Regenerating the high street dominated the UKHospitality conference. By Ian Taylor
UKHospitality seeks freeze in business rates
The UKHospitality association demanded a shift in the burden of business rates from the high street to online businesses as it outlined a series of demands, and warned ministers: “Ignore us at your peril.”
Kate Nicholls, UKHospitality
chief executive, told the association’s conference in London last week: “Hospitality is the country’s third-largest employer. It creates one in eight new jobs. We’re twice the size of the financial services sector. We touch lives in every constituency, at every skill level. “The sector is forecast to double [in size] if we get the right conditions for growth, [but] we can’t do it while we face significant headwinds because of government policy.
“One-third of our £130 billion
turnover goes to the government.” Nicholls demanded the
government: “Champion the high street through a root-and-branch reform of business rates, [and] boost productivity by doubling the National Insurance Contribution
threshold to take the lowest-paid out of tax.”
She said: “We need a fair and
level playing field with digital businesses. We want a freeze on business rates for the next two years, and we want the government to look at new digital taxes to take the burden off business rates and put it on the digital economy.” Nicholls’ demand was backed by industry leaders. Travelodge chief executive Peter
Gowers said: “The biggest issue is regenerating the high street. We need to invest in the high street – and the business rates system prevents that. If we invest in properties, we incur higher business rates.” Steve Richards, chief executive of the Casual Dining Group, which operates more than 300 restaurants,
said: “We’d like a reduction in tax and a reorganisation of business rates. Online businesses are not paying their way.” The conference was UKHospitality’s first since its formation by the merger of the British Hospitality Association and Association of Licensed Multiple Retailers in March. “We came together against the
backdrop of real and significant threats to our industry,” said Nicholls. “We need to reduce the costs
of doing business. Unnecessary regulation and cost pressures are crippling our sector.” Nicholls called on the
government to endorse a sector deal for tourism “to develop home-grown skills and reduce unnecessary costs”.
Minister hails sector as ‘boon to economy’
Tourism minister Michael Ellis hailed travel and hospitality as “a boon to the economy”. He told the UKHospitality conference:
“You’re one of the largest employers in the country. You’re one of the fastest generators of jobs. You’re delivering record-breaking results. “Travel and hospitality provides large-scale
employment. It helps Britain’s ‘soft power’. It’s a boon to the economy. There is not another sector
that delivers this all-round package. I applaud what you do. I’m proud to be your advocate across government.” However, he said: “There is a widespread
perception that hospitality is not a long-term career [and] we need to disabuse young people of that.” Ellis was appointed minister for tourism in January.
DIRECTORS: Smaller firms often don’t have a female on the board
19 July 2018
travelweekly.co.uk 63
“We need to invest in the high street – and the business rates system prevents that”
NICHOLLS: ‘A third of our £130bn turnover goes to the government’
‘Women shouldn’t be excluded from company boards’
There is “no excuse” for excluding women from company boards and the time for talking about this is “over”, UK hospitality leaders heard last week. Holly Addison, head of hospitality at recruitment firm Odgers Berndtson, said: “More women than ever are on the boards of UK companies – 29% of FTSE100 board positions are held by women – but there is still a long way to go. “Too many small businesses don’t
have any women on boards. There is no excuse for all-male boards.” She quoted a recent survey
that suggested 63% of hospitality sector leaders “agree there is a problem around diversity, but two-thirds don’t think it’s a problem in their own business”. More than half (55%) of businesses have a diversity policy and “82% [of hospitality leaders] thought there should be more women on leadership teams, but schemes to encourage [female appointments] are not common – only 28% have one”. Addison insisted: “The time
for talking about this is over.” Jon Terry, global financial services people leader at PwC, said: “Your ability to understand your customer must start with your leadership team looking like your customers.”
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