For years, hospitality businesses across the UK have been calling for meaningful change to how our sector is taxed and supported. While this new budget doesn’t fix everything, it does mark a genuine step forward for pubs, restaurants, hotels, and event venues.
With rising costs, staffing pressures, and tight margins, even the smallest support can make a big difference. And this budget brings two key developments that could ease the load: permanent business rates reform for hospitality and a boost to the Employment Allowance.
Business Rates: A Long-Awaited Reform Finally Begins
From 2026, business rates will be permanently reduced for hospitality, retail, and leisure venues. This marks the first real structural shift in years, one designed to level the playing field between bricks-and-mortar venues and online giants.
While exact rates are still to be confirmed, the direction is clear:
- Until 2026, 250,000 eligible hospitality venues will continue receiving 40% off their rates (up to £110,000 per business).
- From 2026, permanently lower multipliers will be introduced, giving venues more predictability and fairness moving forward.
This is more than just short-term relief. It signals that government is starting to listen to high street businesses. And while some argue it’s overdue, others (including former Boots CEO Sebastian James) see it as a vital chance for hospitality and community spaces to thrive again.
National Insurance: Employer Allowance Doubled
From April 2025, the Employment Allowance will increase from £5,000 to £10,500, meaning 865,000 employers won’t pay employer National Insurance at all next year.
This change is especially important for small venues. It means a typical pub or café could employ up to four full-time staff at the National Living Wage without paying National Insurance contributions on those wages.
For hospitality venues juggling tight payrolls and rota stress, this brings much-needed breathing room.
What About Challenges?
Yes, challenges remain. While high street venues will benefit, large property owners, such as supermarkets and logistics centres, will be taxed more heavily to fund the change. And businesses still waiting for footfall to recover may feel the support hasn’t come fast enough.
But this time, hospitality is being prioritised, not sidelined.
Relief Staff and Sustainable Support
At Ginger, we see the real impact of budget changes not just in spreadsheets, but in shift patterns, service standards, and team morale.
Many venues we support already rely on relief staff to stay operational, particularly during peak seasons and rota gaps. The new business rates and National Insurance support will help some of our partners invest more confidently in their teams, whether that means hiring permanently or calling in flexible, trusted help.
Final Thoughts
This budget won’t fix hospitality’s challenges overnight. But it does deliver long-term structural support, especially for those who’ve kept going despite rising costs and constant change.
And if you’re looking to make the most of it, whether that means boosting your team without overstretching or planning for the long run, Ginger Hospitality is here to help.
Relief staffing, rota support, or simply someone to talk through your options with.
We’re built from hospitality, and we’re in it with you.
