The key measures of relevance to hospitality businesses in the UK:
• 75% business rate discount for retail, hospitality, and leisure extended for another year. (from 1 April 2024).
• The standard business rates multiplier will rise in line with inflation, though the small premises multiplier freeze will continue for another year. (from 1 April 2024).
All alcohol duty frozen until 1st August 2024.
Employee National Insurance cut from 12% to 10% from January 6th. However, there will be no reduction in employer NI rates.
Government has accepted the Low Pay Commission recommendations on The National Living Wage and subject to parliamentary approval, the following changes will be implemented from 1 April 2024.
• The National Living Wage should increase by 9.8% from £10.42 to £11.44 an hour, with the age threshold lowered from 23 to 21 years old.
• The rate for 18-20-year-olds should increase by 14.8% from £7.49 to £8.60 an hour.
• The rate for 16 to 17-year-olds and the Apprentice rate should both increase by 21.2% from £5.28 to £6.40 an hour.
• The accommodation offset will increase from the current rate of £9.10 to £9.99.
• The full expensing of business investment will be made permanent.
• Three new investment zones in West Midlands, East Midlands and Greater Manchester as well as Wrexham.
• Freeport & investment zones tax reliefs extended from 5 to 10 years. Investment Opportunity Fund also announced to encourage more investment.
The Chancellor set out an overhaul of benefits for people with long-term health conditions or disabilities, or those facing long-term unemployment.
• £1.3 billion spent on helping 700,000 people with health conditions find jobs.
• £1.3 billion extra help for unemployed.
• Benefit claimants who fail to find work for more than 18 months will have to do a work experience placement.
• Local authorities can charge higher rates for major business planning applications if timelines are fast. If deadlines aren’t met businesses can recover the full cost of their application.
• Business visitor rule changes announced in the spring budget 2023 will be implemented from January 2024. This will expand the business visitor rules to allow business people to engage in a wider range of permitted activities and paid engagements.
• A commitment to new, and expanding existing, Youth Mobility Schemes.
• The Government is continuing to accept representations on tax free shopping and considering this new information carefully, alongside broader data, but is not minded to take action at this time.
UKHospitality Chief Executive Kate Nicholls says
UKHospitality CEO Kate Nicholls
“The Chancellor has brought forward a significant package of business rates measures that will help hospitality businesses across the country. UKHospitality led the calls for Government to extend relief and take action on the multiplier and I’m delighted the Chancellor has acted on our asks.
“The decision to freeze the small business multiplier will help those most vulnerable keep the lights on. However, the standard multiplier rising by 6.4% will see businesses representing almost two-thirds of the sector’s trade still facing a £150m rates hike. This will only put more pressure on consumer prices and inflation, at a time when businesses are still grappling with high costs of energy, food, drink and wages.
“We’re pleased that the Chancellor has also acted on our proposal and frozen alcohol duty until August next year. This is now one less cost venues have to worry about. With duty frozen, this should substantially constrain any cost increases passed on by drinks producers.
“Reforms to the planning system to drive quicker planning approvals will remove a significant barrier to business investment. This type of reform to reward the best performing local planning authorities is exactly the type of change we have been suggesting to drive growth in hospitality.
“While it’s disappointing that employer contributions to National Insurance have not also been cut, the reduction in National Insurance for employees will put more money in people’s pockets and provide a boost to hospitality in the New Year, often a challenging time for the sector.”
UKHospitality Scotland Executive Director, Leon Thompson says
UKHospitality Scotland Executive Director Leon Thompson
“The extension of the business rates relief scheme, as outlined by the Chancellor in the Autumn Statement, is excellent news for pubs, bars, restaurants and hotels in England. However, it is vital that funds allocated to the Scottish Government are now put towards business rates relief for Scottish hospitality businesses.
“There was no relief last year, which created a competitive disadvantage with the rest of the UK and brought about further pain for businesses in Scotland. Receiving the full 75% relief is essential to ensure that more venues can focus on thriving and not just surviving.
“UKHospitality Scotland has also called on the Scottish Government to freeze the poundage rate this year. By doing this the Scottish Government can ensure our businesses benefit in full from a package of support that can help deliver growth in the Scottish economy.
“Business rates relief and a freeze on the poundage in next month’s Scottish Budget will help Scottish hospitality blossom and continue to do what it does best – provide guests with fantastic experiences, build stronger businesses, create thousands of jobs and deliver a meaningful contribution to the economic and social fibre of society.”
UKHospitality Cymru Executive Director David Chapman says
David Chapman, Executive Director, UKHospitality Cymru
“I’m pleased that the Chancellor has listened to UKHospitality’s concerns and extended business rates relief and frozen the small business multiplier for a further year in England.
“It is now critical for Welsh hospitality businesses that funds allocated to the Welsh Government are once again put towards a relief scheme, as well as to ensure rates are frozen. The rates relief put in place last year proved to be a lifeline for businesses and we would encourage the Government to extend this again. It will afford businesses some much-needed headroom and the certainty they need to invest and grow their businesses, instead of just focusing on survival. That enables our sector to continue rebuilding and contributing significantly again to the Welsh economy, culture and society.”
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