Hospitality figures call for urgent support from government

UKHospitality and London lifestyle brand London on the Inside have today launched a new campaign, calling on the government for urgent support for the hospitality industry.

The sector has been under increasing pressures in terms of costs.

It comes as the treasury announce this year's autumn budget will be delivered on November 26.

In an open letter to chancellor of the exchequer 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”, have already lead to a number of closures this year, with many other hospitality businesses barely scraping by.

A recent UKHospitality survey has shown that one third of hospitality businesses are operating at a loss, 76% have had to increase prices and 63% have reduced the hours available to staff.

Meanwhile, a Hospitality Market Monitor report shows that the number of UK hospitality venues fell by 374 in the first six months of the year, equating to 62 net closures per month, or two per day.

Three key demands are to 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 is signed by more than 50 leading figures such as Jimi Famurewa, Simon Rogan, Ravneet Gill and Vivek Singh. A full list of those involved can be found here.

The letter in full

Dear Rachel Reeves,

We are a group of chefs, hospitality professionals, and journalists witnessing restaurants, bars, pubs, and cafés in London – and across the rest of the UK – being squeezed out of existence. The hospitality industry is an integral part of all our lives. We’ve built careers in kitchens, marked milestones in restaurants, and fallen in love in pubs. We’re not prepared to stand by and watch it wither.

Already razor-thin margins for operators are dissolving into nothing. 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 – have created a perfect storm, one that

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only those with the deepest pockets can ride out.

A May survey by UKHospitality has shown that one-third of hospitality businesses are operating at a loss, 76% have had to increase prices and 63% have reduced the hours available to staff. ONS figures show payrolled employees in hospitality fell by over 124,000 between May 2024 and May 2025. The August 2025 Hospitality Market Monitor report shows that the number of UK hospitality venues fell by 374 in the first six months of the year, equating to 62 net closures per month, or two per day.

We’re calling on the government to act to support an industry that is a leading creator of jobs across the country and is accessible to people from all backgrounds, yet is being stifled by an unfair tax burden. Raising prices to combat increased costs isn’t a sustainable solution. Impactful change must come from the government, which is why we’re backing the three key demands of UKHospitality’s #TaxedOut campaign:

Cut the rate of VAT down from 20%
Fix NICs to boost jobs
Reduce business rates to give long term support to the high street.

Our hospitality sector is subjected to 20% VAT – the European average is around 10% to 13%. During the pandemic, VAT was slashed to 5%, then later raised to 12.5%, to successfully support the industry and stimulate the economy. The sector is in crisis again, so why not cut it again?

Tax relief measures would have the quickest and biggest positive impact on the sector, helping to keep our beloved restaurants, pubs and cafes open. Independents, in particular, are striving to keep their costs down and run lean operations, but these taxes are making it increasingly difficult to remain viable.

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.

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.

The support the campaign, use #TaxedOut across social media channels.

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