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Rachel Reeves will this weekend be told by some of Britain’s biggest hospitality groups that the tax hikes imposed in last month’s Budget risk triggering a tsunami of job losses across the sector.

Sky News has learnt that dozens of bosses from pub, restaurant and hotel operators have agreed to sign a letter to the chancellor calling her inaugural fiscal statement “regressive in [its] impact on lower earners” and warning that “business closures and job losses within a year” are inevitable.

The letter, an early draft of which has been seen by Sky News, has been circulated among executives from Stonegate Group, Britain’s biggest pubs operator; a division of the company which owns Wagamama; Burger King; the Hotel du Vin and Malmaison hotel chains; and Tossed, the high street salad bar operator.

One signatory cautioned this weekend that the contents of the final letter had yet to be finalised and could change.

Collectively, the signatories employ tens of thousands of people across Britain, although the final tally was unclear on Saturday as UK Hospitality, the trade body coordinating the letter, was still canvassing members about their willingness to put their names to it.

In the letter, they repeat a warning that steep increases in employers’ national insurance bills, coupled with the hike in the national living wage, will cost the hospitality industry close to £3.5bn annually.

They also say that the commercial viability of “important public sector catering contracts for schools, hospitals and prisons” will be thrown into question.

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The chancellor and prime minister have stressed the budget’s focus on the NHS

Ms Reeves said in the Budget that the Treasury would yield an extra £25bn annually from the employer NICs (national insurance contributions) increase, prompting a barrage of criticism from retailers and hospitality companies which have large numbers of part-time employees.

“The changes to the NICs threshold are not just unsustainable for our businesses but inevitably regressive in their impact on lower earners,” this weekend’s letter is expected to say.

“Unquestionably they will lead to business closures and job losses within a year.

“The increase in employer contributions would have been damaging enough but changing the threshold is far more damaging.

“Without action, many businesses will fail, costing many of the sector’s 3.5 million jobs.”

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Reeves: ‘Raising taxes was not an easy decision’

Among other potential signatories to the letter are said to be Pizza Hut’s largest UK franchisee, Oakman Inns, Tortilla Mexican Grill, Fuller’s and Elior UK, the contract catering giant.

The Revel Collective, which recently changed its name from Revolution Bars Group, is also among those asked to sign it.

The letter calls on the chancellor to create a new employer NICs band of 5% for workers earning between £5,000 – the new lower tax threshold – and £9,100, and to exempt employers from paying NICs on lower-band taxpayers who work fewer than 20 hours a week.

It also asks for an early implementation of business rates reform, or for the Treasury to reverse the temporary increase in VAT from 17.5% to 20%.

“Your stated intent is to rebalance the tax burden away from high street businesses, yet this change to NICs does the opposite, balancing the books on the backs of the high street businesses which provide jobs to all in society, nationwide, while sparing businesses that used technology to shed jobs,” the draft said.

“We understand that these proposals come at a financial cost, but we are absolutely firm in our belief that the business closures and job losses that would result from inaction would be substantially more expensive, for the economy, for society and for the public finances.”

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Sky News revealed this week that some of Britain’s biggest food retailers believed that price rises from next April, when the tax changes come into effect, were inevitable.

Executives at Marks & Spencer and J Sainsbury both subsequently confirmed that possibility when they reported financial results to the City, while Tim Martin, the veteran chairman of JD Wetherspoon, said: “All hospitality businesses, we believe, plan to increase prices as a result [of the Budget].”

Hospitality groups are understood to have told their respective trade association that they may be forced to pass on some of the higher taxes in price increases, although the draft letter also highlighted the belief that customers “are at the end of their ability to pay more”.

The pessimism which has engulfed parts of corporate Britain since the Budget has taken senior Labour figures by surprise, and has thrown into sharp relief the triumphalism expressed by the new government after last month’s International Investment Summit.

In an interview with Sky News last weekend, the chancellor said “businesses will now have to make a choice, whether they will absorb that [employer NICs increase] through efficiency and productivity gains, whether it will be through lower profits or perhaps through lower wage growth”.

Pointedly, she did not highlight the prospect of higher prices for consumers, with some bosses already publicly warning of a renewed spike in UK inflation next year.

Read more from Sky News:
Why there are so few top female chefs
Bolt drivers win legal claim
Bank of England cuts interest rate but issues inflation warning

Sky News revealed on Monday that Jonathan Reynolds, the business secretary, had faced widespread anger from chief executives on a call to discuss the Budget.

Nick Mackenzie, the chief executive of Greene King, highlighted on the call that the increase in employers’ national insurance contributions would cause “a £20m shock” to the company, while Fullers’ Simon Emeny warned that it would be forced to halve annual investment from £60m to £30m as a result of increased cost pressures.

Rami Baitieh, the Morrisons chief executive, told Mr Reynolds that the Budget had exacerbated “an avalanche of costs” for businesses next year.

This weekend, UK Hospitality declined to comment on the draft letter.

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Teen arrested after Kayden Moy dies following ‘disturbance’ at beach in Ayrshire

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Teen arrested after Kayden Moy dies following 'disturbance' at beach in Ayrshire

A teenager has been arrested after a 16-year-old boy died following reports of a “disturbance” at a beach in Ayrshire.

Kayden Moy was found seriously injured by officers at Irvine Beach at around 6.45pm on Saturday.

The teenager, from East Kilbride, South Lanarkshire, was taken to hospital but died in the early hours.

Police Scotland said on Sunday evening that a 17-year-old boy had been arrested and enquires were continuing.

Officers believe the incident may have been filmed and have urged witnesses and anyone with information to come forward.

Kayden Moy. Pic: Facebook
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Kayden. Pic: Facebook

Pic: iStock
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The incident happened at Irvine Beach in Ayrshire, Scotland. File pic: iStock

Detective Chief Inspector Campbell Jackson said: “An extensive investigation is under way to establish the full circumstances surrounding this death.

“Our officers are supporting the boy’s family at this very difficult and heartbreaking time.

“From our investigation so far, we know there were a number of people on the beach around the time of the disturbance.

“We believe several of them were filming at the time and may have footage of what happened.

“I would urge people to review the footage they have and contact police if they think the footage captured could be of significance to our investigation.”

This can be submitted anonymously, the force said.

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Vandals target Luke Littler’s van
UK’s negotiations with EU ‘going to the wire’
End of an era for English football stadium

Superintendent Jim McMillan added: “We understand this death will be of great concern for the local community, but please be assured that we are doing everything we can to identify those involved.

“There will be additional patrols in the area as we carry out our enquiries and anyone with any concerns can approach these officers.”

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Post-Brexit EU reset negotiations ‘going to the wire’, says minister

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Post-Brexit EU reset negotiations 'going to the wire', says minister

Negotiations to reset the UK’s post-Brexit relationship with the EU are going “to the wire”, a Cabinet Office minister has said.

“There is no final deal as yet. We are in the very final hours,” the UK’s lead negotiator Nick Thomas-Symonds told Sky’s Sunday Morning with Trevor Phillips.

On the possibility of a youth mobility scheme with the EU, he insisted “nothing is agreed until everything is”.

“We would be open to a smart, controlled youth mobility scheme,” he said. “But I should set out, we will not return to freedom of movement.”

Politics latest: PM outlines ‘benefits’ for UK from closer EU ties

The government is set to host EU leaders in London on Monday.

Put to the minister that the government could not guarantee there will be a deal by tomorrow afternoon, Mr Thomas-Symonds said: “Nobody can guarantee anything when you have two parties in a negotiation.”

But the minister said he remained “confident” a deal could be reached “that makes our borders more secure, is good for jobs and growth, and brings people’s household bills down”.

“That is what is in our national interest and that’s what we will continue to do over these final hours,” he said.

“We have certainly been taking what I have called a ruthlessly pragmatic approach.”

On agricultural products, food and drink, Mr Thomas-Symonds said supermarkets were crying out for a deal because the status quo “isn’t working”, with “lorries stuck for 16 hours and food rotting” and producers and farmers unable to export goods because of the amount of “red tape”.

Asked how much people could expect to save on shopping as a result of the deal the government was hoping to negotiate, the minister was unable to give a figure.

Read more:
What could a UK-EU reset look like?
Starmer’s stance on immigration criticised

On the issue of fishing, asked if a deal would mean allowing French boats into British waters, the minister said the Brexit deal which reduced EU fishing in UK waters by a quarter over five years comes to an end next year.

He said the objectives now included “an overall deal in the interest of our fishers, easier access to markets to sell our fish and looking after our oceans”.

Turning to borders, the minister was asked if people would be able to move through queues at airports faster.

Again, he could not give a definitive answer, but said it was “certainly something we have been pushing with the EU… we want British people who are going on holiday to be able to go and enjoy their holiday, and not be stuck in queues”.

PM opens door to EU youth mobility scheme

A deal granting the UK access to a major EU defence fund could be on the table, according to reports – and Prime Minister Sir Keir Starmer has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.

The European Commission has proposed opening negotiations with the UK on an agreement to facilitate youth mobility between the EU and the UK. The scheme would allow both UK and EU citizens aged between 18 and 30 years old to stay for up to four years in a country of their choosing.

Earlier this month, Home Secretary Yvette Cooper told Phillips a youth mobility scheme was not the approach the government wanted to take to bring net migration down.

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Lack of UK training ‘big driver of net migration’

When this was put to him, Mr Thomas-Symonds insisted any deal on a youth mobility scheme with Europe will have to be “smart” and “controlled” and will be “consistent” with the government’s immigration policy.

Asked what the government had got in return for a youth mobility scheme – now there had been a change in approach – the minister said: “It is about an overall balanced package that works for Britain. The government is 100% behind the objective of getting net migration down.”

Phillips said more than a million young people came to the country between 2004 and 2015. “If there isn’t a cap – that’s what we are talking about,” he said.

The minister insisted such a scheme would be “controlled” – but refused to say whether there would be a cap.

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‘It’s going to be a bad deal’

Shadow cabinet office minister Alex Burghart told Phillips an uncapped youth mobility scheme with the EU would lead to “much higher immigration”, adding: “It sounds very much as though it’s going to be a bad deal.”

Asked if the Conservatives would scrap any EU deal, he said: “It depends what the deal is, Trevor. And we still, even at this late stage, we don’t know.

“The government can’t tell us whether everyone will be able to come. They can’t tell us how old the young person is. They can’t tell us what benefits they would get.

“So I think when people hear about a youth mobility scheme, they think about an 18-year-old coming over working at a bar. But actually we may well be looking at a scheme which allows 30-year-olds to come over and have access to the NHS on day one, to claim benefits on day one, to bring their extended families.”

He added: “So there are obviously very considerable disadvantages to the UK if this deal is done in the wrong way.”

Jose Manuel Barroso, former EU Commission president, told Phillips it “makes sense” for a stronger relationship to exist between the European Union and the UK, adding: “We are stronger together.”

He said he understood fishing and youth mobility are the key sticking points for a UK-EU deal.

“Frankly, what is at stake… is much more important than those specific issues,” he said.

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Teenager living in ‘continuous pain’ after surgeon Dr Yaser Jabbar carried out ‘inappropriate’ operations

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Teenager living in 'continuous pain' after surgeon Dr Yaser Jabbar carried out 'inappropriate' operations

A 15-year-old boy who was operated on twice by a now unlicensed Great Ormond Street surgeon is living with “continuous” pain.

Finias Sandu has been told by an independent review the procedures he underwent on both his legs were “unacceptable” and “inappropriate” for his age.

The teenager from Essex was born with a condition that causes curved bones in his legs.

Aged seven, a reconstructive procedure was carried out on Finias’s left leg, lengthening the limb by 3.5cm.

A few years later, the same operation was carried out on his right leg which involved wearing an invasive and heavy metal frame for months.

He has now been told by independent experts these procedures should not have taken place and concerns have been raised over a lack of imaging being taken prior to the operations.

Dr Yasser Jabbar. Pic: Linkedin
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Yaser Jabbar rescinded his UK medical licence last year. Pic: LinkedIn

His doctor at London’s prestigious Great Ormond Street Hospital was former consultant orthopaedic surgeon Yaser Jabbar. Sky News has spoken to others he treated.

Mr Jabbar also did not arrange for updated scans or for relevant X-rays to be conducted ahead of the procedures.

The surgeries have been found to have caused Finias “harm” and left him in constant pain.

“The pain is there every day, every day I’m continuously in pain,” he told Sky News.

“It’s not something really sharp, although it does get to a certain point where it hurts quite a lot, but it’s always there. It just doesn’t leave, it’s a companion to me, just always there.”

Read more:
Girl who had leg amputated suffered harm during surgeon’s care
Child, 11, in wheelchair after surgeon’s operations

Hospital accused of ‘covering up’ concerns about suspended surgeon

Finias Sandu's surgery pictures
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Finias’s surgery pictures

Care of over 700 patients being assessed

Mr Jabbar rescinded his UK medical licence in January last year after working at Great Ormond Street between 2017 and 2022.

The care of his 700-plus patients is being assessed, with some facing corrective surgery, among them Finias.

Finias Sandu in hospital

“Trusting somebody is hard to do, knowing what they have done to me physically and emotionally, you know, it’s just too much to comprehend for me,” he said.

“It wasn’t something just physically, like my leg pain and everything else. It was emotionally, because I put my trust in that specific doctor. My parents and I don’t really understand the more scientific terms, we just went by what he said.”

Finias Sandu in hospital

Doctors refused to treat Finias because of his surgeries

Finias and his family relocated to their native Romania soon after the reconstructive frame was removed from his right leg in the summer of 2021.

The pain worsened and they sought advice from doctors in Romania, who refused to treat Finias because of the impact of his surgeries.

Finias Sandu in hospital

Dozens of families seeking legal claims

His mother Cornelia Sandu is “furious” and feels her trust in the hospital has been shattered. They are now among dozens of families seeking legal claims.

Cyrus Plaza from Hudgell Solicitors is representing the family. He said: “In cases where it has been identified that harm was caused, we want to see Great Ormond Street Hospital agreeing to pay interim payments of compensation for the children, so that if they need therapy or treatment now, they can access it.”

Finias Sandu in hospital

Finias is accessing therapy and mental health support as he prepares for corrective surgery later in the year.

A spokesperson for Great Ormond Street Hospital told Sky News: “We are deeply sorry to Finias and his family, and all the patients and families who have been impacted.

“We want every patient and family who comes to our hospital to feel safe and cared for. We will always discuss concerns families may have and, where they submit claims, we will work to ensure the legal process can be resolved as quickly as possible.”

Finias Sandu with his mother and sister
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Finias with his mother and sister

Service not ‘safe for patients’

Sky News has attempted to contact Mr Jabbar.

An external review into the wider orthopaedic department at the hospital began in September 2022.

It was commissioned after the Royal College of Surgeons warned the hospital’s lower limb reconstruction service was not “safe for patients or adequate to meet demand”.

The investigation is expected to be completed by the end of the year.

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