Andrew Jones MP supports bid to reduce VAT on hospitality sector

Harrogate and Knaresborough Conservative MP Andrew Jones has said a bid to extend the reduction on VAT for the hospitality and tourist sector would help a “huge number” of companies in his constituency.

Chancellor Rishi Sunak announced in this year’s Budget the 5% reduction on VAT for the sector would be extended until September.

Now a clause in the Finance Bill proposes further extending it until March next year.

Speaking in a Commons debate yesterday, Mr Jones said the move would cost £5 billion a year but would help organisations that were “running on empty”.

He said the sector employed 9,464 people in Harrogate and Knaresborough before the pandemic, which “puts us in the top 10% of constituencies across the country”.

He added:

“The industry needs a period of stability where it can rebuild.

“One challenge will be when businesses have been through the summer and they face the standard seasonal reduction but may not have built up the cash flow in reserve to see them through the leaner months.

“This initiative recognises that risk, so the continuity of support through the winter is welcome.”

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Mr Jones said the sector’s supply chain had been particularly badly affected, adding:

“I know that, in my own constituency, some businesses in the supply sector will not be reopening, and businesses that have served the industry well for many years are at a crisis point.”

Extending the 12.5% rate of VAT would, he said, stimulate demand, especially in the quieter winter season, and that demand would generate the cash flow that businesses need. 

He quoted Ian Fozard, who runs Roosters brewery in Knaresborough, saying “most businesses like ours need a sustained period of good trading to build back some reserves”.

Peter Banks, managing director of Rudding Park Hotel and Spa, told the Stray Ferret in March the reduction in VAT meant “that my team will still be able to pay their mortgages”. He added:

“We are lucky that we as a business have more fat on our back, but there are lots who live hand to mouth.”

Hospitality has lost ‘sexiness’ due to covid, says Harrogate hotel boss

Hospitality has “lost a bit of its sexiness” due to covid but reopening has given a sense of hope for normality, says a Harrogate hotel boss.

Anthony Blundell, commercial manager at Provenance Inns and Hotels, which runs the West Park Hotel, said the rule of six and asking people how to behave made staff feel “a little bit like the police”.

However, he added that 2,000 guests had booked in with the hotel since reopening last week and that the hotel had kept staff engaged with things like online training while it was closed to keep spirits up.

Speaking at a North Yorkshire Local Resilience Forum press briefing, Mr Blundell said he hoped bars and restaurants could return to some form of normality after June 21.

He said:

“Over the past kind of 12 months, hospitality has lost a bit of its sexiness. Quite often, hospitality is usually about ‘yes’ and what we can do for our guests.

“We have almost had to become a little bit like the police ourselves. Telling people how to behave and that you’ve got to sit down in your rule of six, things like that. We need to maintain that to keep everybody safe.

“But, hopefully, as things are easing and reopening now and hopefully we’re on track for June 21, things will start to get back to some form of normality.”

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Legal limits on social contact are due to be lifted on June 21.

Mr Blundell added that although the last 12 months had been “a bit weird”, he felt the lockdown had gained the sector a newfound respect from people.

“During these periods of closure, I feel our industry has gained more respect from our guests and they realise just how much they miss us.”

As part of the government’s roadmap out of lockdown, bars and restaurants reopened on April 12.

Until May 17, people can only sit outside in groups of six to have a meal or a drink.

Harrogate smart parking scheme could cost £144,000 over four years

Senior councillors look set to extend a smart parking scheme in Harrogate, which could cost up to £144,000.

The scheme, which is run by London-based AppyWay, was launched in 2019 on an 18-month trial basis.

It uses sensors to give app users a real-time map of available spaces.

The app, which allows motorists to pay for the exact minutes they are parked, now looks set to be extended. Council figures showed there is support for it to be made a permanent solution, with 93% of users saying they found it easier than pay and display.

Now senior councillors from both North Yorkshire County Council and Harrogate Borough Council look set to extend the scheme for an initial two years at a cost of £18,000 a year to each authority.

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A report due before the borough council’s cabinet said the agreement with AppyWay would also have two optional 12-month extensions at the same price, meaning the contract could cost up to £144,000 in total for both councils.

Cllr Don Mackenzie, executive county councillor for access, said:

“We committed to the smart parking trial, in partnership with Harrogate Borough Council, as part of our continuing efforts to use innovative ways to improve traffic flow in Harrogate for the benefit of residents and visitors.

“Analysis of the trial shows a high level of satisfaction, with the smart parking option proving less stressful and encouraging people to stay longer.

“Providing visitors and shoppers with this more convenient and enjoyable experience will be a huge benefit to the town’s retailers and other businesses as they recover from the impact of the covid pandemic.”

The county council’s business and environmental services executive members will consider the extension on Friday and the borough council’s cabinet will consider it next week.

If approved by both authorities, the company will be appointed and start from the end of July.

Cllr Phil Ireland, the borough council’s cabinet member for sustainable travel, said: 

“When we first implemented this comprehensive smart parking solution, we were the first local authorities in the county to do so. It is clear we have led from example as this award winning app is now being adopted by other authorities across the country.

“The data from the trial period has shown it not only can make parking easier and more convenient for people, it can also save people money and encourage them to visit the town centre and stay longer.

“What we weren’t aware of at the time, was that the contactless payment element would also prove beneficial during the covid pandemic.

“The app will play a role in the recovery of the high street and I will be recommending the approval for a further two years.”

Just two more covid cases in Harrogate district today

Just two more covid cases have been confirmed in the Harrogate district, according to today’s Public Health England figures.

It takes the total number of infections since last March to 7,640.

Meanwhile, the district’s seven-day covid rate has dropped to 24 per 100,000 people.

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The North Yorkshire average is also 24, while the England rate is 23.

No further deaths from patients who tested positive for covid have been reported at Harrogate District Hospital.

It means the covid death toll at the hospital since the start of the pandemic remains at 179.

Slight increase in Harrogate district unemployment

The number of people on out-of-work benefits in the Harrogate district increased slightly after the third lockdown was imposed, according to latest figures.

Figures from the Office for National Statistics for February show 3,625 people were claiming out-of-work benefits — 3.8% of the population aged 16 to 64.

The number is a slight increase on 3,460 in January.

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This is in contrast to UK-wide figure of 6.5% claiming support.

Financial support for those out of work include Universal Credit and Job Seekers’ Allowance.

Figures in the district have remained stable throughout the pandemic, which suggests the government furlough scheme has protected many staff from redundancy.

House prices in North Yorkshire increase by 22.8% in a decade

House prices in North Yorkshire have increased by 22.8% over the last 10 years, according to new research.

A study by The Search Partnership, which tracks property prices in six areas in the county, found that the trend was consistent with areas such as London and the Home Counties.

The research analyses the average price paid per square foot, as recorded by the Land Registry, in Boroughbridge, Harrogate, Thirsk, Wetherby, Ripon and Bedale.

Toby Milbank, director at The Search Partnership, said the increase was on average about 2.28% per year.  Mr Milbank said the company expected to see high market activity as the lockdown eases. He said:

“At the end of the last lockdown, we saw frenetic activity in the housing and land markets.

“With the roadmap to the end of the current lockdown coinciding with the Spring and Summer market, we are expecting a similar period of high activity. Buyers currently have very low levels of stock to choose from and are cash rich, with little else to spend their savings on.

“Banks are offering 90% and even 95% mortgages, which will fuel the lower end of the market in particular. As a result of these factors, we are predicting higher rates of price growth than in previous years and an increase in average house prices of 3% to 4% in 2021 seems likely.”

Research by The Search Partnership includes properties in Harrogate, Ripon and Boroughbridge.

Research by The Search Partnership includes properties in Harrogate, Ripon and Boroughbridge.

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David Waddington, director of land and new homes at Linley and Simpson, said quality of life and rural areas was among the key factors for people buying property in the county.

He said:

“North Yorkshire has retained an affluence that is more indicative to the south than the north.

“Harrogate itself has retained a strong appeal for those wanting everything on their doorstep.”

Mr Waddington said the HG3 postcode in Harrogate was a popular location. He added that a lot of buyers moving to Yorkshire were from the south of England.

What has Harrogate council spent its High Street grants on?

Harrogate Borough Council has so far spent £90,000 of government grants which aimed to support businesses on the high street to reopen.

Last June, the authority was given £144,714 as part of the Reopening High Streets Safely Fund to help support businesses to open up after the first lockdown.

Ministers have also allocated further funding, which will also be £144,714, as part of the Welcome Back Fund to help the council support the town centre after the third shutdown.

Both grants have been funded from the European Regional Development Fund.

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The Stray Ferret asked the borough council how much of the first grant has been spent and what it had been used to fund.

A spokesperson for the council said £90,000 of the funding has been spent so far on:

They added that plans for the new funding, which was announced last month, have yet to be confirmed.

Government guidance published as part of the grant scheme says councils should “engage with stakeholders including local businesses, Business Improvement Districts (BIDs), Destination Management Organisations (DMO), town and parish councils”.

When asked who it consulted with on the measures, the authority said its business development team had a “distribution list for businesses” which it said it would use for plans for the next grant.

Sara Ferguson, chair of Harrogate BID, said she hoped the authority would listen to ideas from the businesses:

Ms Ferguson said:

“It is great news that Harrogate Borough Council has been awarded this money on top of the funds it received last year.

“In terms of the £144,000 Welcome Back Fund, we look forward to working with HBC and other business organisations, such as the Chamber and Independent Harrogate, to make Harrogate more welcoming to visitors and residents alike.

“Whilst we recognise the pot of money it has been awarded is to help the District’s ‘high streets’, we have a number of proposals which we believe will help our town centre retail and hospitality businesses get back on their feet and bring in customers.

“These include discounted parking and public transport to encourage residents to shop, eat and drink local.”

Harrogate hospital goes a week without a covid death

Harrogate District Hospital has gone a week without reporting a death from a patient who tested positive for covid.

According to NHS England figures up to April 18, the last death recorded at the hospital was on April 11.

The death toll at the hospital since last March remains at 179.

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Meanwhile, a further eight covid cases have been confirmed in the Harrogate district according to Public Health England statistics.

It takes the total number of infections since the start of the pandemic to 7,638.

Elsewhere, the district’s seven-day covid rate has increased to 26 per 100,000 people.

The North Yorkshire average is 26 and the England rate is 24.

Harrogate care home residents furious at covid isolation guidance

Residents at a Harrogate care home have been left furious at new covid guidance which means they have to isolate for two weeks after stepping outside their front door.

The guidance published by government says residents should only leave care homes for medical appointments or in exceptional circumstances, such as visiting someone at the end of their life.

It adds that, if a resident does leave their home, then they should isolate for 14 days when they return.

But residents at Claro Road care home, which is run by Disability Action Yorkshire and cares for younger adults with physical disabilities, have said they will defy the guidance as it is a “clear breach” of their human rights.

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Jackie Snape, chief executive of the charity, has written to Harrogate MP, Andrew Jones, to warn him that he will receive furious e-mails as a result of the guidance.

She said:

“For the people that live at 34 Claro Road this is devastating. They are young people who just want to have the same freedoms as everyone else.

“They are seeing pictures of groups enjoying a beer outside the pub and they are being told they can’t even go for a walk around the block.

“They have all had both vaccinations, have individual risk assessments and know the importance of hands, face, space (and fresh air!).

“They, and we, feel this is a breach of their human rights. They have had an awful year. Not only have they been locked down, they have been locked down in an environment with people they have not chosen to live with and their main interactions each day is with staff wearing masks.

“As the rest of society is easing out of lockdown and enjoying fewer restrictions, our care home residents are having even more imposed on them.”

Mrs Snape added that Mr Jones has been invited to the care home to meet some of the residents.

Call for voting system change ahead of councils shake-up

Campaigners in North Yorkshire are calling for a change to the voting system ahead of a shake-up of local government.

Make Votes Matter, a national pressure group that campaigns to abolish first-past-the-post voting, said the forthcoming overhaul of councils would be an “ideal opportunity” to alter the system.

The Government is currently consulting on the biggest change to local councils in the county since 1974.

It has proposals to scrap North Yorkshire County Council and the seven districts and replace them with either one or two new councils.

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Louise Mauborgne, spokesperson for the North Yorkshire group of Make Votes Matter, said the current voting system was unfair.

She added that elections for the new county authorities would be better with proportional representation or single transferable vote.

Ms Mauborgne said:

“First past the post means huge numbers of votes don’t count. Forty three per cent voted Conservative in 2019; what happened to the rest of the votes? Nothing.

“The unfair voting system means often people do not bother to vote because they think their vote will not mean anything.

“It can also lead to a lack of trust in authority and disengagement with national or local government. Votes are cast in protest or tactically rather than honestly for policies they really want.”

Voters could be heading to the ballot box as early as May 2023, under the new local government make-up in the county.

The government’s consultation on the reorganisation closes on Monday April 19. You can have your say here.