The Chancellor’s Autumn Budget 2025 delivered a tough package for small businesses, and hospitality sits right at the sharp end. While many measures were trailed in advance, and even accidentally pre-released by the OBR, the final announcement confirms what many in the sector already feared: higher taxes, rising wage bills and more compliance pressure at a time when margins are already thin.
Key Budget Measures Impacting Hospitality
Restaurants and gastro pubs will feel the strain across several fronts:
- National Living Wage to rise to £12.71 from April 2026 is a major cost uplift for restaurants and pubs, especially those operating larger kitchen or FOH teams.
- For businesses fortunate enough to pay dividends, a significant change is coming. From April 2026, dividend tax rates will rise, and this will directly impact owner-operators who rely on dividends to supplement their income. With the basic dividend tax rate increasing from 8.75% to 10.75%, hospitality directors in particular will feel the pressure, seeing less retained profit in a sector where cashflow is already fragile.
- Income tax and National Insurance thresholds frozen until 2031 effectively push more people into higher tax bands over time. For hospitality leaders paying themselves a mix of salary and dividends, the combined effect is a higher overall tax burden without any change to income.
- Capital allowances changes include a new 40% First Year Allowance from 2026 but a reduced writing down allowance from 18% to 14%. Useful for major refurbishments but less generous long-term.
- E-invoicing mandatory from 2029 and tighter digital reporting rules mean more software costs and more admin for already overstretched operators.
- Energy and cost-of-living support offers limited relief, but rising regulatory requirements and staffing costs outweigh the gains for most venues.
Overall, this is a Budget of higher costs, more admin and tighter margins for restaurant owners.
Why Temporary Chefs Are Becoming a Smarter Staffing Strategy
With many restaurants now choosing to operate five- or six-day weeks instead of seven, the traditional model of employing a full-time kitchen team all year round is becoming less sustainable.
Temporary chefs offer a flexible, cost-efficient solution:
- Benefits of Using Temporary Chefs
- No fixed annual salary burden, pay only when you need cover.
- Ideal for 5/6-day operating models, where demand fluctuates week-to-week.
- Avoid long-term payroll commitments during quieter seasons.
- Instant cover for holidays, sickness or last-minute gaps without overstretching your core team.
- Fresh skills, fresh ideas, rotating chefs often bring new techniques and menu inspiration.
- Surprisingly cost-effective, with fixed rates from around £18 per hour, and with Bookachef charging only a fixed agency fee, temporary support can often be cheaper than maintaining an oversized permanent team.
In a climate where taxes, wage bills and compliance costs continue to rise, many restaurants and gastro pubs simply can’t justify full-time roles for every position.
Temporary chefs provide the perfect balance: professional support when it’s busy, financial breathing room when it’s not.
Bookachef.com gives you instant access to a growing database of professional temporary chefs across the UK. Browse profiles, check availability and book reliable kitchen support in minutes. Sign-up, or log in to your account to get started.