Budget 2023: What do NI businesses want to see from Jeremy Hunt?

Chancellor Jeremy Hunt will present his first Budget on Wednesday

What do businesses in Northern Ireland want to see in the chancellor's Budget this week?

Energy costs are one of the biggest concerns for Brian McRandal, the owner of the Curran Court hotel in Larne, County Antrim.

His electricity bill is up 154% compared to last year and gas is up 124%, which he said adds about £60,000 to his costs.

The business has been able to avail of some government support towards energy costs - about £5,000 - but Mr McRandal said the current support scheme was not doing enough.

"In a period when you've seen an increase of £35,000 in electric costs, we've got £944 of assistance through the government scheme, so it is really not delivering for the people or the businesses of Northern Ireland," he said.

Hotel owner Brian McRandal called for a reduction in the VAT rate to help the hospitality sector

Cost pressures are being seen across the board.

Food, drink and disposable items for the hotel rooms, like shampoos, are up 15%, adding on a further £55,000 to £60,000 to the cost of running the same business for the equivalent period last year.

"When you've £60,000 in energy increases, plus £60,000 in other costs, there's £120,000 before we go any further."

Those pressures are set to worsen next month as the minimum wage increases in April.

Mr McRandal said it would add an additional £50,000 to his costs.

• Major businesses back Windsor Framework in letter

• Private sector shrinks but businesses optimistic

• Hospitality firms adapt to survive as costs rise

The business has already cut back the opening hours of the restaurant to just Friday, Saturday and Sunday and made efficiencies with energy and rotas.

"One of the very few controls that we have left is the number of staff we have in the building," the hotel owned explained.

"Whilst making people redundant is very much a last resort for any business, without help that's maybe where it goes to next."

Mr McRandal said Wednesday's Budget was not about asking for government handouts, but rather asking the government to take away less, for example, in VAT, which is currently at 20%, something that many in hospitality would like to see lowered.

He said that would make a massive difference and help level the playing field with the Republic of Ireland where a lower rate of 13.5% was then further cut to 9% until the end of August 2023.

"Across the border in the south of Ireland, they run at 13% VAT and if we had that here, I would have an additional £106,000 this year to date so far to reinvest in the business to give the business security."

Mr McRandal has run his own business for 15 years and said this was the most challenging time by far as there was no end in sight.

Heat and lighting costs have risen dramatically at the Curran Court hotel

"We have a lack of help coming from Westminster because they treat the whole of Great Britain as one," he said.

"There's a lack of any guidance or any leadership coming from Stormont because unfortunately we have politicians who are most interested in the flag than the people of this country.

"That's what we need, we need leadership and we need hope."

Business groups in Northern Ireland have also called for support across a range of different areas.

President of Northern Ireland chamber, Gillian McAuley, said: "Energy remains a key issue for our members; our most recent Quarterly Economy Survey showed as many as four in five businesses (78%) experienced energy cost increases in excess of 30% in Q4 22, so it's still at the top of NI business concerns.

"We will be looking for measures that counter the twin challenges of the planned rise in corporation tax and the ending of the super deduction tax relief scheme.

"In the absence of Stormont, we need to pay close attention to business rates reform and planning transformation - it is vital that Northern Ireland is not left behind."

Policy chairwoman at the Federation of Small Businesses, Tina McKenzie, said: "The closure of the Energy Bill Relief Scheme at the end of this month is a looming deadline for many small businesses who are likely to see their bills shoot up.

"The planned fuel duty hike must not take place, as it would be devastating for countless small businesses which rely on their vehicles.

"We want to see business rates overhauled, with many more small firms taken out of paying them, giving them some breathing space and reducing the day-one costs faced by new enterprises."