BHA calls for deferral of NI and VAT and return of capital allowances

The British Hospitality Association (BHA) has urged the Government to allow VAT and National Insurance payments to be deferred, reinstate capital allowances and stop introducing more regulations.

In a letter to MPs, Bob Cotton, BHA chief executive says that in the present economic situation, these three key measures would greatly assist hospitality businesses.

The letter reads: "The first is to allow NI and VAT payments to be deferred. This was granted at the time of the foot-and-mouth outbreak in 2001 and it saved hundred of businesses and thousands of jobs then. It would have a similar beneficial impact now.

"Secondly, in order to keep investment flowing, capital allowances on new buildings and facilities, which were disallowed in the 2007 Budget, should be reinstated, together with the postponement of the abolition of the Hotel Buildings Allowance. This would encourage - not discourage - new investment.

"Thirdly, the Government should stop introducing more regulations. These cost businesses billions of pounds and Ministers seem to have little concern (or knowledge) about the financial impact which new regulations in employment, health and safety, food safety and other areas are inflicting on the industry. Now is not the time to inflict yet more of them on businesses already fighting for survival."

The letter was publicised on the day the Government opened a consultation on proposed changes to tips legislation.

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By Daniel Thomas

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