Yesterday's Budget gives some breathing space to our smallest businesses, but tourism and the visitor economy was not mentioned as a sector. The key points for the local visitor economy from the statement are as follows: 

Business rates for small premises

​​The Small Business Rate Relief threshold for retail, hospitality and leisure will rise from £12,000 to £18,000 rateable value. The Treasury says a further 70,000 businesses will pay nothing, and half of all such properties in England will pay no rates.

A real-terms freeze for everyone else in the sector: Other retail, hospitality and leisure properties get a two-year freeze so none faces an above-inflation rise. Bills can still rise with inflation, so this is stability, not a cut.

An extra 20% off for pubs, music venues and social clubs: this will take effect from April 2027, on top of this year's 15% relief. The very largest music venues are excluded.

Smaller cost wins

  • £10 million a year in alcohol duty relief for over 2,000 small producers. 
  • 5p fuel duty cut extended to July 2027. 
  • Tariffs cut on 100+ food and drink products. 
  • Lower-stake machines in pubs and seaside arcades protected from the Machine Games Duty rise.

​Skills and people

The Government's Jobs Guarantee for 18–24-year-olds and £100 million for local apprenticeship services play to our strength as the country's biggest first employer. Parental pay extended to self-employed fathers and partners matters to the freelancers our cultural workforce depends on.

The National Living Wage is set to rise by 3.9% from April 2027, to £13.21 for those aged 21 and over, £11.27 for those aged 18-20, and £8.31 for 16-17 year olds and apprentices. 

Holiday Lets

Tax rates on property income will rise by a further two percentage points from April 2027.

Erasmus+

The Budget makes provision for the UK’s already-confirmed participation from January 2027, including delivery costs. This is a positive development for educational exchange and mobility.

VAT

Unfortunately, but not unsurprisingly, there was no VAT cut for the industry. Hospitality and paid attractions stay at 20%, well above our European competitors, despite the cross-industry #VATsTheProblem campaign for 10%. There was no reform of Theatre Tax Relief, and no touring support.

Industry responses