The UK hospitality sector is once again facing a period of uncertainty as we approach the Autumn Budget 2025. With rising operational costs, increasing tax burdens, and labour pressures, many hospitality businesses are struggling to maintain profitability while continuing to deliver great customer experiences.

At Heighten Hospitality, we work closely with hotels, restaurants, pubs, and leisure operators across the UK  helping them stay compliant, optimise their tax position, and build financial resilience.

Below, we explore the current issues impacting the sector and how we can help your business navigate them

The Rising Tax Burden on UK Hospitality Businesses

Recent surveys show that 60% of UK business leaders are concerned about the growing tax burden. The hospitality sector has been particularly affected, following National Insurance increases and changes to VAT and business rates.

For many independent and group operators, these tax pressures directly affect pricing, staffing, and investment decisions.

How Heighten Hospitality helps:

Our specialist tax advisors help hospitality businesses identify available reliefs, ensure compliance, and create tailored tax strategies that reduce liabilities and improve cash flow.

From Hospitality VAT planning to corporation tax optimisation, we make sure your business keeps more of what it earns.

Energy Costs and the Packaging Tax Challenge

Rising energy bills and new packaging levies have placed additional strain on hospitality operators. Some major chains have reported that packaging taxes alone could triple their annual costs. Combined with fluctuating energy prices, this makes accurate cost forecasting more difficult than ever.

How we help:

Heighten Hospitality’s accounting experts can support you with detailed cost analysis, budgeting, and sustainability planning. We help you identify efficiencies, forecast expenses, and explore government incentives or reliefs for energy-saving initiatives.

Employment and Operational Pressures

Since the last UK Budget, the hospitality industry has recorded over 89,000 job losses, representing more than half of all job losses in the UK economy. This stark figure highlights how vulnerable the sector remains and why effective financial management is essential.

Our approach:

We support clients with payroll management, cash flow planning, and financial forecasting helping them manage staffing levels sustainably while meeting employment and tax obligations.

What to Expect from the Autumn Budget 2025

The upcoming Autumn Budget could bring further changes to business rates, VAT, and relief schemes for retail, hospitality, and leisure. Businesses should be preparing now to adapt quickly once new measures are announced.

Our team at Heighten Hospitality continuously monitors government updates and HMRC announcements to keep our clients informed.

As soon as the Budget is released, we’ll provide tailored insights on how the changes impact your business and what actions to take.

Partner with Heighten Hospitality

At Heighten Hospitality, we specialise exclusively in the UK hospitality sector combining deep industry knowledge with expert financial and tax advice.

Whether you’re managing a boutique hotel, a restaurant group, or a growing chain, our dedicated accountants and tax advisors can help you:

• Stay compliant with evolving tax legislation
• Optimise cash flow and profitability
• Plan for upcoming Budget changes
• Streamline accounting and reporting processes
• Access available reliefs and incentives

If you’d like to discuss how we can support your business, get in touch with our team today.