US EditionOne in Three Hospitality Businesses Losing Money After Reeves Tax Raid
- A new survey in May 2025 reveals that one in three UK hospitality businesses is operating at a loss due to recent tax hikes and cost increases.
- The losses stem from Chancellor Reeves' April 2024 rise in employer National Insurance Contributions by 1.2 percent, alongside increased minimum wage and business rates.
- The survey found 60% of operators cut jobs, nearly two-thirds reduced staff hours, and 76% raised prices, while over half canceled investment plans to stay solvent.
- Trade organizations highlighted that rising costs have increased sector expenses by £3.4 billion and urged the government to ease the tax pressures facing the industry.
- The findings suggest urgent government intervention is needed to reverse NIC changes, reform business rates, and consider a VAT cut to help safeguard jobs, communities, and growth.
11 Articles
11 Articles
Third Of Hospitality Businesses Now Operating At A Loss Due To Tax Rises
Several industry bodies have warned that a third of pubs, bars, restaurants and hotels operating in the UK are losing money and at risk of failure because of the government’s recent tax rises. According to a new survey conducted by (more…) The post Third Of Hospitality Businesses Now Operating At A Loss Due To Tax Rises appeared first on KamCity.
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One third of hospitality operates at a loss, survey finds
One third of hospitality businesses are currently operating at a loss, representing an 11% increase on the last quarter, according to the latest survey undertaken by UKH, the British Institute of Innkeeping, the British Beer and Pub Association, and Hospitality Ulster. UKHospitality, along with a number of trade associations, have cited the £3.4bn in extra costs – such as employer National Insurance contributions – as the reason why a significa…
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