73% of Hospitality Businesses Have Less Than Six Months’ Cash Reserves

Almost three quarters of hospitality businesses now have less than six months of cash reserves, with one in five having none at all, according to a new survey from UKHospitality, the British Institute of Innkeeping, the British Beer & Pub Association and Hospitality Ulster.

The study paints a stark picture of an industry under strain. Nearly 70% of respondents said they were operating at or below 85% of their required capacity, while April’s tax rises have forced difficult choices: 79% have increased prices, and more than half have reduced staff numbers.

Trade bodies say the situation is unsustainable, warning that rising costs are stifling growth, limiting investment, and threatening local jobs. They are calling on the government to act at the autumn Budget by reducing VAT for hospitality, amending national insurance changes, and introducing permanently lower business rates for the sector.

In a joint statement, they urged:
“Unsustainable tax increases are squeezing businesses and forcing impossible decisions to cut jobs, raise prices and reduce opening hours. Now is the time to act and back a vital British sector that supports the economy, jobs, and communities.”