From COVID closures to staffing shortages, inflation, and soaring energy prices, the UK hospitality sector has suffered a tough few years. Now, as we approach November’s Autumn Statement, hospitality businesses are watching closely. What help, if any, can we expect? And what should operators be doing now to protect their margins? 

The challenges aren't going away

Costs remain high across the board. Food inflation, although slightly lower, remains above pre-pandemic levels. Energy prices are unpredictable. Staff wages are rising due to a tighter labour market and recent increases in the National Living Wage, business rates, VAT and supplier costs all continue to bite. 

Many in the industry had hoped for long-term VAT reform for hospitality, a return to the reduced 12.5% rate that supported the sector during the pandemic. But so far, the government has resisted, citing the need to plug gaps. 

As the Autumn Statement approaches, these are some of the key areas where the Chancellor could act, or not:

1. VAT and tax reliefs

Calls are growing for a permanent reduction in VAT for hospitality. With European counterparts often enjoying lower rates, the UK’s 20% is seen as a competitive disadvantage. Even a targeted VAT cut for restaurants or pubs could provide meaningful relief, but it remains politically uncertain. 

We may see modest adjustments to business rates or additional investment incentives, possibly extending full expensing for equipment or kitchen upgrades, but major tax reform is unlikely unless the government sees it as an election-year boost.

2. Energy support

While energy support packages have wound down, pressure is mounting for a targeted scheme to help energy-intensive sectors like hospitality. November’s Statement could include more clarity or top-up support for businesses locked into high-rate contracts.

3. Staffing and skills

The government may increase funding for training or apprenticeships. Although, helpful, it’s not an immediate fix for the labour gap. Reforms to immigration policy or the shortage occupation list could help with chef recruitment, but political pressures may limit how far that goes.

A practical step now: Bookachef

With uncertainty over government support, hospitality venues must continue looking inward to manage costs, especially labour. 

One area gaining traction is the use of agency chefs. Flexibly hiring qualified chefs through platforms like Bookachef gives venues across to skilled professionals when needed, reducing the burden of full-time salaries, pensions, and NI costs.

Rather than carrying excess staff through slower months or scrambling during staff shortages, agency chefs offer a smart staffing solution. Bookachef also vets and matches chefs based on venue needs, Maning operators save time and reduce costly turnover.

Final thoughts

Whatever comes out of November’s Budget, it’s clear the hospitality sector can’t afford to wait and hope. While government support could ease the load, proactive cost control and staffing flexibility will remain essential.

With Bookachef’s agency chefs, venues can reduce fixed costs, maintain service quality, and adapt quickly, something no Budget can guarantee.