‘The chancellor offered nothing for us’: Hospitality overlooked in Spending Review   

Hospitality trade bodies have expressed disappointment at the lack of “immediate support” for the sector following the government’s Spending Review.

Chancellor Rachel Reeves told MPs in parliament today (11 June) of her plans to end the use of hotels to house asylum seekers by 2029 and confirmed the extension of free school meals to over half a million more children.

However, no further relief was offered to hospitality operators struggling to bear the additional tax burdens imposed by government in April in the form of increased employers’ National Insurance contributions and rises to National Minimum Wage.

Stephen Montgomery, director of the Scottish Hospitality Group, said: “This statement does absolutely nothing to support the hospitality sector in Scotland or across the UK.

“Today we heard all about the spending plans, however nothing about helping those who will pay for it through taxes. On a day where we know that unemployment has risen, employers are holding off on recruitment, inflation has all but doubled and the OBR having already halved the growth figure for 2025, the chancellor offered nothing for the third largest employer in the country, which contributes billions every year in taxes to support the public sector.”

Michael Kill, chief executive of the Night Time Industries Association (NTIA), added: “We appreciate that the government is trying to balance many competing demands. But for our sector – already absorbing tax hikes from April, the prospect of further increases is alarming. Additional financial pressure could tip many businesses over the edge, particularly given high operating costs and limited access to investment.

“The government must work in partnership with us. The capital investment plans may look bold, but the devil is in the detail. We need immediate support, clear fiscal strategy and genuine engagement ahead of the autumn budget if we are to safeguard a safe, thriving and sustainable night-time economy.”

Kate Nicholls, chief executive of UKHospitality, commented: “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.”