Episode 80: How Kate Nicholls Fought for Hospitality's Survival
Posted by Emma on 11th Dec 2020 Reading Time:
The hospitality industry has been through one of the most turbulent periods in modern history, facing unprecedented challenges from COVID-19 restrictions, Brexit-related labour shortages, and the looming uncertainty over business rates and VAT. In Episode 80 of The Ceres Podcast, host Stelios Theocharous sits down with Kate Nicholls, CEO of UK Hospitality, to discuss the sector's survival, recovery, and the policy changes needed to secure its future.
Kate, a relentless advocate for the industry, offers a deep dive into the behind-the-scenes battles fought to protect jobs and businesses during the pandemic. This episode is essential listening for anyone in the hospitality sector, whether you're a small takeaway owner, a restaurant operator, or a large-scale hotelier.
From Brexit to COVID: The Double Blow to Hospitality
Kate and Stelios reflect on how, just a year ago, Brexit was the primary concern for hospitality businesses, with fears around labour shortages. Fast forward, and the industry faced an even greater crisis: lockdowns, closures, and a complete rethinking of business operations. Kate predicts that while COVID-19 recovery is on the horizon, Brexit-related challenges—particularly around staffing—will resurface in the coming years.
Labour Shortages and Retention: A Long Road to Recovery
One of Kate's most pressing concerns is the difficulty in retaining and attracting post-pandemic talent. While some businesses are seeing pent-up demand, the industry struggles to fill vacancies. She warns that the effects of the labour shortage will likely persist until at least 2023, as businesses recalibrate and navigate new hiring realities.
Government Support: The Wins and the Frustrations
Kate acknowledges the significant government support keeping many businesses afloat—furlough, VAT reductions, and relief of business rates. However, she critiques the inconsistency in policies, particularly the disproportionate burden placed on hospitality, such as the controversial 10 PM curfew and tiered lockdowns that forced venues to close while allowing crowded retail spaces to remain open. She argues that future policy must be more data-driven and fair.
VAT and Business Rates: The Next Policy Battleground
Kate is adamant that the temporary 5% VAT rate should be extended and potentially made permanent to help businesses recover fully. She also discusses how outdated business rates disproportionately impact high-street businesses while online retailers benefit from lower tax burdens. A call for a more balanced taxation system is at the heart of UK Hospitality's lobbying efforts.
The Grey Pound and Post-Pandemic Consumer Trends
A fascinating insight Kate shares is the untapped spending potential of older consumers who have hesitated to return to hospitality venues due to safety concerns. As vaccinations roll out, she expects a significant resurgence in spending from this demographic, which could help further drive the sector's recovery.
The Need for a Hospitality Minister
Despite hospitality being one of the UK's largest employers, no dedicated government minister represents the sector's interests. Kate discusses the growing campaign for a Hospitality Minister, arguing that a dedicated voice in government could prevent the reactive, often inconsistent policies that have plagued the industry during the pandemic.
Why You Should Listen to This Episode
This conversation isn't just about what's happened but what's next. Kate's expertise and tireless advocacy make this episode a must-listen for hospitality professionals looking for clarity, insights, and a sense of direction in these uncertain times. Whether discussing rent moratoriums, the role of aggregators like Just Eat, or how the industry must evolve, this episode covers the most pressing issues in the sector today.
Final Thoughts: A Call to Action
Hospitality businesses have endured an incredible period of hardship, but as Kate points out, the sector has an opportunity to shape its future. Now is the time for business owners to engage with their local MPs, push for VAT and business rates reform, and support industry-led campaigns to ensure hospitality remains at the forefront of government priorities.
Listen to Episode 80 of The Ceres Podcast featuring Kate Nicholls today! Subscribe to The Ceres Podcast on Apple Podcasts, Spotify, or your preferred platform to stay informed on the latest industry insights.