Regulatory and Legal Affairs - 10 Minutes News for Hoteliers - Page 34

Public servant fails service sector public

💸 Secretary Steve Reed announced that mayors in England will gain powers to allocate funds from a new overnight levy to local projects. Greater Manchester attracts nearly 2 million visitors annually, contributing £9 billion and supporting over 100,000 jobs. Aimed at enhancing infrastructure, the levy will not reinvest in tourism but address local needs. Chancellor's commitment to annual fiscal rule assessments aims to enhance economic stability. The focus remains on decentralized investment away from London.

4 min

Budget business rates plan ‘an attack on London and the Southeast’, says Colliers

📈 Business rates are set to rise by 10.2% from April 2026, increasing from £33.6bn to £37.1bn. The new high-value business rates multiplier is 50.8p for properties valued at £500,000+, affecting 21,000 properties, with 10,700 in London and the Southeast. The retail, hospitality, and leisure (RHL) rates relief, capped at £110,000, ends next April. A redesigned £3.2bn Transitional Relief scheme and £500m Supporting Small Business Scheme aim to provide support.

9 min

2025 Budget: “Permanently lower” business rates for hospitality

💸 UK: On November 26, 2025, Chancellor Rachel Reeves announced the Autumn Budget, addressing a £20 billion gap with £26 billion in tax hikes and new measures like a sugar tax and overnight stay tax. From April 2026, the National Living Wage rises to £12.71, adding £1.4 billion to hospitality costs. Business tax rates cut for 750,000 properties, offset by higher taxes on properties over £500,000. Inflation to hit 3.5% in 2025. Income tax thresholds frozen until 2030-31.

4 min

BUDGET: Income tax bands frozen, minimum wage to increase, NI-exempt pension threshold scrapped

💰 Income tax and NI thresholds will be frozen until 2031, generating £8bn, while the minimum wage rises by 50p from April 2026. Rachel Reeves, the chancellor, announced measures to address a £20bn fiscal gap. Pension tax breaks above £2,000 will no longer be NI-exempt, raising £4.7bn in 2029-30. A new mansion tax on homes over £2m targets 100,000 properties. The government will introduce a mileage tax on EVs at 3p per mile.

UKH warns proposed holiday tax could raise domestic travel costs

🏨 UKHospitality warns a proposed 5% holiday tax in England could cost domestic travelers up to £518m, affecting over 89 million annual trips. This would raise the VAT on holiday accommodations to 27%, doubling rates compared to Paris and significantly more than Barcelona or Rome. The potential tax, aimed to address cost of living issues, is opposed by UKHospitality chair Kate Nicholls, who argues it will increase consumer costs and inflation. The government has paused for consultation.

Hospitality faces £1.4bn in extra wage costs from April 2026, UKH warns

💸 Hospitality businesses in the UK face £1.4bn in additional wage costs from April 2026 due to a 4.1% rise in the National Living Wage to £12.71. The rate for 18-20-year-olds will increase by 8.5% to £10.85. UKHospitality emphasizes urgent business rates reform. Almost one million young people are not in employment, education, or training, challenging youth employment. Kate Nicholls, UKH chair, highlights the need to address tax burdens to prevent inflation from rising costs.

4 min

Mayors in England granted power to introduce overnight levy

🛫 England's mayors are empowered to introduce an overnight accommodation levy to boost transport, infrastructure, and tourism. The levy applies to hotels and similar accommodations, with regional discretion on implementation. A 12-week consultation ends on 18 February 2026. Proponents include mayors from London, Manchester, and the West of England, emphasizing local service reinvestment. However, industry critics warn of increased travel costs, reduced competitiveness, and added pressure on the heavily taxed UK hospitality sector.

6 min

EU Digital Omnibus Package – A First Look at the Commission’s Draft Proposals

💻 November 18, 2025, the European Commission will unveil the Digital Omnibus on November 19, 2025. This initiative, a significant update since GDPR in 2018, aims to simplify EU digital regulations, reducing compliance costs. It addresses data, AI, and cybersecurity, altering cookie consent rules and acknowledging AI as a legitimate interest. It narrows sensitive data definitions and facilitates AI Act implementation. The proposal seeks clearer, streamlined regulations but may add complexity in some areas.

2 min

New Study – Impact of Taxation on Hospitality Sector

💰 HOTREC's 2025 study warns that a 1-point VAT increase could result in €8 billion sales losses and over 100,000 job cuts in the EU, Iceland, Norway, and the UK. Standard VAT rates may lead to 1 million job losses and a 0.5% GDP drop. Amsterdam could see hotel taxes top 33% by 2026. HOTREC urges against sharp tax hikes, advocating for coordinated policies to protect SMEs and rural economies.

2 min

Hotels face rising costs for direct bookings

📈 Hotels face increased guest acquisition costs due to privacy restrictions and transparency standards as of November 24, 2025. Privacy rules hinder tracking, while rising media costs boost cost per acquisition. Regulations like third-party cookie loss demand strategic shifts towards first-party data, SEO, and compliance. The Cendyn report highlights that hotels must adapt to a more regulated marketing environment, focusing on direct engagement and channel consistency to maintain trust and manage costs effectively. Read Cendyn's full report for more insights.

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