BHA BUSINESS UPDATE Issue 621: 9 August 2012

OLYMPICS UPDATE: While Team GB were scooping up medals, BHA Chief Executive Ufi Ibrahim was pressing the London Mayor Boris Johnson to act on the ghost town problem which affected Central London in particular in the days after the 27 July Opening Ceremony, with especially serious impacts on restaurant members, who suffered an average 30+ per cent decline in business against a year earlier. Along with London and Partners, we were asking Transport for London ahead of the Games to tone down its London will be crowded- stay away message. OUTCOME: The point has at last got across in two meetings at City Hall, including one yesterday, with agreement on a new London is open message and decisions to cut down on some of the Olympics-only traffic lanes. We are continuing to press Westminster Council to allow free on-street parking on 18/19 and 25/26 August. VAT INCLUSIVE PRICING: Following the Advertising Standards Authority (ASA) adjudications that hotel websites should quote VAT inclusive prices and that hotels/ hotel groups will be expected to comply by 17 September, a majority of members who commented said this date was too soon and we asked the ASA for more time, proposing instead a deadline in mid-January 2013. ASA RESPONSE: The ASA has rejected our request, saying: there is no further flexibility on the grace period. Advertisers would normally have to change their advertising immediately after an upheld adjudication has been published. It is only in exceptional circumstances where there are sector wide ramifications that a grace period may be applied. In the case of non-broadcast ads that period is almost always three monthsOur priorities are to ensure a level playing field for UK advertisers and to protect consumers from being misled. Those needs come before any financial impact a business might suffer as a result of them being required to change their marketing following the publication of an upheld adjudication. It is worth noting that we have received further complaints about this issue since the adjudication so there is clearly an urgent need for this matter to be addressed. The ASAs first letter to us in midJune is available at: www.bha.org.uk/wp-content/uploads/2012/06/VATExclusive1.pdf?utm_source=Newsletter&utm_campaign=ecbb4964f5Olympic_Survey_46_14_2012&utm_medium=email INBOUND LATEST: There were 31.1 million overseas visitors to the UK (+2 per cent), spending 18.2 billion (+5 per cent), in the twelve months to June against a year earlier, while UK residents made 56.5 million outbound trips, spending 31.9 billion overseas. The UKs tourism balance of payments deficit was therefore 13.7 billion, against over 20 billion in 2008.

BHA BUSINESS UPDATE Issue 621: 9 August 2012

HYGIENE RATINGS- WALES: On 18 July, Food Adviser John Dyson gave evidence to the National Assemblys Health Committee, opposing the Food Hygiene Rating (Wales) Bill, which makes it compulsory to display ratings on premises and imposes charges for requesting re-inspections. Though research indicates that 94 per cent of Welsh residents want compulsory display, only 50 per cent claim to have even heard of the scheme, and we doubt many of these really understand the complexities of the 0 to 5 point ratings. Consistency is critical, but lacking, with 30 per cent of Welsh inspected premises rated 0, 1 or 2, but only 15 per cent in England and 9 per cent in Northern Ireland. RTI IS COMING: RTI is Real Time Information, an HM Revenue and Customs scheme to ensure employees pay and tax records are always up-todate: a worthy aim, but it will require every payment by an employer and every Income Tax and National Insurance deduction from October 2013 to be notified online to HMRC. Deputy Chief Executive Martin Couchman met HMRC officials on 19 July to discuss RTI, which will, we think, particularly affect those employers doing their own payroll. For an initial briefing, please go to www.hmrc.gov.uk/about/briefings/briefing-rti-paye.pdf There is more detail at www.hmrc.gov.uk/payerti/reporting/what-to-report.htm LICENSING CHANGES: Martin Couchman was at the Home Office on 16 July to discuss the introduction, at the discretion of individual local authorities (LA) in England and Wales, of (a) Early Morning Restriction Orders, banning alcohol sales at times between midnight and 6.00 a.m. set by the LA on any night and in any part of their area; and (b) the Late Night Levy, which, if introduced, will apply (again, at times the LA sets between midnight and 6.00 a.m.) to any establishment selling alcohol on any night. We have secured the only exemption from EMROs, which is for hotels offering room service to staying guests and to mini-bars: we will be discussing definitions with officials. Hotels may be exempted from the Levy at LA discretion, but only for alcohol served to residents. However, as the maximum Levy for establishments which do not primarily serve alcohol is 1493 a year, many hotels and restaurants may decide to pay up and stay open. Earliest introduction is the first half of 2013. If your LA indicates it may introduce an EMRO or the Levy, please let us know. COUNTRY OF ORIGIN LABELLING: Food and Technical Adviser John Dyson has had detailed talks with the Food Minister, Jim Paice MP, about DEFRAs country of labelling initiative, encouraging restaurant menus to provide information on the origin of the main ingredients of meals. We support the initiative in principle, but will be running a workshop in the autumn to discuss the many practical issues to be overcome. More soon.