UK Budget: What does it mean for your business?

On March 6th, the Chancellor today announced his Spring Budget.

Our initial response is available here. This sets out how the Chancellor “missed a real opportunity… to show that he backs hospitality and understands the real pain they are enduring.” UKHospitality described the outcome as a “cut-and-paste Budget”.

Overall, there was limited business support with a focus on putting money into workers’ pockets ahead of a General Election.

In his speech, Jeremy Hunt recognised the importance of the hospitality sector, saying “we value our hospitality industry and we are backing the great British pub”.

UKHospitality will be redoubling its efforts to demonstrate the financial strain the sector is under and to secure the fiscal support that is needed. This will be extra important in a General Election year and we have been working closely with all the main parties to influence future policies.

Our policy asks haven’t changed. We will continue to ask for:

Business rates cap: A cap for hospitality businesses to the increase in the ‘large property’ business rates multiplier to match, rather than exceed, wider inflation.
Temporary changes to employer NICs: a temporary cut in the lower rate of employer NICs to 10% and consider increasing the threshold to share the burden of this policy between business and Government.
VAT: A permanently reduced rate of VAT of 12.5% for hospitality businesses.