The hospitality industry has expressed strong support for several new policies announced in the King’s Speech on Wednesday, July 17, 2024. These policies, introduced by the Labour government, are seen as crucial steps toward driving growth and addressing longstanding challenges within the sector. Here’s the highlights for the Hospitality Industry.
Employment Rights Bill and Worker Flexibility
The King’s Speech also introduced the Employment Rights Bill, which includes potential bans on zero-hour contracts and stricter regulations on fire and rehire practices. While Nicholls expressed caution, she acknowledged the need for flexibility in the sector to accommodate workers with varying needs, such as students and caregivers. She emphasized the importance of maintaining dialogue with the Labour government to ensure the sector remains an attractive option for diverse workers.
Public Safety Enhancements
The Night Time Industries Association (NTIA) highlighted the introduction of a specific crime for spiking as a significant achievement. Chief executive Michael Kill pointed out that this new legislation, advocated by the NTIA, will enhance police capabilities and improve patron safety in hospitality venues. Additionally, the implementation of Martyn’s Law, which mandates terrorism preparedness plans for venues, was commended by both the NTIA and UKHospitality as a major advancement in public safety.
Apprenticeship Levy Reform and Planning System Improvements
Key among the announced policies are reforms to the apprenticeship levy and improvements to the planning system. Kate Nicholls, chief executive of UKHospitality, highlighted the significance of these measures. She emphasized the potential for these reforms to unlock the sector’s growth potential, estimated at 6% annually. Nicholls noted the importance of the upcoming autumn fiscal statement, especially in light of the absence of business rates reform in the King’s Speech, stating, “It’s positive to see significant measures announced today that can help hospitality achieve its growth potential”
Nicholls praised the flexible growth and skills levy, which is set to replace the current apprenticeship levy, for its potential to enhance training opportunities and support employment initiatives in hospitality. She also welcomed the Planning and Infrastructure Bill, which aims to expedite planning approvals, a move she described as essential for business expansion and local infrastructure development.
Energy and Economic Growth
The British Beer & Pub Association (BBPA) welcomed the government’s commitment to economic growth and the creation of Great British Energy, which aims to secure domestic energy supply. BBPA chief executive Emma McClarkin emphasized the importance of these measures in reducing energy costs and fostering confidence within the sector. The BBPA also looks forward to collaborating with policymakers on planning reforms and ensuring pubs remain central to community life amid new housing developments.
Overall, the King’s Speech has been positively received by the hospitality industry, with leaders expressing optimism about the proposed legislative changes and their potential to drive growth and innovation in the sector. However there is still work to be done, including a much needed VAT Reduction for the sector and an extension of the Business Rates Relief scheme.