UK Budget deep dive with Kate Nicholls: Higher costs, zero relief

In this special episode of What's Cooking, Nory CEO Conor Sheridan sits down with Kate Nicholls OBE, Chair of UKHospitality, to dissect the UK Budget 2025 and what it really means for operators on the ground.

The Chancellor promised "root and branch" reform of business rates and a reset that would lower bills for hospitality whilst increasing them for online giants. Instead, operators got the exact opposite. With National Living Wage rising 4.1%, employer National Insurance contributions jumping from 13.8% to 15%, and the NI threshold dropping from £9,100 to £5,000, the sector is facing thousands in additional costs per venue from April 2026.

Kate doesn't hold back on how the government has "badly let down" the industry, but she also provides practical, actionable advice for operators trying to navigate these changes. From challenging business rates valuations to the case for VAT cuts, this episode gives you the tools and context you need to protect your P&L and understand the political landscape ahead.

Whether you're running a single-site independent or managing a multi-site operation, this is essential listening for anyone in UK hospitality right now.

Meet Our Guest

Kate Nicholls OBE is Chair of UK Hospitality and one of the industry's most influential voices, with decades of experience spanning Whitbread, the European Parliament, and 14+ years leading hospitality trade organisations - most notably becoming the sector's fiercest advocate during COVID when she fought to keep millions of jobs alive and get the industry reopened.

About our Host

Conor Sheridan is the founder and CEO of Nory, a pioneering AI platform helping hospitality brands run smarter, leaner, and more profitably. A former restaurateur himself, Conor blends operational grit with technological vision.

>> How National Living Wage increases, NI contribution rises, and business rates changes will impact your P&L from April 2026, and why a typical 50-staff venue faces thousands in additional annual costs

>> Actionable advice on challenging business rates valuations through the VOA, verifying relief has been correctly applied, and strategies for menu engineering and efficiency improvements

>> Kate explains how the "root and branch" business rates reform delivered the opposite of what was promised, and what the harsh reality means for operators already struggling with no cash reserves

>> Why a VAT reduction (even 5 percentage points) would provide the fastest return on investment for government and deliver immediate relief to hospitality, with evidence from COVID and post-financial crash examples

>> The critical windows of opportunity including the Finance Bill, Scotland and Wales elections in May, and why making hospitality a political battleground issue is essential for survival

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