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Hospitality Sector Voices Alarm Over Proposed Tax Increases and Economic Challenges

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As the new government settles in, many in the hospitality sector are expressing concern over proposed increases in National Insurance contributions for employers and potential changes to tax thresholds and living wage increases. Operators across the industry are sounding alarm bells, fearing these measures could exacerbate the already precarious situation facing many businesses.

The hospitality industry is currently grappling with a wave of closures, with establishments shutting down weekly due to financial pressures. Despite steady turnover for many operators in Liverpool and throughout the UK, making profits has become increasingly difficult. The sector is in dire need of a comprehensive tax recalibration, especially considering that hospitality generated £54 billion in tax receipts in 2022.

In Liverpool, where hospitality is a significant part of the economy, the tourism industry was valued at £6.25 billion in 2023. Stakeholders are urging that this figure must increase annually, but the pathway to achieving that growth remains uncertain. The current climate is marked by challenges that threaten the survival of countless establishments.

“Unless the government truly listens to our concerns, we will witness more closures and job losses,” warned a local hospitality operator. “How many more fresh food-led businesses must close for the government to realize the need for policies that allow the hospitality sector to grow, invest, and survive?”

With the post-COVID support measures fading and debts still looming, the sector is facing a challenging environment marked by declining consumer confidence. The struggle is not limited to restaurants; pubs, cafes, and bars are all contending with a difficult trading landscape, presenting a perfect storm for potential failure.

The key issues hindering growth include high VAT on fresh prepared foods, the ending of business rates relief, rising energy costs, inflation in ingredient prices, increased wages, and the burden of business PAYE and National Insurance contributions. Brexit has also introduced tariffs on imported goods, compounding the challenges businesses face, while the cost of borrowing and servicing loans taken during the pandemic further strain financial resources.

Industry leaders are particularly vocal about the urgent need to recalibrate the VAT on fresh prepared foods to align with European standards, enabling businesses to invest in their operations and communities. Additionally, calls for business rates reform are growing, advocating for a level playing field between physical high street businesses and online competitors.

“Currently, the way business rates are assessed is nonsensical, especially with the impending end of business rates relief, which would be another crippling blow,” emphasized a spokesperson for the sector.

As calls for change intensify, the hospitality industry hopes the Chancellor and the government will take heed of these pressing concerns. The time for action is now, as operators strive not just to survive but to thrive in a challenging economic landscape.

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Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz

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In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.

The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.

Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.

Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.

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Global Hiring Slump Marks Longest Downturn in Decades, Says Hays CEO

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The global job market is experiencing its longest downturn in over 20 years, according to Dirk Hahn, CEO of Hays, Britain’s largest listed recruitment firm. Hahn attributes the slump to ongoing macroeconomic uncertainty, which is deterring both employers and job seekers from making moves.

Hays, which employs nearly 7,000 consultants worldwide, reported weaker demand for temporary workers in early 2025, while demand for permanent roles—particularly in Europe—remains sluggish following a pre-Christmas dip. Countries such as France, the UK, Ireland, and Germany, Hays’s largest market, are feeling the pressure most acutely.

In the six months leading up to December, Hays reported a 15% drop in group net fees, falling to £496 million from £583.3 million the previous year. Pre-tax profits fell sharply by 67% to £9.1 million, compared to £27.6 million during the same period the prior year. Hays’s share price, already down 25% over the past year, dipped a further 1.8% on Thursday, closing at 71¾p and placing the company’s market value just below £1.2 billion. Despite declining profits, the company will maintain its interim dividend at 0.95p per share.

While the broader UK labor market has shown resilience with limited mass layoffs, businesses remain cautious about expanding their workforce. “Most companies have enough work to retain their current staff, but they’re not looking to increase headcount,” said James Hilton, Hays’s chief financial officer. “Many employees who received pay increases in recent years are not seeking new roles, creating a stalemate. However, over time, people will seek promotions or fresh challenges.”

Recruiters had anticipated a market recovery earlier this year, but Hahn now warns that the rebound may not materialize until 2026. In the meantime, Hays is focusing on its technology recruitment division—its most profitable segment—as it navigates the prolonged global hiring slowdown.

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UK Government Reports Lower-Than-Expected Budget Surplus in January

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The UK government reported a budget surplus of £15.4 billion in January, falling short of economists’ forecasts of £21 billion and the £19 billion predicted by the Office for Budget Responsibility (OBR). Despite January typically seeing a boost from self-assessment tax payments, the lower-than-expected figure has increased total borrowing for the financial year to £118.2 billion—over £11 billion more than the previous year.

The government’s debt-to-GDP ratio now stands at 95.3 per cent, a level last observed in the 1960s. With the OBR set to release updated forecasts on March 26, there are concerns that the government may struggle to meet its goal of reducing the debt ratio by 2029. This could lead to potential spending cuts or tax hikes in the autumn budget.

Reduced debt-servicing costs helped boost January’s surplus, dropping from £9 billion in December to £6.5 billion. However, this was partially offset by a £6 billion one-off expense related to the government’s repurchase of military housing from private firm Annington.

Darren Jones, chief secretary to the Treasury, emphasized the government’s commitment to “economic stability and meeting our non-negotiable fiscal rules.” He also noted that a comprehensive spending review—the first of its kind in 17 years—is underway to ensure that public funds are used efficiently and aligned with national priorities.

 

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