⚠️ Heads up, everyone! Big changes are hitting pubs, restaurants, and bars across the UK. Almost 80% of hospitality businesses have had to bump up their prices due to rising costs from recent Budget changes. What’s behind the uptick? It’s not just increased wages. The national living wage jumped 6.7% to £12.21 for those over 21, and employers are now paying more into national insurance – rates moved from 13.8% to 15%. Plus, tax breaks on business rates have been slashed.
The impact? More than half of these businesses had to cut jobs to stay afloat. 😟 Many are left with less than six months’ worth of cash reserves, and some don’t have any at all. A concerning analysis also revealed that in just the first six months of this year, 209 pubs shut their doors for good.
Voices from the industry are calling out for the Government to step up. The demand? They want the Chancellor to rethink VAT, business rates, and those steep national insurance contributions in the upcoming autumn Budget. According to trade bodies, unsustainable tax hikes are strangling businesses, holding back growth, and putting local jobs, particularly for young people, at risk.
To keep hospitality thriving in our communities, there’s a call for reducing VAT for the sector, tweaking employer NICs, and offering permanently lower business rates. The aim? To reverse this trend, foster growth, and keep our beloved local spots buzzing! 💬 What do you think about the price hikes and closures? Share your thoughts below! 🍽️🍻