Cost of Living

Coverage explores the impact of economic pressures on consumer spending, staff retention, and operational costs across the UK hospitality sector. We report on inflation, wage demands, energy prices, and discretionary income trends, analysing how restaurants, pubs, caterers, and other operators are adapting pricing, staffing, and promotional strategies in response to shifting demand and household budgets.

  • Mar- 2022 -
    25 March
    Pubs and BarsWeekend pub and bar transactions up 83% on pre-pandemic levels

    Weekend pub and bar transactions up 83% on pre-pandemic levels

    Transaction volumes for pubs and bars over the weekend of 18-20 March were up 83.2% on the same weekend in 2019, according to data from Barclaycard Payments. Barclaycard said that transactions were also up 476.1% compared to the same weekend in 2020, the last weekend before the first Covid-19 lockdown).…

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  • 23 March
    GovernmentSpring Statement: Chancellor raises NI threshold to £12,570

    Spring Statement: Chancellor raises NI threshold to £12,570

    The chancellor has outlined a series of measures to help combat the rising cost of living in his latest spring statement, including increasing the national insurance threshold by £3,000. Speaking in parliament today (23 March), Rishi Sunak began his speech by warning it is yet unclear what the impact of…

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  • 18 March
    Analysis13 Spring Statement predictions

    13 Spring Statement predictions

    With both the global and UK economies coming under pressure from the rising cost of living crisis, which has only been exacerbated by Russia’s invasion of Ukraine, all eyes will be on the chancellor when he makes his Spring Statement speech on 23 March 2022. Here, Christy Wilson, tax associate…

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  • 14 March
    RestaurantsRestaurant insolvencies rise to 354 in Q4

    Restaurant insolvencies rise to 354 in Q4

    Restaurant insolvencies jumped by a fifth to 354 in the last quarter of 2021, rising from 296 in Q3, according to UHY Hacker Young, the national accountancy group. UHY Hacker Young said “despite the end of coronavirus restrictions, the sector faces considerable challenges”. The invasion of Ukraine and resulting sanctions…

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  • 10 March
    Trade AssociationsUK public support maintaining 12.5% VAT, UKH says

    UK public support maintaining 12.5% VAT, UKH says

    There is strong support amongst the public for VAT to remain at its current rate of 12.5% beyond April, according to a new study by YouGov commissioned by UKHospitality. Excluding those who didn’t give a view, only 21% believed the Government should stick with its current plan to increase VAT…

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  • Feb- 2022 -
    8 February
    BusinessConsumer spending slows in January

    Consumer spending slows in January

    Consumer card spending rose by only 7.4% in January compared to the same period in 2020, marking the smallest uplift since April 2021, as spending was dampened by ongoing Plan B restrictions, inflation, and rising energy costs. In light of this, hospitality and leisure spending swung to a decline last…

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  • 3 February
    BusinessBoE raises interest rates to 0.5%

    BoE raises interest rates to 0.5%

    The Bank of England (BoE) has raised interest rates for the second time in three months to 0.5%, up from 0.25% previously. The BoE Monetary Policy Committee (MPC) confirmed it voted by a majority of 5-4 to increase Bank Rate by 0.25 percentage points, to 0.5%. Interestingly, it revealed those…

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  • 3 February
    BusinessEnergy price cap to rise 54% from April

    Energy price cap to rise 54% from April

    Hospitality bosses are braced for a spending squeeze after it was revealed the energy price cap is set to increase by 54% from 1 April amid a “record” increase in global gas prices, in a move that is set to affect approximately 22 million customers. Energy regulator Ofgem announced that…

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  • Jan- 2022 -
    14 January
    BusinessUK economy surpassed pre-Covid levels in November

    UK economy surpassed pre-Covid levels in November

    Gross domestic product (GDP) has surpassed its pre-pandemic level for the first time as it grew by 0.9% in November 2021, according to the latest Office for National Statistics (ONS) data. In the latest release, output in consumer-facing services grew by 0.8%, mainly because of a 1.4% increase in retail…

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  • Nov- 2021 -
    24 November
    CoronavirusHospitality vacancies could reach 163,000 over Christmas, study finds

    Hospitality vacancies could reach 163,000 over Christmas, study finds

    Hospitality vacancies could reach as high as 163,000 over Christmas as the UK continues to be hit by an employment crisis, according to new analysis of ONS vacancy data by Stint, a student work app. It analysed the last 10 years of vacancy data and used a forecasting model to…

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