Beam members have urged the chancellor to provide
targeted support for the sector, including relief from rising costs, in the
spring statement.
Louisa Watson, chair of beam, called on Rachel Reeves to
provide targeted support for business events if the government is serious
about driving growth.
She said: “The business events, accommodation and
meetings industry contributes more than £61 billion to the UK economy each
year, yet it remains particularly vulnerable to inflationary pressures, talent
shortages and inconsistent government support.
“Ahead of the spring budget, our
message to the chancellor is clear. If the government is serious about driving
growth, then thoughtful and targeted support for our sector must be part of the
plan. Voices from across our membership highlight the need for measures that
unlock long-term investment, ease operational costs and strengthen the UK’s
competitiveness as a global destination for business events and tourism.”
Rising costs
Linden Beattie, general manager, Down Hall said that he was
hoping formeasures that ease inflationary pressure.
He said: “Businesses in our sector urgently need relief
from rising costs to stay competitive and continue fuelling economic activity.
The right policies can unlock growth, investment and global competitiveness.
“The UK’s 20 per cent VAT rate on business events,
accommodation and meetings is among the highest in Europe, adding pressure on
margins and increasing costs for venues, agencies and clients. Reducing VAT
would ease the burden, improve affordability and help position the UK as a
stronger global destination for conferences and meetings.
“Rising staffing costs, driven by increases to the living
wage and employer National Insurance contributions, make it harder to attract
and retain talent. Investment in skills and training is essential to tackle
ongoing shortages and keep our sector driving employment and prosperity.
“We also need continued government backing for business
tourism, particularly through destination marketing and international event
attraction. We urge the chancellor to avoid any further employment
costs or payroll taxes, reductions in existing support schemes, or new
regulatory burdens that would disproportionately affect SMEs and undermine
future growth.”
Jonathan Read, head of national accounts at Leonardo Hotels
UK and Ireland, urged the governmentto consider the significant impact of
rising business rates and the increasing adoption of city occupancy taxes on
the hospitality sector.
He said: “While some businesses will be exempt from
forthcoming rate increases, many larger hotels are expected to fall outside
these exemptions. This places an unfair burden on larger establishments,
despite the critical role they play in local economies – creating jobs,
supporting supply chains, and driving tourism.
Occupancy taxes
“In addition, the growing trend of city councils
introducing occupancy taxes to address local funding shortfalls presents
another challenge for our industry. At a time when hotels are still recovering
from the increase in living wage, employer National Insurance contributions and
grappling with rising operational costs, an added tax on overnight stays risks
discouraging both domestic and international travellers. In a competitive
global market, such policies make the UK a less attractive destination, ultimately
reducing footfall for hotels and the many businesses that rely on a thriving
hospitality sector.
“We strongly advocate for a fair and balanced approach to
taxation – one that recognises the vital contribution of hotels to the economy
and ensures that fiscal policies support, rather than hinder, sustainable
growth in the sector.”
David Tremmil, managing director of InLoco Events Ltd, said
that the upcoming National Insurance increase is a source of considerable
concern.
“With other various challenging factors at play, our
industry finds itself stretched to its limits. Unfortunately, it seems unlikely
that the upcoming budget will provide any relief from these burdensome taxes.
It's crucial that we continue to advocate for our sector and maintain open
lines of communication with the government to ensure our voices are heard.”
Continued growth
Katie Niland, commercial director at The Belfry Hotel &
Resort, said she was eager to hear more positive news about economic growth.
“It’s encouraging to see mid to long-term growth year on
year, and we’re pacing ahead on enquiries and seeing a strengthening of rate
for 2025 and 2026, reflecting confidence in the large events market.
“There is, however, an impact on short-term demand as
people await the outcome of the budget announcement. We anticipate continued
growth. However, this would clearly be strengthened by a more robust economic
outlook that fosters confidence in investing in large-scale events and
incentives.”
Julie Shorrock, managing director of Hotel and Travel
Solutions, said that business leaders need clarity on what support is
available and how to adapt in order to benefit.
She said: “For small businesses in particular – a vital
part of the economy – it's crucial they can seize opportunities to grow and
support their teams effectively, making the most of any positive financial
impact.
Potential win-win
“Consider the autumn budget, for example National
Insurance changes will affect employers in terms of what they pay their staff,
and employees could face wage increase restrictions and employers may ask their
employees to utilise the pension salary sacrifice. But from April, the Employment Allowance that
currently allows eligible employers to reduce their annual National Insurance
liability by up to £5,000, will increase to £10,500 benefiting some employers.
“Also, for companies paying more than the minimum wage,
there are National Insurance cost savings they can make by increasing default
annual employee contributions and encouraging staff to save for retirement – a
potential employer/employee win-win.”
