Skip to main content
29th September 2022

Hospitality businesses can be at the heart of economic growth, but further support from Government will be critical to their survival

Leaders of trade bodies representing pubs, brewers, bars, restaurants, hotels and consumers have written to the Chancellor following the mini-budget last week, highlighting the urgent need for further support to safeguard hospitality businesses.

In the letter to Kwasi Kwarteng, representatives from across the hospitality industry thanked the Chancellor for his support following the business energy price guarantee, as well as his recognition that energy was not the only challenge to growth. They also recognised the positive approach he plans to take to reduce the huge burden of excessive business regulations and welcomed the freeze to alcohol duties.

They warned however, that these measures were simply not enough to safeguard the future of the sector. The combination of pandemic specific debts, minimal cash reserves, ongoing staffing issues and escalating inflationary costs across all areas for hospitality businesses, all against a backdrop of the cost-of-living crisis, was having a devastating impact.

In particular, small hospitality businesses operating at the heart of every community in the UK now face the biggest threat to their survival.

In the letter, the trade associations called on the Chancellor to recognise the vulnerability of the sector by providing urgent support in two key areas:

  • An immediate reduction in the headline rate of VAT for hospitality on all food and drink sales
  • Cancellation of business rates for the remainder of this financial year

In a joint statement the industry leaders said: “Whilst the announcements made in the mini-budget will go some way to supporting our sector, the stark reality for many businesses is that they will still be facing energy costs of at least double those of 2021. At a time where crippling inflationary pressures across all areas of their businesses are already threatening their survival, this is not sustainable. Targeted support for hospitality businesses at the heart of their communities in villages, towns, cities and high streets across the UK will now be critical to ensure they can play a key role in the Government’s growth and levelling up agenda.”

“We need a plan for wide-ranging support that is in place for more than six months, allowing these businesses time to plan for their futures. The current uncertainty facing hospitality businesses
is a huge barrier to growth and the immediate support we are calling for will give many the breathing space they need to ensure their survival past this winter.”


Read the full letter here.
Notes to editors:

About the British Institue of Innkeeping:

The BII is the leading independent licensee support organisation for individuals working in hospitality, with 10,000 individual members running premises across the UK – predominantly
tenanted, leased, managed and freehold pubs. The organisation provides expert helplines, online business support, and guidance on key industry issues, and savings on a range of supply deals for its members, keeping pubs thriving in the heart of every community.

About the British Beer & Pub Association  

The BBPA represents UK companies which between them brew over 90% of the beer sold in the UK and own 20,000 pubs.

Our members include international companies, national and local brewers and pub businesses operating managed and tenanted pubs in cities, towns and villages across the country.  These businesses are at the heart of communities and local economies and include family businesses who have been brewing beer and running pubs for hundreds of years alongside emerging brewers
and pub operators.

  • The UK’s beer and pub industry supports close to 940,000 jobs
  • The industry adds £26.2billion to the UK’s economy each year


For further information please contact Jessie Powell: 020 7627 9199


UKHospitality is the trade body representing the UK’s hospitality sector, representing over 730 companies, operating around 85,000 venues in a sector that employed 3.2 million people prior to COVID.

The body speaks on behalf of a wide range of leisure and ‘out-of-home’ businesses, from FTSE 100 enterprises to niche groups and independent single-site operators, as well as 6,000 affiliated
operators and brings together businesses from all aspects of hospitality: coffee shops, hotels, serviced apartments, pubs, restaurants, leisure parks, nightclubs, contract caterers, entertainment,
wedding venues, holiday homes, bowling alleys and visitor attractions.

For further information, please contact:

Press release from the BII.

For more information or to arrange an interview contact Molly Davis, Head of Communications at the BII: 07539 377752  Or Jess Topping, Communications Executive