The latest research carried out by UKHospitality with contributions from the British Beer and Pub Association, the British Institute of Innkeeping, and Hospitality Ulster brought to light significant concerns regarding the financial
condition of the pub, restaurant, hotel, and cafe industries in the UK.
The research revealed that a quarter (25%) of hospitality firms have no cash reserves left, while another 29% can only sustain their operations for three months.
Industry leaders are appealing to the government, emphasizing the urgent need for support as these businesses stand on the brink of closure.
The rising costs and increased economic pressures have left over two-thirds (64%) of hospitality firms pessimistic about their business prospects in the next 12 months.
To mitigate these challenges, 94% of businesses advocated for a reduction in Value Added Tax (VAT) as an essential measure to ease financial burdens.
The industry bodies urged Chancellor Jeremy Hunt to reduce the expected increase in business rates and VAT to prevent further financial strain for these businesses.
High street enterprises will experience a 6.7% increase in business rates, indexed to inflation, effective April.
The groups also advocated for cutting duties on alcohol, which saw an increase following last year's reform.
Last year, approximately 6,180 hospitality venues closed their doors permanently.
With the sector already grappling with staffing challenges due to Brexit and COVID-19 disruption, the cost of living crisis has added another layer of complexity.
The industry leaders emphasized that government intervention is crucial in preventing further business failures and preserving jobs within the hospitality sector.
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