Labour warnte, dass Gastfreundschaft „aus der Existenz besteuert wird“
Labour warned that hospitality ‘is being taxed out of existence’
Von tylerthe-theatre
Labour warnte, dass Gastfreundschaft „aus der Existenz besteuert wird“
Labour warned that hospitality ‘is being taxed out of existence’
Von tylerthe-theatre
20 Kommentare
All the restaurants and bars ive spoke to that are struggling and/or closed, blame rent as the biggest factor. Of course NI, utility bills also are an issue but they say the rent is unsustainable
Councils seem to do little to help too. Leeds city centre had huge building works going on, blocking access to a handful of small businesses yet the council did nothing to help them out. A few closed as a direct result
Everything is being taxed out of existance.
Heres the TL:DR of why;
1. Thatcher sold off, or started the sell off, of all of our national assets.
2. She used this money to have huge tax cuts for the rich and teeny tiny ones for the poor (just like Trump is doing now)
3. The private versions of everything quickly started increasing the prices, completely undo’ing any perceived gains to the lower classes.
4. Within the decade the goverment had spent every penny gained by the sale of our assets without creating anything productive but couldn’t re-increase taxes as thats political suicide, so we went into debt to keep up the lower taxes
5. Our debt began eating up notable chunks of our yearly budget so successive governemts have tried to slowly re-increase taxes, but only on „income“ and VAT, not captial. So massively effecting the working classes, the people most likely to go to the pub.
6. As you may have noticed, this did nothing to fix the issue as the real money is made via capital not income. Leaving the average person paying the highest effective tax rate since WW2 and the country still having no money.
WE NEED A WEALTH TAX
I went on a bit of a tangent there, I do apologise.
yep.. noticed my ex gf’s Thai cafe in Leeds is up for sale, despite it being really popular by all accounts.
It’s suicidal getting involved in the restaurant game now, iirc margins where like 2%-6% pre covid on each cover, so god knows what it is nowadays – pressure from rates, rents, VAT, employer NI raises, uncapped energy bills, cost of raw materials (cooking oil alone is astronomical now, a fundamental ingredient in a lot of cuisines).
They don’t care, they have been told over and over again, but they ploughing on no matter what?
Everything is being taxed out of existence! It makes no point and I really don’t see the end goal, unless it just complete collapse.
I work in business rates for a local authority. Reeves in her infinite wisdom last October in the budget decided to reduce the 75% discount that retail and hospitality businesses receive to only 40%, which basically doubled the tax bill from April this year onwards. There was no transitional period, people’s bills literally doubled and in most cases they weren’t aware this would be the case as it wasn’t exactly from and centre of the October 24 budget. There’s very little that I can do as a local authority, really only spreading their 10 annual payments into 12 is the extent of it. We’re expecting a surge in closures at an even higher rate of pubs especially. Crazy decision.
Per my experience in trying to work in hospitality industry, and my friends experience, hospitality is one of the worst cases of tax dodgers, modern slavery, paying below minimum wage, overworking salaried staffs.
If they cannot sustain without such malpractices, so be it
Edit: per a redditor, this simply is not true
Hospitality industry is the canary in the coal mine for the economy. Razor-thin margins, needs a lot of people with disposable income and time to keep it going.
squeeze the margins through taxes or the volume of customers through a cost of living crisis and it’s a problem.
Have both at the same time? Night night.
The worlds highest energy prices can’t be helping anyone in the food business. I wonder who will be the first to blame Thatcher for that.
Customers are being taxed out of existence, so anywhere people would have spent surplus funds is under pressure
Honestly, good. The way hospitality employees are treated by the public, this industry deserves to die. Nobody deserves to experience working in these degrading roles.
Unpopular opinion.. Hospitality is suffering due to the lack of young alcoholics.
Due to the cost of living, crap economy (cheers Brexit), stagnant wages and being brought up by alcoholic Gen X‘ers and Early doors Millennials.
The first two also the reason Hospitalities issues themselves are being compounded ie energy costs, lack of EU staff, cost of products and supplies.
Yeah, business rates are insanely high, and calculated by a weird figure that is essentially just made up on the spot. Councils need to have powers to lower business rates to attract businesses.
In some places, no matter how low the landlord puts the rent it’s still virtually impossible for legitimate businesses to be financially viable because the business rates are insanely high (Landlords are incentivised to keep their properties occupied because if the property is unoccupied then businesses rates liability falls to the landlord).
In lots of prime locations like Oxford Street, businesses rates are so high that a lot of the time landlords will let out their properties for zero rent or close to zero rent just so they have someone to pay the businesses rates, and even that isn’t enough for legitimate businesses, which is why lots of dodgy ones have been moving in.
>When flagship buildings were left empty, landlords gave them over to the candy stores. The idea was the gaudy shops would move in for free as long as they paid the business rates, which in many cases never happened.
https://www.standard.co.uk/lifestyle/oxford-street-candy-shop-investigation-b1082733.html
Businesses are being taxed to death and people cannot afford to go out at the same rate they did a few years ago. The industry is suffering at both ends and things will not get better until both ends are addressed.
The only new tax on hospitality is the alcohol tax that Sunak introduced, and fully came into force in February.
Hospitality is being profiteered by the wealthy. Through skyhigh rent, through water bills, through energy bills.
I worked in hospitality for 20 years and I’ll never go back. All different service levels, fast food to fine dining, big corporate company’s and small family owned places.
Firstly, the wages, even at ‚luxury‘ places, the staff are paid a pittance, mugged off and treated like less than poo. Even if the wages are half decent, you’re expected to make your whole life revolve around the business. The amount of ‚labour hours‘ that are available means everyone is expected to work flat out for the 10-12 hours they are at work. You should be seen working hard, happily and with enthusiasm, all for min wage.
The kitchens are filthy! Especially in anywhere that’s busy all the time. Do you really believe that 17 year old lad has washed his hands to an acceptable standard? Do you think anyone really cares enough to enforce hygiene practices when they’re already doing 3 jobs at once.
Hospitality should be a high cost luxury. If the average person understood the ins and outs of running a restaurant or cafe, I don’t think the hospitality industry would survive.
If the place is by a river there are definitely rats, you don’t even need a river, just a bushy area. The salads been left out too long, food is probably past holding times. The only way to make a business like that run is to exploit employees, serve sh*te or are cutting corners, probably in horrendous ways. The only way to make it run is to price out the average person, if you’re bill isn’t coming to £150pp in a restaurant, someone’s been mugged off in the process.
So why do I struggle to get a seat at the pubs in my local town during busy times?
Government to the people „tighten your belts“, the people say ok, government screams „no not like that“. We all knew this was completely and so many people have said it in so many ways that if anyone in government is surprised by the fact hospitality is suffering as an industry they are living in a dream world.
So the tax will on pension pots will only go up… gotcha.
Still not seeing where the tax will come from for the public sector, let’s say a middle manager at a council who has a defined benefit pension of 60k when they retire in 20 years. So would have a theoretical pot of 1.5million how much would you take off them today?
It’s not tax that’s the issue it’s everything being used as a wealth extraction tool for the rich. Housing, education, utilises, transportation, food, everything is being sold off and the profits going to a smaller and smaller group.