York and North Yorkshire Chamber take hospitality sector to the heart of Westminster

Yorkshire business leaders have told the Government that inflation is making it almost impossible for some small businesses in the hospitality sector to make investment decisions and plan for the future.

The warning was give by the York & North Yorkshire Chamber of Commerce’s Hospitality Forum, which travelled to Westminster to meet Government ministers and a cross party group of the region’s MPs to discuss the sector’s future.

The chamber delegation met with tourism minister Sir John Whittingdale and business and trade minister Kevin Hollinrake, as well as York Outer MP Julian Sturdy, York Central MP Racheal Maskell, Harrogate and Knaresborough MP Andrew Jones and Skipton and Ripon MP Julian Smith in the House of Commons to highlight the sector’s challenges and strengths.

Hide Ad
Hide Ad

A spokesman said: “In particular, the Chamber impressed the need for businesses in the hospitality sector to be able to hold on to more of their cash in order to preserve and invest in their companies, through a more progressive VAT tax structure and interventions in utility overheads. Having spent the past several weeks engaging in roundtable events and market analysis, the chamber has accumulated a real sense of what the prevailing mood in the region’s hospitality sector looks like, with overheads such as tax and utilities being the chief concern.

York & North Yorkshire Chamber of Commerce’s Hospitality Forum travelled to Westminster to meet with Government ministers and a cross party group of the region’s MPs to discuss the sector’s future.York & North Yorkshire Chamber of Commerce’s Hospitality Forum travelled to Westminster to meet with Government ministers and a cross party group of the region’s MPs to discuss the sector’s future.
York & North Yorkshire Chamber of Commerce’s Hospitality Forum travelled to Westminster to meet with Government ministers and a cross party group of the region’s MPs to discuss the sector’s future.

"It is our view that, in order to survive and thrive, the hospitality sector needs a stable and well-run economy. Inflation is making forward planning and investment decisions almost impossible, particularly for smaller businesses. And while forecasts predict inflation is likely to fall sharply in the coming months, increased costs are likely here to stay for the sector.”

Philip Bolson, chair of the Hospitality Forum, said: “Hospitality is the lifeblood of North Yorkshire’s economy and a sector that means the world to thousands of people. The level of engagement shown by ministers and MPs was highly encouraging and has given us fresh impetus to keep making the case for more favourable trading conditions. We now intend to go away and come back with further data to strengthen our case and ensure the sector has the bright future it deserves. With many businesses unable to get out of deals done at the peak of the crisis in 2022 or about to see pre-existing more reasonable deals come to an end, a cliff edge now approaching in terms of costs. As such, there is no time to lose.”

Julian Sturdy, Conservative MP for York Outer, said: “The meeting was a great opportunity to discuss the aims and objectives of the York Hospitality Forum and allow the Chamber of Commerce’s representatives to raise their core concerns with the Minister’s responsible for the health of the sector and other North Yorkshire MPs.

Hide Ad
Hide Ad

“Hospitality and tourism are two interconnected sectors that are so important to our local visitor economy and provide employment opportunities, transferable skills and enjoyment for residents and visitors. These sectors have faced a uniquely challenging period over the last few years as a result of COVID, labour shortages and the rise in the cost of living. A forum to raise these concerns with elected representative is a fantastic step in the right direction.”