Hospitality calls for urgent support ahead of Autumn Budget
London on the Inside and UKHospitality have today launched a new campaign, calling on the government for urgent support for the hospitality industry ahead of the Autumn Budget.
In an open letter to Rachel Reeves, signed by some of the country’s leading chefs, operators and media figures, they explain that “restaurants, bars, pubs and cafés in London – and across the rest of the UK – are being squeezed out of existence”.
A perfect storm of “rising rent and energy costs, hefty tax burdens, a customer base grappling with a cost-of-living crisis and higher wage bills – as a result of the increased National Insurance Contributions introduced in the last Budget” has already led to many closures this year, while other hospitality businesses are barely scraping by.
A May survey by UKHospitality showed that one-third of hospitality businesses are operating at a loss, while 76% have had to increase prices and 63% have reduced the hours available to staff. ONS figures show that payrolled employees in hospitality fell by over 124,000 between May 2024 and May 2025. The August 2025 Hospitality Market Monitor report indicates that the number of UK hospitality venues decreased by 374 in the first six months of the year, resulting in 62 net closures per month, or approximately two per day.
#TaxedOut
The hospitality industry is the third-largest employer in the country, but further job losses and closures are inevitable without government support. The letter backs the three key demands of UKHospitality’s #TaxedOut campaign: cut the rate of VAT down from 20%, fix NICs to boost jobs and reduce business rates to give long-term support to the high street.
The letter has been signed by more than 50 leading figures, including Jimi Famurewa, Simon R`ogan, Ravneet Gill and Vivek Singh.
"We understand the government is trying to plug a hole in public finances, but the policies currently applied to hospitality are suffocating it. A healthy hospitality industry can contribute so much to the economy, but as things stand, the outlook is bleak – more closures and more job losses," states the letter.
"We’re calling on everyone who works in the industry, everyone who wants to see their local pub with pints stacked on the bar rather than windows boarded up, and their favourite restaurant filled with hungry diners rather than posting closure announcements on Instagram, to help amplify our call to the government and secure meaningful relief. Businesses can use this tool to directly write to the government and make their voice heard, and everyone can share our letter on socials using the hashtag #taxedout."
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