Wed 1st Apr 2026 - Cost increases will see one in seven venues close and two thirds of businesses cut more jobs Cost increases will see one in seven venues close and two thirds of businesses cut more jobs: Cost increases that come into force for the sector today (Wednesday, 1 April) will see one in seven (15%) venues forced to close and two thirds (64%) of businesses cut more jobs, according to new member survey results from UKHospitality, the British Beer & Pub Association, the British Institute of Innkeeping and Hospitality Ulster. The findings also show 51% will cancel investment plans and 42% reduce trading hours. The increasing cost of energy was also a significant concern. Even when surveyed prior to the situation in Iran and the Middle East, almost all businesses (93%) said energy costs were impacting profitability. Hospitality is united on the measures that would allow their businesses to grow – VAT reduction for hospitality (89%), permanent reform of business rates (74%) and changes to employers’ national insurance contributions (65%). The benefits of lowering hospitality’s tax burden are clear, the trade bodies said. Businesses would prioritise refurbishing and developing existing sites (70%), creating new jobs (46%) and opening new sites (27%). In a joint statement, the trade bodies said: “Yet again, hospitality businesses enter April facing billions of pounds in additional costs, which will force many to make heartbreaking decisions. Despite the necessary and welcome support for pubs on business rates, neighbourhood restaurants, local hotels and independent cafes all face their bills rising in the thousands. Hospitality’s tax burden – the highest in the economy – is suffocating the sector. The impact is clear: more lost jobs, less investment and business closures. The jobs, communities and livelihoods we support are hit once again. The worrying situation facing the business energy market has the potential to accelerate all these impacts. Hospitality businesses are clear that cutting their costs through a lower rate of VAT, business rates reform and changes to employers’ national insurance contributions will deliver new jobs, investment and growth.”