As the UK government gears up for the Autumn Budget 2024, the hospitality industry is watching closely, anticipating key fiscal policies that could influence operations and profitability.
Experts in the sector are sharing their insights and concerns about the expected changes, particularly in the current economic landscape.
Tax and regulatory changes
One of the most discussed topics is the potential adjustment of taxes. There is speculation about increases in employer National Insurance Contributions (NICs), which could encompass taxing employer pension contributions currently exempt.
As tax analyst David Whittaker, of law firm Mishcon de Reya, points out, “This could significantly increase costs for employers and ultimately slow down wage growth in the hospitality sector”
Such changes are particularly worrisome for an industry that often operates on slim margins.
Support for smaller businesses and business rates reform
The issue of business rates reform is also on the agenda, with calls for a system that better supports smaller businesses. Hospitality consultant Mike Hargreaves emphasises the need for relief:
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Small businesses are the backbone of the hospitality industry. They need immediate support to cope with rising costs and ongoing economic pressures”
This aligns with Labour Party promises to protect local council funding, which could help provide vital support for hospitality operators.
Investment in sustainability and workforce training
Experts are advocating for increased government investment in sustainability initiatives and workforce training in the hospitality sector. Given the pressing need for environmental compliance, many see this as an area where government support is essential.
“Sustainability isn’t just a trend; it’s a requirement. The government must support businesses in transitioning to greener practices,” states Emily Thompson, a senior analyst at UK Hospitality.
Moreover, as inflation rates decline to 1.7%, some experts believe the government might seize the opportunity to boost investment in the sector.
“This is a pivotal moment. If the government makes the right choices, we could see a stronger, more resilient hospitality sector emerge,” notes Sarah James, an economist at the Institute of Hospitality
Successful recovery and growth in the sector hinge on this budget
With the Autumn Budget approaching, the hospitality sector is poised for potential changes that could redefine its future.
From anticipated tax reforms to investments in sustainability and workforce training, the expectations are high. As industry experts assert, “This budget could be a game-changer for hospitality, and its impact will resonate for years”
The forthcoming announcements will undoubtedly be crucial for the sector’s recovery and growth in the post-pandemic landscape.