HU Spotlight 30th September 2022
30 September 2022
NOT ANOTHER SURVEY?!
We know never ending requests for businesses to complete surveys can be annoying and lead to survey fatigue - where businesses don’t engage and vital evidence needed to show Government the reality of the trading environment is lost. The value of which was proven during Covid enabling us to make the case for additional support.
So, we want to express our sincere thanks to everyone that completed our latest performance survey and encourage others to complete future surveys as they are vital in our efforts to represent your business.
Businesses that responded to the survey will receive the full analysis in the coming days, however the key takeaway is that the current trading performance is weak with 3 in 5 respondents either breaking even or making a loss.
Another week, and still no news
As we still await details on the Energy Support package for Northern Ireland, Hospitality Ulster continue to lobby the UK Government for faster action. Saying Northern Ireland will get a “comparable scheme in November,” backdated to 1st October without any details, is simply not good enough. Indeed, even our GB counter parts are still awaiting full details of their scheme. Although, we all should be very wary about what we do know, which is the energy support package only appears to cover the wholesale price, and businesses could end up paying considerably more than the headline figure!
No VAT, NO Rates, No Hope
Whilst last weeks ‘Mini Budget’ may have helped some business sectors, the lack of support for businesses in the hospitality sector left many owners worried for their very survival. Corporation tax cuts may drive growth in the long term but won’t help struggling hospitality businesses today. Especially as any profits disappear as costs continue to rise.
Despite the setback, Hospitality Ulster have been working closely with UKH and BBPA and have redoubled our efforts to make the case for an urgent VAT cut and business rates holiday.
We have commissioned research to demonstrate that we have reached a retail price celling, with the gap between costs and sales narrowing considerably and, in some cases, gone all together. Leaving many businesses reporting a lossmaking position, meaning the very real cost of job losses in hospitality could well outweigh the cost of cutting VAT and rates.
If UK Government is serious about driving growth, they need to support and protect our hospitality industry until these crises ease, and hospitality can return to being key in driving growth and creating additional jobs to help the economy recover.
There is no doubt the financial market’s reaction to the recent Mini Budget has made our battle for support even harder, but we will continue to make our case, because for many businesses, no VAT cut and no rates means no hope.
Emergency Energy Poverty Fund
This winter, The Drinks Trust has launched a dedicated grant-giving campaign, the Emergency Energy Poverty Fund, that will run from October 2022 until the exhaustion of funds. The Drinks Trust aims to deliver up to £350 to eligible individuals in our industry facing fuel poverty. This grant will help the most vulnerable industry workers to heat and power their homes for up to 12 weeks.
For more information CLICK HERE
Running a Businesses can be a Lonely Place
Running a business can be a lonely place, especially under the intense pressures caused by the current cost of energy and cost of doing business crises. So, it is especially important to look after your mental health. Remember everyone needs a little help sometimes and our partners The Drinks Trust and Burnt Chef both provide confidential support at no costs to business owners or people working in the industry.
For more information CLICK HERE