Skip to content
Friday 11 September 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,650.44
+0.39%
DAX
25,568.56
+0.82%
CAC 40
8,179.77
+0.78%
STOXX 50
6,325.13
+0.90%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Friday 18 November 2022 6:00 am  |  Updated:  Thursday 17 November 2022 5:41 pm

We will all feel the squeeze, but squeeze too hard and tax receipts will dry up

By: Kate Nicholls

Add as a preferred source on Google
London And The South East Enter Tier 3 Coronvirus Restrictions
Hospitality businesses contribute the majority of business rates. (Photo by Peter Summers/Getty Images)

Doom and gloom was the name of the game in the run-up to the Autumn Statement. Yet the measures delivered by the chancellor ended up being more positive for hospitality businesses than many had feared.

It was a pragmatic response to a turbulent economic market. Crucially, it delivered stability.

The one important part missing, however, was a long term economic plan for growth.

There are difficult decisions to be made in order to steer the country through these challenging times; that much was clear. But the role that businesses can play in driving economic growth should not be overlooked. At the despatch box, the chancellor recognised the importance of such a plan. Unfortunately, nothing meaningful was forthcoming.

Businesses create jobs, deliver higher wages and generate billions in revenue to fund vital public services. These are all key components of economic growth. But they can’t do that if they go out of business or have no margin to invest in people, wages and innovation, which is an all too real prospect for hundreds of hospitality venues across the country.

Our pubs, bars, restaurants, hotels, night clubs and coffee shops, to name a few, are fighting energy costs that have reached levels never seen before. They’re also grappling with enormous food and drink inflation, and are still finding it difficult to fill vacant roles. Throw in consumers tightening their spending, and it’s clear why hospitality businesses are struggling.

Despite all of this, Britain’s hospitality sector still has an enormous appetite to grow and build on our already world-class offering. Despite working in hospitality all my life, I’m still blown away by the passion I hear from the talented business leaders in our sector.

They want to invest. They’re desperate to innovate further, open more venues, and offer more fantastic experiences for the public.  

Read more

UK economy weathers Iran war shocks but slowdown incoming

Chancellor John Healey smiling, wearing a navy suit, white shirt, and red tie.

At the moment, though, they are in limbo. They’re desperate for a clear plan from the government.  

The chancellor talked about his growth priorities of energy, infrastructure and innovation. Hospitality businesses will be left scratching their heads about where they fit into this.  

There was no steer on the labour market or how businesses will be able to recruit much-needed people to work in their venues. There was little on skills, training existing staff or bringing new people through. Reform of the apprenticeship levy would be music to the sector’s ears.

Businesses will be caught in the increasing squeeze we saw forecast yesterday. But the chancellor needs to be mindful. Squeeze too hard and the tax revenues they’re relying on to fund these priorities may dwindle.

Yet there was some positive news for hospitality businesses. UKHospitality has been warning about the looming £900m business rates bill that faced the sector, if current relief ended in April as expected and rates were hiked in line with inflation. Fortunately, the chancellor has heeded our warnings and has delivered for hospitality a freeze in the multiplier, no downward transition cap and extended relief.  

This was a vital intervention, providing some certainty for businesses over the next 12 months.  We now need to see the government deliver on its manifesto commitment to deliver root and branch reform of the business rates system. The current system is outdated and not fit-for-purpose, with hospitality overpaying by 300 per cent. The review should be part of a long-term economic growth plan. We need to understand the big picture thinking, so that businesses can see the way forward, feel some much-needed confidence and invest in the sector.

At the moment, that is the missing piece of the puzzle.

Read more

Iran war could ‘halt growth’ across UK economy 

Andy Burnham, Mayor of Greater Manchester, in a dark suit and glasses, listening intently at a wooden table.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Opinion

Categories

  • Opinion

Trending Articles

  • Primark sales slip as owner dresses up retailer for demerger

  • Badger Beer maker Hall & Woodhouse doubles profit ahead of tie-up with James May

  • Crystal Palace owner Blitzer part of £1bn mega stadium redevelopment

  • Barclays faces legal scrutiny over role in £90m ‘Ponzi scheme within a Ponzi scheme’

  • As it happened: FTSE 100 dives as oil prices surge past $100 in blow to inflation

More from Morning Wire

  • UK economy weathers Iran war shocks but slowdown incoming

    Economics
    Chancellor John Healey smiling, wearing a navy suit, white shirt, and red tie.
  • Iran war could ‘halt growth’ across UK economy 

    Economics
    Andy Burnham, Mayor of Greater Manchester, in a dark suit and glasses, listening intently at a wooden table.
  • Treasury ‘tells Healey’ to consider tax on banks and oil

    Politics
    Chancellor John Healey smiling, wearing a navy suit, white shirt, and red tie.
  • Healey launches £150m northern scale-up fund

    Economics
    Smiling bald man in a dark suit and a red patterned tie, looking up and to the right.
  • Burnham says the government is central to his ‘triple helix’ plan for growth

    Politics
    Andy Burnham leaves 10 Downing Street, holding a red folder, in a navy suit and white tie
  • Healey’s adviser warns ‘you won’t grow the economy just by spending more’

    Economics
    Man in suit and red tie speaking at a podium to an audience in a modern building.
  • Burnham’s in hock to the bond markets – whether he likes it or not

    Economics
    Andy Burnham speaking in Parliament, surrounded by other politicians and officials.
  • Budget tax hikes would be ‘road to ruin,’ Healey warned

    Economics
    Bald man in a dark suit and red tie walking past a G20 sign with other attendees in background.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook