Greater Manchester’s night-time economy adviser fears venues could close “at a faster rate than during the pandemic” following the Chancellor’s autumn statement. Sacha Lord warned a reduction in consumer spending would create a “severe contraction in the sector,” in what he described as “a very sad state of affairs”.
As chancellor Jeremy Hunt took to the Commons to unveil the government’s plans on Thursday (November 11), the Office for Budget Responsibility (OBR) confirmed the UK is now in a recession expected to last a year. Households are facing soaring food and energy bills, tax hikes and high inflation.
The OBR forecasts the UK’s inflation rate to be 9.1 percent this year and 7.4 percent next year, with living standards expected to reduce by 7 percent over the two financial years to 2023/24. It also warns more than half a million people would lose their jobs.
Mr Lord fears soaring costs and reductions in the public’s disposable income will lead to venues closing faster than they did during the Covid-19 pandemic, as people are forced to cut back on spending. He tweeted: “Operators are being squeezed beyond their ability, and I fear we will now see huge cuts in staffing, reductions in opening hours and venues closing at a faster rate faster than seen during the pandemic.
“It is a very sad state of affairs. We will now see a downturn in consumer spending over the coming weeks and months, at a time when operators need the most support as they recover from the hangover of pandemic related debt.
“Disposable income underpins the UK economy and I’m hugely concerned that the policies outlined today will create a severe contraction in the sector. Spending on luxuries such as dining out, is naturally the first to go in times of cutbacks.”
On todays mini budget:
Operators are being squeezed beyond their ability, and I fear we will now see huge cuts in staffing, reductions in opening hours and venues closing at a faster rate faster than seen during the pandemic.
It is a very sad state of affairs.— Sacha Lord (@Sacha_Lord)
The chancellor announced the national living wage is to be increased to £10.42 from April next year, while also confirming a two-year freeze on the allowances and thresholds for income tax, national insurance, and inheritance tax. This means although workers will earn more, they will end up paying more tax as their wages increase.
The chancellor also announced extra Cost of Living support payments are to be paid out next year, with £900 going to households on means-tested benefits, £300 to pensioner households, and £150 to those on disability benefits. He also announced extra support for business from next April.
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