The new figures demonstrate the importance of the Chancellor extending the hospitality sector relief and freezing the multiplier at the Autumn Statement, with 38% of hospitality venues failing to make a profit.
The survey, conducted by the British Beer and Pub Association (BBPA), British Institute of Innkeeping (BII), Hospitality Ulster and UKHospitality, reveals Government action on business rates is viewed as a top priority by 60% of respondents, up 16% from August.
The survey also reveals that business optimism has slumped to just 29%, down 10 percentage points from the summer.
A joint spokesperson for the trade bodies said:
“These figures lay bare the enormous impact inaction at the Autumn Statement would have on the hospitality sector. Pubs, restaurants, hotels, coffee shops, to name a few, will fall victim to a significant business rates bill, if relief expires and rates are hiked with inflation.
“Reducing investment and cutting staffing levels are the last thing venues want to do. In fact, they want to do the opposite, but their hands will be tied if rates increase to such an extent in April.
“Businesses are only able to absorb endless cost rises for so long and yet more pressure in the form of business rates will only force them to consider whether this is passed onto consumers.
“The Government must listen to the concerns of hospitality businesses, as the nation’s third largest employer, and extend the hospitality sector relief and freeze the business rates multiplier at the Autumn Statement, and as well as taking steps to reduce the overall tax burden on the sector in relation to business rates, VAT and excise duty.
“These businesses are at the heart of communities and high streets across the country, employing millions, generating economic growth and driving investment across our cities, towns and villages.
“Our economy cannot grow if hospitality cannot grow. The Government must act immediately to underpin this growth and ensure our pubs and hospitality venues survive.”
The survey also highlights the double whammy of rising businesses costs and more cautious consumers, with budgets stretched thin due to the cost-of-living crisis. There has been an 18% rise in businesses noticing consumers purchasing fewer drinks when they go out, with 72% of respondents reporting the number of drinks purchased having decreased slightly (55%) or significantly (17%)
Combined with energy bills being 60% higher year-on-year and record food and drink inflation, 55% of respondents said they had not raised menu prices by as much as their own cost increases.
The survey follows a joint letter written to the Chancellor by the BBPA, the BII, Hospitality Ulster, UKHospitality and other trade bodies in the pub, brewing and hospitality sector in October, urging the extension of business rates relief and a freeze in beer duty.
ENDS
Notes to editors:
- CGA Insight surveyed hospitality businesses from 9 October to 25 October 2023.
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 more information or to arrange an interview contact Laurence Gill lgill@beerandpub.com / 020 7627 9199 / 07429445514
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 UKHospitality
- UKHospitality is the authoritative voice for over 750 companies operating around 100,000 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.
- For the first time, the sector has a single voice bringing together businesses from all aspects of hospitality: coffee shops, hotels, serviced apartments, pubs, restaurants, leisure parks, nightclubs, contract caterers, indoor leisure, entertainment, wedding venues, holiday homes, bowling alleys and visitor attractions.
- Engaging with government, the media and the public, UKHospitality works to develop a robust case on how to unlock the industry’s full potential as the biggest engine for growth in the economy and ensure that the industry’s needs are effectively represented.
- The sector creates £130bn in economic activity and generates £39bn of tax for the Exchequer, funding vital services. It represents 10% of UK employment, 6% of businesses and 5% of GDP.
- Hospitality is the third largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined.
For more information contact Fleet Street Communications on ukhospitality@fsc.uk.com or sette@ukhospitality.org.uk
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
Notes to the editor:
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
Head of Communications
Sentinel House, Ancells Business Park, Harvest Crescent, Fleet, GU51 2UZ
Mob: 07539 377752
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