Hospitality experts call for urgent industry support in Autumn Budget

Hospitality leaders are urging the Government to introduce targeted fiscal and innovation support for the sector ahead of the Autumn Budget, warning that rising costs and reduced relief measures are threatening jobs and growth.

Since the October 2024 Budget, hospitality operators have faced a £3.4bn cost increase, driven by higher employer National Insurance contributions, reduced thresholds, increases to the National Living Wage and the scaling back of business rates relief.

The pressures have contributed to an estimated 84,000 job losses, a sharper decline than seen across the wider economy.

Representing one of the UK’s most productive industries, hospitality employs 3.5 million people, contributes £140bn annually and generates £54bn in tax receipts.

However, one in three hospitality businesses are now operating at a loss, and the sector faces a tax burden equivalent to 75% of pre-tax profits – more than any other UK industry.

In an open letter to the Government, Champa Magesh, managing director at Access Hospitality, called for two key interventions to help safeguard jobs and restore stability across the sector.

Magesh said: “The hospitality sector has the potential to be a true engine for national renewal – driving employment, economic growth and community connection.

“Whilst technology software providers such as Access Hospitality are supporting operators to become more efficient and resilient, systematic change needs Government collaboration.”