Calls for stable political leadership amid 'critical time' for hospitality

24 October 2022 by
Calls for stable political leadership amid 'critical time' for hospitality

Trade body UKHospitality has said it is "absolutely critical" the UK has stable political leadership to help address the challenges faced by businesses.

Rishi Sunak is to become the UK's next prime minister after rival Penny Mordaunt dropped out of the race in the final minutes before nominations closed today (24 October).

He replaces Liz Truss, who became the country's shortest-serving prime minister after resigning on 20 October after just 44 days in office.

As Chancellor during the pandemic, Sunak oversaw the introduction of measures including the furlough scheme and the Eat Out to Help Out initiative. He frequently faced criticism over the scale of support offered to hospitality.

UKHospitality chief executive Kate Nicholls said the industry faced a "critical time" with soaring energy costs, staffing shortages and waning consumer confidence.

She added: "Now is the time to steady the economy, deliver for the needs of the country and support businesses to help drive growth and create jobs.

"We worked very closely with the new prime minister in his previous role and we look forward to working with him again to address the current strain on businesses and bolster consumer confidence.

"I would encourage him to extend business rates relief, reform the entire business rates system in the longer term and lower the current rate of VAT."

Industry association Beam, which represents the business events, accommodation, and meetings sector, urged Sunak to extend energy bill support and appoint a dedicated minister to oversee the events industry.

Simon Richards, treasurer of Beam, said: "Costs have already risen so much that, with bounceback loans to be repaid as well, some agencies and venues cannot afford to open and may close for ever. There is a limit to how much they can increase prices without losing business and remain viable."

Image: I S T / Shutterstock

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking