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Blog - Published 27th February 2017

Hospitality and Leisure: Spring Budget 2017 Predictions

Spring budget 2017

Comments provided by Hospitality & Leisure sector head, Dave Gosling

Dave Gosling - Menzies AccountantThe hospitality & leisure industry is currently experiencing good levels of growth with an increase in the numbers of people holidaying in the UK and increased dining numbers in the restaurant sector. However, the sector has seen significant pressure on profits with increases in direct costs as a result of exchange rates, changes to property rates, together with increase in wage costs as a result of auto enrolment and minimum wage/living wage. The increased competition in the sector has made in difficult to pass these costs on to customers.

With the budget approaching, we set out below our wish list and predictions for the Hospitality & Leisure sector:

National Living Wage/National Minimum Wage

The National Living Wage vs. the National Minimum Wage

We will see another increase in the national living wage and national minimum wage from April 2017, resulting in additional costs for the sector. Our clients are reporting that this is also having an effect on employees outside of these schemes as they look for similar increases in salaries.

Overseas Employment

Tax issues for overseas workiers

The sector has a large reliance on overseas labour and it would be good to obtain some further clarification on the implications of Brexit on employment of overseas staff.

Business Rates

Good business succession planning is based on strong communication

There has been a large amount of publicity on the forthcoming changes to rates and the impact this will have on a number of businesses, predominately in the South East. It would be good to hear the government announce a review of these changes and to delay the potential increases for these businesses

Tips

Cloud accounting going paperless

In June 2016, the government launched a consultation on tipping, gratuities and service charges, which operate predominately in the hospitality and leisure sector. We are still waiting for feedback from this review, which may come out in the forthcoming budget.

Consumer confidence/disposable income

high st

What is key to the sector is that the Chancellor delivers a budget which installs a high level of consumer confidence and we see increases in disposable income – this will help drive growth.

Get more input on the 2017 Spring Budget implications for the Hospitality & leisure sector by speaking to our sector team.

Find out more about the Menzies Hospitality & leisure business services.

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Posted in Blog, Hospitality & leisure

Dave Gosling - FCCA

Partner

Dave Gosling is a Menzies Partner specialising in audit & compliances advisory, business outsourcing services and also leads the Hospitality & Leisure team.