NI hospitality businesses ‘squeezed’ due to rising costs
Most hospitality establishments in Northern Ireland are operating at under 80% of capacity due to rising costs, a survey has found.
It found that hospitality businesses have had to dramatically cut their workforce, with 87% of respondents operating below 90% of required capacity, with the majority (55%) operating below 80% capacity.
It also found that 72% of respondents have less than six months of cash reserves, with over one in five (21%) having no cash reserves at all.
The survey found that as a direct result of April cost increases, 68% have increased prices and half (50%) have cut staff numbers.
Members of Hospitality Ulster, the British Institute of Innkeeping (BII), the British Beer & Pub Association (BBPA), and UKHospitality were surveyed after 84,000 hospitality jobs were lost across the UK since the last budget.
Hospitality businesses are calling for a reduction in VAT, urgent delivery of meaningful lower business rates multipliers and amendment of April’s changes to Employer National Insurance contributions.
They are also calling for an alignment of business/non-domestic rates in devolved nations to match incoming reforms in England.
Colin Neill, chief executive of Hospitality Ulster, said businesses are being squeezed.
“This shocking data reinforces the urgent need for the UK Government and Northern Ireland Executive to recognise the incredible pressure hospitality businesses have been put under, particularly since April, and illustrates why it should come forward with measures to support this vital sector at the budget,” he said.
“Unsustainable tax increases are squeezing businesses, stifling growth and investment, and threatening local employment, especially for young people.
“It is forcing businesses across the sector to make impossible decisions to cut jobs, put up prices, reduce opening hours and sadly limit the support they desperately want to give their communities.
“Hospitality is united in which measures will reverse this trend and drive growth: a reduction in VAT for hospitality, changes to employer NICs and the delivery of a fair rating system through the review currently underway at the Department of Finance.
“Now is the time to act and back a vital sector that supports the economy, jobs, and local communities.
“We urge the Executive to do so as soon as they can and the UK government to do so at the budget this autumn.”
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