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UKH warns of £7.8bn trading loss in new tier system

UKHospitality had warned that under the new tier system £7.8bn worth of trading will be wiped out compared with 2019 if it lasts into the new year.

The new government tier system has put 98% of the UK’s hospitality trade in Tier 2 and 3 regions.

UKHospitality chief executive Kate Nicholls said that the new tiers will see over 120,000 venues across England placed into Tier 2, with tens of thousands of these “forced to close” which will affect the employment of nearly 1.5 million people.

Under “severe restriction”, Nicholls said 94% of UKH members will be “unviable or trading at a loss”, adding that for the 38,000 businesses in Tier 3, employing over 540,000 there is “no option” but to provide takeaway or close altogether.

According to a recent UKH survey, 72% of visitors to hospitality were “satisfied” with the safety of our venues, compared to just 11% who were not.

Nicholls said: “It is now more vital than ever that the Government provides urgent further financial support for this sector. If it does not, we are looking at huge numbers of job losses, businesses permanently closed and the landscape of hospitality in this country fundamentally degraded for the foreseeable future.

“If we want to see businesses survive, then we desperately need a replacement for the Job Retention Bonus Scheme and for the Government to extend the rent moratoria and broker a solution to tackle the issue of rent debt that has built up.”

She added: “If we want to give those businesses that do survive this winter a better chance at succeeding next year, then the VAT cut and businesses rates holiday must now be extended and grants provided to support businesses paid out at the earliest opportunity.”

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