A LOOK BACK AT 2024 – AND FORWARD TO 2025

Here at Fleet Street we are proud to work with leading trade body UKHospitality. Here, its CEO, Kate Nicholls, reviews the highs and lows of 2024 and predicts what the 12-months of 2025 might have in store…

I feel a certain sense of déjà vu as I write this review of 2024 in that, for the fourth year in a row, I must address the unprecedented turbulence our sector continues to endure.

We still face a perfect storm: new barriers to growth and recovery, myriad new taxes and costs, and all while our customers face their own challenges with less money in their pockets. All this means running a hospitality business is harder than ever, and it’s about to become even more difficult in April, when £3.4bn of cost hits the sector thanks to the planned increase in employer national insurance contributions, wage rises and reduced levels of business rates relief.

It is when you are in the eye of a storm that the guiding light, the insight and support of a strong and effective trade body such as ourselves, is ever more vital. In response to this, we’ve been loud and clear in the message we have taken to the highest levels of government – I’ve even taken it to face-to-face meetings in the last couple of weeks with the prime minister and chancellor.

The message is this level of tax increase is unsustainable and will have a devastating impact on our teams, our guests, and investment in our communities.

As we face the negatives, however, it is ever more crucial that we look for the positives. The situation could have been so much worse but for the tenacity and tireless campaigning of the UKHospitality team and the vital support, contributions and mobilisation of our members.

From tourism and coffee cup taxes; smoking bans and alcohol pricing; planning, energy and skills reform; employment, tipping, and short term lets legislation, rest assured, we make sure the voice of hospitality is heard right at the heart of decision making.

In Westminster, Holyrood, the Senedd and with mayors, we are making the case, presenting the evidence and lobbying for the change we need to survive and thrive.

We have also met with hundreds of new MPs since the General Election and can assure you that, despite all appearances to the contrary, hospitality continues to be front and centre of political concerns when policy is being developed.

That’s because hospitality remains central to delivering the government’s ambitions – growth, jobs, and investment in our high streets. Hospitality is in every part of the country, it touches the lives of every person and it creates opportunities for everyone, everywhere and that is why government must work with us, not against us, to unleash our potential. It is why we will continue to push for rapid delivery on our agenda for change, which includes:

• Root and branch reform of business rates. This has been promised for so long and is the biggest barrier to investment in the high street. We have secured a vital win with a permanent lower multiplier for hospitality, but work will continue this year to ensure that is delivered in full and is meaningful for all.
• Apprenticeship levy reform. Employers need to be encouraged and rewarded for investing in their people and that starts with changes to the apprenticeship levy to give businesses more control and flexibility over how funds are spent. However, it also applies to jobs taxes. This year we launched a career starter apprenticeship, a foundation apprenticeship, and a Department for Work and Pensions pilot for the first nationally accredited induction training programme and digital skills pilot – we need hospitality to be in the first wave of funding and support.
• A more sustainable tax burden. The everyday economy is recognised in the government’s industrial strategy as a key enabler and facilitator of growth and we really welcome the announcement of a new visitor economy, high Street and hospitality strategy. The government needs to be ambitious, cutting pre-profit taxes and regulation that hold us back. We know a lower rate of VAT would boost demand, help us overcome costs and prevent price rises for consumers.

Campaigning for these priorities continues at pace, alongside our work lobbying for a rethink to the changes to employer national insurance contributions, particularly the lowering of the threshold.

Hospitality is a substantive force for good, the beating heart of our communities and a vital partner to address the challenges we face as a society. Hospitality is all about making a difference in people’s lives, serving up memorable moments at the heart of our communities. Hospitality supports the cultural, social and economic life of the country. Hospitality brings light and life to communities, acting as a beacon for investment and creating places people want to live, work and visit.

Without us, there is no urban renewal, city centre or high street renaissance. Without us there is no jobs and skills led recovery. Without us there is no growth.

This article first appeared in Propel Info.