This week’s King’s Speech outlined the new government’s legislative agenda, setting the tone for the coming year. It outlines several legislative changes that could significantly impact the hospitality sector, focusing on improving worker protections, enhancing safety, and modernising planning processes.
Overall Kate Nicholls, Chief Executive of UKHospitality, said, “The next session of Parliament will be essential in kickstarting the growth needed to achieve the Government’s objectives. It’s positive to see significant measures announced today that can help hospitality achieve its growth potential of 6% a year.”
However, the omission of business rates reform remains a critical concern for industry leaders who are advocating for immediate government action to support the sector’s economic recovery and growth. Below is a summary of the areas that those working in hospitality need to be aware of, with comments from industry leaders Kate Nicholls, Michael Kill, and Stephen Montgomery.
Stephen Montgomery of the Scottish Hospitality Group said overall “we welcome many of the points made in the King’s Speech yesterday, however, introducing many of these plans will bring with it many added costs to the hospitality sector. Hospitality must be seen as a professional sector by devolved Governments right across the UK, but parity is essential, and where a UK Government implements change which is relative for England, then the Scottish Government needs to reach out to the sector to look at the implications here.”
Employment Rights and Worker Protections
One of the central pieces of legislation is the Employment Rights Bill, which aims to overhaul working practices. A notable change is the proposed ban on zero-hours contracts. This will require employers to provide reasonable notice for shifts and offer compensation for any cancellations, necessitating adjustments in staffing policies to ensure shifts are scheduled well in advance. Michael Kill, CEO of NTIA, commented on this potential change: “The potential ban on exploitative zero-hour contracts… will greatly benefit employees in the night-time economy, fostering a more stable and fair working environment, and aiding retention.”
Additionally, the introduction of a “genuine living wage” to reflect the cost of living, along with the removal of age bands on the minimum wage, means younger workers will receive higher wages.
The bill also includes provisions for parental leave and sick pay to be available from the first day of employment, although probation periods will still apply. Michael Kill emphasised the benefits: “Immediate rights for workers upon starting a job… will enhance the working conditions for our sector’s employees.”
Kate Nicholls said, “As a sector that provides jobs and opportunities for everyone across the country, hospitality businesses are passionate about how to make those jobs work for everyone.
“Working mums, carers or students who are juggling jobs and busy lives every week want and need flexibility, and we want hospitality to remain the job of choice for them. We’ve been pleased to work with Labour on its proposals and look forward to continuing that productive dialogue during the passage of this Bill.
Labour has also pledged to reform the Apprenticeship Levy, making it more flexible and allowing businesses to use funds for a broader range of training programs. This change aims to address skill shortages and support staff development in the hospitality sector. Nicholls expressed approval, stating, “Flexibility on how to spend funds through a new Growth and Skills Levy will greatly enhance training opportunities, as well as free up funding to support rollout of our successful skills pilot to help those unemployed into roles in hospitality.”
Safety and Compliance
The introduction of Martyn’s Law (Terrorism Protection of Premises Bill), named in honour of Martyn Hett, is another critical component, requiring venues to prepare for and mitigate the impact of terrorist attacks. This includes staff training on evacuation procedures and other safety measures. Smaller venues will have simplified, cost-effective compliance options. Nicholls said, “Hospitality businesses stand ready to deliver their role in achieving the aims of this legislation; to keep our staff and customers safe.”
Micheal Kill said, “It is crucial that this law harmonises with existing legislation, supports and improves current operational practices, and remains cost-effective in today’s economic environment”
The government also plans to make drink spiking a specific criminal offence. Michael Kill – CEO, Night Time Industries Association (NTIA) said, “This new law is intended to help law enforcement respond more effectively to such incidents, enhancing safety in nightlife venues. A key highlight is the long-awaited focus on the reduction of crime against women and girls, with the introduction of a specific crime for spiking, which the NTIA and other advocates have championed over the past few years.
“This legislative change, one of the key asks from the previous Government by the NTIA at the House of Lords Select Committee, will significantly enhance the role of the police. By providing a robust data source to address this issue and focusing on direct intelligence to capture perpetrators, we can better protect our patrons and ensure safer environments in our venues”.
Planning and Infrastructure
New laws will also aim to modernise and expedite planning processes, making it easier for hospitality businesses to expand and develop. This includes improving decision-making in planning committees and ensuring a more predictable service for developers. Kate Nicholls highlighted the importance of these changes: “Planning approvals have been in freefall since 2013 and have been one of the major barriers to business growth. I’m pleased to see the inclusion of this Bill to reform the system, putting growth at its heart.”
Labour’s pledge to reform the Apprenticeships Levy by creating a flexible Growth and Skills Levy is a positive step. Ensuring that skills and training needed to access apprenticeships are not ignored will help develop a skilled workforce, vital for the continued growth and innovation of the night-time industries.
Business Environment
A draft bill will introduce new regulations to protect workers and suppliers from unscrupulous business practices by replacing the Financial Reporting Council with a new regulator with broader powers. Nicholls commented, “New laws around financial reporting and the conduct of company directors are designed to protect workers and suppliers from rogue employers.”
The NTIA adds that the introduction of a new offence for assaulting a shop worker is a welcome step in providing additional protection for businesses and their employees. However, it is crucial to acknowledge the severe impact of verbal and physical assaults in the night-time economy and hospitality sectors. Over 90% of security personnel in these areas face physical and verbal abuse during every shift. Therefore, explicitly including protections for the night-time workforce is essential as a deterrent to potential perpetrators.
Missing Reforms and Industry Reactions
Despite previous promises, the speech did not address business rates reform. This has been a point of contention, with industry leaders like Kate Nicholls urging the government to tackle this issue in the upcoming Autumn Statement to avoid significant financial burdens on the sector. “Most pressing is the looming rise in business rates next April, which will drop an almost billion-pound bill on the sector. An extension of relief and a freese in the multiplier is essential for the sector to continue doing what it does best – creating jobs, driving economic growth, and investing in communities,” said Nicholls.
Stephen Montgomery further stressed the need for reform and said, “We noted there was nothing on business rates in the King’s Speech, however, with rates being a devolved issue, we are keen to see the scrapping of the current system for hospitality and it being replaced with a new one.”
Industry Response
While the hospitality sector has welcomed several of the proposed measures, concerns remain regarding the lack of business rates reform. Kate Nicholls emphasised the importance of extending business rate relief and freezing the multiplier to prevent a significant increase in costs for hospitality businesses next April. “With no mention of business rates in today’s King’s Speech, the autumn fiscal statement is now all the more important to drive the Government’s plan for national renewal and to show clear progress on delivering its manifesto commitment to fix the broken business rates system,” she said.
Michael Kill also praised the government’s focus on reducing crime, including spiking, and protecting workers’ rights. However, he emphasised the need for further support in the Autumn budget, particularly around business rates relief, VAT reduction, and support for SMEs. “It is important to note that there is still a significant amount of work that needs to be done in terms of the economic recovery, and feel the Autumn budget will be a tougher test for the new Government,” he stated.
Montgomery added, “At a UK Government level, a change in the VAT rate for hospitality across the UK is essential, and we look forward to the next Autumn budget to see where this will land. The Scottish Hospitality Group remains fully committed to working with the Government here in Scotland and in Westminster to make the much-needed changes to the sector.”