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Stewart Moss, MD at High Level Software

Stewart Moss

Managing Director

Here’s a detailed look at how the Labour, Conservative, and Liberal Democrats’ manifestos might impact hoteliers.

Labour Party Manifesto

The Labour Party’s 2024 manifesto outlines a comprehensive plan to transform the UK’s economic and social landscape, with several policies directly affecting the hospitality industry. Some of the key areas of focus include the reform of business rates, energy prices, and workplace rights. Here’s how these policies might impact the hotel sector:

Reform of business rates

One of the primary pledges is to reform business rates, which have substantially burdened hotel businesses in recent years. This reform aims to provide significant financial relief for smaller hotel businesses that often face high operating costs, resulting in substantial savings.

With lower business rates, hoteliers can allocate more resources toward improving customer experiences and expanding services.

Tackling energy prices

Labour’s manifesto also includes a significant initiative to tackle energy price volatility through the creation of Great British Energy, a new public energy company designed to provide stable and affordable energy prices. This initiative is particularly important for hotels, which could see a significant reduction in operational expenses.

Lower energy costs can free up capital for other critical areas such as improving facilities, enhancing guest experiences, and expanding services. What’s more, Labour’s initiative includes substantial investment in renewable energy sources helping hoteliers to meet their sustainability goals.

Improving workplace rights

Additionally, Labour’s manifesto includes a series of measures aimed at improving workplace rights. These measures include written contracts for workers, improving job security, reducing pay disputes and providing clarity on working hours and job responsibilities.

Likewise, Labour plans to tackle late payments and extend health and safety protections. All will contribute to improved staff morale and high retention rates, something the hotel industry has been struggling with since COVID-19 and Brexit.

Conservative Party Manifesto

The Conservative Party’s manifesto outlines several initiatives aimed at supporting the hospitality industry. Key highlights include business rates relief, specific support for pubs and hospitality businesses, and a ten-point plan for SMEs. Here’s a detailed look and their potential impact on the hotel sector:

Business Rates Relief

The Conservatives plan to ease the burden of business rates on high street, leisure, and hospitality businesses by increasing the multiplier on distribution warehouses that support online shopping over time. What’s more, they plan on prioritising hospitality businesses to sustain these vital components of the economy.

This rebalancing aims to provide financial relief for smaller hospitality businesses and independent hotels that have been struggling with high operational costs, enabling them to reinvest in services and focus on improving guest experiences.

Support for Pubs and Hospitality Businesses

As part of the specific support for pubs and hospitality businesses, the Conservatives are looking to freeze alcohol duty to help keep costs down and enable hospitality businesses to maintain competitive pricing.

Additionally, they have also committed to reversing the decline in the night-time economy to address the reduction of pubs and clubs, enhancing the appeal of towns and cities and boosting city centre hotel occupancy rates.

Ten-Point Plan for SMEs

There are several provisions for the hospitality business in the Conservatory’s ten-point plan for SMEs, including reducing the complexity of reporting requirements and saving much-needed time and resources to focus on the guest experience.

Liberal Democrats Manifesto

The Liberal Democrats’ manifesto presents a comprehensive plan centred on sustainability, renewable energy, and robust support for the tourism and hospitality sectors. The commitment to achieving net zero emissions by 2045, substantial investment in renewable energy, and the creation of key government roles to oversee sustainability and hospitality underscore the party’s dedication to a greener, more resilient economy.

Additionally, they address the COVID-19 pandemic’s impact on culture and tourism highlighting the need for targeted support to ensure these vital industries can recover and flourish.

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