Business leaders in the North West have shared their views on the Budget ahead of Chancellor Rachel Reeves’ keynote speech on Wednesday.
Representatives from the hospitality sector said venues were particularly in need of support.
Paul Askew, chef patron and owner of The Art School in Liverpool, said: “With the incoming budget there’s a crucial chance to re-set what is an increasingly dire situation in hospitality.”
Mr Askew said the expectation of higher National Insurance contributions for employers and changing tax thresholds set alarm bells ringing in the hospitality sector.
He said: “There’s an ongoing climate of uncertainty with closures of all kinds of hospitality businesses each week – shutting down for good because they can’t make their businesses add up any more. Turnover remains relatively the same broadly speaking for many operators I know both here in Liverpool and around the UK, but the reality is that making this turnover profitable is getting harder each day.
“We need an urgent recalibration in tax for hospitality, which generated £54bn in tax receipts in 2022. In Liverpool, the tourism industry – with hospitality forming a huge part – was worth £6.25bn in 2023. For a city with hospitality in its DNA, we need to increase this each year; the question remains how do we here, and across the UK, make this happen?
“Because we continue to face an incredibly demanding, draining and difficult set of circumstances. So unless the government really listens, we will see more closures and more redundancies. How many other fresh food-led businesses need to close to make the new government realise that they aren’t allowing the hospitality industry to grow, invest, employ and quite frankly survive?
“Unless swift action is taken, the sector is gearing to fail with post-Covid support long gone but the debts very much remaining, along with the ongoing lack of consumer confidence. And it’s not just restaurants – pubs, cafes, bars and more all face the most difficult trading landscape imaginable, with the perfect set of circumstances for failure.”
Mr Askew said pressure points included high VAT on fresh prepared food, high energy and ingredient costs, inflation and wage increases, and Brexit tariffs on import of wine and international goods.
He said: “The single most important point is to recalibrate the VAT charge on fresh prepared food to be in line with Europe for fresh led businesses so we can grow, invest and thrive using artisan skills and develop our people and business normally, not just scraping through week by week. There’s a chorus of businesses across the UK asking for this.
“And we need business rates reform to create a level playing field for businesses with physical premises on the high street compared to online businesses and dark kitchens. It makes no sense how business rates are currently assessed and the fees levied, on top of the potential end to business rates relief next spring which would be another crippling blow.
“We voted for change. Now we desperately need it in hospitality. I really hope the chancellor and Government are listening.”
Steven Mason, an insolvency practitioner and senior manager at Inquesta, also said measures to support the shospitality sector were “much-needed”.
He said: “The sector has suffered tremendously during the pandemic and the subsequent cost-of-living crisis, and the chancellor will no doubt have one eye on supporting the sector.
“Seven in 10 hospitality firms face collapse without urgent business rates relief extension, according to research from the Night Time Industries Association.
“The effects on employment and local communities could be catastrophic, and therefore the chancellor is being urged to consider an extension to business rates relief in the upcoming Budget.”
Paul Cherpeau, chief executive of Liverpool Chamber of Commerce, said: “After a period of short termism, the new government has a unique opportunity to deliver a longer term version that focusses on skills, infrastructure investment and sustainable economic growth.
“That growth can only be realised if businesses are clear on what lies ahead and feel empowered to press forward with their growth ambitions, whether that’s creating new jobs, investing in new technology, or relocating their premises. While there may be a general acceptance that some difficult choices are inevitable, they also want to see positive signals that the Chancellor understands the challenges they face.
“The tone of this Budget is therefore crucial and the government must tread a careful line of delivering realism and a clear policy outlook, without creating scepticism or fear among business owners in the Liverpool City Region.”
Steve Parry, managing director at Liverpool-based property developer ION Developments, said: “If the government is serious about improving the planning system, it needs to take measures that extend beyond the planning teams at local authorities. The capacity of statutory third-party organisations such as the Environment Agency or utilities firms to deal with matters is often pivotal to the speed and success of developments.
“We also have a big lack of capacity in the construction industry to deliver on projects and support is needed to rebuild this capacity and also reduce the red tape and costs associated with tendering for major schemes.
“For public sector projects, the government needs to review and streamline its way of working. Costs are simply too high due to the mechanisms adopted to take projects forward, such as multiple business plans, inefficient procurement and outdated practices. This often results in schemes running massively over already inflated budgets or being cancelled due to unaffordability. That’s simply not sustainable or productive for the country or for taxpayers.”
Sean Keyes, CEO at North West civil and structural engineering consultancy Sutcliffe, said: “The 2024 budget is the most important budget in many peoples working lifetimes, being the first Labour budget in 14 years and it needs to be right. The UK economy has long been constrained by a lack of growth, investment in infrastructure, insufficient housing stock and an NHS requiring a root and branch restructure, which have negatively impacted both businesses and communities.
“While the Prime Minister’s plans for increased house building and investment in unlocking brownfield sites is encouraging, it is crucial that the Chancellor remains focused on delivering the right infrastructure projects to accelerate economic growth. However, for the private sector to engage and invest in this government’s plans, then it must have confidence that the new increased taxes, wherever they may come from, will be spent effectively and not wasted.
“There is no doubt that the government has shown a welcome desire in the months since the election to lift the major constraints on not only house building and achieving its 1.5m target in the next 5 years (however, I feel this is optimistic), but also other major infrastructure projects that could accelerate economic growth in alignment with this budget.”
Matt Breakwell, business development manager at mechanical and electrical services group Kimpton, said: “The apprenticeship levy is currently too narrow in its focus and requires reform. Businesses need support to help to up-skill existing workers, rather than simply train apprentices. A lot of trades, such as cladding or plastering, don’t necessarily have an apprenticeship route, so the government must address this to make it more effective.
“T Levels can be an important pathway for lots of talented young people to learn a trade, but some colleges are struggling to place their students into employers, so we need to see more incentives for firms to offer placement opportunities for T Level students.
“Net zero continues to drive investment and growth, and the latest EPC changes are likely to leave many property owners with a choice between a significant investment to reduce their carbon impact or a heavily discounted sale, which will in turn, damage the confidence in the wider property sector.
“We are already being approached by owners of student accommodation blocks that won’t meet the new rating without significant investment. It would be good, therefore, to see the government recognise this challenge and provide support to help futureproof not only buildings but also the wider economy.”
Colin Sinclair, chief executive of Sciontec and Knowledge Quarter Liverpool, said: “As the government have themselves said, the Budget alone won’t fix the UK economy and generate the growth we will need to invest in public services and infrastructure, so It was pleasing to see that the recent industrial strategy green paper highlighted Liverpool’s existing world-class strength in health and life sciences, which we know goes hand-in-hand with our expertise in advanced manufacturing technologies, digital and creative industries.
“I think that we are all hoping the government will place greater devolution at the heart of its wider economic policy, and that includes R&D funding streams. Allocated in a way that encourages greater collaboration between regions and moves us all away from the wasteful approach where city regions and universities are forced to compete against one another for funding of a specific project, thus losing the unsuccessful candidate onerous amounts of time and expense. Together we are stronger, so collaboration and partnership will be key to future economic growth in the North.”
Liam McKee, head of digital & growth at Chester-based BusinessComparison, said: “Many business owners will be looking ahead to this month’s Autumn Budget with a sense of cautious optimism.
“With signs of recovery emerging and inflation starting to ease, this Budget could be a real catalyst for boosting SME confidence. The recent investment summit in London has also shown encouraging support for UK growth, providing reasons for hope that the Government will get this right.
“However, this month’s energy price increase is already hitting businesses hard—just as Sir Keir Starmer marks his 100th day in power—turning the situation into a critical threat for many, particularly in sectors like hospitality, manufacturing, retail, and healthcare. At a time when firms are already grappling with a tough economic climate, these hikes could be the tipping point for some.
“When Rachel Reeves steps up to the despatch box on 30th October, we urge the Chancellor to introduce policies that directly support SMEs. Measures like energy bill relief or subsidies for energy efficiency upgrades would provide vital help in managing these sudden cost increases. If the Government is truly pro-business, it must confront the energy crisis head-on to protect the backbone of the UK economy.
“If no significant support is offered, businesses must take action to manage rising costs. Locking in a fixed-rate contract can offer stability, though there is some risk if prices fall. But short-term fixes alone won’t suffice—SMEs should also focus on long-term strategies such as upgrading to LED lighting, optimising heating, or investing in renewables. Ultimately, if the Government doesn’t step up, SMEs must act now to secure their future.”
Katie McCann, founder and managing partner of family law firm Lowry Legal, which has offices in Manchester, Liverpool and Chester, said: “After almost a decade and a half of Tory chaos and ruin it’s understandable and probably undeniable that there is a black hole to fill. However the question is: how big is the black hole really; and how quickly do we need to fill it…..with a bulldozer or a shovel?
“Most businesses and entrepreneurs alike would probably agree that in a fair and just society we all need to pay our fair share, but that can’t be at the expense of hamstringing growth and stability.
“Spooking (forgive the Halloween pun) business owners, will inevitably lead to job losses and increase the number of unemployed in this country…is that really what’s best for the recovery of the economy?
“If the budget delivers something that lands in the middle ground, I would hazard a guess that most would accept our current reality and just get on with it…but if Starmer and Reeves decide to grab their proverbial sledgehammers, they could get a backlash they were not expecting from the business community.”
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