UKHospitality’s Kate Nicholls: ‘Long business rates and VAT relief extensions essential for sector recovery’

The chief executive of Britain’s largest leisure and hospitality trade body has joined a chorus listed firm bosses in calling on the Government to immediately extend reliefs for the hard-hit sectors.

Over the past two weeks business leaders have told the Standard they urgently need ministers to offer longer-term certainty and extension of support schemes - notably the business rates holiday and sector-specific VAT relief - that are currently due to come to an end on March 31.  

Companies still have more than six weeks to wait until Budget day, and the uncertainty is weighing heavily on investment decisions.

On Wednesday UKHospitality boss Kate Nicholls wrote to Rishi Sunak to ask for the 5% VAT cut for hospitality to be extended for a further 12 months, to enact a further business rates holiday for hospitality for the 2021/22 year, and to extend furlough scheme until the end of June.

Nicholls said the moves would allow businesses a chance to rebuild.

She also called on the Chancellor to help business by saying in his March Budget that the Treasury will extend the repayment period for all Government-backed loans to 10 years, with an extra year interest-free.

Highlighting the fact that many businesses have “inevitably and sadly gone to the wall” and the loss of around 650,000 jobs in the sector, Nicholls said: “The two principal pillars of support, slashing hospitality VAT to 5% and providing a business rates holiday, have helped give employers the lifeline they needed to survive.

“We know from recent history that hospitality has the economic clout to be in the vanguard of economic recovery once the crisis has passed, but only if essential support is extended.

“A wide-ranging package of financial support will give hospitality businesses the best chance of not just surviving the remainder of the crisis, but leading the UK’s economic recovery in the years ahead. If we get what we need, hospitality can spearhead the economic recovery of the country, revive high streets and provide employment and investment in every single region.”

The Confederation of British Industry has also written to Rishi Sunak this week, asking for the business rates holiday to be extended for at least another three months beyond the end of March.

A series of chief executives have told the Standard the extra support is vital.

Young's boss Patrick Dardis said: "The uncertainty as much as the lockdown itself is causing such anxiety and concern. It is impossible to plan without forward notice on VAT and rates holiday extensions.”