Sir Gavin Williamson has pledged his support for the hospitality industry by meeting with constituency businesses to discuss the impact of Labour’s Budget announcement.
The Government announced a raft of policy measures at the Autumn Budget which has led many businesses fearing closure due to increases to National Insurance, minimum wage, and an overhaul of business rates.
UK Hospitality, the leading trade body, recently stated the Budget will add 10% to employment costs per person and £3 billion to the sector’s annual tax bill.
In Sir Gavin’s constituency of Stone, Great Wyrley, and Penkridge, the hospitality industry employs over 2,800 individuals across almost 200 establishments. The economic value to the constituency is said to be over £68.5 million according to figures published by UK Hospitality.
Sir Gavin said: “Labour has effectively called last orders on so many hospitality businesses by hiking National Insurance and overhauling business rates. Whilst I of course welcome increases to the minimum wage, this has been done without consultation with business and rushed through without considering the viability of the sector.
“Sadly, we are seeing businesses close on a daily basis. This is devastating not just for local jobs and the local economy, but also the closure of community spaces creates empty units, affects the overall vibe of our centres, and also means less places to socialise with family and friends.
“I am committed to continuing to work with UK Hospitality in order to highlight the need to adopt a different approach so hospitality businesses can continue to operate. I urge the Government to change course and give businesses a fighting chance to grow.”
