Hospitality bosses in call for action ahead of Spring Budget

More than 100 hospitality business leaders have made a last-minute plea for support to chancellor Jeremy Hunt ahead of next week's Spring Budget.

Signatories of an open letter to the chancellor include the bosses of Burger King, Butlins, Accor hotels, Stonegate pubs and Merlin Entertainments.

They have warned the chancellor that failure to bring additional support measures on 6 March will cause "irreversible damage to our world-leading hospitality sector".

The letter, signed by 112 leading figures, states that rising costs, labour shortages and the cost of living crisis have led to an unprecedented surge in closures.

Signatories have called for April's business rate increase to be capped at 3%, rather than the planned 6.7%. A temporary cut in the lower rate of Employer National Insurance Contributions to 10% has also been called for alongside a reduction in VAT for the sector to 12.5%.

Data from Zonal and CGA by NIQ has shown that 74% of consumers think hospitality needs and deserves greater support from government.

UKHospitality chief executive Kate Nicholls said: "The sector's message to the chancellor is loud and clear: without further economic support at the upcoming Budget, we risk losing more of our institutions and doing irreversible damage to our world-leading hospitality sector.

"Extortionate operating costs are making it incredibly challenging to run a profitable business, so it's vitally important that this is addressed in order to ease ongoing cost pressures and protect businesses from the threat of closure.

"This sector is one of the UK's leading employers, providing work to more than 3 million people, and contributing more than £93 billion to the economy each year. It not only deserves the support we are collectively asking for, but it needs it.

"I sincerely hope that this letter, supported by leading individuals from across hospitality, will be enough to convince the Chancellor that his actions on 6 March will be make or break for many venues up and down the country."