Budget Buzz: What’s Cooking for Hospitality Businesses?
When the budget announcement was whispered, the chatter around tax tweaks was louder than a celebrity gossip column. The big headline? A potential rattle in employer National Insurance Contributions (NICs).
NICs: The New DJ in Town
- Employer allowance jumps from £5,000 to £10,500 – a shout-out to small businesses.
- NIC rate flips to 15% and the threshold gets half as big – meaning more muscle on your payroll.
- Minimum wage gets a bump of 7%+ – a positive for workers, but wages may grow slow‑marching.
So the big question: Will the extra cost hit the wallet of a hotel with a single room? Yes. Even with the fair‑play allowance, the extra NIC can sink a few silverbacks in that thin‑margin industry.
Kate Nicholls’ Take
“The hospitality sector walks on a tightrope,” Kate says. “With these hikes, we’re rocking that rope and some folks might wobble.”
Business Rates – The Hidden Chef
- From 75% to a reduced 40% – a relief that means a bit less on the bill.
- But rates can still climb from April 2025 – a snag that hits hardest after the holiday boom.
It’s like planning a sunny picnic, then receiving a sudden snowstorm – not ideal.
Philip Harrison’s Hint
“The government’s got a chance to make the hospitality sector sturdier,” he remarks. “We need green moves, better job training, and a real boost to sustainable practices. It’s not just a trend; it’s the new rulebook.”
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