Autumn Budget 2025: Hospitality Sector Demands Meaningful Support From Government

As the Autumn Budget 2025 approaches, the leisure and hospitality sector is looking for measures that will restore consumer confidence and provide relief from this year’s tax increases, according to Saxon Moseley, Partner and Head of Leisure and Hospitality at RSM UK.

“The leisure and hospitality industry will be hoping for a budget that boosts consumer confidence and offers some respite to a sector which has borne the brunt of this year’s tax rises. Hospitality sales have also been consistently flat this year, with operators leaning on discounting to entice consumers through the doors which has squeezed margins even further.” He said

“The industry’s first plea will be for the government to deliver on its pledge to overhaul the business rates system. We’re expecting an update in the budget, and operators want to see decisive, wide-spread change such as a lower, permanent multiplier, not tinkering at the sides. But the reality is, the industry may have to settle for short-term fixes like increased or expanded targeted reliefs. Although a small step in the right direction, this won’t be enough to fix structural challenges which continue to weigh on operators’ ability to grow and invest.

“As a large employer of staff, the hospitality industry was disproportionately impacted by April’s rise in employment costs, and had very little support to cushion the impact. With the sector already absorbing sky-high employment costs, there are concerns that a potential rise in national minimum wage (NMW) will compound matters even more. On top of this, if the government decides to scrap the age bands for NMW, not only would this acutely hit operators, but it could also fuel inflation. That would keep interest rates higher for longer, meaning consumers may continue to save rather than spend.

“The later than usual budget and constant speculation about tax rises have led to heightened uncertainty, with both consumers and operators currently in a holding pattern. Not only are some consumers holding off from spending in the lead up to the budget, but if higher taxes spook households post-budget, there’s every possibility this could jeopardise the all-important Christmas period.

“The UK’s hospitality industry continues to be at a disadvantage to European counterparts due to the higher rate of VAT. Lowering the rate or bringing it in line with Europe would go a long way in helping to stimulate much-needed demand as well as investment in the industry.”