"UKHospitality, which is a trade body has warned that their modelling suggest 2,076 businesses will close in 2026 as they are struggling to pay business rates, the increase in employer's national insurance and the minimum wage hike. The modelling suggests 540 pubs, 574 hotels and 963 restaurants will close for good this year, should Labour press on with the planned increase with business rates in Spring."
"Staggering increases to business rates will affect the entire hospitality sector and without a hospitality-wide solution, we will see significant business closures. Thousands of venues, particularly neighbourhood restaurants and local hotels, will be forced to close for good as a result of the significant rates rises they're facing. This is yet another blow to a hospitality sector that bears the highest tax burden in the economy, and has already been disproportionately burdened by increases to NICs, wages, energy and other inputs."
"Hospitality is one of the nation's biggest employers and has an incredible potential to grow and create jobs, but the money coming in the front door is simply not enough to offset the rocketing costs of doing business. All of this undermines the Government's objectives to grow the economy and help more people back into work. We need a hospitality-wide solution that averts damaging business rates hikes in April. The Government needs to implement the maximum possible 20p discount to the multiplier for all hospitality properties."
Modelling by UKHospitality projects 2,076 hospitality businesses will close in 2026 because of rising business rates, increased employer National Insurance contributions and minimum wage hikes. The projections estimate about 540 pubs, 574 hotels and 963 restaurants could close this year if planned business rates rises proceed in spring. Hotels may face average increases of £28,900 in 2027 and £205,200 over three years; average pub rates could rise 15% next year and 76% over three years, about £12,900. UKHospitality calls for a hospitality-wide solution and a 20p discount to the multiplier to avert closures.
Read at London Business News | Londonlovesbusiness.com
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