'We would also urge flexibility on loan repayments, including extension to terms, options to move to interest-only payments or delay altogether, and flexible arrangements from HMRC for tax payments.'
The UK is poised for a modest economic upturn due to lower energy prices, government support measures, and a robust labor market. However, trade prospects may remain lacklustre due to the sluggish economies of major trading partners.
'Loan repayment is not the only price pressure businesses face, with the sector now in a period of peak energy pain. Urgent action is needed from Government to bring costs down, particularly on energy, and more needs to be done to assist businesses in their pandemic debt.'
Leading trade body UKHospitality has hit out at the suggestion from the Bank of England Governor Andrew Bailey that businesses should not raise prices above the rate of inflation, when businesses are facing energy, food and drink costs far above the current 10% inflation rate.
The measures announced today are significant in incentivising people back into work and hopefully alleviating crippling labour shortages. The wider economic forecasts also give us encouragement that consumer confidence and spending are in for an upturn, albeit over time.
The overall inflation rate in the UK is expected to remain stubbornly high at 6.8% in 2023, far above the Bank of England’s inflation target of 2%. In particular, the food and energy inflation rates are forecast to reach 7.2% and 16.7%, respectively, exacerbating the financial burden on the country
Another month, another budget in the United Kingdom, but for many hoteliers the economic reforms don't go far enough to inspire confidence.
'The Chancellor painted a grim picture of what we’re facing as a nation and Britain’s hospitality businesses are already in the midst of severe economic turmoil.'
Real consumer spending growth is expected to remain relatively robust at around 2.3% in 2015, but then slow down to only around 1.7% per annum on average in 2016-20.