Graeme Smith, EMEA Leader, Risk Advisory and a hospitality & leisure industry specialist, comments on the Autumn Budget 2025

“Today’s Budget has brought mixed news for the hospitality space. The reduction of business rates for smaller properties will undoubtedly be welcomed by the industry. Yet, increases to the National Minimum Wage and a new tourism tax come at a time when the hospitality industry is already under significant pressure.
 
“The sector has been grappling with cost and tax changes introduced in April, alongside rising consumer uncertainty—an issue unlikely to ease following today’s announcement of further consumer tax hikes.
 
“While hospitality has demonstrated resilience through recent years of disruption, that resilience is being tested like never before.
 
“Operators are now likely to face higher labour costs and continued input cost inflation from their supply-chain. In response, operators will need to reassess pricing, menus, and workforce planning without pushing prices beyond what consumers can absorb in an already challenging economic period.
 
“All of this may lead to further restructurings as companies move to reduce costs and central overheads and exit uneconomic sites. In this environment, it is critical for businesses to identify the actions that matter most—and where to take them—to mitigate the additional financial burden and safeguard long-term competitiveness.”