Alex Halls’ Post

Labour’s first Budget in 14 years promised a ‘decade of renewal and more pounds in people’s pockets’.   In reality, it’s dealt several swift blows for foodservice and hospitality. Reeves announced a £40bn tax increase in the Budget. And businesses are set to bear the brunt.   Here, we take a closer look at today’s ‘rebalance of the budget’. The key takeouts for hospitality. And how industry has reacted.  Read more in our blog: https://lnkd.in/e9Hm-Gzh   #foodservice #hospitality #budget #autumnbudget Chris Dines

The hospitality industry is waiting for the Autumn Budget announcement, though not without concern. It feels like every time one challenge is overcome, another is waiting. Recently, inflation finally seemed to stabilise, with most restaurants holding off on price increases. According to a report from the ONS shared by Peter Backman, only 14% of operators planned to increase prices next month. But with the Budget in sight, could this stability be short-lived? Here are some key concerns facing operators: - Business Rates Relief: The temporary 75% relief is set to end in April 2025, meaning business rates could rise drastically for many businesses, especially larger ones. Could this relief be extended, or are operators about to face another financial blow? - National Insurance Contributions (NICs): While employees are not expected to see an increase in NICs, there is talk that employer contributions may rise by 1%, aiming to raise £8.5 billion. The exact increase is yet to be finalised, but this could add to the growing pressure on hospitality businesses. - Minimum Wage Increase: The National Living Wage is set to rise by 6% next April, according to a report from Propel Info this morning. This increase far outpaces inflation; and could significantly impact profit margins, forcing operators to re-evaluate staffing and pricing strategies. - VAT Reduction: There’s ongoing discussion around reducing VAT for hospitality to 12.5%, but this remains speculative. The sector is eager for action, as a VAT reduction could provide much-needed relief and potentially boost customer spending. With these pressures mounting, it’s more important than ever for restaurants to run lean, with no resources wasted. Solutions like Misenplace have become invaluable in helping operators stay ahead by providing clarity and efficiency in every aspect of businesses. Which of these changes will have the biggest impact on operations? #Misenplace. #Hospitality

Autumn 2024 Budget: A Challenging Outlook for Hospitality The Chancellor's Autumn 2024 Budget has delivered a series of critical announcements, and the hospitality industry now stands at a pivotal juncture. In our latest analysis, Pete Warden and Morris Greenberg delve into the Budget’s key components and assess the potential impacts on the life and soul of the industry. As inflationary pressures persist and economic uncertainty looms, several provisions, including changes to tax reliefs, funding allocations, and support schemes, could prove to be a double-edged sword for hospitality businesses already navigating a turbulent landscape. Key insights from the Budget : ·      The potential effects of VAT and tax relief revisions ·      The future of government-backed support for hospitality businesses ·      Implications for profitability, job creation, and industry growth Is the Autumn Budget a step forward, or a setback for hospitality? Our latest article breaks down the numbers and provides actionable insights for operators and stakeholders. 👉 Read more: https://lnkd.in/eVPazZWt #AutumnBudget2024 #HospitalityIndustry #EconomicImpact #BusinessStrategy #PublicPolicy #TaxRelief #HospitalityTitans #UKEconomy

A mixed bag of a #Budget2024 for the food and drink sector. Brewers and pub groups will have been pleasantly surprised by the cut in draught duty, but the Wine and Spirit Trade Association and the Scotch Whisky Association are both spitting feathers about the CPI tracked increase in duty, with the SWA calling it a “betrayal” of Keir Starmer’s pledge to back the sector. However, the mood music coming from the Treasury for some time had been that an increase in duty was on the table, so the shock emanating from the two trade associations should perhaps be taken with a pinch of salt… Similarly, some movement around the soft drinks industry levy, which is now to rise in line with inflation, was also not entirely surprising. That said, producers of other categories often considered HFSS will be relieved that plans to expand the levy to other sectors don’t appear to be on the table at the moment. In reality, the sector specific measures in the Chancellor’s announcement pale into insignificance in light of the other revenue raising measures placed on businesses as a whole. While smaller, independent producers, retailers and venues will breathe a sigh of relief that the increase in Employment Allowance will largely mitigate the increase in employer N.I contributions, this isn’t the case for larger businesses. Kate Nicholls from UK Hospitality has claimed that the Budget will cost hospitality businesses £1bn in additional taxes. I’ve long argued that food manufacturing isn’t given the prominence and support by Government that this crucial sector deserves – and this wasn’t a Budget that is going to change that view. However, it’s interesting to note the position taken by the Food and Drink Federation, which welcomed the Chancellor’s “focus on a long-term approach to tax and regulation” and stands “ready to work with government to make the most of this support.” For those seeking to shape policy, it's worth remembering that, despite Labour's travails so far in Government, this remains a party with a massive majority and several more Budgets to come. With that in mind, perhaps the FDF and others have determined that, rather than picking a fight with the government now, ultimately, you catch more flies with honey. https://lnkd.in/eCZ_TUht

The Chancellor’s Spring Budget this week delivered several measures impacting the hospitality sector. Amidst expectations for substantial fiscal support, the budget primarily aimed to enhance disposable income for workers, thus indirectly benefiting the sector. In this article, we summarise the key takeaways and their implications for the hospitality industry: https://lnkd.in/ddZYsWke #CapconReality #HospitalitySolutions #ComplianceExpertise #OperationalExcellence #RiskManagement #InventoryOptimisation #MysteryGuestReviews #HospitalityIndustry #BusinessSupport #StockTaking Marcus Jones Ken Dulieu Nick Gay Steven Willey Lee Bowen Mike Porteous Karen Percival

Hospitality industry leaders have been calling for a cut in VAT, after they have been hit by continuous hikes in energy and ingredient prices, as well as staffing costs and a fall in consumer spending. Which is why there has been considerable criticism after Chancellor Jeremy Hunt failed to announce any reduction to VAT or business rates in the new Spring Budget. Click here to read more: https://bit.ly/3VOJvdA #SpringBudget2024 #HospitalityIndustry #HospitalityNews

Hospitality Cheers & Jeers: Spring Budget Delivers Bittersweet News! Overall, the Spring Budget was a mixed bag for the hospitality industry. While some positive measures were announced, they are unlikely to be enough to offset the disappointment of the missing VAT cut. The industry is now calling for further support from the government to help them through these challenging times. Dive deeper! Head over to Instagram for our video breakdown of the Spring Budget 2024: https://rb.gy/jzozd3 #hospitalityindustry #springbudget #hospitalitynews #supporthospitality

Hospitality industry leaders have been calling for a cut in VAT, after they have been hit by continuous hikes in energy and ingredient prices, as well as staffing costs and a fall in consumer spending. Which is why there has been considerable criticism after Chancellor Jeremy Hunt failed to announce any reduction to VAT or business rates in the new Spring Budget. Click here to read more: https://bit.ly/3VOJvdA #SpringBudget2024 #HospitalityIndustry #HospitalityNews

Spring Budget 2024: what you need to know for hospitality 🍽️ The anticipation was high, but this year's Budget has left much to be desired, with many within the hospitality industry yearning for more. Although the Chancellor did announce a continued freeze on alcohol duty until 2025, a rise in the tax threshold for small businesses, and a cut on National Insurance, which could put money back in the pockets of consumers, he failed to bring in the hoped-for cut to the 20% rate hospitality and tourism VAT, among other critical support needed by hospitality. Chancellor Jeremy Hunt has set out his tax and spending plans in what could be the final Budget before the next general election, leaving many in the hospitality sector with mixed feelings. There are some definite positives in there for operators, but has the industry been overlooked? Let us know in the comments below 👇 This article from The Caterer highlights some of the key announcements for hospitality - https://lnkd.in/eBxbxUha #springbudget #hospitality #budget #UKhospitality

Canal St. Coffee Leighton Buzzard was featured on national BBC News this morning, highlighting the impact today's budget is likely to have on us, meaning staff, owners and customers. The govt have promised not to raise taxes on working people, let's break down the reality: Everything we sell goes through our till and into a single pool of money, our bank account. From that we pay our suppliers, staff, taxes, everything. So, if we are taxed more there is less in that pool to spend on staff pay rises and investment (paying a local tradesperson for shop improvements as an example). The Living Wage (LW) is currently £11.44 for employees. What a lot of people don't realise is employers pay National Insurance for their staff, in addition to what the staff member pays. Taken together with other costs, that £11.44/hour is in reality £13.50-£14.50/hour for the employer (added NI, pension contributions & holiday pay) - which will increase when the Living Wage increases and when paying a higher percentage of employer NI contributions. Again, leaving less money in the pool for pay rises that go directly to staff instead of the govt. We didn't want to have to raise prices again next year but it is already inevitable. This will be true across hospitality. Of course staff should be paid more but this will be the third consecutive year of an above inflation rise to the LW, so our current prices will lag behind what we are paying out. It's likely if you want a coffee, meal, beer, hotel stay, evening out it will cost you more from next year - also known as inflation, which was meant to be under control so people have more disposable income. This is a lifestyle business, we do it because we are passionate about hospitality, coffee and being our own boss. We as owners / operators also don't take anything out of that pool of money until everyone else, govt included, have been paid. Hospitality operators have been on a knife edge for the last couple of years, this budget is likely to push thousands over the edge (recent poll said 18% are operating under a loss right now). For many come April they will be running a business just to break even (if not a loss) and not take anything for themselves, which is not sustainable. The govt is gambling. This year Canal St. LB on its own will pay £35,000 in tax - VAT, corporation tax, NI. The budget today will mean this increases to around £42,000 in 2025/26 (before we work out the fallout of reduction in business rates relief). However, push us too far and we go out of business. So where you were taking 35k a year you now get nothing. They are betting £35,000 for a possible return of £42,000 - would you risk this amount for such a return? Now multiply that by thousands of businesses throughout the country. Happy Hallowe'en! UKHospitality #hospitality #coffee #specialitycoffee #coffeeshop #cafe #businessowner #entrepreneur