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Chancellor Rachel Reeves will present the Autumn Budget in the House of Commons later today (Wednesday 26 November).
Ahead of the fiscal address, voices from across the sector have repeatedly urged Reeves to provide targeted support for hospitality, including business rates reform and tax cuts, as operators continue to battle rising costs.
3:42PM: UKH: ‘Hospitality firms being ‘taxed out’
Trade body UKHospitality (UKH) has said the Chancellor failed to recognise the importance of hospitality, adding bricks and mortar hospitality businesses are being “taxed out”.
Chair Kate Nicholls said: “Hospitality remains under significant cost pressures, with the highest tax burden in the economy. We will continue to campaign for additional support for the sector, including further business rates discounts.”
3:30PM: Loungers boss says Gov has no respect for sector
Loungers executive chairman Alex Reilley has blasted the Government on social media, claiming they have “no respect” for the hospitality sector.
In a post on X, Reilley praised the work of trade bodies but called for one united voice to ensure the needs of the industry are stronger in the future.
3:25PM: What operators need to know
The MA has rounded-up the key points from the Budget that operators need to know. Read the full article here.
2:44PM: See the latest stories here
Click the links below to read more in depth stories on the Budget news:
2:30PM: ‘Wage rises will make it harder for young people to find jobs in hospitality’
Young’s CEO Simon Dodd has said the pubco is proud to support its teams but that wage increases will add significant pressure to already struggling pubs.
He continued: “The Government has not gone far enough to tackle the other unfair costs weighing down pubs.
“As a result, it will just get harder for young people to find jobs in an industry that’s always been a major employer for them.”
2:25PM: NTIA says Chancellor dismissed NTE
The Night-Time Industries Association (NTIA) has said the Budget was a hammer blow to already fragile businesses and dismissed the night-time economy (NTE).
CEO Michael Kill said: “We are deeply concerned by the scale of direct and indirect tax increases set to hit our sector over the coming months.
“An in the minimum wage may sound positive on the surface, but when coupled with an 8.5% rise for 18–20-year-olds, it presents a serious challenge for a sector that employs a large proportion of young people.
“The Chancellor has clearly not read the room. In fact, for many in our sector, it feels like the Government left the room a long time ago.”
2:22PM: Expert says Budget ‘mixed bag’
Business finance specialist Aurora Capital managing director George Holmes described the Budget as a “mixed bag”.
He said: “A freeze on the small business rates multiplier, another year of frozen fuel duty, and extended regional growth funding are all welcome moves.
“However, rising wage bills from the increased minimum wage and higher taxes on dividends and business income will be of major concern to many.
“With income tax thresholds frozen until 2030 and no new nationwide reliefs, many small firms will feel they’re absorbing more cost without much new support in return.”
2:10PM: Gov ‘ignored’ sector’s campaigning
Emma Gibbon, who runs the Plough in Prestbury and the Hewlett Arms in Cheltenham, has said the Government got the message from hospitality “loud and clear but ignored it”.
In a post on X, she said: “There’s groups who have worked really hard to try and get the message to Government about the crisis facing hospitality, taken themselves out of their comfort zones and thrown everything at it. I’m sorry it’s not worked. They got the message loud and clear but ignored it. Gutted.”
2:07PM: Budget contained ‘no real mention of hospitality’
With the Autumn Budget now concluded, one operator has shared his disappointment with The MA.
Owner of the Dog at Wingham in Canterbury, Marc Bridgen, said the fiscal address contained “no real mention of hospitality.”
He also called for more clarity on the permanently lower tax rates announced by the Chancellor and criticised the minimum wage increases as businesses cannot afford to pass on any more costs to consumers.
1:59PM: Duty to rise in line with inflation
Alcohol duty is expected to rise in line with inflation next year as no freeze has been announced.
While the Budget did not mention alcohol duty, the leaked OBR report stated alcohol duty receipts were expected to raise £12bn in 2025 and 2026, a 5.1% on 2024/2025. It added receipts were estimated to increase by 3.4% each year following, reaching £14bn by 2030-2031.
1:44PM: Chancellor finishes address
Rachel Reeves has now finished delivering her Budget. We will bring you the latest reactions from the sector.
1:40PM: Reeves reaffirms wage hikes
The Chancellor has reaffirmed the Government’s plans to increase wages.
She said: “At the election we promised a genuine living wage, and we are delivering it. At the Budget last year I increased the NLW and NMW and I am doing the same this year too, accepting the recommendations of the Low Pay Commission (LPC) in full.”
1:35PM: NI, income tax and VAT not rising
The Chancellor will not be increasing National Insurance rates, income tax or VAT
“I have kept everyone’s contributions as low as possible through reforms to make our tax system stronger”, Reeves said.
1:30PM: In-person gambling tax unchanged
Remote gaming duty is set to be increased, but the Government will not make changes to the taxes on in-person gambling or horse-racing. Bingo duty will also be abolished entirely from April next year.
1:27PM: Sugar tax to include milk-based drinks
The Government has confirmed the sugar tax will be expanded to include milk-based drinks.
1:23PM: Reeves vows to back pubs
The Chancellor has said the Government will support the Great British Pub through new national licensing framework and encourage councils to back pubs and late-night venues with greater freedoms.
1:22PM: Permanently lower biz rates announced
Reeves said the Government would introduce “permanently lower tax rates for retail and hospitality for more than 750,000 retail, hospitality and leisure properties, the lowest since 1991, paid for through higher rates on properties worth more than £500k, like warehouses used by online giants.”
1:15PM: ENICs threshold to be frozen
Tax thresholds on personal tax and Employer National Insurance contributions will be frozen for three years from 2028-2029, Reeves has announced.
1:10PM: Funding announced to make training for under-25 apprenticeship’s free for SMEs
Reeves has announced funding to make training for under-25 apprenticeship’s free for small and medium sized businesses in a bid to tackle youth unemployment.
The Chancellor also said the Government would guarantee £820m over the next three years to fund its new ‘youth guarantee’.
12:59PM: Net financial debt £2.6trillion
£1 in every £10 the Government spends goes towards paying interest on the debt left behind from the previous Conservative Government, Reeves said.
“For all the damage the Conservative cuts did to our schools and hospitals, they also doubled the national debt. Our net financial debt this year will be £2.6trillion, 83% of GDP", she continued.
12:45PM: OBR updates forecast
The OBR has upgraded Britain’s growth for this year from 1% to 1.5%, the Chancellor has said. She added the Bank of England had also upgraded its forecasts. However, the OBR has downgraded forecasts for the following four years.
“Growth is the engine that carries every one of our ambitions”, she said. “We have beat the forecasts this year and we will beat them again.”
12:41PM: Reeves begins address
The Chancellor has begun her address, stating the Government is focused on “rebuilding our economy”, despite facing endless “opposition” over the past 16 months.
She added the Budget would build on the measures introduced last year, stating taxes were raised for businesses and the wealthiest in a bid to fill the black hole left by the previous Conservative Government.
Reeves also pledged to tackle the cost-of-living-crisis, adding “stability and reform” will get Britain moving again.
12:32PM: PMQs ends
Prime Minister Questions (PMQs) has just ended and the Chancellor is about to begin her Budget after the measures set to be announced were leaked by the Office for Budget Responsibility (OBR) earlier today. She will speak for an hour.
11:43AM: What the sector needs
With just under an hour to go until the Chancellor address the nation, we’ve looked back at the key asks from the sector.
- Business rates reform
- Reversal of employer National Insurance hikes
- VAT cut
- Extension of draught relief
- Addressing Extended Producer Responsibility (EPR) costs
Without targeted support, 35% of pubs are at risk of closure, according to research from the British Institute of Innkeeping (BII). One in three of the organisation’s members are currently unprofitable.
11:35AM: Reeves leaves Downing Street
The Chancellor has reportedly left Downing Street. She will now make her way to the House of Commons, where she will deliver the Budget at 12:30pm.
11:32AM: Punch operators tell Sky News ‘we can’t increase prices further’
Punch Pubs & Co operators, Beth Robinson of the Beeswing in East Cowton, and Angela Uren of the Coach & Horses in Crewe, spoke to Sky News this morning about the ongoing economic challenges faced by the sector, calling for a level playing field for pubs.
11:00AM: A note from the editor
As the sector prepares for the Budget, The Morning Advertiser editor Ed Bedington has said: “After the NLW and NMW increase yesterday, I won’t hold my breath that this will be the Budget of growth the Chancellor promised.
“I hope I’m wrong, but this Government seems determined to hammer hospitality and ignore calls for support so we can continue to make the sizeable contributions to the economy we’re capable of.
“The above inflation increase in the minimum wage will add further pressure to businesses already at breaking point, and more than likely lead to job losses and recruitment freezes.
“But I’m sure those people who are likely to benefit from the increased wages will sing the Chancellor’s praises as they line up at the job centre looking for the very jobs she’s made unviable.”
10:38AM: Reeves vows to deliver change
In a video message posted to social media this morning, the Chancellor vowed to deliver change at today’s Budget, warning fair but hard decisions would need to be made.
10:12AM: Operators slam wage rises
Ahead of today’s Budget, the Chancellor yesterday announced the NLW and NMW will increase.
It means business will have to pay a full-time worker on the National Living Wage an additional £900 a year, rising to £1,500 for those on the National Minimum Wage.
Licensee of the Red Lion & Sun in Highgate, north London, Heath Ball told The MA the wage hikes, as well as holiday and pension pay, would cost the pub an extra £23k a year.
Meanwhile owner of the Unruly Pig in Suffolk, Brendan Padfield, described the Government as “economically illiterate”.
9:15AM: Marston’s boss
Marston’s boss Justin Platt has also called for continued support for pubs.
Speaking to The MA yesterday (Tuesday 25 November) after releasing Marston’s preliminary results, Platt said: “Pubs are very important to UK society, they are a core fabric of British life, both to consumers that want to be able to spend money there and staff members. Continuing to support that is very important.”
9:00AM: Kate Nicholls talks to BBC about sector struggles
UKHospitality (UKH) chair Kate Nicholls was live on the BBC this morning, urging the Government to address the cost of doing business.
8:05am: Starmer says Budget is about fair choices
In a post shared to social media this morning, Prime Minister Keir Starmer said: “Today’s Budget is about taking fair choices. It will focus on your priorities: cutting the cost of living, cutting waiting lists and cutting the national debt.
“This Labour Government will deliver strong foundations for our economy and secure our country’s future.”
