Following the Chancellor's Autumn Statement on Wednesday 22nd November, we break down what the updates mean for your hospitality business.
While there were some positives, Jeremy Hunt didn’t provide any new support measures for hospitality businesses currently struggling financially.
The Autumn Statement's key points
Hospitality Business Rates Relief has been extended for another year. The 75% discount for those in the retail, hospitality, and leisure sectors, allows businesses to claim relief up to £110,000.
Alcohol duty has been frozen until 1 August 2024.
'Full Expensing' tax break will be made permanent. The 100% upfront tax deduction for investing in new plant and machinery was due to end in March 2026.
A 10% increase in the National Living Wage to £11.44 an hour from April 2024 will increase staff costs.
Other considerations to be aware of
The cut in Employee National Insurance to 10% from January could lead to increased spending in the hospitality sector.
The OBR has cut growth forecasts in half. They are predicting very minimal growth in the economy until 2028, which is not the most positive outlook for the hospitality sector.
If you would like to discuss how any of these points will affect your hospitality business, please get in touch.