Email Your MP – Chancellors Spring Statement

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<p>I write to you in strong support of the 20 trade bodies representing over 100,000 businesses, their workers and sub sectors across a multi billion pound industry, who share urgent need for support.</p> <p>I share their deep concern about the ongoing crisis within the night-time economy, cultural sector, and small-to-medium enterprises (SMEs) that form the backbone of our hospitality, events and entertainment industry. They require immediate intervention in two critical areas I urge you to push for:</p> <ul> <li><strong>Immediate reduction of VAT to 15% for the hospitality, events, and cultural sectors</strong> to align more closely with international best practice and provide essential breathing space.</li> <li><strong>Reversal of the National Insurance Contribution (NIC) increase, specifically targeting vulnerable SMEs in the night-time economy, licensed hospitality, and cultural sectors.</strong> This would ensure the most at-risk businesses receive relief to sustain operations and protect jobs.</li> </ul> <p>These measures are essential for the survival of grassroots businesses and prevent a catastrophic collapse of the UK’s night-time economy, its over two million jobs, and the vast community, culture and wellbeing it provides.</p> <h3><strong>The Urgent Case for VAT and NICs Relief</strong></h3> <ul> <li> <strong>Operational Expenses 30-40% Higher than Pre-Pandemic:</strong> driven by surging energy prices, rent, supply and wage increases, Covid-loan repayments, and rising NICs, all while consumer spending has rapidly diminished. From April, additional average costs of a staggering £30,000 to £100,000 per business will push many beyond breaking point. </li> <li> <strong>Crisis in the Night-time Economy and Hospitality:</strong> Since 2019 we have lost over 23,000 businesses in the night-time economy, over £95 billion in lost revenue. Post Autumn-Budget, a survey of over 500 nightlife businesses make clear the cliff-edge and acceleration in decline, and medium-long term reduction in tax contributions, with 92% forced to cut staff numbers and hours, operating hours and essential investments; and 40% warned they will be forced to close within six months unless urgent support is provided. </li> <li> <strong>Impact on Culture, Community and Future Talent:</strong> The UK is losing cultural hubs, events and festivals due to rising operational costs and unsustainable rates. These losses not only damage our cultural identity but also diminish the economic benefits brought by tourism, event-driven revenue, and future arena-filling talent. </li> </ul> <h3><strong>Economic Consequences and Treasury Revenue</strong></h3> <ul> <li> <strong>Closures Reduce Tax Revenue:</strong> While we acknowledge the Government’s need to manage public spending, including in essential services and defence, it is critical to recognise that maintaining high VAT and increased NIC rates will ultimately reduce taxable revenue due to accelerated business closures and job losses. The irony is that while support mechanisms such as the Arts Everywhere Fund are deployed, they overwhelmingly benefit classical arts. Contemporary, nightlife and grassroots culture - the lifeblood of many towns and cities, and sectors that need the most support - are left further alienated and exposed to market failure. </li> <li> <strong>International Precedents:</strong> The Republic of Ireland has recently reduced its VAT for hospitality, informed by evidence from its 2011 VAT reduction, which led to a 30% increase in hospitality employment by 2016, significant job creation particularly in rural areas, lower closure rates, conclusions that stimulated activity balanced tax losses, and a return to higher VAT in 2019 coinciding with dip in employment and sector growth. Germany is moving to maintain a lower VAT rate for the sector for similar reasons, while the UK is among the highest taxers of small business in Europe, with France, Italy and Spain, for example, operating a 10% VAT. </li> </ul> <p>The night-time economy, independent hospitality businesses, Events Sector and vast supply chain networks that support them, are vital contributors to the UK’s cultural and economic landscape. There is no more “fat” to trim, and the ability to survive without intervention is rapidly diminishing. This is an economic, cultural and societal emergency.</p> <p>I, in support of the trade bodies' clear priority needs, urge you and the Government to act decisively before irreversible damage is done. I look forward to your response and your support in championing the interests of businesses, workers, community and cultural contributors in your constituency.</p> Yours sincerely,

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