Thursday, November 14, 2024

Reeves accused of ‘direct attack’ on the ‘lifeblood of Britain’s economy’

Must read

Fuller’s was part of a circa 200-strong cohort of pubs, hotels and restaurants that have written to Ms Reeves to express fears that her Budget measures will cause venue closures and sweeping job cuts across the hospitality industry.

The group has urged the Chancellor to introduce an exemption or lower band for part-time staff working fewer than 20 hours per week. It has also called for business rates reform to be brought forward a year.

‘Too much to bear’

Senior figures in retail have also warned about the impact of the Budget. Andrew Higginson, who chairs both JD Sports and the British Retail Consortium, told the BBC’s Today programme that the tax increases were “too much to bear”.

Simon Emeny, chief executive of Fuller’s, said the Chancellor’s Budget measures would deter investment, lead to higher prices and harm job creation.

He told The Telegraph: “We want to make sure that the pub remains an affordable treat, but I think [the Budget’s tax changes are] going to inevitably result in higher prices, across a number of sectors. I find that an interesting thing to do by the Government at a time when they’re trying to curb inflation.”

Mr Emeny said his company was now “treading carefully” and would review its own investment plans into next year, although it will “continue to invest heavily” into its estate in the short term. Fuller’s plans to invest up to £60m in growing its business during its current financial year, on the back of decisions taken before the Budget.

Mr Emeny said: “When we invest that much money, we create jobs, and that’s what growth is about. It’s unlikely that we’ll invest that level of money next year on the back of this Budget, and therefore we won’t be creating jobs, and that’s disappointing.”

The increase in National insurance contributions will add around £3m of costs to Fuller’s business. A further £5m of costs have been incurred by the increase in the National Living Wage, which will rise from £11.44 to £12.21 an hour.

Latest article