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Leon Thompson, Executive Director of UKHospitality Scotland – Image Credit UKHospitality
The UK Chancellor delivered the Spring Forecast, providing updated economic forecasts for the UK, including inflation and unemployment metrics. The Government, having committed to only one fiscal event per year, limited the Spring Forecast to economic projections without major policy announcements.
Following the Spring Forecast, the Scottish Government will receive an additional £900 million in funding, and the Welsh Government will receive an additional £540 million. These allocations increase funding for the devolved administrations.
UKHospitality responded by urging the Government to reduce the cost of doing business for the hospitality sector, citing the sector’s high VAT rate, the business rates system, and employment costs as key areas for action. The organization also raised concerns about the Government’s plans to introduce a holiday tax, stating it would make holidays less affordable for families.
UKHospitality Scotland called on the Scottish Government to use its additional funding to expand support for hospitality businesses. The organization highlighted that the current £110,000 cap per business excludes many businesses, especially those operating multiple sites and employing large numbers of people. UKHospitality Scotland stated that removing this cap and extending support to all businesses, including those paying intermediate and higher property rates, would help reduce the sector’s cost burden.
No further policy changes or fiscal measures were announced as part of the Spring Forecast, which focused on updated economic projections and additional funding for devolved administrations.
