London Daily

Focus on the big picture.
Wednesday, Mar 25, 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
Trump Signals Frustration with UK Leadership Amid Diverging Approaches to Iran Conflict
UK Government Takes Control of Hunterston B as Landmark Nuclear Decommissioning Begins
UK Public Inflation Expectations Jump Sharply in March, Raising Pressure on Bank of England
UK Ministers Warn Expanded North Sea Drilling Would Deepen Exposure to Global Energy Volatility
Delayed UK Defence Investment Plan Leaves Suppliers Under Severe Financial Strain
Can Iran Strike the UK? Assessing the Real Military Threat as Conflict Escalates
Sanctioned Iranian Banker Linked to Luxury Marbella Villa Through UK Corporate Structure
Casey Bloys Navigates HBO Max UK Launch, Paramount Integration and Industry Buzz Over Netflix Meeting
Iran Conflict Sparks Sharp Turbulence in UK Mortgage Market, Reaching Pandemic-Era Disruption Levels
Major Donor Urges University of Kentucky to Reconsider Mitch Barnhart’s Post-Retirement Role
United Kingdom Moves to Lead International Effort to Reopen Strait of Hormuz
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
Senior UK Advocate Criticises Barnhart Retirement Appointment, Calls for Reconsideration
UK Finds No Evidence of Direct Iranian Threat to Britain, Says Prime Minister Starmer
Assessing Iran’s Strike Capability and the UK’s Readiness Amid Rising Tensions
NATO Unable to Confirm Iran’s Role in Strike on UK-US Base as Tehran Denies Involvement
University of Kentucky’s Youling Xiong Receives SEC Faculty Achievement Award for 2026
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
×