More than three quarters of hospitality businesses are at risk of insolvency within the next 12 months, UK Hospitality has revealed.

According to a survey carried out by the trade body, in partnership with CGA, 21% of operators said insolvency was either a “significant risk” or “expected,” and a further 55% said it was a “slight risk.”

Fewer than one quarter, 24%, said that they are facing no risk at all.

Given these concerning statistics, UK Hospitality has urged the Government to provide further decisive support to prevent large swathes of businesses facing collapse.

Commenting on the figures, UK Hospitality CEO Kate Nichols said that they reveal the stark nature and desperate position that many in the industry find themselves in, and she has subsequently called for an extension of government support.

“The future of this sector, which provides jobs in every region of the country and is central to our social lives, has never looked shakier,” she said.

“The support the Government has provided has been crucial in ensuring that many businesses have survived the initial shock of lockdown and stimulated a return of some demand. Without further support, however, we are going to see more and more venues going out of business and people continue to lose jobs.

“This means we need to see an extension of the business rates holiday and VAT cut, employment support for those businesses unable to open and financial support on rent. Otherwise, we are going to see businesses fail and jobs lost just as the economy begins to reopen.”

 

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