Rishi Sunak's cost-of-living crisis Spring Statement is 'drop in ocean' for hospitality sector, says Kent Invicta Chamber of Commerce
17:14, 23 March 2022
updated: 21:30, 23 March 2022
Rishi Sunak's cost-of-living crisis mini budget has been branded a "drop in the ocean" and a "missed opportunity" to support Kent's beleaguered hospitality sector.
The Chancellor's Spring Statement means drivers will pay 5p less per litre of fuel from this evening while the controversial National Insurance hike will go ahead next month but the threshold for paying it was increased to £12,570 in line with income tax.
While welcoming these moves Jo James, of the Kent Invicta Chamber of Commerce, said they went no where near far enough.
"It is only right that the Chancellor has taken the opportunity to support individuals as we are facing significant price hikes across the board. But if we are to have sustainable jobs, the Chancellor needs to ensure he is supporting the business community and I feel today has been a missed opportunity," she said.
"From the employee perspective there have been gains, particularly a drop in income tax (set to drop to 19% in 2024). From a business perspective we have been facing a myriad of cost pressures and today's announcement is just a drop in the ocean. But there is no mention of extending the lower tax rate for hospitality and I feel this is a huge disappointment for the sector and a lost opportunity to support a sector that has taken the brunt of the impact of the Covid pandemic."
Mr Sunak's proposal to cut fuel duty fro 12 months comes after 11 successive years in which duty was frozen and as prices have soared to record levels.
The founder of campaign group Fair Fuel Howard Cox welcomed the 5p cut in duty.
"It would be churlish not to be thankful to the Chancellor in cutting Fuel Duty by 5p for 12 months. Our relentless campaigning has been fruitful. It will give some respite to millions of motorists, that have had and continue to have no choice but to drive. Just as important this fiscal relief to hauliers and small businesses teetering on the edge, desperately need this reduction more than most road users, it’s way overdue," he said.
"It will only benefit drivers and the economy if the new fuel taxation level becomes permanent and is accompanied by the introduction of an independent pump pricing watchdog, we’ve notionally called PumpWatch. Today’s fuel duty reduction must be passed onto drivers immediately."
My Kent Family senior reporter and mum-of-two Lauren Abbot said: "The biggest headache facing most families is the rising cost of energy, fuel and food and while I think the Chancellor's plans will be welcomed - particularly the rising National Insurance threshold - it's hard to know how much of a dent his policies are really going to make.
"The demands on household budgets are rising exponentially, with no signs of stopping, and it wouldn't take much for his efforts to become a small drop in an ocean of ever increasing costs.
"From April our energy bill will jump by an estimated £60 to £70 a month - while we're already noticing the weekly shop for our family of four costing £20 to £30 more a week than it did at the start of this year.
"Add to that the rising price of fuel, which has taken the cost of a tank for our family car from just shy of £65 to closer to £90, throw in the increase in council tax, the impending 1.25% rise in National Insurance and like many, we're looking at how we should tighten our belts to cover it.
"For low-income households or those who have already watched their Universal Credit be cut back after the end of the pandemic uplift, I dread to think how they foresee meeting their basic needs in the coming months. Martin Lewis is perhaps not joking when he says it could become a choice between heating and eating.
"It's perhaps telling that among the Mother's Day deals coming out of Morrisons ahead of Sunday is one offering a complete roast dinner for four people for less than a fiver. The space for luxuries in many households in the current climate - the supermarkets already appreciate - is very tough.
"While the 5p reduction in fuel duty will no doubt put some pennies back in our pocket - and I'd rather it in mine than theirs - it really could be just pennies considering fuel was £1.20 a litre not that long ago. In fact the RAC tells me the policy will save me about £3.30 a tank after the reduction is applied tonight. "
KentOnline readers reaction to the Spring Statement was almost universally negative.
Lindsey Kentish said: "They found enough money to give themselves a nice big pay rise."
Sarah Cole said: "Petrol cost decreasing doesn't make a difference to those who do not drive... cost of living regardless is still going beyond what most can manage and we will sadly have to choose do we eat or freeze. He's not done enough.
"How about forget the pay rise for politicians and also you want to give us 200-400 towards our energy cost... maybe don't make us pay it back. Instead of giving it to us and then wanting it all back again. If I had a choice I'd rather not have a loan for my gas and electricity."
Although Richard Lane said: "If he gave everyone a gold bar someone would still say it’s not enough."
The budget was preceded by angry clashes between the Prime Minister and opposition Labour leader Sir Keir Starmer over the sacking of 800 employees working for ferry operator P&O.
The PM said the government was taking legal action over the decision as there were grounds for believing employment law had been broken.
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