In recent times, the hospitality industry has faced unprecedented challenges due to the impact of the global pandemic, economic uncertainties, and changing consumer behaviours. As one of the sectors hit hardest by the Covid-19 crisis, hospitality businesses, ranging from restaurants and hotels to bars and attractions, are in urgent need of support and revitalisation. Hospitality currently contributes £140bn in revenue, £54bn in tax receipts and provides 3.5m jobs.
The Labour Party has the opportunity to address critical issues and champion the recovery and growth of the hospitality industry through targeted policies and initiatives. By reforming the Business Rates System Labour can advocate for reforms to the existing business rates system, which disproportionately burden hospitality businesses. Introducing measures to reduce the rates for the sector, especially in the face of looming rate increases, will provide much-needed relief and support to those in need. Labour can introduce sector-specific support measures such as reduced National Insurance Contributions, investment credits, and other incentives tailored to the needs of hospitality businesses.
Labour can lead initiatives to reform the Apprenticeship Levy; by freeing up funds and facilitating skills training programmes, Labour can enhance job opportunities and career growth in the sector. In addition, the opportunity to explore lowering the national insurance for the industry. Increases to the National Minimum Wage and National living wage will see hospitalities wage bill increase by £3.2 billion, with employment costs making up half of operating costs, the industry page £40bn in wages and employment taxes.
They can promote sustainable practices and green investments within the hospitality industry. Supporting initiatives that reduce carbon footprint, promote eco-friendly operations, and provide incentives for green investments will not only benefit the environment but also position the sector for long-term success.
By streamlining planning laws, removing barriers to development, and fostering a supportive regulatory environment, Labour can enable hospitality businesses to attract investment, innovate, and thrive.
The emphasis should be on fostering growth, job creation, and sector-specific support measures underscores a commitment to driving economic recovery and ensuring the long-term success of the industry. We are advocates of shining a light on the vital role that proactive government intervention can play in rebuilding and strengthening the hospitality sector, offering hope and a path forward for businesses in need.
