HOSPITALITY businesses right across the sector are facing a harsh reality. Non-domestic rates here are, without a doubt, mercilessly crippling our businesses.
It is a kick in the teeth for the entire sector to see that we pay more in business rates per pound than similar businesses across the UK, including the City of London, who have received greater support in the form of a rates relief scheme.
These funds afforded to Great Britain for a 75 per cent rates holiday in 2023/24, and allocated under the Barnett Consequential, vanished into Northern Ireland's budget black hole, and has failed to reach the struggling businesses it was intended for.
As the new chair of Hospitality Ulster, I am eager to represent our members and drive forward a collective call to government, our politicians, and the Chancellor, to step in and provide the crucial support our industry so desperately requires.
Our AGM last week also raised the issues of the excessive 20 per cent hospitality VAT rate, rising inflationary pressures, and labour shortages, all of which are also existential threats to our industry’s survival.
People now have less to spend in their local pub, bar or restaurant, and energy costs are only set to increase as we descend into another bleak winter of renewed geopolitical instability.
As we fast approach the Chancellor’s autumn statement, it is vital that our industry is acknowledged and receives the help it needs to weather the storm and restore the confidence of business owners, of which only 22 per cent are optimistic about the next 12 months.
We need to see a VAT reduction to enable our sector here to be able to compete with our neighbours in the Republic of Ireland, who enjoy a much lower VAT rate of 13.5 per cent.
The Chancellor needs to deliver rates reliefs that will actually reach our pubs and restaurants. For too long, Westminster has prioritised other issues over Northern Ireland, and we have been left to fend for ourselves like never before.
We are the fourth largest private sector employer in Northern Ireland, and I am proud to be a part of such a resilient and vibrant sector.
We have proven our worth repeatedly and though it would be easy to despair, this is a time to encourage all in the trade to be agile, keep track of their margins, and remain hopeful for imminent deliverance.
:: Stephen Magorrian is chair of Hospitality Ulster
