Geordies want Rishi Sunak Spring Statement to prioritise Newcastle hospitality

Geordies want more investment into the hospitality industry and will support their locals if pints rise by 50p

As Rishi Sunak prepares to deliver his Spring Statement, data shows that more than 75% of people in Newcastle think the Government should be doing more to provide financial support to the city's hospitality business.

The Chancellor of the Exchequer will give the long-awaited update today and Geordies know where they want investment to go.

The data was commissioned by start-up Mr Yum, who aim to support the hospitality and entertainment industries.

Of those polled, the majority said maintaining the reduced VAT rate of 12.5% is the best way to support the local hospitality industry in its recovery from the pandemic.

Despite the Government ending Covid-19 restrictions, the challenges the hospitality sector faces remain.

During the past six months, 1 in 3 people have cancelled a booking at a Newcastle venue due to Covid-related reasons and almost 1 in 4 people have not returned to a venue due to service-related issues.

The hospitality industry is also facing rising labour, energy and food costs as prices nationwide go up.

The Chancellor Rishi Sunak will deliver his Spring Statement on Wednesday. Photo: Leon Neal/Getty Images

There is hope to that end, with 65% of Geordies say they will still go to the pub as often even if the price of the pint increased by 50p - if that was to be by a £1, just 1 in 3 would continue to go out as frequently.

Mr Yum CEO Kim Teo says making the reduced 12.5% VAT rate permanent would provide a much-needed boost to Newcastle’s hospitality industry struggling to recover.

She said: “It’s clear a permanent 12.5% VAT rate for hospitality has the public’s support and would go a long way to encouraging people to get back and enjoy their favourite local pub or restaurant as often as they did before COVID."