Hospitality Sector Demands Urgent Tax Reforms as #TaxedOut Campaign Launches

UKHospitality has launched its #TaxedOut campaign, demanding urgent tax reforms from government ahead of the next Budget to prevent further decline in the sector. The NFFF have been highlighting the unfair burden on the industry for many years, as fish and chip businesses have always worked on slim margins. But with the effects of the Budget and rising inflationary costs, it is now vital that government acts to protect the independent hospitality sector.

UKHospitality’s chair, Kate Nicholls, warns that hospitality businesses are being “taxed out of existence,” with the industry losing 69,000 jobs in just seven months since October 2024. One-third of businesses are now operating at a loss, and many have been forced to cut jobs and cancel investment plans.

The campaign makes three key asks of government:

• A significant reduction in business rates for hospitality businesses with a rateable value under £500,000, and exemption for larger premises from new surcharges, to help revive high streets.
• Reforms to national insurance contributions, extending existing exemptions to include young people and those moving from welfare to work, in order to support job creation.
• A lower rate of VAT for hospitality, bringing the UK in line with European countries where VAT rates average 10-13%, to improve competitiveness and boost investment.

Nicholls stresses that the industry is ready to drive economic recovery if given the right support, stating: “Hospitality is being taxed out, but it is ready to lead the charge for economic recovery, if the chancellor is ready to give us the tools to do the job.”

Visit: UK Hospitality for more information on how you can get involved