Newquay Business Improvement District (BID) is calling for further support for independent businesses, retailers and hospitality operators following the latest Budget, warning that rising operating costs and the prospect of additional taxation continue to put significant pressure on Newquay’s town centre and visitor economy.
While recognising that some of the measures announced in the Budget are welcome, Newquay BID believes more needs to be done to ensure that local businesses can remain viable, protect jobs and continue investing in the town.
Businesses across Newquay are facing a combination of rising wages, employer National Insurance, energy costs, rents, VAT, staffing expenses and other operating pressures. For many, the cumulative impact is making it increasingly difficult to maintain profitability and plan for the future.
Newquay BID represents the interests of the town’s business community and is politically independent. Its focus is on securing the best possible outcomes for Newquay, its businesses, residents and visitors.
Mark Warren, representing Newquay BID, said:
“We recognise that the Budget includes measures intended to support businesses, and any additional help is welcome. However, when we speak to businesses in Newquay, the message is consistent: the overall cost of running a business remains extremely challenging.
“The increase in the business rates relief threshold from £12,000 to £18,000 is a positive step, but for some businesses the actual saving is relatively modest. One local café we have spoken to estimates a saving of around £600, which can quickly be absorbed by increases in the National Minimum Wage and other operating costs.
“We need to look at the bigger picture. Our independent shops, cafés, restaurants and hospitality businesses are fundamental to the character and success of Newquay. Supporting them means supporting the entire town centre and visitor economy.”
A fairer deal for high street businesses
Newquay BID believes further consideration should be given to the financial pressures facing physical retail and hospitality businesses.
The BID is highlighting four key areas where further progress would make a meaningful difference:
- Further reform of business rates for retail and hospitality businesses.
- A reduction in hospitality VAT from 20% to 10%.
- A review of employer National Insurance and wider employment costs.
- A fairer taxation system that recognises the contribution of physical high street businesses alongside major online retailers and distribution operations.
The BID has long supported calls for a reduction in hospitality VAT, with a petition spearheaded by Tom Kerridge VAT’S THE PROBLEM gaining by more than 400,000 people this demonstrates the strength of feeling across the sector.
The organisation believes that a sustainable high street requires businesses to have the confidence and financial capacity to employ people, invest in their premises and provide the services that make Newquay an attractive place to live, work and visit.
Devolution must deliver for Newquay and Cornwall’s towns
Newquay BID believes that proposed devolution arrangements present an opportunity to strengthen local decision-making and deliver investment where it is most needed.
However, there are important questions about how any additional funding will be managed and distributed, particularly given the significant financial pressures and existing deficit facing Cornwall Council.
The BID is concerned that if devolved funding is passed to Cornwall Council, there must be clear guarantees that this money will be used for its intended purposes and invested in the communities and infrastructure it is designed to support.
There needs to be transparency over how funding is allocated, with safeguards to ensure that additional devolved money is not simply absorbed into existing financial pressures or used to support the Council’s wider deficit at the expense of the local investment it is intended to deliver.
Newquay is one of Cornwall’s most important visitor destinations and makes a substantial contribution to the wider economy. It is essential that its infrastructure and investment needs are properly recognised.
Areas such as highways, parking, public facilities and wider town centre improvements remain important priorities for local businesses.
Mark added:
“Devolution has the potential to create real opportunities for towns like Newquay, but we need to understand exactly how that funding will work in practice.
“Cornwall Council already faces significant financial pressures and a substantial deficit. Our concern is straightforward: if additional devolved funding is placed under the control of the Council, what guarantees do we have that it will actually reach the places and projects it is intended to support?
“We cannot have a situation where additional funding is simply absorbed into existing financial difficulties rather than being invested in the infrastructure, services and communities that need it.
“We need transparency, accountability and clear safeguards. Newquay contributes significantly to Cornwall’s economy, and we need confidence that our town will receive a fair share of investment and have a meaningful voice in decisions about its future.”
Visitor levy: Businesses must have their say before any decision is made
Newquay BID has significant concerns about the proposed introduction of a tourism or visitor levy in Cornwall and believes the entire proposal needs to be reviewed through meaningful consultation with the businesses that make up the county’s visitor economy.
In its current format, Newquay BID believes the proposed visitor levy would struggle to gain the support of the BID and the majority of businesses across Cornwall.
The concern is that an additional visitor tax could make Cornwall a more expensive destination at a time when visitors and businesses are already facing considerable financial pressures.
Businesses are dealing with VAT, employer National Insurance, rising wages, energy costs, business rates, rents and other operating expenses. Visitors are also facing increasing costs associated with travel, fuel, accommodation, food and leisure.
Adding another charge to the cost of visiting Cornwall risks making the destination less affordable and potentially discouraging visitors from choosing Cornwall in the first place.
This could have a knock-on effect across the entire visitor economy, affecting accommodation providers, restaurants, cafés, pubs, retailers, attractions and the many businesses that rely on visitor spending.
Mark said:
“We need to be very clear about our position. In its current format, we would not expect the proposed visitor levy to receive the support of Newquay BID or the majority of businesses across Cornwall.
“Our businesses are already carrying significant taxation and operating costs, including VAT, employer National Insurance, business rates and rising employment costs. Visitors are also paying more to travel to Cornwall and to enjoy their stay.
“At what point do we reach a stage where Cornwall simply becomes too expensive for people to visit?
Our visitor economy is incredibly important, and we should be doing everything we can to encourage people to come here, stay longer and spend money with local businesses, not introduce further costs that could put them off.”
The BID believes that the visitor levy proposal needs a much wider and more thorough review before any decision is considered.
Crucially, that review must involve the businesses that will be directly affected by the proposal. This means accommodation providers, hospitality operators, attractions, retailers, tourism organisations and Business Improvement Districts across Cornwall.
The BID believes that those working within the visitor economy should have a central role in determining whether a levy is appropriate, how it could operate and what impact it might have on visitor numbers and business viability.
Mark continued:
“This is a decision that will directly affect the businesses expected to generate the revenue, so those businesses must be at the heart of the conversation.
“We do not believe decisions of this importance should simply be made by politicians without properly listening to the people who understand the visitor economy and will ultimately bear the consequences.
“Before any visitor levy is considered further, the whole proposal needs to be reviewed with the businesses that count. We need an honest assessment of the potential economic impact, the risk of making Cornwall less competitive as a destination and whether the benefits would genuinely outweigh the costs.
“If a levy were ever to be considered, there would also need to be absolute transparency over where the money goes, with clear guarantees that the destinations generating the revenue receive a fair return.
“Newquay generates significant visitor revenue for Cornwall. Our businesses and communities need confidence that any money raised locally will be reinvested locally, with Business Improvement Districts and town councils having a meaningful role in identifying priorities.
“However, our starting point must be whether an additional tax is right for Cornwall at all, particularly when so many businesses are already under pressure.”
Working together for Newquay’s future
Newquay BID believes that the future success of the town depends on strong partnerships between businesses, local organisations, Cornwall Council and Government.
The BID welcomes constructive engagement and recognises the importance of working together to address the challenges facing town centres across the country.
However, it is important that the voices of local businesses remain central to discussions about taxation, funding, infrastructure and the visitor economy.
Mark concluded:
“Our focus is, and always will be, Newquay.
“We want a thriving town centre, successful independent businesses, a strong hospitality sector and a visitor economy that benefits the whole community.
“That means creating the right conditions for businesses to invest and grow, ensuring that funding is distributed fairly and making sure that any new initiatives deliver tangible improvements locally.
“We are not here to take a political position. We are here to represent the businesses of Newquay and to make sure their concerns are heard.
“Newquay has enormous potential. By listening to businesses, working collaboratively and making the right long-term decisions, we can ensure that our town remains a fantastic place to do business, live and visit.”
