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6d ago

Tax Hikes Push One-Third of UK Hospitality Firms into Losses

Trade bodies warn the sector’s long-term viability is under threat after April’s tax measures saddled operators with an extra £3.4 billion in costs

The trade bodies that conducted the survey blamed changes to national insurance, the minimum wage and business rates for their plight

Overview

  • Six in ten hospitality firms have cut jobs and 63% have reduced staff hours in response to higher employer NICs and altered business rates.
  • More than half of operators have cancelled investment plans while 76% have raised prices to offset rising operational costs.
  • The hospitality sector supports nearly 940,000 jobs and contributes £26.2 billion annually to the UK economy.
  • Industry groups are calling for a reversal of the NIC increase, faster business rates reform and a cut to VAT for hospitality businesses.
  • A Treasury spokesperson says the government is backing the sector with business rates relief, draught pint duty cuts, a corporation tax cap and protections for the smallest firms.