What could the UK’s trade deal with the EU mean for hospitality?

The UK and EU have reached a new deal setting out post-Brexit agreements on everything from food to free movement.

 

The two sides reached a deal on Monday after months of talks, although some details have yet to be confirmed.

 

But what could the agreement mean for the UK hospitality industry? We took a closer look.

 

Youth mobility scheme

 

The UK and the EU have agreed to work together on a deal that could allow young people to work and travel freely in Europe again.

 

The youth experience scheme would be capped and time-limited, mirroring existing agreements the UK has with countries such as Australia and New Zealand.

 

These schemes allow young people aged 18-30 or 18-35 to come to the UK for a two or three-year period to work, providing they can prove they have £2,530 in savings and pay a health surcharge.

 

Full details of the potential new European scheme have yet to be confirmed, but prime minister Keir Starmer told The Times the reciprocal scheme could see young people live and work overseas for up to two years. This would allow young Europeans to work in the UK, potentially filling gaps in the hospitality workforce.

 

However, the government said there would be “no return” to the kind of freedom of movement seen before Brexit.

 

The impact of Brexit and the pandemic saw the number of EU workers in the UK hospitality industry drop 26% between 2019 and 2021, according to data from Fourth. Data from Caterer.com showed than 92,000 workers from the EU are estimated to have left the sector between August 2020 and 2021.

 

However, the industry has struggled to fill gaps left by European workers and there were 98,000 vacancies in foodservice and accommodation sectors between June and August 2024.

 

UKHospitality chief executive Kate Nicholls said any youth mobility scheme should have “maximum flexibility” to bring the most benefit. “These schemes are beneficial for those already working in hospitality, tourism and other cultural sectors to live and work in either the UK or EU,” said Nicholls.

 

“Not only does it provide economic benefits, but it also provides new opportunities for critical cultural exchange, which ultimately delivers richer experiences for customers.”

 

Lauren Broughton, head of public affairs at tourism trade body UKInbound, said a two-way youth mobility scheme would be “a welcome step forward” for the industry.

 

“With their much-needed foreign language skills, young Europeans would provide a boost to businesses in the UK’s inbound tourism industry, which would deliver valuable economic growth across the whole of the country,” she added.

 

Food and drink trade

A new sanitary and phytosanitary (SPS) deal has been agreed to make it easier for food and drink to be imported and exported. This will mean the UK can sell raw burgers and sausages back into the EU for the first time since Brexit.

 

Some routine checks on animal and plant products will be removed completely, allowing goods to flow freely again, including between Great Britain and Northern Ireland.

 

The EU is the UK’s largest trading partner, but there has been a 21% drop in exports and a 7% drop in imports since Brexit.

 

The government said the deal would reduce the red tape that has “burdened businesses and led to lengthy lorry queues at the border”.

 

“Ultimately this could lower food prices and increase choice on supermarket shelves – meaning more money in people’s pockets,” the government said.

 

The agreement will have no time limit to give more certainty to businesses.

 

The UK and EU have also reached a new 12-year agreement on fishing that will give EU boats access to UK waters until 2038. The government said it provided “stability and certainty” for the sector and the SPS would make it easier for British fishermen to export their catch. However, the Scottish Fisherman’s Federation told Good Morning Scotland the deal was a “total capitulation to the EU” that was a “terrible deal for Scottish fishermen”.

The UK government will also invest £360m into the UK fishing industry to fund new technology and equipment, upskill the workforce, help revitalise coastal communities, support tourism and boost seafood exports.

 

Nicholls said: “The new agreement with the EU to remove trade barriers is positive news for hospitality businesses and will help to further increase access to high-quality, affordable food and drink for business and consumers alike. 
 

International travel

British holidaymakers will be able to use more eGates in Europe, ending long queues at border control.

 

Pets will also be able to travel more easily. This will see the introduction of ‘pet passports’ for UK cats and dogs – eliminating the need for animal health certificates for every trip.

 

Photo: Ground Picture / Shutterstock