Hospitality confidence sees ‘Burnham Bounce’, but costs and political instability holding back investment, new polling reveals

Hospitality has felt a ‘Burnham Bounce’, but tax burdens and political instability are holding back investment, new member survey results from the British Beer and Pub Association, the British Institute of Innkeeping, UKHospitality and Hospitality Ulster reveal.

The ‘Burnham Bounce’ was seen across the hospitality sector, with optimism that the change in leadership would benefit the sector more than doubling following the Prime Minister’s announcement to reduce business rates.

Prior to the announcement, just 18% of hospitality venues, pubs, and brewers said they were optimistic that the incoming change in Government leadership would benefit the hospitality and brewing industry.

Following the announcement, optimism in the sector more than doubled to 37%.

While hospitality’s tax burden remains the greatest barrier to investment (76%), political instability (37%) is the second biggest barrier for businesses.

The trade associations said the Prime Minister should continue to build on his encouraging first steps to back hospitality, with clear evidence that it is already rebuilding confidence in the sector.

In terms of measures that would allow their businesses to grow, hospitality businesses overwhelmingly backed a VAT reduction (92%), which comes on the back of more than 330,000 people backing the #VATsTheProblem campaign calling for 10% hospitality VAT. Businesses also supported reducing business rates bills (68%) and changes to employer National Insurance Contributions (52%)

In a joint statement, the trade bodies said: “The new Prime Minister’s actions to back hospitality has clearly driven a boost in the sector’s optimism, yet significant challenges remain.

“The support for pubs and live music venues on business rates was a great first step, and now we need to see wider support and conditions to allow the entire hospitality sector to grow and create jobs.

“Our tax burden – amongst the highest in the economy – along with new regulatory costs is overwhelming us and the real victims are high streets, jobs, and communities.

“A lower rate of VAT, wider permanent business rates reform and changes to employer NICs would help deliver the Prime Minister’s bold ambitions for every postcode.

“We want to continue to work with the Government so we can create new jobs, investment and growth, which will create a brighter, more prosperous UK.”

Notes to editors:

CGA by NIQ surveyed hospitality businesses in July 2026, with respondents operating more than 20,000 hospitality sites.

For more information contact the BBPA press office on press@beerandpub.com

About UKHospitality:

UKHospitality is the leading trade body for hospitality, representing every corner of the sector. We represent more than 130,000 venues, from pubs, bars and restaurants to hotels, indoor leisure and contract catering.

We work on behalf of a sector at the heart of the everyday economy; contributing £93 billion annually to the economy, generating £54 billion of tax for the Treasury and employing more than 3.5 million people as the third largest employer in the UK.

Our members benefit from our dedicated campaigning to empower an environment for hospitality to thrive, in addition to expert insight, specialist support helplines and guidance on the key issues facing hospitality businesses.

About the British Institute of Innkeeping:

The BII is the leading independent licensee support organisation for individuals working in hospitality, with 13,000 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.

For further information please contact Molly Davis molly.davis@bii.org

About the British Beer & Pub Association

The BBPA is the UK's leading trade association representing pubs and breweries. Our members brew over 90% of British beer and own over 20,000 pubs.

We are the voice of pubs and brewers, offering insight and policy thinking to government, political stakeholders and media alike to help ensure that there is an in-depth understanding of both the opportunities and challenges faced by the sector and the policy solutions to bring about the optimal fiscal and policy framework that will underpin a thriving pub and brewing sector in the UK.

The UK’s beer and pub industry supports over 1,000,000 jobs and £34.2 billion GVA to the UK’s economy each year.

For more information contact Anna Edwards: press@beerandpub.com

About Hospitality Ulster:

Hospitality Ulster is the trade body representing the hospitality industry across Northern Ireland. Sustaining 72,000 jobs and with a turnover more than £2bn, the hospitality industry is Northern Ireland’s fourth largest employer and the backbone of the tourism industry. Hospitality Ulster speaks on behalf of pubs, restaurants, coffee shops, hotels and businesses with a substantial hospitality offer within their core business.

For further information, please contact: enquiries@hospitalityulster.org

For more information:

Anna Edwards, Head of Communications, British Beer & Pub Association

020 7627 9199 / 07710 592353

press@beerandpub.com / aedwards@beerandpub.com

Third-party news items are published as received for informational purposes. Publication does not imply endorsement by the Guild. Please use the contact details within the post for any enquiries.