Impact of the budget on hospitality, foodservice and the supply chain

We are disappointed by the Government’s confirmation in last week’s King’s Speech that it intends to proceed with a tourism tax, introducing an additional cost for the industry at a challenging time. With families and hospitality businesses already managing rising costs, there is understandable concern that extra charges on overnight stays could make UK holidays less affordable and place added pressure on the visitor economy.

As UKHospitality has highlighted, there is a risk that this measure could disproportionately affect lower-income households, impact domestic tourism, and reduce the UK’s competitiveness as a destination while the sector continues to navigate ongoing economic pressures.

At the same time, the hospitality and tourism sector has repeatedly demonstrated its resilience, adaptability, and value to communities across the country. Businesses have continued to support local economies despite economic and operational challenges in recent years. That resilience is something the industry should be proud of, and it remains a vital strength as the sector looks to the future.

We believe it is important that any new measures are carefully considered to avoid placing unnecessary pressure on an industry that contributes so much and would encourage the Government to continue engaging closely with the sector to avoid any unintended consequences.

School meals are a vital opportunity help children access healthier, balanced meals that include a variety of nutrient-dense foods such as fruits, vegetables and beans. However, any reform must also be practical, properly funded and designed around what children want to eat. Without this balance, there is a real risk of limiting the intended impact and compromising nutritional outcomes.

At present, the proposed approach may not fully reflect the day-to-day realities of school food provision. A strong focus on tighter nutritional standards, without equal consideration of the operational realities faced by school caterers could result in requirements that appear credible in theory but are difficult to deliver consistently in practice, particularly across a diverse school system.

If menus become more restrictive or less appealing, while still carrying a cost to parents, there is a real possibility that meal uptake could decline. In that scenario, more families may turn to packed lunches, which are typically unregulated, less consistent in nutritional quality, and often include processed foods high in salt and sugar, directly undermining the health outcomes these reforms are intended to achieve.

There is also a significant risk of unintended consequences across the supply chain. While there is a clear need to improve the nutritional quality of school food, including reformulations of some products where appropriate, limited engagement with caterers and suppliers, alongside a short adjustment window, may place strain on existing contracts, require changes to product specifications, and reduce menu flexibility, all within an already cost-sensitive environment.

The risks are even greater in secondary settings. Older pupils have more independence and choice. If the food offer feels imposed, unrealistic, or out of step with their preferences, many will opt out altogether, skipping meals or turning to less healthy options outside school.

If the government is to achieve meaningful improvements in children’s nutrition, it will be important to go beyond setting standards and address the practical barriers schools face. This includes engaging closely with school caterers, and supporting implementation through effective guidance, allowing a degree of flexibility rather than one-size-fits-all approach to reflect the diversity across school settings. This should be underpinned by stronger enforcement, and food education for both pupils and parents to encourage uptake.

Ultimately, the success of the updated School Food Standards will depend not just on ambition of the standards themselves, but on whether they translate into meals that can be consistently delivered and are widely eaten by pupils. Getting this balance right will be key to improving dietary outcomes.