[Wera Hobhouse MP talking to Alex Peters, Director of Green Park Brasserie and the Bath Pizza Co.]
With the Chancellor’s Autumn Budget next week in mind, Bath MP Wera Hobhouse has warned that the ‘beating heart’ of high streets across the area is at risk of being ‘ripped away’, as devastating polling commissioned by the Liberal Democrats has shown there is widespread concern that hospitality businesses will close.
The revelation comes a year after Chancellor Rachel Reeves delivered a National Insurance tax hike that hammered small businesses, leaving high streets across Bath at breaking point.
Polling commissioned by the Liberal Democrats shows that across the South West, 62% of people are concerned about their local pub closing and 45% think that bars and nightclubs might be lost. Similarly, a shocking 71% are concerned that cafes and restaurants may close and 51% show worry that they will lose their local hairdresser.
Last week, the Liberal Democrats announced new calls for an emergency 5% VAT cut for hospitality to be put in place until April 2027. Deputy Leader and Treasury Spokesperson Daisy Cooper led her party’s call for a £7.5 billion life raft for the UK’s pubs and restaurants ahead of what is expected to be yet another doom and gloom Budget next week.
Mrs Hobhouse has heard from businesses across Bath, specifically in the hospitality and hotel industry, who have warned of the challenging conditions that industries are facing.
Alex Peters, Director at popular city centre eateries Green Park Brasserie and the Bath Pizza Co, commented:
“In this cost-of-living crisis, we’re seeing fewer people coming through the door, not because they don’t want to, but because they simply can’t afford it anymore. With less footfall and the increase of employers’ National Insurance contributions, it’s becoming increasingly harder to run an independent business.
“The consequence of these measures is stifling growth and acting as a barrier to any ambition. In the past six years, hospitality has increased its annual economic contribution from £20 billion to £93 billion. The Government is literally biting the hand that feeds them!
“Cutting VAT would ease the pressure for both customers and businesses. It’s a simple step that could keep Bath’s beloved pubs, restaurants and entertainment venues alive.”
Co-owner of the iconic Queensberry Hotel, Laurence Beere, agreed with Peters, adding:
“As an independent hotelier, I welcome the call from the Liberal Democrats for a reduction in VAT for Hospitality Businesses. The impact of Brexit, uncontrolled increases in utility costs, the increase in food prices and the 30% increase in wage costs over the last 4 years, plus the disastrous ‘jobs tax’ introduced by Rachel Reeves at the last budget, has meant that we are unable to grow our business as we would hope. We are restricted in our ability to recruit and retain staff as well as invest in our business for the future.
“A reduction in VAT will make hospitality more affordable for our guests, provide us with much-needed needed cashflow, enabling us to increase staffing and invest for the future.”
Wera Hobhouse, Liberal Democrat MP for Bath, said:
“Hospitality is the beating heart of our high streets across Bath, but pubs, restaurants, cafes and more are at serious risk of being taken away from us – no wonder residents are so concerned.
“Not only are mid-morning coffees, after-work pints and weekend cocktails quickly becoming an unaffordable luxury for many across our area, but soon they may not even be an option.
“With the Chancellor’s damaging jobs tax and people having less money to spend, independent hospitality businesses in our towns just cannot sustain themselves. It is absolutely devastating.
“The Chancellor cannot deliver another doom and gloom Budget that risks further decline for people across Bath. She’s clearly out of ideas, so she needs to listen to the Liberal Democrats’ plan to save our high streets – paid for by the big banks’ profits.”
