Members of the Association of Licensed Multiple Retailers and the British Hospitality Association have backed the merger of the two trade bodies to create UKHospitality.
The board of UKHospitality will be led by ALMR chief executive Kate Nicholls, who will take on the same role, with BHA chair Nick Varney also moving across to the same position. ALMR chairman Steve Richards becomes deputy chair of UKHospitality. Ufi Ibrahim, chief executive of the BHA, has decided to pursue other interests.
Announcing the merger the group promised to spearhead hospitality’s representation on the strategic, structural and regulatory issues it faces, campaigning for policies to help the sector achieve further growth as a key driver of the UK economy.
It identified three clear objectives: “firstly, creating a tax system which is fit for purpose, one which reflects the realities of business in the 21st century and allows a level playing field for traditional high street and community-based businesses which now compete with online companies; secondly, a regulatory regime which allows the hospitality sector to focus on growth rather than red tape; and finally, developing the hospitality workforce of the future.”
Commenting after the EGM votes, Nicholls said: “The hospitality sector is at a critical point, with fantastic innovation, dynamism and enthusiasm across the industry, however this is being jeopardised by significant cost increases and red-tape. The incredible member support for creating UKHospitality demonstrates our ambition to reshape the future of an industry, which represents 10% of UK employment and generates £38bn of tax for the Exchequer. I look forward to working closely with all members to achieve our vision and to give a sector of huge economic, cultural and social importance the voice it deserves within government, and to deliver the much-needed policies that will support its strong growth trajectory.”
Varney said: “Today’s launch is a significant moment for our sector. The hospitality industry needs the right commercial environment in which to prosper. Our vibrant and dynamic sector has been overlooked in policy decisions over recent years, which has had a direct impact on jobs and value creation. I thank Ufi Ibrahim for her significant contribution to the BHA; as CEO she reshaped and reformed the organisation from the ground up, raised its profile with government and championed many policy-shaping initiatives. The Board and members wish her every success in her future ventures. I look forward to working closely with Kate Nicholls and the UKHospitality Board, to enhance the development of the diverse and innovative hospitality sector in the UK.”
Richards added: “We are today reiterating our call for a dedicated Minister to represent an industry which is the third largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined. The sector’s tax contribution is as big as the defence budget, and warrants focused attention from government. Kate and the team have an ambitious plan to secure the future of our industry and will be actively engaging on behalf of the sector at home and abroad.”
Comment by MCA editor, James Wallin
For a sector that generates £38bn of tax every year, hospitality seems to have worryingly little sway with Government.
There is, after all, no minister for hospitality, despite this being an industry that creates 10% of UK employment with c2m people employed overall – that’s greater than the population of Northern Ireland.
Why is it that perceived crises in industries like manufacturing seem to generate immediate and public interventions from Government ministers, while hospitality’s pleas are swept under the carpet?
According to the logic of the merger between the Association of Licensed Multiple Retailers (ALMR) and the British Hospitality Association, to create UKHospitality, part of the reason is that the industry is still not speaking in a unified voice.
Since the long-awaited tie-up was officially revealed last month, I have canvassed the opinions of a number of current ALMR members about their thoughts on the tie-up – representing a broad spread of the operator types under its umbrella.
This overarching message – that one voice is better than many – was echoed by every person I spoke to, and has been a feature of many of our comment pieces over the years. The sector is facing unprecedented pressures and the litany of increased tax burdens and legislative interventions over the past few years have only exacerbated them. The shambolic system of business rates is a case in point – the logic for reform of an outdated system has been eloquently and concisely communicated, the impact on operators has long been clear, yet the Government has done nothing to help.
Business rates is a cause that the driving forces in creating UKHospitality often cite as one of the unifying issues facing companies across this diverse industry. However, ALMR members showed concerns that other issues may end up being sidelined. One of the key battlegrounds for the ALMR has been the encroaching bureaucratic burden on late-night operators. Late-night levies (LNLs) and early-morning restriction orders (EMRO) have been resisted, the agent-of-change principle championed. There have been notable successes but there is much more to do. What sort of weight will companies such as Merlin want for a campaign that is so far removed from its own priorities? Will these legitimate concerns be swallowed up by a focus on broader issues?
For LNLs, see also alcohol duty, temporary event notices, apprenticeship levies – not to mention the nuances in the reforming VAT debate. In order to speak with one clear voice, UKHospitality will inevitably have to demand compromises from members. From the conversations I have had this appears to be understood and accepted but – particularly for veterans of the organisation – there is still unease as to which niche causes will still be championed.
For some, this shift away from its original nucleus of membership has already been evident as the ALMR has expanded its base – first entering casual dining and then incorporating food to go. One multiple pub operator told me: “For years, coffee shop chains were seen as our enemy, then all of a sudden we’re in the same tent.”
There were also doubts expressed on the social element of the trade union – less vital perhaps than a lobbying focus but still a unifying feature. The ALMR Christmas lunch has become an institution. How will the involvement of those from the, arguably, more corporate world of hotel chains, change the dynamic of such events? Could it even function as a pan-hospitality gathering? Surely there is a need for a pan-sector event – something MCA and William Reed would be happy to help UKHospitality with.
As with the operators I spoke to, I see this as ultimately a positive step for the sector and congratulate Kate Nicholls on her new role. She has been a tireless and articulate advocate for the sector. However, as champions of the eating and drinking-out sector ourselves, we will continue to highlight the issues that resonate most with our readers and ensure that their voices are not lost in the messages UKHospitality chooses to present to Government.
