Autumn Budget 2024

This afternoon Chancellor Rachel Reeves, the first woman to serve as Chancellor of the Exchequer in the 800+ years history of the role, has delivered Labour’s first Budget of the Parliament.

Amongst the announcements were rises to minimum wage levels rates confirmed this morning and which we reported here. UKHospitality state the rises to minimum wage rates will add £1.9 billion to the hospitality wage bill.

Other announcements from the Chancellor, which will impact Hospitality business included:

1. Firms to pay National Insurance on workers’ earnings above £5,000 from April, down from £9,100 currently, with the rate increasing from 13.8% to 15%, however Employment allowance - which allows companies to reduce their NI liability - to increase from £5,000 to £10,500.

2. Tax on draught alcoholic drinks cut by 1.7%, but on non-draught alcoholic drinks tax will increase by the higher RPI measure of inflation.

3. A 40% business rates relief (up to a cap of £110k) for the hospitality and retail industry until 2026, which is down from the current 75% rate which is set to expire on 31st March 2025.