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The Budget lands on Wednesday: what the trade is asking for, and what's already settled

UKHospitality wants movement on VAT, rates and employer NICs. The 20% rates cut for pubs from April 2027 is already announced.

The rear of Downing Street seen from Treasury Green in Westminster
Photo: Richard Symonds (CC BY 3.0; resized) (opens in a new tab)

The Chancellor delivers the Budget on Wednesday 28 October, and the sector's asks are on the table. UKHospitality's campaign, reported by The Staff Canteen, sets out four.

The four asks 1. VAT cut to 10% for hospitality. 2. Business rates: a bigger discount on the retail, hospitality and leisure multiplier, closer to 20p; no surcharge on properties with a rateable value over £500k; and a 20% discount for hotels. 3. Employer NICs: the secondary threshold raised to £10,000 by April 2029. 4. Tourism: a tourism bonus rather than a visitor levy.

UKH puts sector job losses at nearly 100,000 over two years.

What's already settled: the 20% business rates cut for pubs from April 2027 has been announced, so Wednesday is about everyone else.

How operators are framing it: Stonegate chief executive David McDowall told Propel there is too much damage to repair in one Budget, naming employment costs, VAT and rates as his priorities. Matt Farrell of Bold Street Coffee said he is waiting on the Budget before growing further.

What to have ready for Thursday morning - Your current wage bill split by employer NIC band. - Rateable values for each site, and which ones sit near the £500k line. - A note of any price or hiring decisions you've parked until the numbers are known.

What it means for operators: plan two versions of next year now, one with no relief and one with some and move quickly either way. We'll cover what's announced.

Source: The Staff Canteen (opens in a new tab)

  • budget
  • policy
  • vat
  • business-rates
  • employment-costs