More than half (58%) of businesses say they will have to reduce the number of staff they employ and/or increase prices if the budget does not deliver necessary business support, a new survey has found.
According to a new national survey by UKHospitality, the British Institute of Innkeeping, the British Beer & Pub Association and Hospitality Ulster found that 73% of businesses have less that six months of cash reserves. Three in 10 businesses (29%) report they have no cash reserves – a record high, according to the hospitality trade bodies.
Members also revealed that half of businesses have been forced to cut staff and 60% have reduced staff hours, while 70% of respondents have already increased prices since April, when the sector was hit by an additional £3.4bn in annual costs.
Members cited the maximum possible business rates discount (61%), amending April’s changes to employer NICs (54%) and a cut in VAT (84%) as government actions that can help their business.
“Economic pressures are mounting at every turn and businesses have been forced to make tough decisions to cut jobs, reduce staff hours and put up prices,” the trade bodies said in a joint statement. “Many have already had to close the doors for the last time, leaving communities without the support local hospitality venues provide as a local hub.
“For those surviving, the situation is becoming more worrying. Cashflow is becoming a serious issue. This is an urgent situation that demands urgent action at the budget.
“No one wants to see jobs and communities hit even further, but it’s clear that they will once again be impacted if there is not adequate support for our sector at the budget next week. We urge the Chancellor to act next week to protect cherished local venues, which support local jobs, economies and communities,” they added.
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