Hospitality chiefs warn Reeves of carnage over Budget tax hikes

Published

9 months ago

November 9, 2024

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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.

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.”

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.”

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.

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.

UK

Lionesses praised after winning Women’s Euros – with bus parade confirmed this week

Published

3 hours ago

July 27, 2025

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Lionesses praised after winning Women's Euros - with bus parade confirmed this week

England fans across the country have heaped praise on the team after winning Euro 2025, with a bus parade celebration set for Tuesday.

Sarina Wiegman’s Lionesses took home their second Euros trophy in consecutive tournaments after beating Spain 3-1 on penalties in the final.

Chloe Kelly scored the winning spot-kick following two huge saves from goalkeeper Hannah Hampton, after Alessia Russo scored an equaliser to send the game to a shootout.

As it happened: England beat Spain on penalties to retain title

After England win, it was announced that an open-top bus parade will be held in London on Tuesday along The Mall, which will start at 12.10pm.

The celebrations will culminate in a stage ceremony at the Queen Victoria Memorial in front of Buckingham Palace at approximately 12.30pm

Fans can attend for free, and Sky News will broadcast it live.

‘You’ve made the nation proud’ – Starmer

Prime Minister Sir Keir Starmer was among the millions congratulating the Lionesses, posting on social media to praise the champions

“What a team. What a game. What drama,” he said.

“You dug deep when it mattered most and you’ve made the nation proud. History makers.”

The roof almost came off the Manchester clubhouse where Ella Toone started her journey

Greg Milam

Chief North of England correspondent

@GregMilamSky

Nowhere was the roar for the Lionesses louder than in the Astley and Tyldesley Miners Welfare club on the outskirts of Manchester.

The club where a five-year-old Ella Toone started her journey to England stardom, like so many places across the country, hosted nail-biting, table-thumping and, ultimately, deafening watch parties.

The roof almost came off the clubhouse when Chloe Kelly’s winning penalty went in.

Red bucket hats emblazoned with Toone’s now-famous ‘Buzzing My Head Off’ catchphrase were thrown in the air.

“Absolutely ecstatic,” said Lorraine Warwick-Ellis, who runs the pathway development for women and girls at the club.

“I was very nervous, very worried about penalties but we did it in the end.”

The success of the Lionesses has driven a huge boom in the popularity of women’s and girls football in recent years. She hopes this win will have a similar effect.

“I hope it cements the girls who are already here, keeps them engaged, and I hope it brings more girls down who want to be footballers and see that it’s open for everybody.”

It had been a pretty sombre watch for much of the game after Spain took the lead – but it erupted into life after Alessia Russo’s equaliser.

The shootout was the usual emotional rollercoaster but young fans seem to have greater faith in the Lionesses.

Among the jubilant teenagers celebrating in the clubhouse were two who have followed Toone’s path to academies at professional clubs.

“It’s unbelievable, they’re amazing, Chloe Kelly, I just don’t know what to say about her,” said Natasha Greenhouse. “We knew if it went to penalties that they’d do it.”

Tamsin Gallagher said: “They’ve done it the hard way all the way through the Euros but we all believed in them. Come on England.”

The party in Manchester and around the country and only just begun.

Prince William and Princess Charlotte, who were in attendance at St Jakob-Park in Basel, added on social media: “What a game!

“Lionesses, you are the champions of Europe and we couldn’t be prouder of the whole team. Enjoy this moment England.”

King hails Lionesses… and calls for World Cup

In a post on the official Royal Family account on X, King Charles also sent his “most heartfelt congratulations on winning the Euros 2025” to the Lionesses.

“For more years than I care to remember, England fans have sung that famous chant ‘football’s coming home’,” he said.

“As you return home with the trophy you won at Wembley three years ago, it is a source of great pride that, through sporting skill and awesome teamwork, the Lionesses have made those words ring true.

“For this, you have my whole family’s warmest appreciation and admiration. More than that, though, you have shown through your example over past weeks that there are no setbacks so tough that defeat cannot be transformed into victory, even as the final whistle looms.”

The monarch ended his statement by saying “the next task is to bring home the World Cup in 2027 if you possibly can!”

Culture Secretary Lisa Nandy added: “What an absolutely extraordinary achievement by our Lionesses – once again they have made history and united the country with pride and joy.”

Reform UK’s Nigel Farage said “well done” to the team and “what an absolutely fantastic watch,” while Conservative leader Kemi Badenoch said: “What an achievement. What a team!”

UK

Man suffers cardiac arrest onboard boat trying to reach UK

Published

23 hours ago

July 27, 2025

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Man suffers cardiac arrest onboard boat trying to reach UK

A man has died after suffering cardiac arrest onboard a boat attempting to reach the UK.

The vessel turned back towards Equihen beach on the French coast yesterday morning.

A nurse tried to resuscitate the man but was unsuccessful.

French authorities have now launched an investigation into the circumstances.

A spokesperson for Doctors Without Borders, also known as MSF, has criticised authorities on both sides of the Channel.

Jacob Burns said: “Yet again we have a tragedy in the Channel, that is the consequence of the deadly, costly and ineffective security policies implemented by the UK and France.”

Later on Saturday, a lifeboat carried migrants who have made the voyage into the Port of Dover.

Photographs showed them huddled under blankets and orange life jackets on board.

Provisional statistics from the Home Office suggest almost 24,000 people have arrived on small boats in the UK so far this year.

Towns and cities across the UK have seen protests in recent days, primarily outside hotels believed to be housing asylum seekers.

UK

Women’s Euros final: The Lionesses face Spain tonight – and they’re seeking revenge

Published

1 day ago

July 27, 2025

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Women's Euros final: The Lionesses face Spain tonight - and they're seeking revenge

Here the Lionesses are again. Another final. Another showdown with Spain.

All of a sudden, what was once so anticipated and longed for can start to seem expected rather than extraordinary.

What happened to the great underachievers of world football? They are now consistently among the final two going for glory.

No one is taking that for granted.

Especially not Leah Williamson, with the chance to retain the European Championship trophy lifted three years ago at Wembley.

“The opportunity of tomorrow and what’s on offer is the best thing in football,” the England captain said. “I think we don’t necessarily carry the weight of it and how much it means to people, but we’re aware of it because it means the same to us.”

So often they were only watching other nations making finals.

England’s first was the men winning the 1966 World Cup.

England v Spain: All you need to know

Then, with the rebirth of women’s football after bans and neglect, it was the Lionesses’ turn to make it to the finals – in 1984 and 2009.

And the Three Lions had to wait until 2021 to make it to a final, losing to Italy on penalties at Wembley.

It kickstarted an incredible run of five successive years of finals for England senior teams – with another men’s Euros final defeat in 2024.

The Lionesses have led the way, bringing football home by defeating Germany in the Euro 2022 final at Wembley.

They just missed out on going one better when reaching a first Women’s World Cup final a year later.

Now, in Basel, comes the chance for revenge against Spain – even though no one in the England camp is saying that, publicly at least, in Switzerland.

Especially knowing how challenging a task it is coming up again against Aitana Bonmati and Alexia Putella – the recent winners of football’s biggest individual honours.

But this is Spain’s first Euros final.

And there is some fear from the world champions at England’s grit and resolve to produce comebacks late in the quarter-finals and semi-finals – with 19-year-old Michelle Agyemang’s goals integral to the fightbacks.

Spain captain Irene Paredes reflected yesterday on how the Lionesses can flip a result late on.

But she was also discussing how their World Cup win was tarnished by the on-pitch kiss that led to former Spanish federation president Luis Rubiales being convicted of a sexual assault on striker Jenni Hermoso.

It sparked a wider clamour in Spain for improved rights and respect for women.

“Since then [2023] we took big steps forward,” Paredes said.

“I think this idea is disappearing from society. I still believe we have to continue opening doors… we’re a reference for boys and girls in society, but we still have things to do.”

It is a reminder that while tonight is about collecting silverware, both England and Spain know that emerging as champions can drive further growth in women’s football back home.

Amid it all, they’ll try to savour just what reaching a final means and how rare they are – until recently for English and Spanish women.