London Daily

Focus on the big picture.
Monday, Apr 06, 2026

Almost two-thirds of hospitality businesses feel abandoned by the government

Almost two-thirds of hospitality businesses feel abandoned by the government

Hospitality was among the hardest-hit by the coronavirus pandemic and, despite support such as the government's furlough programme, 64% say they feel let down.
Nearly two-thirds of hospitality businesses say they feel abandoned by the government, according to a survey.

Delivery franchising firm Peckwater Brands commissioned a survey asking 201 senior decisionmakers in the hospitality business for a picture of the industry.

Hospitality was among the hardest-hit by coronavirus pandemic-related restrictions and, despite support such as the government's furlough programme, 64% said they felt let down.

When National Insurance was increased for workers in April, it was also hiked for employers - their contributions went up from 13.8% to 15.05%.

Some 69% of respondents said the increase was a mistake.

Also in April, VAT for the industry returned to 20%, having been cut to 5% during the pandemic and increased to 12.5% in October as restrictions eased.

Four out of five of respondents said this increase should have been delayed by at least 12 months.

The sector accounts for around 5% of Britain's economic output and in February, lobby group UK Hospitality said the pandemic had resulted in almost £115bn of lost sales since March 2020.

That meant that a £140bn-a-year industry was 43% down on where it would normally expect to be, with the losses equating to 45 weeks of sales over the near two-year period, they added.

More than 80% of those surveyed said the government needed to take immediate action to strengthen the sector.

Two-fifths want more financial support packages, while 36% want a business rates holiday for struggling firms.

Just over a third said the government should subsidise energy bills for hospitality businesses, 34% want a scheme similar to Eat Out To Help Out, and 23% want the government to subsidise alcohol to increase consumer spending.

Sam Martin, chief executive of Peckwater Brands said: "The government must prioritise developing and communicating a realistic strategy to help venues get back on their feet.

"Admittedly, such a plan will take time to implement, so in the meantime, hospitality businesses must consider alternative options to ensure they can stay afloat.

"Reassessing supply chains to find cheaper alternatives, for example, or exploring the possibility of virtual brands could be a step in the right direction. Indeed, such avenues could help organisations to bolster their revenue while they wait to hear the government's long-term strategy.

"Evidently, the government must take affirmative action to support the sector.

"But optimistically, steps can be taken by businesses themselves to boost their revenue and stabilise their precarious position.

"And provided they remain open-minded and flexible, I remain cautiously optimistic for the future of the organisation."

A government spokesperson told Sky News: "We've stood behind the hospitality sector throughout the pandemic with £400bn package of economy-wide support that saved millions of jobs.

"And at the Spring Statement we went further, announcing a £1,000 increase to the Employment Allowance which will cut taxes for hundreds of thousands of businesses.

"Eligible high street businesses also get 50% off business rates bills and benefit from a freeze to the business rates multiplier, which puts the brakes on bill increases and is worth £4.6bn over the next five years.

"We've always been clear that the lower rate of VAT was a temporary measure and it's right our support reflects the fact the economy has reopened."
Newsletter

Related Articles

0:00
0:00
Close
US and UK Strengthen Medical Device Cooperation Following Tariff Removal
Trump Backs Steve Hilton for California Governor, Highlighting Reform Agenda
UK Seeks Closer Ties With Anthropic as AI Policy Divergence Emerges Across Atlantic
Experts Warn of Evolving Extremism After Teens Arrested in UK Ambulance Arson Case
UK Convenes Talks to Safeguard Shipping Through Strait of Hormuz After Conflict Escalation
Trump Highlights Strong Leadership in Critique of UK Stance on Iran
UK Authorities Review Kanye West’s Entry Status Following Festival Backlash
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
×