Carryduff Chef Gemma Austin looks at why Belfast restaurants are struggling to keep their doors open

  • 3 months ago
Carryduff Chef Gemma Austin looks at why Belfast restaurants are struggling to keep their doors open
Transcript
00:00My name's Gem Austin and I am the owner of A Peculiar Tea in Belfast.
00:04Today we are going to be looking into the hospitality industry,
00:07giving you an insight into what it's like to be a business owner,
00:09and give an explanation as to why it is that so many restaurants are closing at the minute.
00:13So Colin, thank you very much for being with us today.
00:17Obviously if you want to tell everybody who you are to start with.
00:21Colin Needle, I work for Hospitality Ulster,
00:23which is the industry body for the hospitality sector in Northern Ireland.
00:27Our role in life is just to represent the industry and help the economy prosper in Northern Ireland.
00:34I suppose the main reason I wanted you to come in today
00:37was I'd obviously listened to some of the facts and figures that you had said on BBC Science
00:43and was really gobsmacked by them, even as a business owner myself.
00:46I think that sometimes we're not really aware of what's going on in the industry
00:50or what's going on in Northern Ireland at all until you hear those facts and figures.
00:55I just thought it would be really important for people across this country
00:59to basically get an understanding of what that is.
01:01Would you mind just sort of sharing some of that with us?
01:03Look, we have huge challenges in Northern Ireland because,
01:06if you just start at the basics, we have the highest energy costs in Europe.
01:11We've got actually the highest business rates in the OECD, never mind in the UK.
01:16If I compare it on a town like Blarn, over 62p in the pound for their rates.
01:23Their city in London is 52p in the pound.
01:26How does that add up?
01:28And then you add in all the extra.
01:30Our disposable income per household is much less.
01:34So we struggle, actually, even when people will say,
01:37oh, you're getting dear.
01:39We struggle to get the price we should get.
01:41Often people will point out, oh, you're as dear as London.
01:45Why wouldn't we be?
01:47We've got higher rates, higher energy costs.
01:50The same are actually often higher wage costs
01:52because we actually do pay a bit better than London in many instances.
01:56We aren't the big sort of chains that just turn out the same thing.
02:03And I'm not knocking them, but they have their place.
02:05So we're not buying at the price.
02:07If you look at a restaurant chain in England,
02:09what they buy at compared to our unique independent offer is much less.
02:13So yes, we're going to be at that price, and that's the real problem.
02:17Yeah, and I think is it maybe a misconception
02:20that people would go to London
02:22and would instantly allow themselves to pay more because they're in London,
02:26but the reality is in Belfast we are now at a stage
02:29where it's more expensive to have a restaurant in Belfast city centre
02:32than in London city centre.
02:34I mean, that's quite frightening.
02:35I think it is.
02:36I mean, for years we've always thought of London as the dearer place.
02:40If you live in London, you get an extra living allowance and stuff on your wage
02:45because it was more expensive.
02:47And for housing and the domestic side of things, yes, it is more expensive.
02:52But to run a business is dearer in Belfast than it is in London.
02:56Yeah, which is quite frightening when you think about it.
02:58It is horrendous.
02:59And I think my worry, to be honest, is the model's broken.
03:03Unless government actually get real and realise that the level of VAT,
03:09the level of rates and the level of taxation just doesn't work,
03:15we'll devastate a unique product.
03:18Because Northern Ireland is food and beverage offer.
03:21It's world class.
03:22And I don't say that as somebody who's never been around the world.
03:25It really is.
03:27And it's something we have to look after and protect.
03:29I suppose the thing for me as a business owner
03:31and as somebody that lives in Northern Ireland,
03:34I sort of feel like because the government didn't exist for so long
03:38and Westminster has sort of heavied on Northern Ireland,
03:41put a lot of the weight onto us to pick up after COVID
03:44in comparison to what the rest of the UK is doing.
03:47And I'll say to you, Colin,
03:48and this is a huge part of why we're doing this,
03:50we don't want any special treatment.
03:52We just want to be treated the same as the rest of the UK,
03:54get the same rates relief,
03:56get the VAT decreases that everybody else,
03:58even in the Republic of Ireland, is getting.
04:00Do you think it's fair to say that because we were unrepresented for so long,
04:04that is a major reason as why we're struggling so much now?
04:07There is part of that,
04:09because obviously we've only got a government back in Northern Ireland
04:12and its big focus has been on public sector issues,
04:15health, all of the bits, and mechanics go there.
04:18And then all the wage increases sucked up any extra money they have,
04:22which actually but unfairly meant that if we look at GV Westminster,
04:27actually a year ago, this now will be the second year it's in place,
04:30a year ago decided that they realised hospitality was challenged
04:36and gave a 75% rate reduction.
04:39Now that money that proportionately we get,
04:42it's called the Barnett Consequential,
04:44came to Northern Ireland and just had gone out the big black hole.
04:48And that's extra money that they wouldn't have got
04:51if Westminster hadn't decided hospitality needed help.
04:55If hospitality in GV needs help, we need help.
04:59That money should have been used.
05:01It wouldn't have given us the 75% rate reduction that England have seen
05:06because we have a lot smaller businesses.
05:08But even if it was enough and passed on to 50%,
05:11that would have saved restaurants because it's that final line.
05:16And it's those things that I find really frustrating.
05:19It's not money that was already in the pot,
05:21it was additional money that came and those should be passed on.
05:25If a restaurant, we talked about London,
05:27if a restaurant in London needs help, we need it more.
05:30Yeah, of course, absolutely.
05:32I suppose one of the biggest things for me that was a shock
05:35was obviously you'd sent me through some facts and figures
05:38and you'd actually done sort of a diagram of a rateable value in England
05:43and a rateable value in Northern Ireland.
05:45Could you just sort of explain how that would work for here?
05:48If you actually take, because rateable value is what our London Property Service
05:53is about to say what your rates are based on.
05:56We've done a table where if you compare rates, direct comparison,
06:01we actually have premises here that are paying 40,000 or 50,000 a year in rates
06:08and in England it's seven.
06:11And indeed there's cases where we've been paying significant rates here
06:14and there'll be none in England because we haven't got that rate support.
06:18And I do recognise that Northern Ireland Assembly
06:20has put in small business rate relief and we welcome that.
06:23But it's minuscule compared to what the rest of the United Kingdom is getting
06:28and it's also not targeted.
06:30So, you know, a premise here with the turnover and it sounds, again, complicated,
06:36£15,000 rateable value, we get 20% off the rates.
06:41But that goes to everybody.

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