Two-thirds of UK hospitality businesses plan to cut jobs and one in seven will close, survey finds
Two-thirds of hospitality businesses are planning to cut jobs as a result of “suffocating” costs imposed by government, as new business rates and higher wage bills come into force,Many pubs, restaurants and hotel companies will see their costs increase significantly from 1 April after Rachel Reeves’s changes to business rates and an increase in minimum wage thresholds announced at the chancellor’s November budget,An industry-wide survey of 20,000 hospitality businesses has found that as a direct result of the cost increases, 64% of firms plan to cut jobs, 42% intend to reduce trading hours and one in seven will be forced to close,“Hospitality businesses enter April facing billions of pounds in additional costs, which will force many to make heartbreaking decisions,” said bodies including UKHospitality and the British Beer and Pub Association, in a joint statement,“Hospitality’s tax burden – the highest in the economy – is suffocating the sector.
The impact is clear: more lost jobs, less investment and business closures,”UKHospitality has estimated that increases to the “national living wage” and national minimum wage will result in an extra £1,4bn in costs for the sector,While there is no estimate of the overall cost of changes to business rates, a spokesperson said he expected that most members would pay more, with the average hotel in England facing an increase of £28,900 more this year (up 30%), while the average restaurant can expect a 15% increase worth £1,800,This is despite the government announcing a support package worth more than £80m a year for pubs and live music venues, after a fierce backlash against the impact of the overhaul of business rates.
The trade bodies, which also include the British Institute of Innkeeping and Hospitality Ulster, also warned that the conflict in the Middle East will accelerate the impact of rising wage and tax costs with energy bills expected to rise steeply.Separate figures published by the Institute for Public Policy on Wednesday showed that the UK has the second-lowest level of business investment by private companies among the G7 group of countries.The thinktank estimates that UK companies invest the equivalent of 11.1% of GDP, well behind countries such as Japan at 18.2%, and European nations including France, at 12.
7%, and Germany, at 12%,The economic shock wave caused by the war in the Middle East has pushed economic confidence to an all-time low, according to new figures from the Institute of Directors (IoD),The IoD’s Economic Confidence Index, which measures how optimistic business leaders feel about the prospects for the UK economy, fell to its lowest ever score of -76 in March,The IoD’s reading in February was -63,Among business directors, the biggest drivers of cost increases over the next 12 months were listed as labour bills, supply chain inflation and energy.
“The outbreak of conflict in the Middle East has driven down the confidence of business leaders to a new record low,” said Anna Leach, chief economist at the IoD.“The government is right to be alert to the risks of another cost shock to the economy.”
BP is operating in a world of ‘significant complexity’, new boss tells staff
The new boss of BP has told staff that the oil company is operating in a world of “significant complexity” as it attempts to rebuild its strategy under a fresh leadership team.In her first message to staff as BP’s chief executive, Meg O’Neill promised a “clear direction and consistency” after a tumultuous period for the 117-year-old fossil fuel company, in which it has pivoted away from a failing green strategy.BP’s third chief executive in under five years has stepped into the top job during the fifth week of the Iran war, a conflict that has triggered the global industry’s biggest supply shock.In a staff memo seen by the Guardian, O’Neill said: “Right now, we’re operating in an environment of significant complexity: geopolitical tension; conflict; rapid technological change; and shifting global energy demand.”“I believe that we, as a company, have a clear job to do: delivering energy to the world, today and tomorrow – safely, reliably and efficiently,” she added
UK food inflation ‘could hit 9% this year’ as Iran war drives up energy prices
Food inflation could hit 9% in the UK this year, even if the strait of Hormuz opens within the next few weeks, figures suggest, as the Iran war pushes up energy prices.The Food and Drink Federation, which represents 12,000 food and drink manufacturers, has predicted prices will rise by “at least” 9% by the end of 2026, almost tripling a forecast of 3.2% that was made before the Middle East conflict.Dr Liliana Danila, the chief economist at the FDF, said the industry was already facing big rises in energy, transport and packaging costs, as well as disruptions across its supply chains.“The current situation is unprecedented and hard to predict,” she said
The Voorhees law of traffic: when overtaken slow cars seem to always catch up at a red light
It is a situation experienced by many motorists: one driver overtakes another only to find the slower car is right behind them when they reach a red light. Now a researcher has used mathematics to reveal why the situation feels inevitable.Dr Conor Boland from Dublin City University has called his work “The Voorhees law of traffic”.The name is a nod to the character Jason Voorhees from the American horror film franchise Friday the 13th.“I always thought of him because he seems to just walk everywhere … His victims are running away, they’re sprinting, but he just catches them,” Boland said
Silicon Valley city to give residents doorbells equipped with cameras
A Silicon Valley city will offer its residents free wireless doorbells equipped with cameras to help police collect video evidence.The city council of Milpitas, a suburb north of San Jose, California, recently approved $60,000 to provide these devices on a one-camera-per-household, first-come, first-served basis, as was first reported by Milpitas Beat and confirmed by the Guardian.City councilmember Evelyn Chua told the Milpitas Beat the doorbell camera initiative was intended to prevent crime. “Public safety is my top priority, and this door camera initiative is about strengthening crime prevention right where it matters most – at home,” she said.“By equipping residents with tools and partnering closely with our Milpitas police department, we’re building a stronger connection between our community and law enforcement to help deter crime and protect our neighborhoods
ECB accused of allowing non-disabled players to take place of disabled cricketers in top domestic league
The England and Wales Cricket Board has been accused of allowing non-disabled players to participate in its Disability Premier League, blocking the pathway to international cricket.The parents of Jai Charan and Alex Jervis – both former England internationals who have diagnosed learning disabilities – say their sons have been replaced in the DPL by players who do not meet the disability criteria under the ECB’s assessment process.The DPL is intended as the top of the pathway to the England Mixed Disability team, but another parent, who requested to remain anonymous, estimates that 12 out of 64 players selected in December’s draft are non-disabled.The ECB is a signatory to Virtus, the international sports federation for athletes with an intellectual impairment, meaning all players wanting to play international cricket under the LD (learning disability) category must demonstrate that they have an IQ of 75 or lower.Owen Jervis, who is also the volunteer manager of Yorkshire’s disability team, alleges that the ECB have allowed several neurodiverse players to participate in the DPL, despite tnot meeting the criteria in the LD assessment process, carried out by an educational psychologist
From the Pocket: Voss has had every chance to succeed but Carlton backed the wrong coach
Michael Voss often speaks about standards and habits. Right now, the Carlton coach’s team are habitual dwindlers. It’s on the whiteboard of every opposition coach. It’s in the marrow of every Blues player and supporter. And it goes back a long way
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