A new survey conducting jointly by the British Beer and Pub Association, British Institute of Innkeeping, Hospitality Ulster and UKHospitality found that year-on-year, 95% of hospitality businesses have experienced increased wage costs.
It’s a similar story for food, with 89% of operators seeing prices rise; insurance (84%); and energy (57%).
Amid these pressures, 80% of operators say that reforming the business rates system, which the new Labour Government committed to in its manifesto, would have a positive impact on their business.
A VAT reduction for hospitality (85%) and a reduction in alcohol duty (34%) would also be valuable measures to allow businesses to grow, according to the survey.
In a joint statement, the trade bodies said: “It’s crystal clear that there is an overwhelming desire from the hospitality sector that the Government rapidly delivers on its manifesto commitment to replace business rates and reduce the burden on high street businesses, as well as continue current support.
“Hospitality continues to remain an outlier sector, with costs continuing to rise sharply compared to the rest of the economy.
“With cost increases affecting almost every venue, this vital sector is being prevented from investing in businesses and communities, which would boost economic growth and new jobs. Instead, they’re having to use dwindling cash reserves just to pay the bills.
“The clock is ticking, with a cliff-edge looming on April 1 when relief ends and rates are set to increase again. Inaction would see bills spiral yet further, putting venues under increased threat of closure.
“Alongside our members, we hope to see clear and decisive action toward delivering on the Government’s manifesto commitment from the Chancellor at the Budget in October.”
Last month, research from Begbies Traynor found that more than 1,500 restaurants and bars are in ‘critical financial distress’, with many of them expected to enter insolvency in the next 12 months.