NCTA England’s Coast November Update

"As the dust settles on last month’s budget, one thing is without doubt, the impact on the hospitality sector is immense, a tough budget for medium and small businesses, the backbone of the visitor-facing economy on the coast.

Overall, the budget was far more radical than predicted - one of the biggest hits being the double impact of the new minimum wage and higher NI contributions. An employee working on minimum wage for 37.5 hours a week will now mean a hike of nearly £1k additional annual costs per employee.

The Chancellor’s stated objective is to increase economic growth, but ultimately the burden on SMEs limits the private sector’s ability to invest, making hiring more expensive and reducing the chances of pay rises.

According to the latest Labour Market Report from the Office for National Statistics, released 12 November, average weekly earnings in the accommodation and food sector rose by 12% to £581.64 in Q3, up from £518.01 in Q2 and according to the ONS the highest trend on record.

Employment in leisure and hospitality rose by 0.22% and vacancies dropped to 94,000 in October, against 98,000 in July 2024. Perhaps these are the first shoots of recovery because of ever-resilient hospitality operators re-evaluating their business operations to off-set the forthcoming increase in National Living Wage in April 2025."

Read the full update here