Hospitality leaders have condemned Chancellor Rachel Reeves’ spending review for ignoring an industry still struggling with pandemic impacts, inflation and increased operational costs.
Industry bodies say the review failed to provide targeted support needed to protect jobs, encourage growth and reduce financial pressures.
Many warned that the lack of meaningful support and increased tax burdens signal concerning government indifference toward one of the UK’s largest private sector employers.
Kate Nicholls, chief executive of UKHospitality, said: “As we look towards the Budget and the rest of the Parliament, it must be a priority to bring down the cost of doing business. The business rates reform being finalised this Autumn will be a critical element of that, and there needs to be the maximum level of discount applied to hospitality businesses.
“With the Industrial Strategy set to be published imminently, hospitality’s ability to deliver socially productive growth must be recognised and harnessed to deliver economic growth, jobs and regeneration in towns and cities right across the UK.”
Michael Kill, CEO of the Night Time Industries Association (NTIA), said: The NTIA welcomed the government’s long-term focus on energy infrastructure, but warned that many challenges facing the sector are urgent and require immediate action.
“The Spending Review offered little clarity on skills development within the sector, an area the NTIA considers crucial. Training and upskilling must be embedded in a broader national strategy, not treated as isolated policy levers, particularly in hospitality and night-time industries where labour shortages and talent retention remain key concerns.”
Tina McKenzie, policy chair of the Federation of Small Businesses (FSB), said: “Small businesses will be wondering when they will feel the benefits of today’s Spending Review. It was not the business-focused day they had hoped for.
“Small business confidence is already languishing at levels comparable to the energy bills crisis, while job numbers in small businesses are falling fast, so bold, concerted action is needed. You can’t grow the economy and tax revenues without growing small businesses.”
