Chancellor outlines Budget aims to ease pressures on pubs and households
Speaking at the IMF Annual Meetings in Bangkok on Thursday 15 October, Chancellor Healey warned that conflict in the Middle East and Ukraine was pushing up energy prices and borrowing costs, affecting businesses and households. He said the UK economy is resilient and that the Budget would protect resilience through these turbulent times, stressing fiscal discipline and international cooperation to bolster growth and stability. Ahead of the Budget, Healey met with senior leaders from the retail, hospitality, leisure and small business sectors at Downing Street on Tuesday 13 October, including UKHospitality. The discussions focused on rising operating costs and measures to encourage investment, recruitment and growth. Trade bodies have pressed for relief, with a campaign calling for hospitality VAT to fall from 20% to 10% delivering more than 400,000 signatures to Downing Street, and there have been calls to cut employer National Insurance contributions, citing more than £5bn in extra costs over the past two years. BBPA figures show 295 pubs closed in the first nine months of 2026, with 360 closures forecast by year-end unless action is taken. The Government has pledged a 20% business rates cut for pubs, social clubs and live music venues from April 2027, benefiting around 32,000 venues and saving a typical pub about £1,100 a year, though operators await details on eligibility and broader reform. No further hospitality-specific measures were announced in the Chancellor’s latest statement. Source: The Morning Advertiser
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