Hospitality Industry

(asked on 18th November 2025) - View Source

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what recent assessment he has made of the cumulative impact of property taxes, staffing costs, food and drink inflation and energy prices on the financial sustainability of hospitality businesses.


Answered by
Kate Dearden Portrait
Kate Dearden
Parliamentary Under Secretary of State (Department for Business and Trade)
This question was answered on 26th November 2025

The Government recognises the significant pressures facing the hospitality sector and the Government is providing support through various measures to help ease these pressures.

We aim to permanently reduce business rates for RHL properties with a rateable value of less than 500,000 and we have announced a new Zero Carbon Services Hospitality trial which aims for Pubs, cafes, restaurants and hotels to receive free energy and carbon cutting advice to slash their energy bills as part of the government’s Plan for Change.

Additionally, the Employment Allowance has been increased to £10,500, meaning 865,000 employers will pay no National Insurance Contributions enabling businesses to employ up to four full-time staff on the National Living Wage without incurring employer NIC costs.

The Department will continue to engage with the sector, including through the Hospitality Sector Council with an aim to co-create solutions to the issues impacting the sector.

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