In this week’s Enews, we look at a funding boost to debt services for small businesses and the self-employed. There is also a call for a cut to the VAT rate on hospitality businesses and a warning on pensions savings to update you on.

• Small businesses to benefit from strengthened debt advice services
• Hospitality sector calls for 10% VAT rate
• Three quarters of workers not on track for 'moderate' pension income

Small businesses and the self-employed struggling with their finances to receive a helping hand as debt advice services are strengthened, the Treasury has announced.

The Treasury is making a £4 million funding boost over three years for business debt advice services support.

The funding will go towards expanding access to expert support to help businesses get back on track. The Treasury says this will benefit an additional 16,000 businesses over the next three years to total 75,000 businesses.

The Treasury says the funding builds on the success of the Business Debtline delivered by Money Advice Trust.

There will be an additional £2 million funding this year to help modernise debt advice, it added.

Rachel Blake, Economic Secretary to the Treasury, said:

‘From the plumber fixing your radiator to your local café, small businesses are the backbone of our economy, and we know they sometimes need a helping hand when times get tough.

‘We’re building on the success of our expert debt services to help tens of thousands more get back on their feet.’

Internet link: GOV.UK

Hospitality businesses, teams and organisations are being urged to sign a new petition calling for the government to cut the VAT rate for the sector to 10% by UKHospitality.

The trade group has launched #VATsTheProblem, a sector-wide campaign asking for the government to cut the rate of VAT for hospitality businesses, so it is in line with European levels.

UKHospitality is urging the entire sector to back its call by signing a new petition, with the aim to get a million signatures.

Hospitality groups, including the British Beer and Pub Association, the British Institute of Innkeeping and CODE Hospitality, are also supporting the campaign.

Celebrity chef and business owner Tom Kerridge said:

‘Our sector is under huge pressure. We know it. We live and breathe it every day.

‘We know that the key to unleashing hospitality’s potential to grow and thrive into the future comes through a VAT cut. We’re making sure government knows that too.

‘This is a nationwide campaign with ambassadors big and small spreading the word to everyone that will listen, all asking for the same thing; a cut to hospitality’s VAT to 10%.’

Internet link: UKHospitality website

Three quarters of UK workers are not on course to save enough for a ‘moderate’ lifestyle when they retire, according to a report by Pensions UK.

The report says a moderate lifestyle will cost £32,700 for one person and £45,400 for two - but estimated just 23% of the working population were on course to reach such a level.

According to the report, a minimum retirement lifestyle costs around £13,900 annually for a one-person household and £22,500 for two people.

Meanwhile, a comfortable lifestyle in retirement is estimated to cost £45,400 for a single person and £62,700 for a couple. Pensions UK said only 9% of workers were in line to get to that level.

Zoe Alexander, Executive Director of Policy and Advocacy at Pensions UK, said:

‘Today’s saving levels will not be enough for the retirement they expect. It is expected that around 82% of people reaching a minimum standard of living, but far fewer will go beyond that.

“That is out of step with what people expect for their future. Without action, too many risk facing a cliff-edge drop in income when they stop work. The government is right to be considering whether minimum contributions need to rise through the work of the Pensions Commission.

‘We also encourage people to speak to their employer and see whether the organisation is prepared to support them to save above the minimum, such as higher rates of matching pension contributions. This could help ‘bridge the gap’ until policy catches up and we see higher savings levels set in legislation.’

Internet link: Pensions UK website