The hospitality industry was given little to cheer about in the Government's 2008 Pre-Budget Report, with the Chancellor Alistair Darling announcing an increase in duty on alcohol by a further 8% in order to off-set the 2.5% cut in VAT from 17.5%. Unlike the VAT cut, which remains in place until January 2010, the duty on alcohol is permanent and as a result organisers of the south coast’s largest hospitality event, the Hotel and Catering Show, are set to introduce advisory ‘sound bite sessions’ to the 2009 Show to help ease the burden on the hospitality industry and minimise the impact of the ‘credit crunch’.

Hotel and Catering Show director, Anna Wallis, says: “It is evident that the calls to reduce alcohol duty and the burden of the current trading conditions that the pub sector faces have been ignored by the Government. While all other companies are benefiting from the lower VAT rate to 15%, the licensed retail sector is set to suffer as a result of the alcohol duty rise to off-set the cuts. If this was not enough, it will continue in April with the Duty Escalator and strikes again on 1st January 2010 when the VAT goes back to 17.5%.”

Anna adds: “However, it is not all bad news for the hospitality industry as a number of measures were announced to support small businesses, such as banks being given an extra £4 billion to help small and medium-sized firms and small businesses being allowed to spread all business tax over a period they can afford for as long as they need. Also the much talked about cut in VAT should hopefully generate consumer spending on the high street and transfer through to hotel stays.”

In order to help the industry minimise the impact of the economic climate, the Hotel and Catering Show, which takes place on Tuesday 10th and Wednesday 11th March 2009 at the Bournemouth International Centre, is set to host a series of free workshops in association with Business Link Wessex which will provide a range of advice which could help businesses to become more inventive to set themselves apart from competitors and offer something more to meet customers’ changing demands. The 2009 show will boast the latest products, services, food and drink, tasting opportunities and inspirational ideas from some of the industry’s leading chefs and experts.