Budgeting for Christmas and Beyond

This month’s post was delayed while our writer went through the details of last week’s Budget. And detail is the key word with few big announcements and some tweaks that will affect hospitality and catering businesses.

The Budget is about the future. Most changes coming into effect next April. Aside from alcohol duty which for some inexplicable reason rises in line with inflation in February! For catering businesses, it’s as always, making the so-called golden quarter count.

Budget Gains, Losses and No Changes

A headline was the small business rates relief increases from £12,000 to £18,000. For most others, business rates are frozen until 2028. While not perhaps taking half of restaurants out of business rates, the changes here are welcome from April 2027. There is also an interesting switch coming from April; 20% of business rates are going to be directed to Local Mayors and Authorities to spend. Make a note for January to consider influencing emerging plans for reviving your local high street!

The gain is matched by increased expenditure on wages, the unavoidable bedrock of our sector. The National Living Wage increases by 3.9% to £13.20 and youth from £10.85 to £11.27. The Employers’ National Insurance threshold remains at £5,000. This will create even more squeeze on margins, where an increase in price will be immediately picked up by highly cost-conscious customers.

Christmas Preparation

For many, the quarter is best described as December, to generate the income that will take you safely through to Easter. Many will be already promoting and taking bookings as customers start to think of Christmas prompted by November’s first national tv adverts. Some clients will leave it later than normal to decide as they too weigh up the cost.

For both early and late bookers/drop-ins, it’s essential to be prepared. What drives your kitchen is your Rational ovens. Now is a good time to order your cleaning essentials from our on-line shop. These help keep your ovens working efficiently, which can reduce power costs.

November is also a good time to consider whether an oven service is needed? If so, book it at a mutually convenient time with our office team – Lynne, Neil or Rob on 01454 322 222. This also minimises costs, rather than an emergency callout in peak service at one of the busiest times of the year.

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