– Louisa Watson, Chair of beam
As Chair of beam, I speak on behalf of a sector that continues to show resilience and innovation in the face of ongoing economic uncertainty. The business events, accommodation and meetings industry contributes more than £61 billion to the UK economy each year, yet it remains particularly vulnerable to inflationary pressures, talent shortages and inconsistent government support.
Ahead of the Spring Budget, our message to the Chancellor is clear. If the government is serious about driving growth, then thoughtful and targeted support for our sector must be part of the plan. Voices from across our membership highlight the need for measures that unlock long-term investment, ease operational costs and strengthen the UK’s competitiveness as a global destination for business events and tourism.
Linden Beattie, General Manager, Down Hall says, “The government has made economic growth a clear priority, and we hope the Spring Budget delivers measures that ease inflationary pressure and support that ambition. Businesses in our sector urgently need relief from rising costs to stay competitive and continue fuelling economic activity. The right policies can unlock growth, investment and global competitiveness.
“The UK’s 20% VAT rate on business events, accommodation and meetings is among the highest in Europe, adding pressure on margins and increasing costs for venues, agencies and clients. Reducing VAT would ease the burden, improve affordability and help position the UK as a stronger global destination for conferences and meetings.
“Rising staffing costs, driven by increases to the living wage and employer National Insurance contributions, make it harder to attract and retain talent. Investment in skills and training is essential to tackle ongoing shortages and keep our sector driving employment and prosperity.
“We also need continued government backing for business tourism, particularly through destination marketing and international event attraction.
“We urge the Chancellor to avoid any further employment costs or payroll taxes, reductions in existing support schemes, or new regulatory burdens that would disproportionately affect SMEs and undermine future growth.”
Jonathan Read, Head of National Accounts, Leonardo Hotels UK and Ireland says, “As the government prepares for the next fiscal event, the Spring Budget, we urge policymakers to consider the significant impact of rising business rates and the increasing adoption of city occupancy taxes on the hospitality sector. While some businesses will be exempt from forthcoming rate increases, many larger hotels, including those within the Leonardo Hotels portfolio, are expected to fall outside these exemptions. This places an unfair burden on larger establishments, despite the critical role they play in local economies – creating jobs, supporting supply chains, and driving tourism.
“In addition, the growing trend of city councils introducing occupancy taxes to address local funding shortfalls presents another challenge for our industry. At a time when hotels are still recovering from the increase in living wage, employer National Insurance contributions and grappling with rising operational costs, an added tax on overnight stays risks discouraging both domestic and international travellers. In a competitive global market, such policies make the UK a less attractive destination, ultimately reducing footfall for hotels and the many businesses that rely on a thriving hospitality sector.
“We strongly advocate for a fair and balanced approach to taxation – one that recognises the vital contribution of hotels to the economy and ensures that fiscal policies support, rather than hinder, sustainable growth in the sector.”
David Tremmil, Managing Director, InLoco Events Ltd says, “The upcoming National Insurance increase is a source of considerable concern for our industry. With other various challenging factors at play, our industry finds itself stretched to its limits. Unfortunately, it seems unlikely that the upcoming budget will provide any relief from these burdensome taxes. It’s crucial that we continue to advocate for our sector and maintain open lines of communication with the government to ensure our voices are heard. Together, we can work towards solutions that support our industry’s sustainability and growth.”
Katie Niland, Commercial Director, The Belfry Hotel & Resort says, “I’m sure I speak for everyone when I say that we’re eager to hear more positive news about economic growth, given that the current climate has been somewhat challenging.
“It’s encouraging to see mid to long-term growth year on year, and we’re pacing ahead on enquiries and seeing a strengthening of rate for 2025 and 2026, reflecting confidence in the large events market. As a result, we have received £48 million in new enquiries for our large event space, The Masters Suite, opening in September 2025.
“There is, however, an impact on short-term demand as people await the outcome of the budget announcement. With further exciting developments underway at The Belfry, we anticipate continued growth. However, this would clearly be strengthened by a more robust economic outlook that fosters confidence in investing in large-scale events and incentives.”
Julie Shorrock, Managing Director, Hotel and Travel Solutions says, “Whatever the Spring Budget brings, business leaders need clarity on what support is available and how to adapt in order to benefit. For small businesses in particular – a vital part of the economy – it’s crucial they can seize opportunities to grow and support their teams effectively, making the most of any positive financial impact.
“Consider the Autumn Budget, for example National Insurance changes will affect employers in terms of what they pay their staff, and employees could face wage increase restrictions and employers may ask their employees to utilise the Pension Salary Sacrifice. But from April, the Employment Allowance that currently allows eligible employers to reduce their annual National Insurance liability by up to £5,000, will increase to £10,500 benefiting some employers.
“Also, for companies paying more than the minimum wage, there are National Insurance cost savings they can make by increasing default annual employee contributions and encouraging staff to save for retirement – a potential employer/employee win-win.”
Our sector doesn’t just respond to growth – we help drive it. From global conferences to regional business meetings, and from family-owned hotels to major international brands, our industry powers job creation, stimulates investment and supports communities across the UK.
The Spring Budget offers a chance for government to show it values this contribution. We urge the Chancellor to take it.
beam stands ready to work with policymakers to create a stronger, more competitive and more sustainable future for our industry – and for the wider UK economy.Bottom of Form
