Britain’s hospitality and tourism sector is made up, predominantly, of SMEs and micro-businesses. The Government needs to do all it can to encourage enterprise and development in the sector and we were pleased to see the increase to £250,000 in the Annual Investment Allowance.
already within reach We restate our recommendation for the rules governing the establishment of Real Estate Investment Trusts (REITs) to be amended to encourage hospitality businesses to take advantage of the flexibility they offer. We continue to press the Treasury to end the exclusion of hotels from the Enterprise Investment Scheme (EIS). The exclusion is completely unreasonable and illogical – public houses and restaurants do qualify – and it acts as a deterrent to investment/refurbishment and growth. In an environment where bank lending has been reduced, the EIS would offer a pathway for investors – particularly outside London. Whilst welcoming the continuation of the Business Premises Renovation Allowance (BPRA) for a further five years, there remains concern at the definition and scope of qualifying areas. Either hotels are excluded from a scheme when there is no good reason (EIS) but when they are included (BPRA) the process for determining eligibility and approval can be needlessly complex.