A HEREFORD hospitality boss has warned that independent pubs and restaurants are being squeezed by rising costs after the Chancellor unveiled his latest Budget.
Dorian Kirk, founder of ART Hospitality which owns The Burger Shop, Leaven, and The Bookshop and The Yard in Hereford, said this week's budget had not given the business the breathing space it needed.
"We’ve worked incredibly hard to build independent businesses in Hereford, create jobs and give people places they’re proud to have on their doorstep. But the pressure on hospitality makes it harder to turn that work into money we can reinvest.
“Every extra pound absorbed by operating costs is a pound we can’t put into improving our venues, developing our teams or creating the next opportunity.
"And passing those costs on to customers who are already watching their spending is getting harder."
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He added that Hereford needs thriving independent businesses, which bring people into the city and provide careers for residents.
“We’ll keep working hard, supporting each other and finding ways forward," he added.
"But government needs to understand that our determination isn’t an endless financial reserve.
“Give us room to breathe and we’ll invest, employ and grow. That’s what we wanted this Budget to make possible.”
The Government said the Budget included a package of support for hospitality businesses. Measures announced by HM Treasury include increasing the Small Business Rates Relief threshold for retail, hospitality and leisure properties from £12,000 to £18,000 rateable value, introducing a two-year real-terms freeze on business rates bills for the sector from April 2027, increasing business rates relief for pubs, social clubs and live music venues to 35 per cent, and making changes to Small Producer Relief for brewers and cider makers from February 2027. The Government said the measures would provide "breathing space" for businesses and help firms to "plan, invest and protect jobs".
At the same time, hospitality businesses are set to face higher costs from increases to the National Living Wage and alcohol duty. The National Living Wage will rise from April 2027, while alcohol duty rates are due to increase in line with inflation from February 2027, measures which industry leaders have warned will add further pressure to operating costs.
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