Let’s start with a positive. If we were to press pause and step back from the daily worries about paying the bills and look back upon what every single business has got through over these past three years, everyone should agree that they deserve a huge pat on the back. From the global pandemic, which hit hospitality the hardest, to the cost of living and energy price crisis, every operator has shown their strength by surviving what has been the toughest of times.
I often hear the aviation industry saying that they were one of ‘the hardest hit’ too, as planes were grounded. But our pubs, bars and restaurants were the first to close and the last to reopen, while the aviation sector continued to fly cargo around the world. I sometimes get asked why I spent £76,000 of my own money during the pandemic to take the Government to the High Court over its 10pm curfew and the so-called Scotch egg rule, which demanded only pubs with a substantial food offering could open. I tell them, it was the thought of my grandpa and people like him, who liked to nurse a pint in his local for three hours each day: with that closed, it was heart-breaking to think of him sat alone in his house, without a socially distanced friendly face or a chat with a member of the bar team. And every night, before I go to bed, I like to spend a penny, as they say, while looking at the framed High Court ruling – me versus Matt Hancock – and to know that it was worth every penny!
It was the genius of my Barrister, David Lock KC, for showing that the substantial meal requirement unfairly disadvantaged Greater Manchester’s 1,806 wet-led pubs. Pubs that were more often than not located in some of the most deprived areas, where people couldn’t afford to go out for food or social activity – while others were free to enjoy a socially distanced pint in a pub serving food, even if it was just a Scotch egg. And when it came to the 10pm curfew – well, that was an easy win. Sending 10s of 1,000s of people out onto the street at the same time meant the Government was actually helping to spread the virus!
Over these past three years it has been heartening to hear the many industry voices, including the BII’s Steve Alton CBII, UKHospitality’s Kate Nicholls OBE CBII and the Night Time Industries Association’s Mike Kill, speaking out about hospitality. They have ensured that hospitality has a voice and a seat at the table, which has helped get both the public and the Government, to some extent, behind us. The biggest legacy of Covid has to be that the public now have a better understanding of our industry than ever before. When then-Prime Minister, Boris Johnson, advised people not to go into restaurants or bars, the public began to realise their local pub that they’d always taken for granted, had been taken away from them. And whatever we think about the Government now, over Covid it offered great support to businesses, from furlough to the Eat Out to Help Out scheme. But the losses to the night-time economy have been in the 10s of millions of pounds, hitting the pockets of everyone from the taxi drivers to the owners of our pubs and hotels. And today, the cost of living and energy crises are hitting businesses even harder.
I’m speaking to the same law firm that challenged the 10pm and Scotch egg ruling to take on the big energy firms – which have been guilty of encouraging brokers to sign people onto two to three year contracts, knowing full well that prices would fall. I think this could be as big as the PPI insurance scandal, as many individuals and businesses have been left to pay five times what they should be paying at today’s prices, while companies like BP declare record profits.
Now is the time for our industry to fully unite. As a member of the BII it has never been more important to fully get behind Steve and the team to fight for the essential things that will make hospitality businesses viable. Things like, getting VAT reduced to 12.5% – on alcohol as well as on food; forcing the Government to call out Ofgem; and for help with staffing shortages. The pandemic saw many workers returning to the Continent, and the current minimum salary requirement for a working visa of £26,200 needs reducing to £21,000, to allow these people back into the country to work.
More controversially, I also believe the Government should be supporting those people who are looking to take on extra work. Getting a part-time job in a pub could really help them earn the extra to pay the rocketing shopping and utility bills. But while the Treasury combines these earnings, rather than treating them as two separate jobs, it pushes people into the higher tax brackets, which takes away any advantage. Hospitality needs more staff and this change to the taxation system would help.
I am pleased to say that despite the ongoing difficulties, here in Greater Manchester and in Liverpool, our neighbour, we are experiencing exciting times. From Eurovision in May to the opening of the Co-op Live Arena, which is set to be the UK’s biggest indoor venue with capacity of 23,500 people – it will be phenomenal when it opens later this year. We all know that people don’t just visit a city to go to a gig, but will make a night of it and visit the bars, restaurants and hotels locally. Everyone in Manchester will benefit. I feel hugely positive and extremely excited for 2024 – but for now, I am concerned about how people, especially the independent businesses, will get through the next few months.
A vibrant night-time economy in our towns and cities breathes life into the high street, where we are seeing more boarded up shopping centres and empty retail spaces. The empty space that was once a huge Debenhams store could be used to house lots of small, independents – from a coffee shop operated by a family or a couple of mates, a sandwich bar or a pastry place and a pub. Hospitality is the perfect remedy for these empty hubs and, when supported, will reignite what has become a soulless place.
I will happily work with any Government and party that is committed to helping hospitality. I’ve already been holding meetings with members of the shadow cabinet, inviting senior players along to meet with independent business owners – a listening exercise. It has been heart-breaking to hear of their stories, such as one women who was reduced to tears as her small bistro was literally two weeks away from closing. Together, hospitality leaders can work to campaign for change. With a General Election on the horizon, we should build a manifesto for hospitality, and I’d like to see any new Government appoint a Night-Time Economy Advisor for the whole of the UK.
Now is the time to stay positive, pat yourself on the back and find the energy to continue the fight. Things will improve – and we all need our local independents to survive, so they can thrive in a better future.
