Decisions by Rachel Reeves in the recent Budget “will drive many businesses to the wall” and represent a “direct attack” on job-creating businesses like pubs, the chairman of Fuller’s has claimed.
Michael Turner hit out at the Chancellor as the hospitality company which runs 185 pubs and hotels released its financial results for the six months to September 28.
He said that increases in National Insurance contributions for employers combined with other cost increases for businesses are misguided and will be damaging in many sectors.
Mr Turner said: “The Chancellor's recent budget gave me cause to reflect that, over the years, we have seen our wonderful industry plundered for an ever-increasing amount of tax - and once again, history has repeated itself.
"While other sectors replace human interaction with automated systems, hospitality continues to provide an introduction to the working environment not just for future publicans and hoteliers - but also the business leaders and, indeed, politicians of tomorrow.
He added: “The changes to Employers' National Insurance, coming on top of the cumulative impact of other wage and business rate increases, will cause particular pain, and has been brought about by the Chancellor's inadvisable promise not to increase taxes on individuals.
"The Chancellor's actions are a direct attack on those labour-intensive industries that are the lifeblood of our economy, whilst leaving the large City institutions, that can afford to pay their share, almost completely untouched.
"The unintended consequences of these actions will be to drive inflation higher, put pressure on wages, and will drive many businesses to the wall.
"I hope the Government will reflect on its decisions and appreciate the incredible contribution hospitality, farming, and small businesses make to so much more than just the Treasury coffers.”
Ms Reeves revealed a £25.7 billion change to employers’ national insurance contributions in last month’s Budget.
Fuller’s reported a 5.2 per cent increase in like-for-like sales, with adjusted profit before tax increasing by 21 per cent to £17.6 million.
Chief Executive Simon Emeny said: "In summary, everything that is in our control is going well.
"We have an outstanding, predominately freehold, well-invested estate, a driven and motivated team - who are supported by continuous development - and a clear, consistent strategy.
"We are in excellent shape, and despite the fresh challenges presented by the Chancellor's recent budget, we remain positive and optimistic about the future."
Michael Turner hit out at the Chancellor as the hospitality company which runs 185 pubs and hotels released its financial results for the six months to September 28.
He said that increases in National Insurance contributions for employers combined with other cost increases for businesses are misguided and will be damaging in many sectors.
Mr Turner said: “The Chancellor's recent budget gave me cause to reflect that, over the years, we have seen our wonderful industry plundered for an ever-increasing amount of tax - and once again, history has repeated itself.
"While other sectors replace human interaction with automated systems, hospitality continues to provide an introduction to the working environment not just for future publicans and hoteliers - but also the business leaders and, indeed, politicians of tomorrow.
He added: “The changes to Employers' National Insurance, coming on top of the cumulative impact of other wage and business rate increases, will cause particular pain, and has been brought about by the Chancellor's inadvisable promise not to increase taxes on individuals.
"The Chancellor's actions are a direct attack on those labour-intensive industries that are the lifeblood of our economy, whilst leaving the large City institutions, that can afford to pay their share, almost completely untouched.
"The unintended consequences of these actions will be to drive inflation higher, put pressure on wages, and will drive many businesses to the wall.
"I hope the Government will reflect on its decisions and appreciate the incredible contribution hospitality, farming, and small businesses make to so much more than just the Treasury coffers.”
Ms Reeves revealed a £25.7 billion change to employers’ national insurance contributions in last month’s Budget.
Fuller’s reported a 5.2 per cent increase in like-for-like sales, with adjusted profit before tax increasing by 21 per cent to £17.6 million.
Chief Executive Simon Emeny said: "In summary, everything that is in our control is going well.
"We have an outstanding, predominately freehold, well-invested estate, a driven and motivated team - who are supported by continuous development - and a clear, consistent strategy.
"We are in excellent shape, and despite the fresh challenges presented by the Chancellor's recent budget, we remain positive and optimistic about the future."
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NewsTranscript
00:00Hi, Chris Byrne here, Yorkshire Post Business and Features Editor. There's some interesting
00:06comments today from Michael Turner, who's the chairman of a big pub group, pub and hotel
00:11group called Fullers. He has basically lambasted Rachel Reeves over the budget, saying that
00:18the increase in national insurance contribution for employers on top of existing wage changes
00:25and business rate rises is going to have a major impact on job-creating businesses in
00:30the hospitality world. He says, compared to city institutions who pretty much got free
00:35in the budget, these businesses are now put under real pressure and warns some of them
00:41will go to the wall. He's described what Rachel Reeves did in the budget as a direct attack
00:47on job-creating businesses. Pretty strong comments from him, interested to hear what
00:53people think, especially given Labour said before the election they were going to be
00:57the most pro-business government in history.