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UK Budget to raise taxes by £40bn: Hospitality industry reacts

Serviced Apartments

Reading Time: 7 minutes UK: UK Chancellor Rachel Reeves MP has delivered a Labour Budget for the first time in 14 years as the government warned of “difficult” decisions to “restore economic stability” and plug a £22 billion black hole in public finances that was estimated by the Office for Budget Responsibility [OBR].

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Budget: Increases to employers’ NI and minimum wage

Hotel Owner

The Chancellor Rachel Reeves has increased employers’ national insurance contributions in a bid to help raise as much as £40bn in taxes, pledging to also boost long-term growth and “mark an end to short term-ism” as part of Labour’s first budget since it came into power. an hour from April, up from the current pay of £11.44.

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Easyhotel’s secret to success in the budget sector

Hotel Owner

The budget hotel sector has seen major growth in the last few years as people either cut back on luxuries or want less luxury from their hotel stays. In 2022, Easyhotel’s RevPAR was up 56% and its market share increased showing strength of the budget model in the current climate.

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Spring Budget 2024: How it will affect hospitality businesses

Serviced Apartments

UK: In the Spring Budget 2024, Chancellor Jeremy Hunt revealed the government will freeze alcohol duty and cut National Insurance, as well as raise the VAT threshold for small businesses to £90,000. In today’s Spring Budget, Hunt outlined plans to increase the VAT registration threshold from £85,000 to £90,000 for small businesses.

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Chancellor cuts NI by a further 2p as part of Spring Budget

Hotel Owner

Chancellor Jeremy Hunt has announced a further 2p cut to National Insurance falling from 10% to 8% from 6 April, as part of his Spring Budget for “long-term growth”. This cut to National Insurance follows the 2p cut announced by Hunt in the Autumn Budget last year. Furthermore, the OBR expects the economy to grow 0.8% this year and 1.9%

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Travelodge acquires St Pauls office building in conversion deal

Hotel Owner

Conversion works are anticipated to begin in early 2026, with the hotel to be open for trading in the first quarter of 2027. Office-to-hotel conversion is a sustainable way of developing, as it allows us to meet the growing demand for budget hotels while reducing the carbon impact that new development brings.

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Today’s news in brief – 11/11/24

Hotel Owner

Pending planning approval, conversion will begin in 2026, aiming to open by 2027. CEO Jo Boydell explained that converting existing office buildings supports their UK development strategy and sustainable expansion, addressing demand for budget hotels while reducing the environmental impact of new builds.