350 hospitality businesses close as costs bite in first half of year
A report shows 350 hospitality venues closed in six months, with rising costs and VAT pressures blamed.
How it was covered
- Channel 5 was the only channel found covering it.
- BBC News, BBC One, BBC Two, Channel 4, GB News, ITV and Sky News: not found in tracked broadcasts.
The Full Story
A plain summary built from the channels that reported this story. Facts only one channel reported are attributed to it.
Hospitality sector loses 350 businesses in first half of year
A new report from UK Hospitality shows that 350 hospitality venues permanently closed between January and June, the equivalent of two a day. The closures are being blamed on rising energy costs, weaker consumer demand, higher taxes, and an increase in the national minimum wage.
Among those affected is Miles, who runs a coffee shop. He said the 50p increase in the minimum wage has made it harder to hire staff. "We want to be hiring we want to be giving people their first jobs We struggle to give them the opportunity because we can't take the chances on labour," he said.
Katie, a mother of three, was forced to give up her cafe and wine bar in Leamington. "It was our livelihood. It was everything for us," she said. She has retrained and now supports families through childbirth.
Lydia, who runs a bakery, said the industry pays the second highest VAT in Europe. She needs to sell about 400 croissants a day just to break even.
The government says it has prioritised hospitality, cutting business rates by 20% for pubs, social clubs and live music venues, and capping corporation tax. A wider review of the high street is expected at the autumn Budget.
But business owners argue more is needed, particularly a cut in VAT from 20% to a level comparable with France, Spain and Italy.
Key Claims
Claims reported during this story's coverage, grouped by how many channels reported each one. Select a dot to see the source excerpt.
| Claim |  |
|---|---|
| Only on one channel | |
| 350 hospitality businesses closed in the first half of the year | |
| Hospitality businesses pay 20% VAT, double the rate in France, Spain and Italy | |
| The government cut business rates by 20% for pubs, social clubs and live music venues | |
Channel Perspectives
What each channel focused on, with key quotes.
The channel focused on the human impact of the closures, using interviews with three business owners to illustrate the pressures. It highlighted the call for a VAT cut and noted the government's response, but gave no other political analysis.
- “It was our livelihood. It was everything for us.”
- “We pay the second highest VAT in Europe and even as an industry we carry the heaviest tax burden within our economy”
- “You are constantly putting out fires.”
Broadcast Timeline
News broadcasts tracked for this story, in time order.