Alex Claridge, owner of The Wilderness in Birmingham, stated the proposal did not go far enough For Michelin-starred chef Alex Claridge, running an independent restaurant has become a difficult task. Despite the acclaim his Birmingham restaurant The Wilderness commands, Claridge states the reality behind the kitchen doors is one of soaring costs, shrinking margins and constant uncertainty. It's a picture he believes is shared by independent hospitality businesses across the country.
And, while he welcomes the government's announcement of a 20% reduction in business rates for pubs, social clubs and live music venues from next April, he states it would do little to tackle the financial pressures restaurants like his are facing." This could represent a couple of thousand [pounds], it could represent a couple of hundred thousand. The issue remains that for many businesses, it's still not going to be enough to move the needle."
Claridge stated many independent restaurants are operating on little more than hope, with some barely breaking even despite full dining rooms and industry recognition." The entire industry is on a precipice... I don't know any independent hospitality businesses that are making any money,"He explains."
Really, it's statistically almost impossible to make a living." While pubs, clubs and live music venues are poised to benefit from the business rates relief, restaurants, cafés, hotels and cinemas have not been included in the government's announcement. For Claridge, that omission reflects a wider problem.
He believes a reduction in VAT for hospitality businesses would have a far greater impact than changes to business rates. He argues it would give businesses the breathing space they need to invest, employ staff and remain financially viable. "It's the only lever that will reliably make a difference to a material number of businesses."
Whilst I understand that there is significant nervousness in government about such a bold radical move, [but] the time really is now for a bold, radical move. "For me, it's always been not can we afford it, but can we afford not to." The chef said the challenges facing hospitality cannot be solved by short-term measures alone and warned that without wider reform, more independent venues could disappear.
"Those of us who run and operate these businesses, it is not a get rich quick scheme," He says. "It is often a get poor quick scheme as it happens, but it's getting to that point where you go, this doesn't make sense. The government said the 20% business rates reduction is designed to support hospitality businesses and help revitalise high streets.
Under the plans, the relief will apply to pubs, social clubs and live music venues. Prime Minister Andy Burnham said: "For too long, governments have stood by while cherished venues have disappeared from our local high streets." The cut will cost £100m and will be funded by a review of tax relief on firms such as vape shops which "Do not make a positive contribution to local communities", the government said.
The cut was expected to benefit almost 32,000 venues, it added. While he welcomed the announcement Claridge questions if it goes far enough. "The issue remains that for many businesses, it's still not going to be enough to move the needle and solve the fundamental issue at the heart of pubs, live music clubs, and indeed restaurants, which continue to go without," He added.
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