What the 2025 Budget Means for the UK Mobile Hospitality Sector
The 2025 UK Budget brought major changes for the hospitality industry, but for mobile operators such as food trucks, mobile bars, street-food vendors and pop-up caterers, the impact is more complicated than for traditional restaurants and pubs.
While there are some clear opportunities, there are also new risks and uncertainties. Here’s a simple breakdown of what the Budget really means for the mobile hospitality sector.
1. Business Rates: A Potential Win — But Only for Some
From 2026, the government will introduce permanently lower business-rates multipliers for retail, hospitality and leisure premises with a rateable value under £500,000. This is a positive move for many bricks-and-mortar venues, but for mobile hospitality, eligibility is not guaranteed.
Who benefits:
Food trucks or trailers with a fixed or semi-permanent pitch
Operators with a rated unit, kiosk, or permanent street-food site
Businesses with a base kitchen or commissary
Who may miss out:
Fully roaming food trucks
Pop-ups that only trade at festivals, events or temporary sites
Operators without a fixed, rateable premises
If you don’t occupy a “hereditament” (a rateable property), you may not qualify for the lower business rates at all, meaning you still absorb rising costs without this key benefit.
Key takeaway:
If you’re mobile, securing a permanent pitch or base kitchen could unlock important long-term savings after 2026.
2. Investment Incentives: A Clear Opportunity for Mobile Operators
One of the strongest positives in the Budget is the continuation of full expensing (100% first-year tax relief) on qualifying equipment.
For mobile hospitality, this includes:
Kitchen equipment
Refrigeration units
Energy-efficient appliances
Service and storage fit-outs
This reduces the real cost of upgrading vehicles, trailers and prep kitchens and encourages operators to invest in efficiency, speed, and sustainability.
Key takeaway:
If you’re planning to upgrade equipment, the current tax environment strongly supports investing sooner rather than later (this is great news for fitting out a new Catering Van Conversion!).
3. Staffing Costs Are Still Rising
Mobile operators are not insulated from rising employment costs.
The Budget confirms:
Ongoing increases in the National Minimum Wage
Continued pressure from employer National Insurance Contributions
Higher payroll costs across all hospitality businesses
For mobile traders with small teams and tight margins, even a small hourly increase can significantly affect profitability — especially at events where staffing ratios are high.
Key takeaway:
Expect staff costs to rise again. Many mobile operators will need to rethink shift patterns, menus, automation, or pricing.
4. No VAT Relief for Hospitality
Despite enormous lobbying from the sector, the Budget included no VAT cuts or sector-specific VAT relief.
Mobile food traders remain subject to:
Standard 20% VAT on hot food
The same VAT thresholds as traditional restaurants
No special treatment for street-food or event catering
Key takeaway:
VAT remains one of the biggest margin pressures in mobile hospitality, especially for high-volume food traders.
5. What This Really Means for the Mobile Hospitality Sector
The biggest winners:
Operators with a fixed trading base
Hybrid businesses (base kitchen + mobile outlet)
Established traders able to invest in better equipment
Operators who trade in high-footfall, premium locations
Final Verdict: Opportunity for Structured Growth — Danger for Unstructured Mobility
The 2025 Budget does not strongly target the mobile hospitality sector, but it rewards structure, permanence and investment.
If you’re running a mobile business today, the smartest strategic moves now are:
✅ Secure a fixed trading pitch or base kitchen
✅ Invest in efficient equipment while tax relief is strong
✅ Reassess staffing vs profitability
✅ Prepare for gradual price increases
✅ Build a business model that isn’t entirely dependent on temporary events
Mobile hospitality is still one of the most flexible and creative parts of the food & drink industry, but after this Budget, those without a stable base may feel the pressure first.
Want to understand how Catering Van Conversions can help you get the most out of the new budget and your catering van? Contact us today!
