With rises to National Insurance contributions by employers and the national living and minimum wage set to cost Eden an extra £900k a year - there were hopes that the Chancellor may introduce new measures in the Spring Statement to help the hospitality industry ahead of the NI rise coming into effect on April 1.
But with no mention of support for business, Mark is supporting UK Hospitality’s key strategic objective for a VAT reduction, and is urging the government to help the industry with either a reversal of the NI rise; or a reduction in hospitality VAT from its 20 per cent level.
Chambers is also calling for the government to address escalating costs around energy and food, as well as relaxing the list of occupations that are eligible for a visa to help the industry to recruit more easily for key roles, which is currently creating real barriers to growth in the hospitality sector.
He said: “The government has placed growth as one of its core priorities, yet it feels like an industry that employs more than 3.5 million people and contributes £93 billion to the economy is being ignored.
“The increased NI costs coming into effect will be felt sharply by many, and there is a real need to ease the cost burden on hospitality businesses - so it was disappointing not to see this addressed in the Spring Statement, and the industry as a whole cannot afford to wait until the Autumn Budget.”
Eden is forecasting turnover of approximately £18-plus million for the financial year ending March 2025, an increase from £16.9 million from the previous year, and is set for further financial growth as it begins to reap the rewards of key refurbishments to some of its properties and investment in its people.
Mark added: “At Eden we strive to stand out in a competitive market – whether that is investment in our hotels, or looking after our people by paying above the national living wage which has contributed to our 90-day retention rate hitting 90-plus per cent – but we, like any other business, need those leading the country to create better trading conditions for us to continue in this vein in the longer-term.
“Despite the significant cost arising from NI, at Eden we have decided not to pass this on to our customers - though we will continue to monitor this over the coming months.
“Others, however, will be left with little choice which will discourage consumer spending, which only serves as a barrier to growth for our industry.”
Eden Hotel Collection owns five boutique hotels – Bovey Castle in Devon, Mallory Court Hotel and Spa in Leamington, The Arden Hotel in Stratford-upon-Avon, Brockencote Hall Hotel in Kidderminster, and The Greenway Hotel and Spa in Cheltenham.
