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.
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.”
