
Four in five hospitality businesses say costs are holding back investment
Strong summer trading has failed to improve profitability across hospitality, with four in five businesses saying rising costs are continuing to hold back investment.

Strong summer trading has failed to improve profitability across hospitality, with four in five businesses saying rising costs are continuing to hold back investment.

With just one week to go until Chancellor John Healey delivers his first Budget, the hospitality sector has received cross-party support from MPs.

Hospitality, leisure and accommodation businesses in England face a £129m increase in business rates from April 2027 following the latest inflation figures, according to analysis from tax firm Ryan.

Greene King has called on the Chancellor to provide meaningful support for the hospitality sector in next week’s Budget, warning that a “punishing cocktail of costs” is forcing pubs to cut back on hiring and reconsider investment plans.

Pub and hospitality operators have called for action on VAT, biz rates and employment costs ahead of the Budget on 28 October, as The Morning Advertiser (MA) asks you what you most want to see announced.

A VAT cut for hospitality is “highly likely” in the close future, UKHospitality (UKH) chief executive Allen Simpson told The Morning Advertiser (The MA).

Pub operators have questioned how far reported plans to increase the small business rates relief threshold would go in supporting the sector, with some warning the measure would have little impact on larger businesses.

Prime Minister Andy Burnham has pledged to overhaul the welfare system to help young people into work, describing the number not in education, employment or training as a “moral failure”.

Ex-Top Gear presenter and co-owner of a pub and gin business James May has labelled the alcohol duty system as “completely baffling”.

Nightclubs must be included in targeted business rates relief, the Night Time Industries Association (NTIA) has warned, with more than a third lost since the pandemic.

LICENSING HUB: LEGAL WITH POPPLESTON ALLEN
With the busiest time of year fast approaching, now is the time for operators to start preparing for the various events they may have planned.

Chancellor John Healey has vowed to protect the UK economy from global pressures in his upcoming Budget as pubs continue to call for action on rising operating costs.

Industry leaders have delivered a petition for the #VATsTheProblem campaign to 10 Downing Street after securing more than 400,000 signatures.

Business rates remain one of the biggest fixed costs facing pub operators, with the sector waiting to see whether the Autumn Budget will deliver wider reform.

Almost 300 UK pubs have permanently shut in the first nine months of the year with a predicted 360 victims by year-end, unless the Government delivers on its promises for hospitality.

Newcastle’s late-night levy (LNL) will be scrapped from the end of October in what Vaulkhard Group boss Ollie Vaulkhard has hailed as a ‘victory for common sense’.

Hospitality’s “job creation superpower” for young people is at risk unless the Government reduces employment costs at the Budget, UKHospitality (UKH) has warned.

The MA’s Ed Bedington caught up with the award winning Richard Gordon of the Greedy Gordon Group to get his take on the week’s news.

The Scottish Government and SNP have backed calls to cut hospitality VAT to 10% following mounting pressure from operators north of the border.

Three Welsh councils have scrapped or suspended plans to introduce a visitor levy following opposition from businesses and tourists.

The British Institute of Innkeeping (BII) has urged Prime Minister Andy Burnham to support pubs with a fair tax deal.

Hospitality businesses and more than 100 top chefs across Scotland have joined forces to write to the First Minister John Swinney, asking him to back the #VATsTheProblem campaign.

The Welsh county of Gwynedd, which incorporates Snowdonia, has put its plans to impose an overnight visitor levy on hold after a backlash from local businesses and residents.

Picture the scene. It’s a busy Saturday night and DJ Dave is spinning the latest smash from the Hit Parade when a group of twentysomethings approaches the bar.

The MA’s Ed Bedington met up with Loungers chair Alex Reilley to get his take on the week’s news.

Westminster City Council has formally adopted its new Statement of Licensing Policy following months of debate over restrictions affecting pubs and bars in the West End.

From Tuesday 15 September, pubs can accept digital proof of age when selling alcohol.

Family businesses have called on the Chancellor to reverse inheritance tax changes, warning they undermine jobs and investment.

A Gloucestershire pub operator has criticised a music licensing charge after a local choir performed traditional Christmas carols at a charity community event.

Pubs, restaurants, music venues and other licensed premises can now accept digital proof of age, as new legislation comes into force today (15 September).

The Lock In podcast is back and now in colour! (and video)

Pubs could have to agree to a smart meter installation when taking out a new fixed-term energy contract from September 2027 under new Government rules.

The Government has opened the door to changes that could give tied pub tenants greater freedom over beer, cider and other supply costs.

More than 800 hospitality businesses have signed an open letter urging Prime Minister Andy Burnham to set out plans for a lower rate of VAT for the sector.

Trade body UKHospitality (UKH) has written to all Labour mayors urging them to publicly back calls for lower VAT for hospitality after the introduction of a new overnight levy.

OPINION
“The cavalry is coming” for the pub sector according to Andy Burnham, as he basked in the success of gaining the role of Prime Minister.

Plans for an overnight visitor levy could put 33,000 hospitality jobs at risk and cost the economy £2.2bn, one trade body has warned.

Westminster City Council is set to retain licensing policy wording aimed at discouraging “high volume vertical drinking” in the West End.

JDW (JD Wetherspoon) founder and chairman Sir Tim Martin has urged the Government not to increase alcohol duty at next month’s Budget.

Westminster City Council has said it will clarify terms such as “vertical drinking” in its revised licensing policy following backlash from pubs, businesses and politicians.

Operators have slated the Government’s temporary VAT cut on children’s meals, with existing promotions proving far more effective in driving demand over the summer holidays.

Prime Minister Andy Burnham pointed to business rates cuts for pubs as he rejected claims the Government was pursuing a “tax and spend” approach during his first PMQs.

Independent pubs, restaurants and cafés will soon be able to apply for a share of a new £10m Government fund aimed at helping businesses open, grow and create jobs.
The MA’s Ed Bedington met up with Fuller, Smith & Turner boss Simon Emeny to get his take on the week’s news.

The Campaign for Real Ale (CAMRA) has unveiled the finalists for its 2026 Pub of the Year (POTY) competition.

Pubs face continued uncertainty over the prospect of a VAT cut after a Treasury minister warned reducing the tax would come at a significant cost.

OPINION
Two separate news stories caught my eye this week, both perfectly illustrating the challenges the hospitality sector and particularly pubs are facing.

The Government’s business rates review must make pub valuations more accurate, fair and transparent, the British Beer & Pub Association (BBPA) has said.

The Government has launched a review into how biz rates are calculated for pubs and hotels in England and Wales.

Chancellor John Healey recently visited a South Yorkshire brewery to discuss pressures facing hospitality, following calls for politicians to engage more closely with businesses across the sector.