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Autumn Budget Piles Pressure on UK Hospitality With Wage Rise and Tourist Levy Powers

Trade bodies say closures will quicken after no VAT cut, higher payroll costs, plus only modest rates relief.

Overview

  • Chancellor Rachel Reeves kept VAT unchanged and made no National Insurance changes, while confirming the National Living Wage will lift to £12.71 for over-21s from April.
  • Hospitality groups say the limited business rates relief will be eroded by next year’s inflation-linked revaluation, offering little net support.
  • ONS figures show the sector is on track to shed about 111,000 jobs by the end of November, with pub insolvencies at the highest level in more than two decades.
  • Industry voices warn of more closures and job losses, citing survey fears that three in ten pub landlords could go bust if costs rise further.
  • The Budget advances a bill allowing mayors to impose a “modest” tourist charge, a move UKHospitality brands a U-turn that could add up to £518m to visitors’ bills, as Liverpool leaders predict weaker footfall and a tough trading outlook.