At the end of October 2024, the new chancellor Rachel Reeves delivered her first UK Autumn Budget to Government.
Among the notable points covered were several key changes that will impact the restaurant and hospitality industries.
Here is a summary of some of the most significant, plus potential savings you can make via a table management system, to help the squeeze on your finances.
Increase in Employers’ National Insurance Contributions (NICs)
As a business owner with staff, you’ll see your NICs rise to 15 percent, while the threshold for contributions will be lowered from £9100 to £5000.
This will mean increases to your payroll costs, especially if you have a significant number of employees on lower wages.
To try and counteract this, try to be aware of any tools or services that can improve efficiency or conserve resources in your business.
Employment Allowance increase
Hailed by some as a positive aspect in the NIC changes, the threshold for Employment Allowance will increase from £5000 to £10,500.
This will at least help some smaller businesses reduce their liability – but is unlikely to offset the rise in NIC contributions in most cases.
With the restaurant sector already operating on narrow margins in many areas, any form of support is a bonus.
Business rates support extension
Many owners had been hoping for an extension to business rates support, which was previously planned to end on 31 March 2025.
This was granted – but at a lower rate, with the current discount of 75 percent to be replaced with 40 percent (capped at £110,000).
The extension, which will come into effect next April, will be welcomed by many but will still mean further costs for several SMEs.
Minimum wage increase
As expected, the National Living Wage will increase to £12.21 per hour for those aged 21 and over (and to £10 for under-20s).
The ongoing cost of living crisis has undoubtedly put strains on the wallets of workers of all ages.
But these wage rises will inevitably affect smaller business owners in the hospitality and restaurant sectors.
Alcohol duty changes
On a positive note, a 1.7 percent cut in draught duty (pints pulled in pubs, clubs and taprooms etc) equates to a saving of around a penny per pint.
This small step towards encouraging social drinking in establishments, over shop-bought beer and cider at home, was roundly applauded.
But duty on all other alcohol will rise in line with the Retail Price Index, as expected.
How can a table booking system save you money?
With all of these budget related changes, plus recent considerations like the Allocation of Tips Act (2023), demands on your resources are high.
Why not consider a table booking and restaurant management platform that can improve efficiencies and reduce manual admin in several areas?
The benefits to your business could include:
- Removal of unnecessary tasks
- Increased bookings
- Uplifts in both customer satisfaction and retention
If you’re interested in a free demonstration, please contact us to discuss your business goals.