On Wednesday 26th November, the Government delivered their Autumn Budget that sets the tone for the UK’s economic landscape over the next decade, and the implications for the leisure, tourism, hospitality and attractions sectors are significant. 

With the OBR outlining a structurally low-growth, high-tax environment, operators across the visitor economy are preparing for a period defined by higher operational costs, weaker consumer spending power, and new layers of regulation and taxation that will shape decision-making long into the future. 

Here’s what the Budget means for the sector, and why events like Land Leisure & Tourism 2026 will be essential for staying informed, connected and future-ready. 

A high-tax, low-growth decade ahead 

The OBR's headline message was clear: the UK is now entering a prolonged period of weak growth and rising taxes. Real GDP per head and real household income are expected to grow only marginally, while the tax take rises by more than five percentage points of GDP compared with 2019--20. 

For the visitor economy, this means two things: 

• Consumers will have limited disposable income growth, affecting demand for holidays, days out and leisure activities. 

• Operators will face higher taxation and fewer fiscal tailwinds, making efficient operations and value-driven experiences more important than ever. 

 

New visitor levy powers for mayors 

One of the most significant tourism-specific announcements is the confirmation of visitor levy powers for mayors in England. The Government will legislate to allow mayoral authorities, and potentially other strategic bodies, to introduce a levy on: 

• Hotels 

• B&Bs 

• Holiday lets 

• Guesthouses 

 

A 12-week consultation is now underway. For the sector, this marks a major shift. While visitor levies are common across Europe, this introduces a new tier of local taxation for UK overnight stays. Operators will want to watch closely how these levies are implemented, how rates vary between regions, and whether revenue is genuinely ring-fenced for improving visitor infrastructure. 

 

Time-limited Business Rates Relief, but rising pressure by the end of the decade 

While the Budget offers temporary help through changes to multipliers, transitional relief and extended business-rates retention pilots, this relief largely unwinds by the end of the decade, leaving many hospitality, retail and leisure businesses facing higher long-term rates. 

New retention zones (including the new 25-year Leeds City Fund) may benefit local investment, but everyday operators will still be grappling with rising fixed costs. 

 

Minimum wage uplift: Positive for workers, cost shock for employers 

From April 2026, the National Living Wage and youth minimum wages will rise significantly, delivering a welcome income boost for the UK’s lowest-paid workers. However, the impact on tourism employers will be substantial. Hospitality, attractions, seasonal events and businesses heavily reliant on younger staff will see some of the sharpest increases in labour costs in decades. 

In a sector already dealing with tight margins, staffing shortages and high turnover, this creates a renewed need for efficiency, strong retention strategies and technology-led solutions. 

 

Tax rises on travel and assets 

Other measures relevant to the sector include: 

• APD rates rising from 2027 

• Higher APD for large private jets 

• Increased taxes on property, dividends and savings 

 

These compound the sense of a high-tax strategic environment that will affect investment appetite, expansion plans and UK competitiveness for inbound travel. 

 

Household squeeze: Softening demand in the domestic market 

Real household disposable income per person is forecast to grow by just 0.25% per year on average, a fraction of the growth seen in previous decades. For domestic tourism, this means: 

• Less discretionary spend 

• Reduced frequency of short breaks 

• Greater focus on value-for-money experiences 

 

Operators will need to differentiate not only on price, but on the quality, memorability and emotional impact of their offer. 

 

A sector being asked to deliver more with less 

Taken together, the Autumn Budget paints a picture of a sector facing: 

• Higher labour costs 

• Higher tax exposure 

• Softer consumer spending 

• New visitor levies 

• Ongoing reliance on migration to sustain labour supply 

 

…while still being asked to innovate, improve visitor experiences, and invest in infrastructure. The visitor economy is carrying more of the fiscal burden, often with the promise that these funds will be reinvested in local destinations, though this remains to be seen in practice. 

 

Why Land Leisure & Tourism 2026 is a must-visit show 

In a landscape as fast-moving and regulation-heavy as the one outlined in this Budget, operators need clarity, collaboration, and up-to-date guidance more than ever. 

Land Leisure & Tourism 2026 will once again bring together industry leaders, analysts, suppliers and innovators to help visitors: 

• Understand policy changes 

• Navigate rising costs 

• Explore operational efficiencies 

• Discover new revenue streams 

• Strengthen guest experience despite tighter margins 

• Prepare for visitor levies and fiscal reforms 

• Learn from experts across hospitality, holiday parks, attractions and rural tourism 

 

For operators who need to stay ahead of legislative shifts, market pressures and customer expectations, the show is more than an exhibition, it’s an essential touchpoint for future-proofing your business. 

 

Stay ahead - Pre-Register for 2026 

The Autumn Budget has made one thing clear: the next few years will reward businesses that stay informed, adapt early, and innovate intelligently. 

Don’t miss your chance to be part of the UK’s leading event for insight, innovation and industry intelligence. Pre-register now for Land Leisure & Tourism 2026 to receive updates, early announcements, and priority access. 

Claim your FREE ticket