Leaders from across the UK meetings and events sector have raised concerns that chancellor John Healey's autumn budget will increase costs for businesses and potentially make the UK less competitive as an events destination.
While welcoming measures designed to support economic growth, industry bodies warned that rising employment costs, the absence of VAT reform and proposals for an overnight visitor levy could create further challenges for a sector already operating under significant financial pressure.
The Meetings Industry Association (mia) said it was encouraged by the government's focus on investment and growth, but warned that translating those ambitions into tangible economic opportunities would require greater recognition of the role business events play in driving trade, investment and economic activity.
Shonali Devereaux, chief executive of the mia, said: "Business meetings and events provide the platforms where businesses forge partnerships, showcase innovation, attract investment and access new markets. Their contribution extends far beyond the visitor spending they generate, creating commercial opportunities and supporting economic growth long after an event has ended."
The association also highlighted concerns over the decision to increase the National Minimum Wage and National Living Wage by 3.9 per cent from April.
Devereaux said: "While we fully recognise the importance of fair pay, a further 3.9 per cent increase in the National Minimum Wage and National Living Wage will add to the financial pressures facing UK businesses managing rising employment and operational costs."
beam chair David Tremmil called the budget “disappointing”, saying it offered little meaningful support for the business events sector despite increasing cost pressures.
"Once again, businesses are facing rising costs, with little in the way of meaningful support to help them," he said.
"We need to see more than words about growth. We need practical support that actually makes a difference to businesses, particularly around employer National Insurance, business rates and the increasing cost of operating."
A common concern among industry organisations was the government's proposal to allow local authorities to introduce overnight visitor levies from 2028.
The mia warned that additional charges could affect decisions about where conferences and meetings are held, while differing approaches between regions could create complexity.
Devereaux said: "Any potential benefits must also be weighed against the additional costs for visitors and delegates, who are already facing significant expenses when travelling to and attending events in the UK."
She added: "There is also the risk that different regions introduce varying charges and administrative requirements, creating unnecessary complexity for event organisers and businesses operating nationally."
beam also voiced concern over the policy.
Tremmil said: "Adding further costs to overnight stays could make residential conferences, meetings and business travel more expensive, at a time when clients are already watching their budgets closely."
The Alliance of Independent Event Agencies (AIEA) said the budget had failed to address one of the sector's long-running priorities: VAT reform.
AIEA chair Sabine Edwards said: "The extension of business rates relief for smaller hospitality and leisure businesses is a welcome step, but it is a real disappointment that the budget offered nothing on VAT, especially as the #VATsTheProblem campaign has been a unifying voice for the MICE and hospitality industries."
She added that the visitor levy remained a concern because of the lack of clarity over how charges could be applied.
"The overnight visitor levy continues to split opinion," said Edwards. "Our concern is the absence of a ceiling or set rate. Without one, the UK risks pricing itself out of consideration for events, in a market that is already expensive."
UKinbound chief executive Joss Croft also urged caution on the proposed levy, warning that businesses would need significant time to prepare for any new system.
"The proposed implementation timeline for an England Overnight Visitor Levy is a significant red flag for the visitor economy," he said.
Croft added: "The industry needs a minimum 18-month implementation period once the details have been finalised."
Meanwhile, David Watt, CEO of CI Group, said event buyers and planners should expect continued pressure on budgets despite some limited relief for smaller hospitality businesses.
"With inflation forecast to peak at 3.8 per cent early next year and the National Living Wage rising 3.9 per cent in April, venues and suppliers will face higher costs, with no hospitality VAT cut to offset them," he said.
Watt added that agencies should focus on making budgets work harder rather than simply reducing spend, arguing that technology and AI could help clients demonstrate value and improve efficiency.
M&IT editor Paul Harvey is a journalist with more than 15 years of experience. He began his career in the local press, working for various titles across the north. Since joining M&IT in 2013, he has become a trusted and respected voice in the sector, championing event professionals and reporting on all aspects of the events industry for the brand.
