Following the UK Chancellor’s £40bn tax raising Budget, 30 October, including a hike in employers’ National Insurance contributions to 15%, the Events Industry Alliance (EIA) gave its reaction. The group represents business events in the UK with almost 500 companies of various types, from large multinationals to small and medium sized privately owned businesses.
A spokesperson for the Events Industry Alliance said: “We welcome the government’s ambition to kick start economic growth and we believe that the business events industry can help. Last year, our industry contributed £10.9bn to the UK economy, bringing businesses and visitors from around the world.
“However, [the] announcement of an increase in tax for small and medium sized businesses will be detrimental to growth prospects. Employment costs for our members are soaring and the increase in employers’ National Insurance contributions will clearly affect jobs, wages and prices within the industry.
“We believe that the Government should commit to providing incentives to boost the potential of our sector and encourage entrepreneurship. Combined with reducing trade frictions across the EU, this would supercharge the business events industry and enable us to deliver real economic growth.”
CEO of EDGE Venues, Jacqui Kavanagh, added: “Whilst support with business rates and investment in growth are welcome, the impact of an increase in National Insurance contribution by up to 15% from April 2025, is a deep blow for a meetings and events sector currently bucking the trend on growth. The hospitality sector by its very nature provides specialist services – there is a threat that personal services may have to be replaced by AI in some instances to reduce cost, dumbing down the services that we offer.
“This was never going to be a Budget full of giveaways, but it is frustrating that the government is laying the burden of fixing the economy on small businesses.
“These measures show that this new government doesn’t understand, or value, the potential of the meetings and events sector, in growth or the contribution of £60bn+ a year that it currently provides to the UK Exchequer.”
The UK’s Business Travel Association (BTA), separately, released a statement on the government raising regulated rail fares. Clive Wratten, CEO of the BTA said:
“The government’s decision to raise regulated rail fares by 4.6%, effective March 2025, along with a £5 increase for most railcards is deeply concerning. Affordable and reliable rail services are essential for business travellers and directly impact the UK’s economic growth.
“Passenger experience is at an all time low. Rail travel is a necessity for businesses and individuals, but additional costs must lead to tangible benefits for travellers. The BTA urges the government and the rail industry to use these increases to prioritise investments in service quality, reliability, and capacity improvements.”
