Why Is the UK Government Beta-Testing Tax Policy on Hospitality - With People’s Lives?

I know I've written about costs in our sector before, but this tops it right now...,

At what point did it become acceptable to experiment with tax policy on an industry that employs millions, supports communities, and anchors our high streets? Its like some beta level of gaming that they want to "see what happens if..."

Because that is exactly what is happening to UK hospitality right now.

We are watching tax changes and cost pressures rolled out like beta tests, with little understanding of their real-world consequences - and when the results are catastrophic, the response appears to be indifference.

100,000 Jobs Lost in 12 Months - and Rising

Let’s be clear: Over 100,000 hospitality jobs have disappeared in the past year, and the number is still climbing.

That isn’t “market correction.”That isn’t “changing consumer behaviour.”That is systemic failure.

If any other sector lost jobs at this rate, there would be emergency briefings, taskforces, and ministerial headlines. Yet hospitality - one of the UK’s largest private employers - 3 MILLION strong is expected to quietly absorb the damage.

A Sector Heading Toward 90% Unprofitability

At the current trajectory, only 1 in 10 hospitality venues will be profitable by 2026.

Read that again.

That isn’t an industry asking for handouts - it’s an industry asking for a viable route to survival.

You cannot grow an economy by taxing the very businesses that:

• Employ young people

• Retrain career changers

• Rebuild town centres

• Drive tourism

• Support supply chains from farming to logistics

The Pub Economics That Say Everything

Here’s the most damning statistic of all:

For every pint sold:

• The pub keeps around 12p

• The government takes approximately £1.50 - AND RISING - with current business rates increases looking to consume almost 100% increase on rates ON TOP of current rates.

VAT, duty, business rates, employer costs - stacked relentlessly.

And we wonder why venues can’t invest, can’t pay higher wages, can’t survive downturns.

This is not sustainable economics. It is extraction.

A client recent mentioned, from 13 venues they run, £1M was wiped off from this years profit, just from this decision alone, a thriving group, no "celebrity" to endorse, just good honest venues and values, but this removes pretty much ALL EBITDA for 2026, every menu, purchase, costing and rota has to be re written from the ground up to maintain, just maintain.

“Lifestyle Changes” Is a Convenient Excuse

Yes, consumer behaviour has changed.Yes, there is more entertainment, more choice, more diversity. not to mention smaller portions due to "skinny jabs" dont get me started....

But let’s stop pretending this explains what’s happening now.

Venues are closing this week. Not poorly run venues.Not outdated venues.Good businesses with loyal customers.

Some of my own clients have shut their doors - not because demand vanished, but because profit has become mathematically impossible.

This reality has been publicly shared by industry leaders like Sacha Lord and countless operators across the country.

These are not emotional decisions.They are final ones.

Where Is the Minister for Hospitality?

Why - in a sector of this size, importance, and vulnerability - is there still no full Minister for Hospitality with real authority?

Who is standing up in government saying:

• “This doesn’t add up.”

• “You can’t tax growth into existence.”

• “You can’t treat people’s livelihoods like an economic experiment.”

Because right now, policy feels like guesswork, and guesswork at this level destroys lives.

Growth Does Not Come From Extinction

Taxing hospitality — and by extension, our social lives, our communities, and our workforce - will not produce growth.

It produces:

• Empty high streets

• Lost skills

• Reduced tax intake

• Long-term unemployment

• Broken communities

That is not ideology. That is economic fact.

Final Thought

Hospitality is not asking for special treatment.It is asking for fair, informed, and sustainable policy.

I recently shared plenty of local venue discounts on my page, offering anything from £1.25 slices of pizza for lunch to 50% off food in high end venues across Greater Manchester

If we continue down this path, there will be nothing left to tax. Your local venue NEEDS you, and if you want the discounts, let me know, (I will share them - there are enough to visit one per day across the North each day of January at least.)

Goodbye birthdays out, goodbye graduation nights, goodbye monthly meetups, goodbye datenight, goodbye Saturday night treats, do not take it for granted.

And when that happens, the cost will be far higher than any short-term revenue ever gained.

This matters. And it needs to be shouted - loudly.

So my final messages, are links of support, one with a group I know very well, and listen, and are there to support - THE BURNT CHEF PROJECT, with plenty of support, training, tools and links to plenty of ways to make sure no one is carrying any burden on thier own.

Lastly - If you havent done already, and you work, in, own or even passionate about not LOSING your local venue - there is a link to write to your MP . As together we can reverse this, they need to know and see we know what we are doing, they do not.