CoronavirusGovernmentNews

UKH calls on Government for support amid jobs crisis

After 18 months of enforced closure, the hospitality sector reveals it is facing a critical shortage of staff and severe supply chain issues

UKHospitality has proposed a programme of co-investment to the government to create jobs and increase growth after “harsh” trading restrictions have impacted the sector. 

The sector has revealed it is facing issues including rent demands and an increase in VAT and has said a “package” of post-pandemic support is “essential” for it to recover.

According to UKH, it has set out a budget submission to the government requesting new measures, such as, a permanent rate of VAT at 12.5% for hospitality and tourism, an increase of NI contributions to £12k and a 50% rent debt write-off for tenants for all closed periods.

In addition, UKHospitality has said it has issued a “strong” case for the comprehensive spending review to boost government spending on tourism attraction, skills and apprenticeship funding, an extension to the kickstart scheme and high street regeneration funds. 

The submission also calls for a sustainable approach to setting future wage rates in order to avoid layering additional costs on “fragile” businesses.

Kate Nicholls, UKHospitality CEO, said: “The hospitality sector has proved before that it can lead the way out of an economic crisis and since our businesses were permitted to reopen in April 2021, we have seen strong employment growth. Given the right conditions we can continue to create jobs, rejuvenate high streets, generate billions in tax and contribute to growth.”

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