What Will Hospitality Look Like in a Year?
Right now, one in three hospitality businesses in the UK is operating at a loss.
That stark statistic comes from a new survey released by UKHospitality, the British Institute of Innkeeping, the British Beer & Pub Association, and Hospitality Ulster, and it reveals a sector in real crisis.
Following the £3.4bn in extra costs that hit in April, largely due to increases in employer National Insurance Contributions (NICs) and business rates, operators across the country are now making impossible decisions just to stay afloat. Six in ten have already cut jobs, while 63% have reduced staff hours. Over half have cancelled planned investment, and three-quarters have been forced to raise their prices, passing on some of the burden to already stretched consumers.
These aren’t just numbers. They’re shifts are being cancelled, their careers are being paused, and small businesses are on the edge of collapse. They’re lost team members, lower morale, and empty tables where there was once a community hub.
This is more than a difficult trading period. It’s a warning sign of what the hospitality sector, and the high streets and communities that rely on it, will look like in a year’s time if things don’t change.
What’s at risk?
Hospitality plays a vital role in the UK economy, employing over 3.5 million people and contributing billions in tax revenue. But if current conditions continue, we’ll see:
- The closure of independent venues and neighbourhood favourites
- A slowdown in investment, innovation, and local regeneration
- Fewer job opportunities, especially for young people
- A continued rise in prices for consumers, with less value and less variety
- The erosion of hospitality’s unique cultural and community contribution
The knock-on effect is clear: high streets will become hollowed out, employment growth will stall, and government ambitions – such as reaching 80% employment and reviving town centres – will fall further out of reach.
What the sector needs
Industry bodies are calling on the government to take urgent action to protect jobs, communities and long-term growth. Their asks are clear:
- Reverse the employer NICs increase
- Introduce a reduced VAT rate for hospitality
- Deliver a root and branch reform of the business rates system
This isn’t about handouts. It’s about giving a sector with huge economic and social value the stability and support it needs to thrive – and to continue delivering for the UK economy.
What can you do?
Whether you’re in the industry or simply value your local pub, café, or restaurant, there are ways you can help:
- Write to your MP – share your experience or concern using the template provided by UKHospitality
- Support local venues whenever you can – even small spends make a difference
- Share the message – spread awareness on social media or within your networks
- Add your voice – if you’re a hospitality professional, speak up through your trade body or regional forums
Because if we wait for the crisis to deepen, it may be too late for many of the places and people that make hospitality what it is.
Let’s not look back in a year’s time and wish we’d acted sooner. Let’s start now.
