My constituent Joe Glenister is a highly driven entrepreneur focused on building a successful hospitality business in Maidstone & Malling and beyond, using years of valuable experience in that sector.
He presently employs twenty-five people in two locations and is on a mission to develop another three hostelries as soon as the right opportunities arise.
Joe invited me to his Maidstone café and cake shop, The Little Shed in Penenden Heath, to share his frustration about the barriers to growth being created by the current government and to offer some ideas to put to Ministers for the benefit of the country.
In addition to the burden of over thirty separate taxes the price of ingredients is a continuing battle government needs to be mindful of in hospitality. Chocolate has increased by 150% over two years, from £8 to £20 a Kilogram. Milk has risen from 92p to £1.74 a litre, and coffee has increased in price by around 20% too.
Joe’s main suggestion is one widely supported in the industry, particularly by the campaign group https://hospitality-together.org/ - and that is a reduction in VAT to 10%. This would apply to eligible sales such as restaurant and café food and drink (eat‑in), hot takeaway food, hotel accommodation and visitor attractions.
Businesses say a 10% VAT rate would improve cash flow immediately, allow reinvestment in staff, refurbishment, and technology, offset rising labour costs (NI, minimum wage) and prevent closures in marginal businesses.
In addition, the VAT cut is projected to produce higher revenue for the Treasury in the longer term, through organic industry growth – figures supported by UKHospitality modelling, House of Commons Library analysis, and sector surveys. What’s not to love?
A genuine reduction in Business Rates was Joe’s other big lever to pull and I will be writing to the Chancellor on his behalf to keep up the pressure for an industry that is central to the economy of Kent.
Meanwhile I strongly recommend a visit to The Little Shed if you are in and around Penenden Heath at 319 Boxley Rd, Maidstone ME14 2HN.
Check out the menu here: https://www.thelittleshedph.co.uk/
