UK | Hospitality industry leaders have united following sharp cost and rate increases across the UK sector.
A new survey has revealed how almost every hospitality business has seen steep increases in wages and food costs.
Year-on-year, 95 percent of hospitality businesses have experienced increased wage costs. It’s a similar story for food (89 percent), insurance (84 percent) and energy (57 percent) costs. That’s according to findings of a new survey by the British Beer and Pub Association, British Institute of Innkeeping, Hospitality Ulster and UKHospitality.
As new inflation figures revealed, inflation in hospitality has remained notably higher than the headline rate would suggest.
Hospitality businesses are overwhelmingly in favour of reforming business rates, a government manifesto commitment, to help reduce costs, which must be a priority at the Budget, with 80 percent of respondents clear it would have a positive impact on their business.
In addition to business rates reform, businesses said both a VAT reduction for hospitality (85 percent) and a reduction in alcohol duty (34 percent) would be an important measure to allow their business to grow.
In a joint statement, the trade bodies said it was crystal clear that there is an overwhelming desire from the hospitality sector that the Government rapidly deliver on its manifesto commitment to replace business rates and reduce the burden on high street businesses, as well as continue current support.
“Hospitality continues to remain an outlier sector, with costs continuing to rise sharply compared to the rest of the economy.With cost increases affecting almost every venue, this vital sector is being prevented from investing in businesses and communities, which would boost economic growth and new jobs. Instead, they’re having to use dwindling cash reserves just to pay the bills.”
The statement also said that time was of the essence, with significant increases due in early 2025.
“The clock is ticking, with a cliff-edge looming on April 1 when relief ends and rates are set to increase again. Inaction would see bills spiral yet further, putting venues under increased threat of closure. Alongside our members, we hope to see clear and decisive action toward delivering on the Government’s manifesto commitment from the Chancellor at the Budget in October.”
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