Claudia Schergna

📌 UK Chancellor Rachel Reeves announced economic measures in her Spring Statement, extending business rates relief but not fully addressing cost pressures. OBR halved the UK's 2025 growth forecast from 2% to 1% due to global instability and borrowing costs. The Retail, Hospitality and Leisure Relief (RHLR) is extended for another year at a reduced 40% rate, with a cap of £110,000 per business. Small businesses with properties under a £51,000 rateable value will benefit from a small business multiplier freeze. From April, the National Living Wage will increase by 6.7%, giving a £1,400 annual raise to three million workers. Hospitality sector leaders are disappointed with the lack of meaningful support, as the sector faces a £3.4 billion annual tax hike. NICs threshold changes will lead to reduced recruitment and employment. Visa and immigration fees will rise from 10 April 2025, with a Certificate of Sponsorship for skilled workers increasing from £239 to £525, expected to generate £400 million by 2029/30. Hospitality in London faces a £300 million impact from a 15% NICs hike, with the earnings threshold lowered from £9,100 to £5,000, pushing for technological adoption for survival. With the UK economy shrinking by 0.1% in January and interest rates at 4.5%, hotels may stop recruiting, cancel investments, and increase prices. Short-