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Hospitality boss calls for tax reform after ‘mixed messages’ at Tory party conference

The head of one of the most influential bodies within the UK’s hospitality industry has criticised “mixed messages” on immigration in Theresa May’s keynote speech at the Conservative Party conference.

(Photo: REUTERS/Phil Noble)

Kate Nicholls, the chief executive of UK Hospitality, which is backed by drinks brands like Diageo and Molson Coors, said the Prime Minister was giving restaurateurs and business owners “a declaration of support for businesses, yet a simultaneous imposition of restrictions on employers,” at the political meet in Birmingham on Tuesday.

“The Prime Minister today said she backs businesses but earlier this week announced an immigration policy that will restrict the flow of workers and tipping legislation that will only place further burdens on employers,” she said.

In the speech, May reaffirmed that there would be no freedom of movement between the UK and EU, a policy which has caused concerns of staff shortages amongst hospitality bosses in recent months.

She said the move will incentivise business leaders to “train our own young people and to invest in technology that will improve their productivity.”

“It is time for a coordinated, positive relationship between Government and the hospitality sector, starting with a Tourism Sector Deal.”

May also claimed the Conservatives would introduce the lowest Corporation Tax in the G20, making britain “open for business.”

Nicholls pointed to the current tax pressures faced by bar and restaurant operators in the UK, which are being business rates which “stifle investment.”

Hospitality is the 3rd largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined.

“We are calling upon her Government to bring forward a comprehensive package of support at the Budget including tax reforms to ensure digital businesses pay their fair share, and crippling burdens on hospitality employers are eased.

“A more coherent approach to supporting businesses is needed if claims that the Government is “backing business” is to gain credence.”

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