Holiday Tax confirmed
- 1 June 2026
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.
The recent increase in the UK minimum wage is a positive step in supporting workers through ongoing cost-of-living pressures, and we recognise its role in improving staff retention and morale. However, these changes will inevitably result in rising labour costs, placing added pressure on margins and operational budgets across the sector.
With labour already one of the highest costs for us, our customers and our suppliers, this adds to existing challenges such as rising food prices, energy bills, and business rates. As a result, many businesses may be forced to make difficult decisions, including reviewing staffing levels, adjusting opening hours, or increasing menu prices. While we remain committed to fair pay, it is important that these changes are balanced with appropriate support to ensure the long-term sustainability of the hospitality industry.
As a key supplier to the UK hospitality sector, Bidfood is voicing the concerns shared across the industry regarding the...
As a key supplier to the UK hospitality sector, Bidfood is voicing the concerns shared across the industry regarding the planned removal of key hospitality roles from the Skilled Worker visa route from 22 July 2025.
Roles such as chefs, restaurant and catering managers, and hotel and bar supervisors are vital to the success and smooth operation of hospitality businesses. Removing these roles from eligibility risks worsening the already critical labour shortages faced by venues across the country.
We urge the government to consult closely with hospitality leaders on this issue as, if implemented, this policy change undermines the sector’s ability to recruit essential talent at a time when the industry is still grappling with many challenges.
It’s important to remember that the hospitality industry plays a vital role in the UK economy and needs a workforce strategy that recognises its value and supports its future.
We’ve seen the recent reports highlighting concerns over reduced portion sizes and lower meat content in school lunches, and we...
We’ve seen the recent reports highlighting concerns over reduced portion sizes and lower meat content in school lunches, and we understand the concern around this. School catering teams are facing unprecedented pressures, from rising food costs and tight budgets to increasing dietary and sustainability demands, resulting in difficult decisions in school kitchens across the country.
While changes to meal composition can sometimes reflect wider economic pressures, our goal remains to support schools in providing children with meals that are nourishing, satisfying, and aligned with school food standards.
We continue to advocate for greater investment in school catering and are actively collaborating with local authorities and partners to ensure that every child receives the quality meals they deserve.
I’m delighted by the UK government’s recent announcement that an additional half a million children will receive free school meals....
I’m delighted by the UK government’s recent announcement that an additional half a million children will receive free school meals.
Bidfood and I have long campaigned for the expansion of healthy, free school meals, and I’m proud to see the collective efforts beginning to deliver real, positive change. This is a promising step towards the support we’ve all been hoping for.
It is also pleasing to see the School Food Standards is set to be updated to align to the latest guidance on nutrition, which along with our expert nutrition team, we will look to engage with the government on any changes that are implemented.
That said, while this news is both welcome and encouraging, it’s crucial that we now see a fundamental increase in funding to ensure the long-term sustainability of this vital service. I look forward to Bidfood continuing to be a strong voice in this important conversation.
Recently the government has proposed changes to the Soft Drinks Industry Levy (SDIL), which was originally implemented in 2018. These...
Recently the government has proposed changes to the Soft Drinks Industry Levy (SDIL), which was originally implemented in 2018. These proposed changes include lowering the 5g sugar threshold and removing the exemption for milk-based drink and milk substitute drinks such as milkshakes and iced coffees.
The SDIL has achieved great success so far, with 46% of the sugar being removed by the drinks in scope already, and we hope that future changes to the levy will continue to incentivise industry and reduce sugar consumption further.
However, tackling obesity requires a multi-faceted approach. Whilst a sugar tax has been seen to be successful for soft drinks so far, it does not mean it would have the same success if applied to other food types. Like voluntary industry programmes, restrictions on less healthy foods and education for consumers may yield better results.
The Extended Producer Responsibility Legislation (EPR) has been introduced to hold producers responsible for paying the full cost of managing...
The Extended Producer Responsibility Legislation (EPR) has been introduced to hold producers responsible for paying the full cost of managing and recycling the packaging waste from their products. However, although the principles of EPR make sense, some of the practical applications are much less well thought through.
EPR has been years in planning, but even now we do not have confirmed rates that will be applied for the charges applicable to businesses for products that could be deemed relevant for street bin or house hold waste.
Businesses predominantly operating through B2B channels are expected to pay EPR fees on all products sold as it cannot be determined whether these are sold through B2B or B2C channels. However, this is likely to place an incorrect charge on B2B businesses, such as wholesalers, who may in turn be forced to increase prices.
It is disappointing that although we have raised these issues with DEFRA, they seemed uninterested, taking the view that these are minor issues in the context of the wider picture.
For more information on EPR, click here.
Allergens remains a key focus for us at Bidfood and we welcome the new allergy information guidance for non-prepacked foods....
Allergens remains a key focus for us at Bidfood and we welcome the new allergy information guidance for non-prepacked foods. Out of home businesses are extremely diverse, varying in size, often operate across multiple sites and serving food in a variety of ways. Therefore, flexibility is crucial to this guidance.
We’re pleased to see the Food Standards Agency (FSA) have taken into consideration some of the concerns of the industry, adopting a more flexible approach that advises businesses on different options to deliver clear written and verbal information to consumers as not ones size can fit all.
Although not a legal requirement, this will hopefully help to raise allergen management standards and ensure operators are meeting their consumer expectations in a way that works for their businesses.
A recent review into the impact of calorie labelling in supermarkets, restaurants and other food outlets determined that there has...
A recent review into the impact of calorie labelling in supermarkets, restaurants and other food outlets determined that there has been a small reduction in calories people purchased and consumed, equating to around two almonds per meal. This may feel insignificant, however if sustained over a long time this can still have an impact at a population level.
At Bidfood, we agree that a multifaceted approach is needed to tackle obesity and improve the health of the population, remembering that calorie labelling is no silver bullet. This is why our nutrition strategy focuses on a broader approach to health and wellbeing and aligns to government policies, industry guidance and healthy eating initiatives.
We must also remember that everyone has a different relationship with food and seeing the calorie count may help some, but for others it can have a negative effect. It is therefore incredibly important that menus without calorie information can continue to be shared with the consumer at their express request to support them in their meal experience.
For further information on our resources for calorie labelling, as well as wider legislative support, click here.
Hearing The Prime Minister set out his commitment to the rollout of AI technology across the UK is certainly something...
Hearing The Prime Minister set out his commitment to the rollout of AI technology across the UK is certainly something that we as an industry can get excited about. Many within wholesale and foodservice have already started to implement new technologies that incorporate AI, identifying it as an important tool that could create efficiencies, increase effectiveness and support the customer experience.
AI and advanced analytics continue to develop at an incredible pace and what we see as new technology today, could be old news in the near future. In order to operate an efficient business, these tools should be embraced but, approached with caution, to ensure tools and data are fully understood before being used.
Following the disappointing Autumn Budget, Bidfood is very aware that pub operators are predicted to suffer. The National Insurance increase...
Following the disappointing Autumn Budget, Bidfood is very aware that pub operators are predicted to suffer. The National Insurance increase and lowering of the threshold will weigh heavily on many pub operators who rely on part-time staff. Increases to the minimum wage and removal of business rate support also put many small businesses at risk.
Pubs are the heartbeat of many communities, offering delicious food and drink while providing a place where people can come together, unwind and enjoy themselves. We know how important a good food offer is to our customers and the critical part it plays in helping them make a sustainable profit.
We absolutely support the call to government for swift and decisive reforms to employers NICs so we don’t lose these wonderful businesses.
In the wake of the recent protests, we sympathise with those farmers that have taken to the streets to express...
In the wake of the recent protests, we sympathise with those farmers that have taken to the streets to express their concerns around the changes to inheritance tax. British farmers produce food to some of the highest standards across the world, but these changes suggest a lack of appreciation or understanding by government towards the farming process.
The illusion of generational farmers sitting on considerable wealth is in most cases inaccurate, with most annual incomes reflecting modest figures. It is likely that unless the Government reconsider their stance on the proposed changes to inheritance tax, many farming families will struggle to continue.