Pubs: one quarter of hospitality sector may collapse

A new survey has suggested that one quarter of pubs and restaurants could collapse by Christmas without government help.

The new 10 pm curfew has been called ‘devastating’ by the hospitality sector who warned the pandemic could have let to 675,000 job losses by February.

The British Beer & Pub Association, UK Hospitality and the British Institute of Innkeeping carried out a survey to find that 23% of pubs, bars and restaurants said they would expect to collapse within three months under the new rules.

BBPA chief executive, Emma McClarkin, said: “This research shows pub businesses were already teetering on the edge.”

“Now the prime minister has announced even more restrictions for them, it is clear much more support will be needed from the government to ensure they survive.

“An immediate stimulus package is required for our sector in the form of an extension to the furlough scheme and business rates relief, plus continuation of the VAT cut to food and soft drinks and a significant cut to the UK’s excessively high beer duty,” added McClarkin.

So far, one in eight hospitality members of staff has been made redundant, with many more job losses expected following the furlough schemes end.

“The future of the sector is still very much in the balance,” said Kate Nicholls, the chief executive of UK Hospitality.

“The additional restrictions announced this week place even further burdens on a sector that is operating with razor-thin margins and needs all the help it can get. It is vital that these restrictions are reviewed regularly.”

Chancellor Rishi Sunak will unveil his new “winter economy package”.

Sunak is not having his November Budget because “now is not the right time to outline long-term plans and people want to see us focused on the here and now.”




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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.