A survey conducted by CGA by NIQ has revealed that seven out of ten UK hospitality businesses are operating at 85 percent or less capacity, with more than half reportedly cutting staff numbers to try and mitigate rising costs.

Out of 14,300 respondents, 20 percent said they have no remaining cash reserves, while 73 percent said they had just enough for another six months, prompting urgent calls for support from the BII, BBPA, UKHospitality and Hospitality Ulster.

“This shocking data reinforces the urgent need for government to recognise the incredible pressure hospitality businesses have been put under, particularly since April, and illustrates why it should come forward with measures to support this vital sector at the Budget,” said a joint statement.

“Unsustainable tax increases are squeezing businesses, stifling growth and investment and threatening local employment, especially for young people. Hospitality is united in which measures will reverse this trend and drive growth: a reduction in VAT for hospitality, changes to employer National Insurance Contributions and permanently lower business rates for the sector.”

“Now is the time to act and back a vital British sector that supports the economy, jobs and local communities. We urge the government to do so at the Budget this autumn.”

Hospitality hit the hardest as the sector accounts for half of post-Budget job losses

The UK hospitality sector has borne the brunt of job losses since the Chancellor’s Budget, according to fresh analysis of Office for National Statistics figures by UKHospitality. The trade body reports that hospitality alone makes up 53 percent of all redundancies recorded, marking it the single hardest-hit industry.

The scale of the cuts has far exceeded forecasts. The Office for Budget Responsibility had anticipated 50,000 losses linked to changes in employer National Insurance Contributions. In reality, losses in hospitality are three times that estimate.

The figures reveal that one in 25 roles in the industry has disappeared, equating to 4.1 percent of its workforce. Proportionally, this is seven times higher than the average rate of job losses across the wider economy. UKHospitality is urging the Government to act in the autumn Budget. It has called for reductions in business rates, revisions to NICs and a VAT cut to prevent further decline.

“The number of job losses suffered in hospitality since the Budget is staggering,” said Kate Nicholls, chair of UKHospitality. “More than half of all job losses since October occurring in hospitality is further evidence that our sector has been by far the hardest hit by the Government’s regressive tax increases.