Having survived 18 months of enforced closure, the hospitality sector is now not only facing a shortage of staff and supply chain issues but the triple threat of punitive business rates, rent demands and an increase in VAT.

UKHospitality believes a targeted package of post-pandemic support is ‘essential’ if it is to have any hope of a complete recovery.

UKHospitality is asking for:

• Meaningful reform to the business rates system, including a differential, lower rate for hospitality, coming into force in April 2022.
• A permanent rate of VAT at 12.5% for hospitality and tourism.
• A strong, implementable, equitable code of practice that mandates a sharing of the pain of rent arrears between landlords and closed sectors, including a 50% rent debt write-off for tenants for all closed periods.
• An increase to the primary threshold for employer National Insurance Contributions to £12,000.
• A lower level of excise duty for all categories of alcohol sold in licensed venues.

The industry body also wants to boost Government spending on apprenticeship funding and an extension to the kickstart scheme.

Kate Nicholls, chief executive of UKHospitality, commented: “The hospitality sector has proved before that it can lead the way out of an economic crisis and since our businesses were permitted to reopen in April 2021, we have seen strong employment growth.

“Given the right conditions we can continue to create jobs, rejuvenate high streets, generate billions in tax and contribute to growth.”