How the 2025 Budget Impacts the Drinks & Events Industry

Q: Will VAT or alcohol duty change in 2025?

VAT remains 20% and alcohol duty is frozen until April 2026.

Q: How does the Budget affect mobile bar and coffee cart hire?

Operating costs are rising but demand remains stable, making mobile bars cost-effective for activations.

Q: Are there any new grants for hospitality?

No new grants were announced, but green-energy incentives continue.

Q: What’s the best way to stay profitable in 2025?

Focus on multi-use assets, cross-training, and strong branding across media and events.

By Mario Baciu, Founder – Cocktails With Mario
Published November 2025 | Reading Time ≈ 10 min

Introduction: Why This Budget Matters for Hospitality

The UK Budget 2025 sets the financial stage for another challenging yet opportunity-filled year across the country’s vibrant hospitality and live-events sector.
For creative providers like Cocktails With Mario, who deliver nationwide activations through mobile bar hire in Surrey, coffee bike hire, and bespoke branded coffee cart installations, every fiscal decision directly affects client budgets, event design, and overall experience.

The message of this year’s Budget is clear: costs are steady, competition is high, and creativity will separate the memorable from the mediocre.

Our Services

Mobile Bars And Professional Mixologists for Corporate, Brand Activations and Private Parties across Surrey, Hampshire & London

Our Testimonials ⭐⭐⭐⭐⭐

✨ “The Pimms bike was a showstopper!”

“We booked the Pimms tricycle for our garden wedding in Guildford, and it was a massive hit. The staff were so friendly, the drinks were beautifully presented, and our guests couldn’t stop taking photos. It added such a unique touch to the day.”

— Sarah & Tom W., Surrey Wedding Couple

✨ “Professional, stylish, and absolutely delicious!”

“We used Cocktails with Mario for our corporate summer launch in Woking. The Pimms bike was such a cool concept – it got people talking and mingling instantly. Our branded cups and signage looked amazing. We highly recommend this service.

— Danielle H., Event Manager, Tech Startup

✨ “A highlight of our birthday party!”

“We hired a Pimms bar with bartenders for my 40th birthday in Ascot. Mario and his team were incredible – so attentive and fun. The drinks were ice cold, perfectly balanced, and the setup looked beautiful in our garden.”

— James K., Ascot

Headline Announcements: The Numbers Behind the Pour

1️⃣ VAT and Hospitality Relief

The standard VAT rate remains at 20 %, despite sector calls for a cut to the 10–13 % European average. Event companies and beverage caterers must continue to price inclusive of full VAT.
The Retail, Hospitality & Leisure (RHL) relief stays at 40 % on business rates, capped at £110,000 per business for 2025/26 — a modest help for venues and warehouse operators.

2️⃣ Business Rates Reform 2026–27

2025/26 acts as a transition year before a full revaluation in 2026–27. Two new lower multipliers for hospitality spaces are expected next year, bringing hope of fairer long-term costs for physical event locations and bar storage facilities.

3️⃣ Labour & Payroll Costs

Employers face higher NIC contributions and rising National Living Wage thresholds. Successful operators are cross-training staff — for example, a barista for events who can also serve mocktails — to maximise efficiency without sacrificing service quality.

4️⃣ Energy & Sustainability

The government extended green-equipment credits for electric coffee machines and silent-run generators — perfect for our mobile coffee bar hire and matcha bar hire activations.

Impact on Event and Drinks Businesses

Pricing and Client Expectations

With alcohol duty, logistics, and wage pressures, average drink prices will rise around 4–6 % by spring 2026.
Clients are watching spend more closely, but the focus is on value and experience. That’s why we’re seeing strong growth in the following areas:

Hot Drinks & Winter Bars: bookings for hot chocolate carts and coffee bikes are up almost 30 % from last year.
Compact Festive Bars: smaller setups like our Christmas Party Bar Hire in London let brands stay visible without overspending.
Corporate Well-Being Events: companies use cocktail-making classes to re-energise teams under tight HR budgets.

For national brands, this shift mirrors our activations with O₂, Russell & Bromley and Levi’s — each demanding maximum impact per square metre.

Mario’s Insight Corner

“We’ve learned that budget pressure doesn’t kill creativity — it sharpens it. When clients want impact without overspending, we build experiences that feel premium but travel light: a coffee tricycle for Levi’s, an Aperol Spritz bike for summer festivals, or a mobile espresso bar for Wembley Stadium.”
— Mario Baciu, Founder, Cocktails With Mario

See the Levi’s activation on Instagram and YouTube shorts.
Read the behind-the-scenes story on Medium.

Adapting to a Lean 2025: Smart Strategies

Bundle Services – Combine barista hire for conferences with cocktail bar hire for efficient multi-day coverage.

Invest in Branded Assets – Low-cost wraps for Pimm’s bikes or Prosecco walls extend ROI through social content.

Tap into Editorial Authority – Read our Mixology Insider feature on Navigating Budget Cuts Without Losing the Magic to see how creative brands keep the spark alive.

Lean on Winter Crowd-Pleasers – Check our Winter Event Trends 2025: Hot Bars, Warm Moods and the Top 5 Christmas Cocktails to Impress Your Guests guides for inspiration.

Outlook for 2026: Experience Still Wins

Despite tight fiscal control, the UK events scene shows no sign of slowing down. Planners are seeking meaningful moments — from artisan coffee stands to interactive mocktail stations.

The Budget 2025 reminds us that profit follows purpose. Those who adapt — through sustainability, training, and experiential marketing — will lead the hospitality renaissance of 2026.

Mario’s Pro Tip for Maximum Impact

“Every photo and video is a marketing asset. When hosting an activation, geo-tag your posts, showcase your team, and let guests share their cups. It doesn’t just build social reach — it builds trust and Google authority.”

FAQs

1. Will VAT or alcohol duty change in 2025?
VAT remains 20 %, and no new hospitality-specific cuts were announced. Alcohol duty is frozen until April 2026.

2. How does the Budget affect mobile bar and coffee cart hire?
With higher operating costs but stable demand, mobile bars remain cost-effective alternatives to fixed venues — especially for brands testing regional activations.

3. Are there any new grants for hospitality?
Not yet. However, green-equipment and energy-efficiency incentives continue through 2026.

4. What’s the best way to stay profitable in 2025?
Focus on multi-use assets, cross-training, and consistent visual branding across social media and events.