Autumn Budget 2024

The meeting and events sector is a remarkable industry supporting 775,000 jobs in the UK market.  It’s a great sector and community to be part of.

Those who work in the industry recognise its value to the economy, job creations and as a strong global destination for business.

Yet, it continuously remains undervalued by previous governments and literally undervalued by the Treasury.

There are only a few fiscal events a year and yesterday’s Autumn Budget, as the first one of a new Labour government, carries the extra weight of expectation in the industry.

So how was the first Budget of our first female chancellor, Rachel Reeves? And what does it tell us about the government’s plans for the next five years?

Much was heralded before the budget.  The government’s relaxation of their fiscal rules to allow for investment in infrastructure is welcome – borrow to invest, invest to grow – makes sense.  The commitment to improving the country’s infrastructure gives us confidence.  Improved connections through travel, improved WiFi, green energy and sustainability are all important infrastructure projects for the meetings and events sector. By its very nature it attracts business from across the country and global, accounting for 35% of international business tourism each year so it’s important to get this infrastructure right. However, government debt must be controlled so businesses cash flows aren’t jeopardised by further inflation.

Optimism?

There was a glimmer of optimism with the 40% business rate relief, capped up to £110,000 supporting smaller business, and we’re sure the rest of the sector will join us in welcoming the permanently lower business tax relief for leisure and hospitality.

A large net rise in tax following an election isn’t unusual especially with a stagnant economy. However, it is business owners’ and employees who are taking the brunt with the huge rise in employers’ national insurance.

The impact on our sector is especially harsh.  We are just returning to normality after the pandemic, but this Budget adds an extra weight that makes this harder to sustain. It puts a real pressure on the ability to pay staff wages, provide much needed pay rises, stalling the recruitment of staff or investments in business.  It could have the opposite effect by reducing employee hours, reducing wages, whilst increasing consumables coupled with the lowering of the tax-free threshold to £5000 will directly impact workers take home pay.

Jacqui Kavanagh, CEO – EDGE Venues

“Whilst support with business rates and investment in growth are welcome, the impact of an increase in National Insurance contribution by up to 15% from April 2025, is a deep blow for a meetings and events sector currently bucking the trend on growth. The hospitality sector by its very nature provides specialist services – there is a threat that personal services may have to be replaced by AI in some instances to reduce cost, dumbing down the services that we offer.

This was never going to be an Autumn Budget full of give aways, but it is frustrating that the government is laying the burden of fixing the economy on small businesses.

These measures show that this new government doesn’t understand, or value, the potential of the meetings and events sector, in growth or the  contribution of £60+bn a year that it currently provides to the UK Exchequer.”