Chancellor working on tax breaks for firms - Sept 2022
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As we all know, the impending doom of huge hikes in energy costs, as well as the cost of living crisis, is threatening hospitality each and every day.
Today the Chancellor Nadhim Zahawi outlined plans for a multi billion pound package of tax cuts to help businesses facing bankruptcy because of rising energy costs.
The Times reports that Mr Zahawi, who is working on an emergency strategy for the new prime minister (whomever that may be!) is discussing the introduction of targeted reductions in VAT as well as business rates to help our hospitality colleagues.
What is very important to realise is that our most beloved sector cannot take much more of a battering after barely recovering from COVID. A lot haven't survived, so to see more of them fail now due to energy costs would be an incredible shame.
The Chancellor sugested that tax breaks could also be given to energy-intensive industries and advised us not to 'panic' about the cost of living crisis.
Whether he continues as Chancellor under the new PM or not, it is clear that something radical needs to happen to stop a sea of hospitality venues closing due to the latest energy crisis.
“If we don’t support businesses I worry about the longer-term scarring of the economy. I had an example given to me the other day from EDF. One of their clients, their bills have gone from £25m a year to £75m. This is a perfectly viable business. We have to make sure we support businesses as well as households. The lesson from covid is that actually there are some levers like VAT, like business rates. Targeting particular sectors of the economy, whether it’s hospitality or high energy use sectors, can be done very effectively. But as I say there are no easy options,”
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