A group of leading businesses in the UK hospitality sector and trade body UKHospitality has submitted an open letter to Chancellor Philip Hammond urging changes to the tax system. This includes joining those calling for an online revenue tax on internet retailers, which could be used to help fund a freeze in business rates and enhanced hospitality rate relief.
In addition, the letter called for a doubling of the National Insurance threshold for employers to protect youth employment, the re-introduction of hospitality capital allowances to encourage investment, the implementation and extension to the whole UK of the Northern Ireland VAT review and a freeze on alcohol duty to promote sales.
According to The Morning Advertiser, more than 150 hospitality businesses met with 60 MPs this week at Westminster to champion the case for more favourable business taxation. Keith Knowles, Chief Executive of Beds & Bars, told the publication that under the current tax rules "bricks and mortar hospitality businesses are at a huge disadvantage compared to digital companies".