New restrictions place 98% of UK’s hospitality trade in tiers 2 or 3

Under the new tier system announced today, 98% of the UK’s hospitality trade will now take place in tier 2 and 3 regions, according to UKHospitality.

Should the restrictions last the entire month of December, an estimated £7.8 billion worth of trading is set to be wiped out, compared to 2019.

UKHospitality Chief Executive Kate Nicholls said: “The new tier system will deliver another huge blow to hospitality, with 98% of trade now happening in tier 2 or 3 regions. This will see £7.8 billion of trading wiped out compared to last year if the restrictions last all of December.

“These are safe spaces for people to meet, relax and socialise and the sector is desperate to get staff back to work, open their doors and, in the long term, diminish reliance on the public purse and begin driving economic recovery.

“The new tiers will see over 120,000 venues across England placed into Tier 2, with tens of thousands of these forced to close as they are unable to provide a table meal, either physically or financially. This affects the employment of nearly 1.5 million people. Under this severe a restriction, 94% of our members say they will be unviable or trading at a loss.

“For the 38,000 businesses in Tier 3, employing over 540,000 there is no option but to provide takeaway or close altogether.

“We still have not seen any evidence that hospitality venues – which have invested great time effort and money to making their spaces COVID-secure – are a problem area in terms of infection, so it seems unfair and arbitrary that hospitality is being dealt such a harsh hand. 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.

“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. 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.”

ENDS

Notes to editors

For more information contact Chris Banks: cbanks@ukhospitality.org.uk

About UKHospitality

• UKHospitality is the trade body representing the UK’s hospitality sector, established following a merger approved in February 2018 between the Association of Licensed Multiple Retailers (ALMR) and the British Hospitality Association (BHA)
• UKHospitality is the authoritative voice for over 700 companies, operating around 65,000 venues in a sector that employs 3.2 million people
• The body speaks on behalf of a wide range of leisure and ‘out-of-home’ businesses, from FTSE 100 enterprises to niche groups and independent single-site operators
• For the first time, the sector has a single voice bringing together businesses from all aspects of hospitality; coffee shops, hotels, serviced apartments, pubs, restaurants, leisure parks, nightclubs, contract caterers, entertainment, stadia and visitor attractions
• Engaging with government, the media and the public, UKHospitality works to develop a robust case on how to unlock the industry’s full potential as the biggest engine for growth in the economy and ensure that the industry’s needs are effectively represented
• The sector creates £130bn in economic activity and generates £39bn of tax for the Exchequer, funding vital services
• Hospitality represents 10% of UK employment, 6% of businesses and 5% of GDP

Hospitality is the 3rd largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined