Hospitality Operating At Only 85% Of Capacity, New Survey Reveals
The latest member survey from hospitality trade bodies highlights the sector's ongoing financial pressures. Tax increases have forced many businesses to reduce staffing, with 69% operating at or below 85% of their required capacity. Nearly three-quarters (73%) report having less than six months of cash reserves, including one in five with no reserves at all. In response to rising costs in April, 79% of businesses have raised prices, while more than half have been forced to cut staff numbers.
The stark results from members of the British Institute of Innkeeping (BII), the British Beer & Pub Association (BBPA), UKHospitality and Hospitality Ulster come as 84,000 hospitality jobs have been lost since the Budget, which imposed an additional annual cost of £3.4 billion on the sector.
Hospitality businesses are clear about which three measures they believe are most important to drive growth: a reduction in VAT, amend April's changes to employer NICs and delivery of lower business rates for the sector.
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.
'Now is the time to act and back a vital British sector that supports the economy, jobs, and local communities. We urge the Government to do so at the Budget this autumn.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
25 minutes ago
- Reuters
Japan's core inflation slows in July, stays above BOJ target
TOKYO, Aug 22 (Reuters) - Japan's core inflation slowed for a second straight month in July but stayed above the central bank's 2% target, keeping alive market expectations for another interest rate hike in the coming months. The nationwide core consumer price index (CPI), which excludes fresh food items, rose 3.1% in July from a year earlier, government data showed on Friday, faster than a median market forecast for a 3.0% gain. The rise was smaller than the 3.3% increase in June, due largely to the base effect of last year's rise in energy prices, which came from the termination of government subsidies to curb fuel bills. A separate index that strips away both fresh food and fuel costs - closely watched by the BOJ as a measure of domestic demand-driven prices - rose 3.4% in July from a year earlier after increasing by the same rate in June. Rising food and raw material costs have kept Japan's core inflation above the Bank of Japan's 2% target for well over three years, causing some BOJ policymakers to worry about second-round price effects. The BOJ last year exited a decade-long, massive stimulus and raised short-term interest rates to 0.5% in January on the view Japan was close to durably hitting its 2% inflation target. While the bank revised up its inflation forecasts last month, Governor Kazuo Ueda has stressed the need to tread cautiously on further rate hikes, due to an expected hit to the economy from U.S. tariffs. The Japanese economy has been showing resilience even though sweeping U.S. tariffs are dragging down exports. Last week's unexpectedly strong second-quarter gross domestic product data, combined with a U.S.-Japan trade deal struck last month, has fuelled market expectations that a tariff-driven recession will be averted - bolstering the case for another rate hike later this year. Some analysts also point to Washington's pressure for more rate hikes, following rare and explicit comments from U.S. Treasury Secretary Scott Bessent who said the BOJ was "behind the curve" on policy. The latest Reuters poll showed 63% of economists surveyed this month expect the central bank to raise base borrowing costs to at least 0.75% from 0.50% by the end of this year, an increase from 54% in last month's poll.
Reuters
an hour ago
- Reuters
Japan MOF preparing to raise long-term rate estimate in FY2026 budget request, Yomiuri reports
TOKYO, Aug 22 (Reuters) - Japan's Ministry of Finance is preparing to raise its assumed interest rate for long-term government bonds at 2.6% for fiscal 2026/27 budget requests, the highest level in 17 years, the Yomiuri newspaper reported on Friday. The country's assumed bond interest rate was 2.1% during the fiscal 2025 budget request phase before being adjusted to 2.0% in the final budget. The increase for the next budget would lead to higher debt servicing costs, the report also said without citing sources.
Western Telegraph
3 hours ago
- Western Telegraph
Army spends £118m on more systems to shoot down missiles and drones
The £118 million move will double the number of British-made Land Ceptor systems available to the British Army. It said they could be deployed both in the UK and overseas. The new equipment will form part of Sky Sabre, a state-of-the-art defence system that can intercept munitions and aircraft. It replaced the previous Rapier system, which had run since the 1970s. The MRAD (medium range air defence) system will be made by manufacturer MBDA in Bolton. The Government said 140 jobs will be supported by the move. The Sky Sabre system replaced the former Rapier short range air defences, pictured during a training exercise in Blackheath ahead of of the 2012 Olympics (PA/Lewis Whyld) Defence minister Luke Pollard said: 'We are delivering on the strategic defence review by equipping our armed forces with state-of-the art equipment to help keep us safe. Doubling our deployable Sky Sabre capability will strengthen the UK's air defences, protect UK forces abroad, and deter our adversaries. 'Through this investment we are supporting over 100 jobs across the UK, with more to come.' The Land Ceptor systems are able to hit a tennis-ball sized object which is travelling at twice the speed of sound. The Sky Sabre operation can control 24 missiles at one time. As part of the system, the Land Ceptors operate alongside radar and a wider command and control centre. However, they are also able to be used on their own. Sky Sabre was recently tested as part of a Nato exercise in the Outer Hebrides, the Ministry of Defence said. It has already been deployed in Poland, as part of Nato operations with on eye on Russia. Commanding Officer of the 16th Regiment Royal Artillery, Lt Col James Boutle, said: 'Sky Sabre represents a step change in the UK's ground-based air defence capability. 'As the Army's most advanced air defence system, it provides a powerful shield against modern airborne threats, from fast jets to precision-guided weapons and drones. 'For 16th Regiment Royal Artillery, operating Sky Sabre is both a privilege and a responsibility – ensuring we are trained and ready to strengthen the UK's contribution to Nato when called upon. 'As part of this, we work hand-in-hand with industry partners, such as MBDA here in the UK, to continuously optimise the system to ensure it remains on the cutting edge – a collaboration that guarantees we stay ahead of adversary technology.'
