UK: A recent survey by Best Western Hotel Group (BWH Hotels) UK has found that independent hoteliers face cost increases up to £750,000 as a result of the Autumn Budget.
According to the survey, 91 per cent of hoteliers say that costs have surged since the Autumn Budget.
Six out of 10 report an increase of more than 20 per cent, and more than one-third of hoteliers expect costs to rise by more than £100,000. Some independent hoteliers face cost increases up to £750,000.
In the Autumn Budget, announced in October 2024, the Labour Government revealed plans to increase taxes by £40 billion in total. Key announcements set to affect the hospitality industry can be found here.
50 per cent of hoteliers in the BWH survey attribute rising costs to the increases in employers’ National Insurance, while 32 per cent attribute it to increases in the National Living and Minimum Wage.
Tim Rumney, CEO of BWH Hotels, said: “The recent budget has sent shockwaves through an industry that was just getting back on its feet after COVID. Hospitality staff are some of the hardest working people in Great Britain and they’re having to cope with yet another barrage of financial pressures.
“These increases not only push up prices but could potentially worsen the customer experience, leaving independent businesses struggling to survive after years of rising interest rates and the cost of living crisis,” he said.
To address the cost hikes, 83 per cent of hoteliers say they will need to cut staff hours and 77 per cent will need to increase rates and F&B prices.
Regarding government support, 79 per cent called for a reduction in VAT on hospitality. A further 73 per cent backed business reform, while 65 per cent suggest a new Employer NICs band and exemptions for lower-band taxpayers.
The BWH Hotels UK portfolio represents more than 200 properties. The survey findings are based on feedback from 38 Best Western hoteliers.
