The Meetings Industry Association’s chief executive Kerrin MacPhie, said: “The latest movements within government, including the appointment of Jeremy Hunt as Chancellor, provide an appropriate reflection of the ongoing and unwelcome uncertainty not just our sector, but the United Kingdom is facing once more.
“As the sector continues to implement its recovery plans, this is a further setback in confidence and leaves many organisations second guessing how policies may or may not impact them and their plans and decision-making in the near future.
mia reacts to Chancellor announcements on tax
“With a U-turn on the corporation tax freeze, the sector must now account for reduced net profits as it prepares for a 25% rate from April 2023 – an increase of almost one-third. For a price-sensitive sector already facing significant demand challenges, many will now be accepting lower profits that indicate further setbacks on recovery plans. Devastatingly, some will simply not survive these additional blows, as we have already begun to witness business closures in recent weeks.
“Following the soaring energy costs, as well as other sharp rises including food costs, there is little room left for further price increases to compensate for this. Forecasted profits that were to be offset against a proportion of organisations’ pandemic-enforced losses are now looking less fulfilling. As a consequence, investment in new capabilities and critical recruitment and retention campaigns, as well as allowances for an inevitable living wage increase will now be under evaluation once more, during what is already being considered a staffing crisis for the sector.
“As we communicate the value and position of the sector to those in new and existing government roles, many will now be apprehensively awaiting the upcoming fiscal plan announcement on 31 October.”
Read our exclusive interview with Kerrin MacPhie, Chief Executive of mia