MAGAZINE

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An air of anxiety looms over the sector right now, with all roads leading to 26 November. Operators across the UK will be waiting with bated breath as the chancellor delivers this year’s Autumn Budget, keeping everything crossed for support, relief and vital amendments to reverse the detrimental impact of last year’s announcement – from which the sector is, understandably, still reeling.

The fallout from the 2024 Budget, which inflicted an additional annual cost of £3.4bn on hospitality businesses and sparked industry-wide job losses, led to the creation of the #TaxedOut campaign, launched in early September. Created by London on the Inside and UKHospitality, the initiative has been calling on the government to implement urgent support.

In an open letter to Rachel Reeves, signed by some of the industry’s latest and greatest, respondents claim that venues across the country “are being squeezed out of existence” in the current climate. They add that rising rent and energy costs, hefty tax burdens, a continuing cost of living crisis and higher wage bills – exacerbated by the increased NICs introduced last October – have created a “perfect storm” only the wealthiest can survive.

Most operators are barely scraping by, leaving many with no choice but to grapple with the reality of permanent closure. According to the August Hospitality Market Monitor report, the number of restaurants, pubs, bars and cafés across the UK decreased by 374 in the first six months of this year, which amounts to 62 net closures per month, or approximately two per day. Let’s not forget that hospitality generates £153bn a year and supports over two million jobs. This isn’t just about physical buildings having to shut up shop for good, but the significant loss of talent, skill and livelihoods that have for so long helped to keep the economy afloat. At this point, we can only hope that the industry’s calls for action are heeded – the UK as a nation can’t afford to let it crumble.

Genna Ash-Brown
Editor