Tourism and recreation suffered biggest cost hikes of any industry after Budget
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Britain's pubs, restaurants and hotels experienced the fastest increase in costs of any business sector last month, after being hit by tax and wage changes in October's Budget. Tourism and recreation companies also implemented the steepest price hikes of any industry monitored, according to the latest Lloyds UK Sector Tracker.
Hospitality firms and trade bodies have warned that the Labour Government's Budget could lead to more job cuts and venues closing. Chancellor Rachel Reeves announced that the rebate enjoyed by hospitality operators on their business rates bills would be reduced from 75 per cent to 40 per cent, with discounts capped at £110,000 per firm.
Employers will also pay a 15 per cent National Insurance rate on staff salaries above £5,000, rather than the current 13.8 per cent levy on wages exceeding £9,100. And the National Living Wage will go up by 6.7 per cent to £12.21 per hour, while the minimum wage for 18 to 20-year-olds will soar by 16.3 per cent to £10 per hour.
Budget fallout: Britain's pubs, restaurants and hotels experienced the fastest increase in costs last month, according to the latest Lloyds UK Sector Tracker. Since these measures were unveiled, pub chains including JD Wetherspoon, Fuller's and Young's have warned of multi-million-pound cost impacts.
Lloyds UK said the level of cost increases imposed by tourism and recreation firms last month measured 67.5 on its index, compared to 66.3 in October. Any number above 50 indicates an overall rise measured against the previous month, and a figure below 50 denotes a drop.
