Spending Review

The 2025 Spending Review is a comprehensive evaluation of the United Kingdom’s public expenditure, setting budgetary allocations and fiscal priorities for the upcoming years.

Led by Chancellor of the Exchequer, Rt Hon Rachel Reeves MP, this review is pivotal in shaping the nation’s economic landscape. The primary objective is to ensure that government spending aligns with policy goals, addresses emerging challenges, and promotes sustainable economic growth.

For members of UKHospitality, the 2025 Spending Review holds significant importance. The hospitality industry has faced numerous challenges in recent years, including the aftermath of the COVID-19 pandemic, rising operational costs, and shifting consumer behaviours. Decisions made in the Spending Review can directly impact this sector in several ways:

Taxation policies
Business Rates and support
Wage policies
Tourism promotion
Regulatory changes

The 2025 Spending Review is a critical event for UKHospitality members, as it will outline the fiscal and regulatory environment in which they operate. Understanding and adapting to the outcomes of this review will be essential for navigating the challenges and opportunities that lie ahead in the hospitality industry.

In our response to the Spending Review, we have urged the Government to delay NICs threshold changes to assess their impact. We also outline five key priorities: supporting growth through tourism and investment, upskilling the workforce, improving infrastructure, ensuring effective government structures, and reducing the tax burden.