Calls for stable political leadership amid 'critical time' for hospitality

Trade body UKHospitality has said it is "absolutely critical" the UK has stable political leadership to help address the challenges faced by businesses.

Rishi Sunak is to become the UK's next prime minister after rival Penny Mordaunt dropped out of the race in the final minutes before nominations closed today (24 October).

He replaces Liz Truss, who became the country's shortest-serving prime minister after resigning on 20 October after just 44 days in office.

As Chancellor during the pandemic, Sunak oversaw the introduction of measures including the furlough scheme and the Eat Out to Help Out initiative. He frequently faced criticism over the scale of support offered to hospitality.

UKHospitality chief executive Kate Nicholls said the industry faced a "critical time" with soaring energy costs, staffing shortages and waning consumer confidence.

She added: "Now is the time to steady the economy, deliver for the needs of the country and support businesses to help drive growth and create jobs.

"We worked very closely with the new prime minister in his previous role and we look forward to working with him again to address the current strain on businesses and bolster consumer confidence.

"I would encourage him to extend business rates relief, reform the entire business rates system in the longer term and lower the current rate of VAT."

Industry association Beam, which represents the business events, accommodation, and meetings sector, urged Sunak to extend energy bill support and appoint a dedicated minister to oversee the events industry.

Simon Richards, treasurer of Beam, said: "Costs have already risen so much that, with bounceback loans to be repaid as well, some agencies and venues cannot afford to open and may close for ever. There is a limit to how much they can increase prices without losing business and remain viable."

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