London Daily

Focus on the big picture.
Tuesday, Oct 20, 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
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
Senior Minister Shabana Mahmood Seeks New Law Enforcement Pact With European Union
Airbus Executive Warns Britain Risks Losing Crucial Role in European Space Industry
Exorbitant Electricity Costs Push British Steelmakers to Worst Competitive Position in Three Years
British Food and Beverage Exports to European Union Collapse by Over a Third Since Brexit
Up to Twenty English Maternity Units Face Impending Closure Due to Safety and Staffing Crises
Government Declares Severe Drought Across Southern England Following Record Dry Spell
Corporate Profit Warnings Reach Two-Year High Amid Middle East Conflict and Rising Costs
International Monetary Fund Warns Chancellor John Healey Against Proposed Bank Tax Raid
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
Tata Steel Confirms Two Thousand Job Cuts at Port Talbot to Fund Green Transition
Global Microchip Developer Announces Three Billion Pound Semiconductor Plant in Cambridge
United Kingdom Artificial Intelligence Safety Institute Proposes Mandatory Licensing for Generative Models
United Kingdom Commits Additional Long-Range Weapons and Air Defenses to Ukraine
British Chancellor Overhauls Infrastructure Financing to Bypass Borrowing Constraints
Bank of England Holds Benchmark Interest Rate at Four Point Five Percent
First Minister Rhun ap Iorwerth Confirms Constitutional Discussions Over Welsh Independence During Initial Bilateral Call with Prime Minister
Labour Party Instructs Local Council Groups to Sever Power-Sharing Accords with Green Party Over New Controversial Policy Positions
Institute for Fiscal Studies Warns of Thirty-Five Billion Pound Fiscal Gap Ahead of Chancellor John Healey Upcoming Autumn Budget
House of Lords Backs Landmark Legislative Amendment to Decriminalize Abortion Across England and Wales
United Kingdom Defence Secretary Wes Streeting Travels to Pentagon for High-Level Strategic Talks Amid Escalating Tensions Over Ukraine and United States Policy Shifts
Bank of England and International Monetary Fund Officials Issue Urgent Warnings Regarding Potential Artificial Intelligence Financial Market Shocks
Reform UK Faces Severe Political Fallout and Scrutiny After Undercover Media Investigations Reveal Systemic Racism Among Candidates
Former Democratic Unionist Party Leader Jeffrey Donaldson Sentenced to Fifteen Years in Prison Following Landmark Child Sexual Abuse Trial
House of Lords Votes to Amend Schools Bill Implementing Comprehensive Social Media Ban for Children Under Sixteen Years of Age
International Monetary Fund Upgrades United Kingdom Growth Forecast for Two Thousand Twenty-Six While Warning of Energy-Driven Inflation Pressures
Competition and Markets Authority Launches Formal Inquiry Into Corporate Artificial Intelligence Partnerships
Automotive Industry Leaders Urge Westminster to Accelerate Electric Vehicle Charging Infrastructure Rollout
Home Office Expands Digital Border Security Framework With Mandatory Electronic Travel Authorizations Across United Kingdom
Northern Ireland Executive Reaches Final Consensus on Public Sector Pay Reform and Budget Allocations
Welsh First Minister Secures Additional Funding for Rural Agricultural Transition and Sustainable Farming Schemes
Scottish Government Unveils Accelerated Regional Infrastructure Strategy to Boost Clean Energy Manufacturing
National Health Service England Launches Emergency Recruitment Drive to Alleviate Severe Acute Care Winter Backlogs
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Reductions Amid Persistent Wage Growth
British Government Finalizes Emergency Energy Support Package to Protect Households From Winter Price Surges
Russell Brand Trial Begins at Southwark Crown Court
UK Parliament to Debate Climate Risks and Council Tax Following Public Petitions
×