The Meetings Industry Association (MIA) has reacted to the Chancellor of the Exchequer’s Autumn Budget 2024, which was presented in the House of Commons yesterday.
The MIA’s chief executive, Kerrin MacPhie, said on the following areas:
Minimum Wage and National Living Wage
“We welcome government’s promise of a “genuine living wage”, however must recognise that these changes reflect further cost increases to businesses, while also reinforcing our sectors’ widely reported recruitment and staffing challenges across the sector.
“The rise of the National Living Wage to £12.21 an hour for over 21s and the 16% increase in minimum wage for 18–20-year-olds will have implications for our sector, increasing operating costs from April 2025 and further impacting pricing and profitability.
“Given the ongoing staff shortage in the sector we have been actively encouraging organisations to consider the employment of apprentices to fill and grow into roles. With it announced today that new and existing apprentices’ hourly wage will raise from £6.50 to £7.55 an hour from April 2025, having already increased from £5.28 earlier this year, this is becoming increasingly less viable.”
Rise in Employers National Insurance
“The increase in employer’s National Insurance contributions from 13.8% to 15% reflects significant cost increases when spread across the average workforce – particularly for large-scale conference centres and venues.
“While the £5,500 increase to £10,500 Employment Allowance means those with a smaller workforce will be less impacted by the rise in employers’ contributions, increasing taxation on salaries could potentially stunt wage growth within the sector. With tighter margins, employers may feel reluctant to increase wages at the same rate as before given the increased investment this requires, which could increase the appetite for careers in alternative industries as we experienced during the pandemic.”
Retail, hospitality and leisure relief
“The 75% discount on business rates for the retail, hospitality and leisure industries will be replaced by a discount of 40%, up to £110,000, again creating a significant increase in expenditure for those that have found much-welcome relief in the scheme.
“Currently, event venues may be eligible for the scheme dependent upon their specific use of the venue as well as local authorities’ interpretation of the scheme’s guidance. We have long had challenges based on the definition of hospitality and leisure and where business meetings and events sits, so we continue to ask for clarity on this so that venues can understand whether they will be entitled to some level of relief.”
Industry Investments
“The £1bn investment into aerospace, £2bn investment in automotive and £500m investment in life sciences could be a positive step in positioning the UK at the forefront of innovation while boosting inward investment. These commitments not only strengthen key sectors but could also create valuable opportunities for sectors such as UK business meetings and events.
“Increasing the attractiveness of the UK as a destination for business is a pivotal step in attracting international conferences and exhibitions in these fields. Boosting inbound tourism and showcasing UK event spaces on a global scale can only be a positive for long-term growth as we strive to position the UK as the go-to event destination.”
NOTES TO EDITOR
About the MIA
The mia is one of the fastest growing associations in the conference, meetings and events sector, founded by a proactive group of hotel and conference centre operators and booking agents to lead the conference, meetings and events industry, providing accreditation, industry awards, research and a voice to government.
The mia supports over 670 members by:
- Providing extensive regional networking opportunities on a monthly basis.
- Helping them to achieve the highest standards of facilities and service through achievement of AIM, the industry standard of quality and excellence.
- Providing a library of best practice and quality standards guidelines.
- Promoting AIM to industry buyers.
- Delivering tangible benefits which support members in the achievement of their own business goals.
- By the provision of information, education, research and advice all of which lead to improved business performance.
- By sharing issues of sector importance with them.
- By raising the profile of business tourism with government.
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