When Business Rates Go Up, Wellbeing Spending Goes Down. Why Looking After Each Other Matters More Than Ever
If you work in hospitality, you don’t need another headline to tell you things just got tougher.
From April, business rates have jumped across the UK, hitting restaurants, cafés, pubs, hotels…everyone. For some, it’s thousands more a year on top of everything else: higher energy bills, rent, produce costs, and wages.
The great business rates reset means many operators are walking an even tighter line. That pressure that filters down into how we feel, how we show up, and how we treat each other at work.
1 When budgets tighten, wellbeing takes the hit
We all know how this goes. As costs rise, the first things to go are the perceived "extras" such as team lunches, wellness sessions, EAPs, courses, the coffee tab for staff and even in-house People teams and HR functions. The problem is, those “extras” are often what keep people going. What the finance team see as cost, are not actually luxuries. They’re the backbone of a healthy, sustainable workplace.
When margins get squeezed, wellbeing policies are often stripped back in a time when stress is increasing. Managers are juggling rotas and bills; staff are working longer shifts to cover leaner teams; owners are losing sleep trying to make ends meet. It’s no surprise that mental health in the industry is reaching breaking point.
The financial stress doesn’t stay in the office or kitchen, it follows you home. It shows up as short tempers, exhaustion, lost motivation or that creeping sense of hopelessness we all pretend isn’t there. In real terms, we see hospitality pros in more need of mental support services.
2 Free support still exists and it matters
If your wellbeing policy is looking lighter or access to private therapy is no longer a viable option to you, there are free services that are available to support you in a period of low mental health:
Samaritans: Call 116 123 for free, 24/7. Someone will listen -no judgment, no pressure, just space to talk.
Shout:Text SHOUT to 85258 to chat with a trained volunteer via text, day or night.
Able Futures: 0800 321 3137 from 8am to 6pm, Monday to Friday. Access to free mental health support to help you manage at work.
Cameron’s Companions: Free therapy for any man in England or Wales experiencing depression/suicidal thoughts. https://www.cameronscompanions.com/contact-us-for-help
The Listening Place: London based 1-2-1 support for anyone who feels as though life is no longer worth living. https://referrals.listeningplace.org.uk/self_referral_form/
If you’re reading this as a manager or owner, share these organisations with your team. Stick them in your staff WhatsApp or on the noticeboard. You never know who might need them.
3 The ripple effect on teams
When the business is under pressure, everyone feels it. The vibe shifts… people stop talking, small issues blow up, burnout happens faster. It’s a hard thing to admit, but hospitality has always run on emotion: passion, energy, care. If we let that run dry, the whole industry suffers. That’s why the conversation about mental health has to keep going, even when budgets disappear.
If a team member needs support and you are not sure where to direct them, head to Hub of Hope. Their extensive database of mental health resources allows you to filter by location, support need, opening hours and much more.
4 Let’s protect the humans behind the hustle
Yes, business rates matter. So do taxes, supply chains, and costs. But the truth is, the most valuable asset in hospitality isn’t a venue, it's the people.
Even if you can’t fund big wellbeing projects this year, keep checking in with your teams. Take five minutes to talk. Ask someone how they’re really doing. Have a mental health policy in place that doesn’t depend on deep pockets to honour and ensure it’s a tool your managers are trained to use. Keep humanity on the agenda, even when the finances say otherwise.