There are challenges here, absolutely. But there are also clear steps operators can take to protect their people pipeline and stay competitive in the months ahead. 

This Budget won’t break hospitality – but it demands stronger leadership, sharper planning and a more resilient people strategy. 

The operators who will weather this period best are the ones who: 

  • Build smarter staffing pipelines – flexible labour models are no longer optional 
  • Improve hiring accuracy to reduce costly mis-hires 
  • Prioritise retention and rota stability to protect team morale 
  • Strengthen their employer brand to keep attracting talent even in tighter conditions 

This is where the real competitive edge will come from. Hospitality will, as always, adapt. But it shouldn’t have to do it alone. 

What the Budget means in real terms 

The reaction across the sector has been consistent: some welcome moves, but more pressure where it hurts most. 

The permanent business rates multiplier cut will support some venues. And free apprenticeships for under-25s are a genuinely positive step for operators investing in young talent. 

But these positives sit alongside some heavy cost increases. 

Minimum wage rises reshape team structures again 

For the third year running, strong increases across all age brackets are compressing pay ladders. 

Supervisors, senior CDPs and skilled juniors are now sitting closer to entry-level pay than ever, creating real pressure on progression and fairness within teams. 

A tourist tax on an uneven playing field 

The intention may be to align with Europe – but Europe pays far lower VAT on hospitality. 

Without addressing that disparity, the UK risks becoming less competitive for international travellers. 

Labour (no pun intended) remains the biggest cost pressure 

Operators are reporting the same challenges we see daily: 

  • stretched teams 
  • creeping turnover 
  • fewer experienced candidates than pre-pandemic 
  • venues reducing hours 
  • consumers with less discretionary spend 

And when the cost of employing staff rises, the cost of replacing them rises even faster. 

Where operators can take back control 

Higher accuracy hiring 

Mis-hires cost more every year. Precision at the recruitment stage protects margins. 

A flexible labour model

Temporary chefs and FOH teams are now essential for scaling safely and protecting core staff. 

Retention as a cost-saving strategy

Predictable rotas, clearer communication and stable hours keep teams grounded and reduce turnover. 

Faster hiring processes

Good candidates don’t wait. Delays lead to lost talent and lost revenue. 

Stronger employer branding

Culture, onboarding and communication now carry measurable financial value. 

The bottom line 

This Budget adds pressure, no question. But the operators who protect their people pipeline – and invest in smarter staffing, stronger retention and better hiring accuracy – will come through stronger than those who simply hope for the best. 

Hospitality will keep adapting. 

And Jubilee will keep supporting the operators who drive it forward.