Chancellor urged to back licensed hospitality

AN ANNAN businessman has written to the Chancellor of the Exchequer, Rachel Reeves MP, urging her to deliver fair and urgent support for the UK’s licensed hospitality sector in next week’s Budget. In his open letter, Our Place restaurant owner and Scottish Hospitality Group (SHG) director, Stephen Montgomery, warns that the industry, which lies at the heart of local economies, communities, and high streets, is facing unprecedented financial pressures, from rising energy costs and supplier prices to persistent food inflation and government imposed cost increases such as eNICs. Mr Montgomery said: “Hospitality is not asking for handouts, we are asking for fairness. Our pubs, bars, and restaurants are community anchors, employers, and vital contributors to local economies. Without meaningful support, more businesses will be forced to reduce hours, cut jobs, or close altogether. This Budget is a chance for the chancellor to back an industry that serves every community in the country.” The Group has called on the treasury to take three immediate actions: Introduce a reduced VAT rate for hospitality; reverse the recent rise in employers’ national insurance contributions; and provide stability and reform in key policy areas such as energy costs and employer taxation. Mr Montgomery added: “With the right fiscal approach, hospitality can again be a major engine of job creation, skills, and regeneration across the UK. “But to get there, we need a Budget that helps businesses survive today so they can thrive tomorrow. At a time where we see thousands of hospitality jobs lost, and unemployment now at five per cent, Rt Hon Rachel Reeves surely must do the right thing. With the Liberal Democrats agreeing and now calling for a VAT cut, will we see other MPs across the house do the same? If not, then we need to ask why not”