Representatives from UKHospitality share their thoughts following the recent budget announcement:

Kate Nicholls, Chief Executive of UKHospitality, said:

“This Budget is the latest blow for hospitality businesses. Rising taxes, increasing costs and fragile consumer confidence risk bringing growth to a grinding halt.

“In the short-term, the tsunami of employment costs coming in April will ultimately do more to hamper growth than incentivise it. Increases to employer NICs and wages will make it harder for businesses to support employment and invest in their businesses.

“Avoiding the business rates cliff-edge next April was critical and it was important that some relief has been extended. However, the reduced level of 40% is another cost that businesses have to deal with. For those small- and medium-sized operators, their rates bills will still go up in April.

“All of this means that 2025 will be painful for hospitality, with an increased annual tax bill of £3 billion for the sector.

“However, there are reasons for longer-term positivity. I am pleased that the Chancellor is implementing UKHospitality’s recommendation for a permanently lower level of business rates for hospitality. Levelling the playing field in this way recognises the importance of the high street and the role it plays in our communities and economy.

“We need to see the detail and the Government must work with the sector in the design and delivery of this significant change to get it right.”

David Chapman, Executive Director, UKHospitality Cymru, said:

“We’ve campaigned long and hard for support with Business Rates and so the provision of 40% relief for businesses in England from April is very welcome.

“However, it’s vitally important that the Welsh Government utilises this funding to provide businesses with a suitable level of continued rates support here. 

“The Welsh government should be applauded for paving the way to the introduction of a lower business rates multiplier through recent legislation. While we discuss a new, better system, it would be incredibly beneficial to the sector to have all of this interim relief made available to us.

“Looking at where we are at the moment, things are still tough for our businesses. We are likely to face some post-Christmas closures and certainly staff and offer cutbacks because of cost increases in other areas, such as the new employer National Insurance Contributions and higher-than-expected wage rises, and so the rate relief assistance is very important indeed.” 

Leon Thompson, Executive Director, UKHospitality Scotland, said: 

“This is an extremely tough budget for our businesses, with employer NIC increases set to significantly impact their finances, alongside higher than expected rises in the National Living Wage and National Minimum Wage.

“To support our businesses, it is imperative that the Scottish Government pass on, at least, the 40% business rate relief announced by the Chancellor for hospitality in England.

“The lack of support in the last two years has left Scottish hospitality businesses in a precarious situation. Our businesses have been forced to trade at a considerable disadvantage to their counterparts in England and Wales. It’s time for the Scottish Government to use the money it will receive from rates relief in England to support Scottish hospitality.

“There is also an opportunity for the Scottish Government to show leadership by delivering on its commitment, made at the last Scottish Budget, to reform business rates for hospitality.

“Reducing the poundage our businesses pay from 2025 is a quick first solution to repairing a taxation system that penalises hospitality and holds back investment and economic growth.

“UKHospitality Scotland will continue to make this case to the Finance Secretary, ahead of the Scottish Budget in December.”