CONCERNS have been raised over the precarious position of hospitality businesses, after Chancellor Jeremy Hunt revealed the UK Government’s Budget.
While the budget guarantees more funding for Edinburgh’s festivals, helping the tourism sector and hospitality, there is still a major issue obtaining staff – especially in the areas outside the Central Belt.
The Chancellor’s proposals included a "Brexit pubs guarantee” which will see a freeze on tax for beer and cider.
Donald MacVicar, who works at the Park Bar on Argyle Street in Glasgow, thinks the changes will see more people through the door, but warned that staffing remained a problem.
He said: “It’s good, we should be able to get beer in for cheaper therefore making more profit, which is needed.
“At the Park Bar we are good for staff, but the major issue is finding staff with experience that are wanting to work full time.”
Hunt also increased the annual tax-free allowance on pensions from £40,000 to £60,000, in a move to keep older workers in jobs longer.
This move has been criticised by opposition politicians as being part of a “Budget for the rich”.
UKHospitality Scotland, which represents more than 150 members, operating around 8000 venues in Scotland, had a mixed reaction to the Budget.
UKHospitality Scotland executive director Leon Thompson said: “I’m pleased that the Chancellor was able to introduce measures in the Budget that will benefit Scottish hospitality businesses.
“The additional funding for the Edinburgh Festivals is well deserved and will help bolster the world’s leading arts events, which are a huge draw for visitors from across the world and will provide a timely boost to Scottish tourism.
“The measures to incentivise both parents and the over 50s back into work is positive and recognises UKHospitality’s calls for the Government to help the economically inactive back into work.
“However, the unique demographics of Scotland, particularly in our rural areas, means the sheer lack of people of any working age remains a major concern for venues.
“With the Budget resulting in £320 million being allocated to the Scottish Government in Barnett consequentials, there needs to be a firm commitment that some of this money will be earmarked for business support.
“Allocating some of this money to support our businesses should be a priority for the incoming First Minister, getting the new relationship between the Scottish Government and hospitality off to a good start.”
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