. Thankfully, many more businesses have managed to adapt and are still managing to cling on, keeping jobs safe and giving their staff, customers and communities hope that they will be able to reopen once the vaccine roll-out makes it safe to do so.”
She added: “Government financial support has been key – the two principal pillars of support, slashing hospitality VAT to 5% and providing a business rates holiday, have helped give employers the lifeline they needed to survive.
“We know from recent history that hospitality has the economic clout to be in the vanguard of economic recovery once the crisis has passed, but only if essential support is extended.”