Nearly 25% of UK pubs and restaurants lose money, research shows

Nearly a quarter of UK pubs, bars and restaurants are losing money, according to new survey data that came as a group of celebrity chefs and business owners stepped up their campaign for a sector-specific VAT cut . Spearheaded by chef Tom Kerridge, leading figures in the hospitality sector are calling for VAT on the industry to be cut from 20% to 10%. Under the banner “VAT’s the problem”, the campaign will be publicly launched from Wednesday in the hope of convincing visitors to venues across the country to sign a petition backing the reduction. Labour’s decision to increase employers’ national insurance contributions and the national minimum wage, coupled with soaring inflation and energy costs, have piled pressure on a sector operating on threadbare margins. But the industry is focusing its efforts on securing a VAT cut, estimated to cost the Treasury between £10.5bn and £12bn, a policy that has received tentative backing from Britain’s prime ministerial hopeful, Andy Burnham. In a joint statement, a group of trade bodies representing the sector highlighted the “devastating impact” of taxation. Survey data commissioned by the industry group indicates that 23% of respondents are losing money, a significant jump from 15% at the last checkup three months ago. One in six businesses said they run the risk of going bust inside 12 months; while 5% said they are not financially viable. …