What the Autumn Budget Means for Your Christmas Wallet
RSM UK’s latest Consumer Outlook has done the house‑warming check‑in on what the 2024 Autumn Budget could do to our holiday spending. According to a recent survey of 2,000 shoppers, 42 % of people say they’d tighten their pockets this Christmas if taxes rise—with exactly 46 % of Gen‑Xers feeling the pinch and 39 % of Gen‑Zers a little more hopeful. Bottom line? If the budget’s “tough” cake wasn’t a fine, the hospitality scene may have to bake its own challenge.
Why Chefs and Baristas Might Be Nipping at Your Budget
- Higher wages, higher costs – Even though real wages are inching up, any tax tweaks that dent consumer confidence could tighten the purse strings for all those folks who love a good cup of coffee or a candlelit dinner.
- New tipping rules and employment bills – Hospitality workers are gearing up to fight higher staff costs, and that could mean the bars and restaurants’re padding their prices to stay afloat.
- Insurance for the unsuspecting crowd – If the cash crunch hits, the festive quarter might turn into a tough season for many businesses across the board.
Expert Voices
Charlie Barnes, head of employment law, warns that post‑budget, national minimum wage rises will be factored into a cost‑of‑living playbook, and the chancellor might add NIC charges to employers’ pension contributions. That moves the needle further toward a harder time for employees.
Saxon Moseley, partner and head of leisure and hospitality, adds that “the industry really needs tailored government support” to keep the momentum going. He stresses:
- Reconceiving business rates by setting a lower, permanent multiplier specifically for hospitality.
- Getting VAT rates in line with EU teammates to boost demand.
- These moves could not only ease cost pressure but also spark more investment and growth.
Stay in the Loop
Don’t let the budget surprises catch you off guard this holiday season. Subscribe for real‑time updates on how these changes could affect you and the scene. Your festive feast—wherever you plan to dine—might just get a little more budget‑friendly or a little more expensive. Stay tuned and keep that holiday cheer alive!
