The hospitality sector was disappointed by a lack of sector-specific support in today’s Budget, which was led instead by a cut in National Insurance.
As expected, from April employee national insurance will be cut from 10% to 8%, and self-employed NICS from 8% to 6%.
Chancellor Jeremy Hunt also announced the abolishing of furnished holiday lettings relief after lobbying from MPs in coastal towns.
Kate Nicholls, CEO, UKHospitality, tweeted: “Closing tax loopholes on furnished holiday lettings will level the playing field between traditional self catering businesses - which are regulated and taxed - and other short term lets.”
She added: “The Chancellor missed a real opportunity today to show that he backs hospitality and understands the real pain they are enduring.
“He had a chance to accelerate and unlock hospitality, but instead he has delivered a cut-and-paste Budget, maintaining the status quo which continues to act as a drag on recovery.
“Over the past year, we have had a Budget for growth and an Autumn Statement for investment – neither have delivered because they were not correctly targeted.
“The National Insurance cut earlier this year was intended to boost disposable income to generate growth and didn’t have an impact. A different result can’t be expected this time around."
Other measures announced by Hunt included a new tax on vapes, a one-off increase in tobacco duties and an increase in the tax on non-economy flights.
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