The UK's Autumn Budget has been met with dismay and deep concern by the nation's hospitality sector, which warns of a devastating impact on pubs, distilleries, and restaurants. Industry leaders have expressed profound disappointment at the lack of support, citing no cuts to VAT or National Insurance as a critical failure.
A Budget of Missed Opportunities
Karl Mason, spokesperson for the UK Spirits Alliance and director of Masons of Yorkshire, labelled it "a sad day for the nation’s distillers, pubs and the wider hospitality sector." He revealed the alarming statistic that three in ten landlords fear going bust within a year if costs continue to rise, suggesting this budget will push many over the edge.
The sector, already hammered by tax rises and low consumer confidence, faces a bleak future. Official ONS data indicates that hospitality is set to lose 111,000 jobs by the end of the month. A cut to business rates was announced, but it was immediately dismissed by critics as "too little, too little" and likely to be erased by an inflation-linked revaluation next year.
Job Losses and Pub Closures Loom
Chris Gamm, CEO at Springboard, echoed these concerns, stating that the lower business rates bill will not cover losses from the higher minimum wage and frozen income tax thresholds. "We expect entry-level hospitality roles to decrease and further job losses to follow," Gamm said.
This prediction is backed by stark data on pub closures. In the first ten months of this year, pub closures hit a record high, the worst in over two decades. This represents a five per cent increase compared to the same period last year and a more than tripling since 2015.
Piers Skinner, managing director of hospitality-tech firm Telemetry, summarised the sentiment, saying, "Today’s budget squeezes the hospitality sector even further, with absolutely no relief provided to support. I fear it could be devastating."
Tourist Tax Adds to Industry Woes
Compounding the budget's shortcomings, the government has also paved the way for a new "tourist tax" through the English Devolution and Community Empowerment Bill. This would allow mayors to impose a modest charge on visitors staying in hotels and other holiday accommodation.
Kate Nicholls, chair of UKHospitality, condemned the move as a "shocking U-turn," accusing the government of going back on its word after stating it had no plans for such a tax just two months prior. She warned that this tax could cost the public up to £518m and would be passed directly to consumers, driving inflation and undermining cost-of-living efforts.
Critics are united in their fear that this additional charge will discourage domestic travel, placing further strain on an industry already fighting for survival.
