New industry research has revealed the scale of the financial pressures facing hospitality businesses, with one in six venues reporting they are at risk of closure within the next 12 months if current trading conditions continue.

The survey, carried out on behalf of UKHospitality, the British Beer & Pub Association, the British Institute of Innkeeping and Hospitality Ulster, found that 23% of businesses are now operating at a loss, up from 15% just three months earlier. A further 5% said their business is no longer commercially viable.

Operators identified a reduction in hospitality VAT as the single most effective measure the Government could introduce to support the sector, with almost nine in ten respondents backing a cut to 10%. The findings come as businesses continue to face rising employment costs, higher business rates and ongoing inflationary pressures.

The survey reinforces the urgent need for policies that support hospitality businesses, protect jobs and encourage investment. With many operators continuing to face significant financial challenges, the sector is united in calling for measures that will help safeguard the long-term future of hospitality across the UK.