Budget offers a few sweeteners for hospitality

Excise duty
It was bad news for drinkers, with the chancellor putting a penny on a pint of beer and 4p on a bottle of wine. The Campaign for Real Ale attacked the increase, stating that in Europe only Ireland and Finland now pay more tax per pint than the UK. The British Beer & Pub Association described the decision as disappointing, and the chancellor found no friends at the Wine and Spirit Association, which claimed he had dealt a blow to the wine industry with another inflation busting rise.

Regulation
The chancellor announced he was adopting the recommendations of the Hampton Report, which could mean a million fewer inspections a year across business. The Government will amalgamate 35 inspecting agencies into nine, with five inspection bodies for food safety. The British Hospitality Association gave the plans a cautious welcome. Its deputy chief executive, Martin Couchman, said he was encouraged that the red-tape burden affecting UK hospitality had been acknowledged. "Reducing businesses' encounters with government is always a good idea but, I fear, not as simple as it sounds," he said.

Tax
There were tax freezes for corporation tax, capital gains tax and the Climate Change Levy. For small businesses, the Inland Revenue and Customs and Excise are to consult on a single tax account, which would allow operators to submit information about VAT and corporation tax in one go. The initiative would include an option for flexible payments, with 600,000 companies likely to be eligible. Alan Craddock, tax partner at accountants Carter Backer Winter, said: "Simplification is a fine idea, but there's a long way to go with this before it's achieved."
However, the Government has also quietly withdrawn commercial stamp duty land tax relief for businesses trading in the UK's 2,000 deprived areas. This is ahead of the 2006 deadline and means those in the process of buying could be forced to stump up between 1% and 4% stamp duty on top of the agreed sale price.

Real estate investment trusts
The good news about real estate investment trusts (REITs) was that hotel property will no longer be excluded. The publication of UK Real Estate Investment Trusts: a Discussion Paper means the scheme, which would allow individuals to invest directly in large-scale commercial property, has taken another step forward.
REITs could be good news for the UK hospitality industry as they should help it increase its share of the £54b European property investment market. Property agents CBRE Hotels welcomed the news, but director Chris Rouse warned the hard work was to come. "The consultation process will be important, and we hope that all of those interested in hotel property will play their part. This is a fast-track process, and comments from the industry have been requested by 27 May."

Employer training schemes
In the pre-Budget report, the Government said it would introduce a national employer training programme, which will provide free training for low-skilled adults in work. The chancellor has put £65m behind the scheme, which will offer youngsters NVQ training. The good news for small businesses in the 18 pilot regions is that funding is being continued until the nationwide roll-out next year. "But it's bad news for large hospitality employers," according to John Stoat, director of sales and marketing at the Hotel and Catering Training Company, because no bridge funding is available for them.

CAPTION: Giving with one hand: Gordon Brown has included measures to boost hotel investment, cut red tape, fund training and freeze corporate taxes