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It’s one of the most important industries in the UK, both economically and socially While it’s important to be frank about the state of the hospitality industry and the very real issues that operators are contending with, from a high rate of VAT to rising energy costs, it’s not enough to simply highlight the problems and shout about the stats. We want to showcase why hospitality is such a critical industry and why it’s deserving of more government support. Hospitality is the UK’s third-largest employer, with 3.5 million people employed in the sector directly, and many more in the hospitality supply chain. It’s responsible for £7bn invested in high streets and communities each year, it contributes around £62.2bn in economic output and pays over £50bn in tax annually. Outside of its economic impact, hospitality also has immense social significance. With its Social Productivity Index (SPI), which measures industries on their abilities to share growth widely, UKHospitality found that hospitality is the top performing socially productive sector. The industry is the largest employer of young people and offers significant social mobility, with a high proportion of non-graduate managers. Far from being a stop-gap until people get ‘real’ jobs, hospitality is a career that offers progression and longevity. As Chris Miller, Founder and CEO of White Rabbit Projects, a hospitality incubator that counts Lina Stores and Kricket amongst its businesses, says “hospitality is one of the few industries that is truly open-access. It will hire you without prior experience, without a degree, and without a particular background - and then give you a pathway to build real, transferable skills. Someone can walk in as a runner or kitchen porter and, within a relatively short period of time, be leading a team, running a floor, or managing a site. That progression isn’t theoretical - it’s something we see happening constantly.” Not only is that progression and mobility “genuinely merit-based” placing “far less emphasis on formal education and far more on attitude, work ethic, and consistency”, it’s crucial when it comes to young people. “Around 84% of hospitality employers who recruited in the past year hired at least one young person. That isn’t accidental - it’s fundamental to how the industry works,” he explains. “ At a time when youth unemployment has risen to 16.1%, the highest level in over a decade, hospitality remains one of the few sectors with both the capacity and the willingness to absorb, train and develop young talent at scale.” The same sentiment is echoed by Katie Tobin of business development consultancy Always Thinking. “Hospitality is one of the most important entry points into employment for young people, offering hands-on experience and the chance to build confidence, communication skills and independence from an early stage,” she says. “Through the Festival of Hospitality’s Pay it Forward scheme, we work directly with schools to challenge perceptions among students, teachers and parents, and showcase the breadth of opportunities the sector offers. Too often, hospitality is seen as a stopgap, when in reality it provides clear pathways into long-term careers across food, events, operations and management without the need for a traditional university route.” As well as teaching key interpersonal skills, like teamwork, communication, and conflict resolution, hospitality provides social interaction and really helps bring people together - we saw how much it was missed during the pandemic and the search for community is only becoming stronger. As Chris says, “restaurants, pubs, cafés and hotels are not just commercial spaces — they are social infrastructure. They are where people come together to celebrate, connect, and support each other. When a good local venue closes, the loss is felt far beyond the balance sheet. We saw that clearly during Covid, when the absence of these spaces had a real impact on communities.” The flexible work options make hospitality incredibly inclusive and accessible to people who need to balance employment around education and care responsibilities, and given its wide geographical reach, the industry provides jobs in both urban and rural areas. "Hospitality is also one of the most accessible and inclusive industries, welcoming people from all backgrounds and offering flexible routes into meaningful work,” states Katie. Restaurants, bars, pubs and cafes make your neighbourhood what it is, otherwise it’s just chain after chain. They are the places where we mark the big milestones and enjoy the little moments in life. London boasts one of the best food and drink scenes in the world and that’s down to the incredible variety of hospitality businesses - and the people that work in them - that call the city home. UKHospitality has predicted that six hospitality venues could close a day in 2026 thanks to the business rates increase that has come into force this April. It’s yet another bleak statistic for an industry that has been weathering storms on several fronts over the last few years, including increased National Living Wage, increased National Insurance contributions, a high rate of VAT, rising rents and energy costs (something that’s only being impacted further by the crisis in the Middle East), and a customer base that’s spending less in a cost of living crisis. We spoke to a number of independent operators last year who explained how bad the landscape was, and unfortunately the pressures on the sector aren’t easing, which means there’ll be more restaurant closures and more job losses. We’re calling on the government to lower the rate of VAT in line with the European average. Join the movement by sending a letter to Chancellor Rachel Reeves and Minister for Small Business and Economic Transformation Blair McDougall asking for a reduction in VAT for the hospitality sector. The letter is already written, all you have to do is add your details here. It takes just two minutes to make your voice heard. SEND THE LETTER

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Hospitality Deserves Support

The Government Doesn’t Care About Restaurants

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Taxed Out

Hospitality Deserves Support

The Government Doesn’t Care About Restaurants

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