With the announcement of Budget 2024 imminent, North West business leaders have articulated their priorities and concerns. Their focus is on critical areas that need government attention.
The hospitality industry faces significant challenges. Key figures urge the government to address tax pressures and costs impacting the sector. Broader economic growth and job security are also highlighted as pivotal concerns for regional leaders.
Hospitality Sector Urges Tax and Support Reforms
The hospitality sector is grappling with a range of pressures. Paul Askew, chef patron at The Art School, Liverpool, emphasises the dire state of the industry. He highlights how expectations of increased National Insurance and changing tax thresholds are causing widespread alarm. The need for urgent tax recalibration is paramount to ensure the sector’s sustainability.
Fiscal Pressure Points Amplifying Industry Strains
High VAT on fresh food, energy costs, and inflation are pressuring businesses. Hospitality firms are urging the government to align VAT with European standards.
Mr Askew notes the tourism sector’s financial contribution to Liverpool, arguing for increased support to foster its growth. Without intervention, more closures and redundancies may ensue.
There exists a climate of uncertainty within hospitality, with persistent weekly business closures. Mr Askew stresses the need for swift, significant government action to prevent further failure.
Business Rates and Industry Equilibrium
Business leaders highlight the disproportionate business rates on physical premises versus online businesses.
There is a call for reform to establish a balanced playing field, reflecting on the potential ending of business rates relief next spring. These changes could levy a heavy burden on businesses.
Emphasising the need for reform, leaders stress that changes should aid high street entities in competing effectively against online and dark kitchen enterprises.
Infrastructure Investment as a Catalyst for Change
Paul Cherpeau of Liverpool Chamber of Commerce indicates a chance for long-term transformation focusing on skills and economic growth.
Such growth is contingent on businesses having a clear outline of government plans, enabling job creation and technological advancement.
Steve Parry of ION Developments highlights the need to streamline public sector project processes, citing excessive costs and procedural inefficiencies. This approach would facilitate more efficient public and private sector collaboration.
Construction Industry and its Capacity Limitations
The construction sector faces capacity constraints, requiring governmental assistance to rebuild abilities.
Sean Keyes from Sutcliffe underscores the budget’s importance and the need for effective infrastructure investment.
Effective spending of new, potentially higher taxes is necessary. It should ensure meaningful infrastructure projects that boost economic progress.
Educational Initiatives and Workforce Enhancement
Matt Breakwell underscores the need for broader apprenticeship programs, suggesting reforms beyond traditional pathways.
T Levels could play a vital role, but the government must enhance incentives for placements to ensure successful student engagement.
Net zero initiatives also affect property investment. Government support is needed for owners to future-proof properties, ensuring the stability of the property sector.
Driving Growth through Strategic Investments
Colin Sinclair of Sciontec stresses the inseparability of economic growth and regional collaboration.
He argues for devolution in R&D funding to encourage inter-regional cooperation, avoiding inefficiency from competitive practices.
Collaboration is viewed as fundamental to the economic strength of the North, fostering growth through shared resources and strategic initiatives.
Addressing SME Concerns and Energy Costs
Liam McKee anticipates the Autumn Budget with optimism yet expresses worry over recent energy price hikes.
He calls for government measures like energy bill relief to support SMEs through financial pressures.
In the absence of government action, SMEs are encouraged to seek long-term energy solutions. McKee suggests measures such as fixed-rate contracts and renewable energy investments as viable options.
Financial Sector Insights and Economic Stability
Katie McCann of Lowry Legal discusses the economic challenges post-14 years of conservative governance.
She suggests a balanced approach to fiscal policy that supports growth without stifling economic stability.
The concerns set forth by North West business leaders reflect broader issues within the UK economy. Their voices emphasize the need for strategic government action.
With the Budget 2024, there lies an opportunity to address these challenges, fostering a more resilient and prosperous economic future.
