By Jeff Hodgson, General Manager, Lumley Castle
As we look towards the upcoming Budget, it’s clear that the hospitality sector faces another challenging period. Hotels, restaurants and venues like ours are at the centre of local economies, but rising costs continue to erode already tight margins.
Nationally, hospitality supports around 2.6 million jobs – over 7% of the UK workforce – and contributes more than £62 billion to the economy.
Yet since the last Budget, our sector has lost more than 84,000 jobs, and operating costs show little sign of easing. Energy bills, wages and business rates remain some of the biggest pressures. Even with hotel occupancy levels averaging 76-82%, profitability is being squeezed.
At a recent meeting of the North East Hoteliers Association, these challenges were front and centre of our discussions. It made me reflect on just how important the upcoming Budget will be in shaping the future of our businesses, our teams, and the communities we serve.
If we are to protect jobs and safeguard community assets, government support in this Budget will be vital. Key measures could include:
Business rates reform, extending and increasing relief for hospitality businesses.
Employer National Insurance support, reducing the cost burden of recruitment. VAT reform, to bring the UK more in line with European competitors.
Incentives for investment, particularly in energy efficiency and sustainability.
At Lumley Castle, and across the sector, we are committed to doing our part by improving efficiency, investing in our teams, and continuing to deliver exceptional guest experiences. But longterm resilience requires a fair partnership between business and government.
Hospitality is not only about service and tourism – it’s about sustaining jobs, driving growth and anchoring local communities. With the right decisions in the upcoming Budget, we can secure a stronger future for our sector and the places we serve.
www.lumleycastle.com