Two-thirds of hospitality business feel abandoned by government

Almost two-thirds of hospitality businesses feel abandoned by the government, according to new research from Peckwater Brands.

The virtual brand operator surveyed 201 senior decision-makers within hospitality businesses. It found that nearly seven-in-10 (69%) of respondents are in favour of the government’s actions which protect hospitality businesses which accumulated debts during the Covid-19 pandemic.

However, almost two-thirds (64%) feel that the government has abandoned the hospitality sector.

Furthermore, almost four-in-five (79%) of respondents think the government should have delayed increasing the VAT for hospitality businesses to pre-pandemic levels by at least 12 months. Some 69% also believe that increasing national insurance contributions was a mistake.

Some 82% believe that the government must take immediate action to strengthen the hospitality sector.

In terms of the action required, almost two-fifths (39%) of senior decision-makers want the government to provide more financial support packages whilst over a third (36%) want business rates holidays to be offered to struggling businesses.

Further, 35% want the government to subsidise energy bills for hospitality businesses, 34% want a scheme like the Eat Out to Help Out to be introduced, whilst over a fifth (23%) want the government to subsidise alcohol to increase consumer spending.

Sam Martin, CEO of Peckwater Brands said: “The hospitality sector has not minced its words: the government must increase its support to hospitality businesses. The Covid-19 pandemic hit venues incredibly hard – and while they did receive important financial support throughout this difficult time, it has arguably dried up just as the cost-of-living crisis has hit. It is little wonder that the sector feels abandoned.”