Teesside hospitality sector calls on Chancellor to 'throw a lifeline' to help
Rachel Reeves is making her spring statement tomorrow
Last updated 1st May 2025
A Teesside restaurant owner is calling on the Chancellor to throw a lifeline to help hospitality businesses.
Many businesses are setting out their expectations for the sector ahead of Rachel Reeves making her spring statement tomorrow.
Helen Leonard is the owner of Cookfellas in Guisborough and she said: "Our expectations here is that the Chancellor will not place anymore pressure on the private sector with this next budget if she wants us to survive the incoming changes happening in April, which will be challenging enough.
"We're a family owned and family run restaurant and this last year, we've seen a reduction in footfall as people have faced the cost of living crisis and low consumer confidence to spend money.
"Cookfellas is an independent business so the cost of energy, staffing, raw materials, service contractors, maintenence and repairs have all gone up. This has erroded away any contingency within our business.
"When one of our wonderful customers comes in to buy a pint from us, they're contributing to the cost of the business rates, the rent, the electric, the gas and our labour. All of that has to come from the money that we make from the sale of a pint.
"To help the hospitality industry, I'd love the Chancellor to throw a lifeline of reduction in VAT on food for 10 percent. This would help enormously with all the rising costs that we're about to experience.
"Even with the rise in prices, we hope Cookfellas is value for money and continues to be a place where people come out to enjoy a drink or a meal with friends and family at the heart of the community of Guisborough."