Pressure is mounting on the government to expand its anticipated rescue package for pubs to cover the entire UK hospitality sector. This follows a series of stark data releases and fresh polling that reveals both the dire financial outlook for venues and overwhelming public sympathy for their plight.
Public Backing and a Looming Closures Crisis
A new City AM/Freshwater Strategy poll shows that 70 per cent of British voters believe hotels, restaurants, and other struggling hospitality businesses should be included in any support measures ministers are preparing for pubs. Separate analysis from the industry body UK Hospitality paints a grim picture, warning that over 2,076 hospitality venues will shut their doors in the next year unless the government finds a sector-wide solution to its controversial business rates overhaul.
Ministers are expected to unveil a set of measures this week aimed at alleviating the strain on pubs caused by changes to business rates announced in last year’s Autumn Budget. While the Chancellor heralded a 5p cut for hospitality and retail, claiming it brought the overall tax rate to its lowest since 1991, a simultaneous property revaluation has backfired spectacularly.
Revaluation Catches Government Off Guard
Due to the reassessment of property values and the end of pandemic-era support, the average hospitality firm’s business rates bill is now set to skyrocket by an average of 94 per cent over three years. Business Secretary Peter Kyle admitted the government was unprepared for the impact of the revaluation, telling Times Radio: “We didn’t have access to that information before making these decisions.”
The reforms have triggered historic, industry-wide anger, leading to thousands of landlords—including celebrity publicans Jeremy Clarkson and James May—banning Labour MPs from their premises over Christmas. This backlash has forced a hurried government response focused on pubs, but rumours of this U-turn have now sparked demands for the aid to be broadened.
Sector-Wide Solution Urgently Needed
“Staggering increases to business rates will affect the entire hospitality sector and without a hospitality-wide solution, we will see significant business closures,” said Kate Nicholls, chair of UK Hospitality. The group’s analysis indicates the average hotel will see its rates surge by over 115 per cent in three years, pushing an estimated 574 hotel businesses to the wall by the end of 2025. A further 963 restaurants also face closure.
UK Hospitality is demanding ministers use new powers granted last year to hand the sector a maximum 20p discount on rates. The City AM polling also found that 58 per cent of Britons are concerned or very concerned about the health of their local pubs. The Treasury was contacted for comment.
