Increased costs coming in this week will make life tougher for many hospitality businesses, with operators facing rises in National Insurance contributions and business rates.
Harbour Hotel, St Ives. Photograph: Harbour Hotels
The government says it is helping with a £4.3 billion support package to cap business rate bill rises. But Michael Warren, chief executive of Harbour Hotels, says: “Any transitional relief is only masking what is, in real terms, a significant increase.”
Speaking on the BBC’s Today programme this morning, the owner of the 15-venue group — including St Ives — said adjustments in NI costs and business rates would cost his company in the region of £1.25m.
He went on to say that the cost of employing young people “is at an all-time high”. He added: “We have always the industry that supplies many young people with their first work experience.”
With a workforce that has 30% young people, and with the cost of employing those young people rising, it does cause businesses to reconsider employment strategies, he said. And this at a time when record numbers of youngsters are falling into the so-called NEET category — not in education, employment, or trading.
Warren noted one cause for optimism, though. With concern over foreign travel, particularly to the Middle East, there are “positive booking trends”.
Harbour hotels has 15 venues around the UK, and employs some 1,300 people.
