The Meetings Industry Association (MIA) has responded to the Chancellor’s Autumn Budget, welcoming its focus on investment and economic growth while raising concerns that some of the measures announced could place further pressure on the UK’s business meetings and events sector.
Shonali Devereaux, Chief Executive of the MIA, said: “Against a backdrop of global uncertainty, it was encouraging to see the Chancellor announce an upward revision to the UK’s growth forecast and set out a clear strategy for economic growth. Turning these ambitions into tangible economic opportunities however will require businesses to connect, collaborate and invest, and this is where our sector has a vital role to play.
“Business meetings and events provide the platforms where businesses forge partnerships, showcase innovation, attract investment and access new markets. Their contribution extends far beyond the visitor spending they generate, creating commercial opportunities and supporting economic growth long after an event has ended.
“The £6 million commitment to Glasgow’s Scottish Event Campus, alongside plans to host the next International Investment Summit in Gateshead, demonstrate that the government recognises the value events bring to communities and regional economies. We now need that recognition to go further, acknowledging business meetings and events as drivers of trade, investment and economic growth in their own right.”
National Minimum Wage & National Living Wage Increases
“Our MIA Insights research conducted earlier this year revealed that 90% of respondents reported that rising employment costs were restricting their ability to recruit younger and entry-level staff. This is a stark indication of the pressures already facing our sector, and today’s announcement does little to alleviate the sectors concerns over entry-level recruitment.
“While we fully recognise the importance of fair pay, a further 3.9% increase in the National Minimum Wage and National Living Wage will add to the financial pressures facing UK businesses managing rising employment and operational costs.
“Our sector has always benefited from people who discovered careers in events through entry-level opportunities, often without initially considering it as a career path. As rising employment costs make recruitment at this level increasingly challenging, we risk losing these vital routes into the industry. The consequence could be a significantly smaller next generation of event professionals, not because the talent isn’t there, but because people are never given the opportunity to discover the industry in the first place.
“If the government is serious about helping more young people into employment, it must also recognise the pressures facing the businesses expected to provide those opportunities. Fair pay and access to employment must go hand in hand if we are to protect the future workforce our industry needs.”
Fiscal Devolution and Overnight Visitor Levy
“Giving local authorities greater control over the revenue generated in their regions presents a real opportunity to strengthen local economies. For the business meetings and events sector, investment in transport, infrastructure and destination development is essential to attracting business events, and we would welcome greater local investment in these areas.
“The success of this approach will ultimately depend on how that revenue is used, particularly as local authorities gain additional powers to introduce overnight visitor levies. As we have previously highlighted, these can play a valuable role in supporting the visitor economy, but only if the money raised is reinvested into making destinations more attractive and competitive.
“Any potential benefits must also be weighed against the additional costs for visitors and delegates, who are already facing significant expenses when travelling to and attending events in the UK. Further charges, particularly for residential conferences and meetings, could influence decisions about where events are held and risk deterring visitors at a time when we should be doing everything possible to attract them.
“There is also the risk that different regions introduce varying charges and administrative requirements, creating unnecessary complexity for event organisers and businesses operating nationally. While greater local autonomy is positive, we must ensure it does not come at the expense of the UK’s competitiveness on the international stage.
“With these new powers not expected until 2028, there is an opportunity for our industry to help shape how visitor levies are introduced and administered. Over the next 12 months, the MIA intends to work closely with beam and the Business Travel Association to ensure our collective voice is heard, calling for a consistent and practical approach with clear accountability and transparency over how funds are reinvested.
“Ultimately, any money raised must deliver tangible improvements to the destinations generating it, whether through better transport links, infrastructure or the wider visitor experience. We cannot allow these levies to become simply another cost for businesses and their customers, particularly if that added expense risks discouraging people from visiting the UK in the first place.“
Related
