NEWS FROM THE ALMR Expert Insights


ALMR REITERATES CALL FOR BUSINESS RATES REFORM


Following the Government’s decision to implement business rates relief for broadband network providers, the ALMR has called upon the Government to implement comprehensive reform of business rates.


ALMR Chief Executive Kate Nicholls said: Kate Nicholls ALMR Chief Executive


FUTURE SHOCK REVEALS CAUSES FOR OPTIMISM AMID CHALLENGES


Brexit and rising costs will present out of home eating and drinking operators with big challenges in 2017— but new openings growth, technology and the Night Tube are among the reasons to be optimistic about the sector’s future.


“The Government’s decision to grant business rates relief for broadband network providers shows willingness on its part to address concerns around the current system and implement sector-specific relief when necessary.


Licensed hospitality venues currently face enormous business tax burdens, around a third of turnover for pubs, and the ALMR has been vocal in its assertion that this must change.


The House of Lords is due to debate the impact of business rates on high street retailers, so this clearly remains an issue of some concern for politicians as well as businesses.


“With this is mind, we are once again calling on the Government to take action to drastically reduce the business rates burden being faced by licensed hospitality venues which is stifling investment.”


TOURIST TAX WILL HARM BATH’S HOSPITALITY SECTOR


Following the announcement that Bath and North East Somerset Council is considering implementing a “tourist bed tax”, the ALMR has warned against introducing additional costs for hospitality businesses.


Conservative Councillor Charles Gerrish has indicated that the local authority is considering the tax as a way of generating additional revenue.


ALMR Chief Executive Kate Nicholls said:


“At a time when businesses are facing tightening margins and increased property and wage costs, and when pubs already pay a third of turnover in taxes, any additional costs burdens could have a hugely detrimental effect on revenue streams for retailers and undermine Bath’s economy.


4 FEBRUARY 2017


“Businesses in Bath already contribute enormously through business taxes and engage in voluntary partnership work to promote the city’s fantastic hospitality sector.


“The Council may view the tax as a good way to increase revenue, but the effects on tourism spend in the city ar


e f ar from certain.


The Government’s own response to the L


yons inquir y states that local


tourist or bed taxes could make the UK’s tourism and hospitality industries less competitive. With this in mind, we are urging local authorities to avoid increasing cost burdens for businesses in their areas and intr


oducing taxes which


may have an unfavourable effect on their own tourism offering.”


The ‘Future Shock’ report draws on CGA Peach’s portfolio of industry-leading research sources in the out-of-home eating and drinking sectors, including the Coffer Peach Business Tracker, BrandTrack, Trading Index, Pricing Index and AlixPartners Peach Market Growth Monitor. The research is complemented by the ALMR’s own data from sources including its annual survey of members with Christie + Co.


Those are among the findings in the second issue of Future Shock, a major new collaboration between CGA Peach and the ALMR that provides a ‘state of the nation’ report into the eating and drinking out sectors and rounds up important new insights into consumer, supply chain, drinking and economic trends for operators.


The report shows that operating costs now account an average of nearly half (47.7%) of turnover for businesses in the sector, with rising property and staff costs an increasing challenge for many of them. Another staffing issue has arisen from Brexit and the resulting uncertainty of the future of EU migrants, who account for close to half (46%) of the workforce in hospitality and tourism.


ALMR Chief Executive Kate Nicholls said: “The National Living Wage, business rates reform, Brexit—there are a lot of issues that eating and drinking out operators will need to stay on top of as we enter 2017, and the ALMR will be campaigning loudly and proudly for the sector within government. This latest Future Shock report provides important intelligence for that work, and presents a one-stop-shop for information for everyone interested in the sector. It is a balanced and honest health check— a digest of some of the challenges we all face but also of the many reasons we have to be proud of our creative and economically important work.”


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