‘Cannot continue’ – Chefs await interest rate decision as closure stats revealed
Chefs are hoping for positive news as they await the latest interest rate decision this week.
On Thursday, it will be revealed what the Bank of England has decided to do regarding rates in the UK.
The high interest rates have been cited as a huge factor in recent hospitality struggles, with figures from CGA by NIQ this week revealing there have been two closures per day on average in the sector so far this year.
This comes amidst measures implemented in April following Rachel Reeves’ 2024 budget in October, which saw an increase in minimum wage and employer National Insurance contributions announced.
Looking ahead to Thursday’s interest rates announcement, Paul Askew, chef patron and owner at The Art School in Liverpool, said: “The next interest rate meeting on Thursday August 7 is keenly watched by everyone in hospitality with all eyes now on Threadneedle Street.
“Whilst many of us voted for change to bring this new government in, we have been left with the burden of NI and living wage increases which turned the screw again on the UK’s hospitality industry.
“Whilst we want everyone to have a fair living wage across all sectors in the country, it feels as though hospitality is bearing the brunt of this, having to find even more money which many operators simply do not have on top high utility bills, VAT and inflationary pressures on customers.
“A reduction of the interest rate we hope would at least help to create some consumer confidence and increase spending on the high street.
“Unless swift action is taken, the sector is gearing to fail with hundreds more closures.
“We already see restaurants, pubs, cafes, bars and more facing the most difficult trading landscape imaginable, with the perfect set of circumstances for failure now heightened as true scale of these costs is reckoned with.
“Figures just out from UKHospitality show on average two licensed venues closed permanently each day in the first half of 2025. This grim statistic cannot continue.
“I still contend that the single most progressive act this government can make is to recalibrate the VAT charge on fresh prepared food to be in line with Europe for fresh led businesses so we can grow, invest and thrive using artisan skills and develop our people and business normally.
“But, for now, we must hope interest rates can be lowered.”
Raised on the Wirral, Paul opened The Art School, showcasing seasonal, sustainable local produce.
A Fellow of the Royal Academy of Culinary Arts and Chair of the Liverpool Restaurant Association, he has previously appeared on Great British Menu and Saturday Kitchen.
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