23 November 2023
Paul Newman, head of leisure and hospitality at RSM UK: ‘Freezing business rates for smaller businesses and extending the current rate relief package for another year offers a lifeline for some in the hospitality industry. However, the higher-than-expected national living wage increases will see lower paid employees earn almost £2.5k more – an acute cost increase for hospitality businesses.
‘When you combine this with a year of double digit food inflation costs and stealth costs it has no control over due to high inflation, including planned rises in business rates for the majority and rent reviews tied to the Retail Price Index (RPI), hospitality businesses will still feel the squeeze in the new year. With the cost of living and cash-strapped consumers, hospitality businesses have a limited ability to pass on the cost through increased prices, so growth across industry could be stifled in 2024.’