Budget preview piece - south west

Like so many industries, hospitality has seen a significant downturn since the pandemic and the subsequent cost of living crisis. As a business, we have been squeezed on both sides by the rise in the cost of food and the drop-off in demand. One of the only clear paths to immediately address the crisis in the hospitality sector is a reduction in VAT. The majority of European countries have recognised how challenging it can be for the hospitality sector, and have implemented reduced rates for hotels and restaurants, by over 80% in some cases. The UK is lagging in its support for the hospitality industry. Great hospitality is a vital part of our way of life, and the rate of business closures is seriously affecting that.

For me, Wednesday's Budget is all about Corporation Tax, which is shooting up from April. The hike was going to be abolished when the mini-Budget was announced, but this was quickly retracted of course. Mr Hunt has not made any particularly positive corporation tax statements in the run-up to the Budget, and given that a lot of key annoucnements are leaked, I guess the best we can hope for is no more increases.

Following better-than-expected public finances and the belief of a shortened downturn, Jeremy Hunt's Spring Budget is likely to be cautious. However, local businesses require clarity and certainty more than ever, especially after the chaos of last September. While increasing pension annual allowances may benefit those able to breach the current ceilings, it won't assist struggling businesses. It's crucial that measures are put in place to support businesses whose survival means the continuation of jobs, livelihoods and the overall economy. In these challenging times, a balanced and comprehensive approach is needed to ensure that all businesses have the best chance of success and survival.

Tax incentives to increase productivity through investment in technology would be hugely welcome. But above all, a realisation that house prices need to be allowed to fall. The status quo is unsustainable with increasing numbers of people priced out of both buying a home and renting one. Stop the Right to Buy, relax the planning rules and let's start building social housing at scale.

I just hope the Chancellor ditches the traditional London-centric view of economics and does the right thing. We need, among other things, more support for families with their energy bills, more support for businesses with their soaring energy bills, 30 hours of free childcare from 1-year old to get our willing workers back to work, and new commitments to make outer-lying regions (South West/ South Wales) technological hubs for green technologies. The Government needs to stop pandering to the lobbyists and start looking after its voters.

The property market is in a delicate balance with many people predicting that house prices may drop in the month's ahead if there is any further rise in interest rates. We would like to see the Chancellor produce a carefully balanced budget that protects home-owners biggest assets while also coming up with initiatives that help younger people make their way onto the property ladder.