A hotelier has urged for Chancellor Jeremy Hunt to bring in tax cuts including a redution in the VAT rate in the Spring Budget.
Steven Hesketh, founder of The Hospitality Hero, told Express.co.uk: “I would like to see a flat drop in VAT to 17.5 percent to give everybody a leg up so to speak.
“The economy needs a lift and, ultimately more money in people’s pockets will help everyone.”
He said corporation tax should also be reduced, as the current 25 percent “truly hurts the small businesses, that are the ultimate lifeblood of the UK”.
With the latest economic figures showing the UK economy has gone into recession, Mr Hesketh said this will likely be a “very short and sharp recession”.
He commented: “I am quietly optimistic that the recession is likely to be mild and short lived, and that there is still an opportunity for our industry to be buoyant.
“Yes, the reality is that the past couple of months have been quieter and stagnant – and, we know December and New Year’s Eve was not as strong as previous years, so this announcement is no surprise, but I believe things are now picking back up.”
The hotel boss reopened one of his venues in Chester last week after a full refurbishment with a £200,000 investment in the business.
He was predicting a slow start after the relaunch but he said the venue has been full every night.
He said people are still willing to splash out on a meaningful memory despite the current economic circumstances. He explained: “It is a unsettling time for many.
“This uncertainty can understandably make people cautious on what’s next, so holding onto their funds definitely will be in people’s minds, that said people generally want to enjoy life, so when they spend its important on things that are important to them.
“Yes, people are being cautious and careful with their money, but then that means hospitality venues need to offer a worthwhile experience.”
He said the Government should also invest in infrastructure with longevity in mind, such as in HS2 and in more housing.
Another business boss, Sean Keyes, told Express.co.uk the Chancellor should increase personal allowances to provide relief for all Britons.
He said: “I would like to see more tax breaks for SMEs as these are the backbone of the UK economy.
“This could be slightly more favourable corporation tax rates or financial encouragement to take on school leavers.”
He called on the Government to provide more investments in infrastructure projects, particularly in the North and Midlands.
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