20th Aug 2025 04:01
(Alliance News) - In the UK, almost four-fifths of pubs, restaurants and bars say they have increased their prices after Budget cost hikes, according to new figures.
New data from the UK hospitality sector's trade bodies also showed that more than half of firms have axed jobs in a bid to help their finances.
Industry bosses warned that firms across the UK are being squeezed by "unsustainable" taxes, and urged the government to relax taxation on the sector at the autumn Budget.
The survey of members of the British Institute of Innkeeping, the British Beer & Pub Association, UKHospitality and Hospitality Ulster shed light on the pressures being felt by hospitality operators.
It found that 79% of operators have increased prices as a direct result of increases to operating costs in April.
It also showed that 73% of respondents have less than six months of cash reserves, with one in five having no cash reserves at all.
The data comes after firms were impacted by increases to the national minimum wage, national insurance payments and business rates payments.
In April, the national living wage rose by 6.7% to GBP12.21 an hour for workers aged 21 and older.
At the same time, the government increased the rate of employer national insurance contributions from 13.8% to 15% and also lowered the threshold at which firms would pay the tax.
Many pubs were also hit by changes to discounts on business rates, the property tax affecting high street businesses.
Hospitality businesses received a 75% discount on their business rates bills up to a cap of GBP110,000 but saw this cut to only 40% in April.
Earlier this week, analysis of separate government data showed that 209 pubs shut their doors for good in the first six months of this year.
Bosses said the chancellor needs to look at changes to value-added tax, business rates and NICs to ease the burden of firms.
In a joint statement, the trade bodies said: "This shocking data reinforces the urgent need for government to recognise the incredible pressure hospitality businesses have been put under, particularly since April, and illustrates why it should come forward with measures to support this vital sector at the Budget.
"Unsustainable tax increases are squeezing businesses, stifling growth and investment, and threatening local employment, especially for young people.
"It is forcing businesses across the sector to make impossible decisions to cut jobs, put up prices, reduce opening hours and sadly limit the support they desperately want to give their communities.
"Hospitality is united in which measures will reverse this trend and drive growth: a reduction in VAT for hospitality, changes to employer NICs and permanently lower business rates for the sector."
source: PA
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