2025 is proving to be one of the most challenging years yet for the hospitality industry in the UK, with the increase in National Insurance contributions and London Living Wage, the decrease in business rates relief, and the 20% rate of VAT putting a huge strain on the industry. Venues continue to close, with two hospitality sites closing per day in the first six months of the year and the hospitality sector accounting for 53% of all job losses in the UK since the Budget.
We know that, in a world facing ongoing global conflicts and crises, highlighting the challenges of hospitality may seem secondary. But the reality is stark: costs continue to rise while consumers are unable to afford higher prices. Operators are trapped in an unsustainable position, leading to closures, job losses and real risks to one of the UK's most vital industries. Hospitality is not a luxury. It is the UK's third-largest employer and a critical driver of the economy.