Protecting hospitality: three experts discuss what needs to happen

Four hospitality sites closed every day in the last quarter of 2025, according to the NIQ Hospitality Market Monitor [Jan 2026] – a stark reminder of the continued pressure on pub and restaurant businesses.

The squeeze being put on the trade from all angles, and what can be done to ease this pressure, will be debated by industry leaders at The UK Food & Drink Shows in April.

Held at the NEC Birmingham from Monday 13 to Wednesday 15 April, The UK Food & Drink Shows comprises four individual events: Food & Drink Expo, Farm Shop & Deli Show, Forecourt Show and the National Convenience Show.

At the show will be the panel discussions ‘Protecting Hospitality: What Needs to Happen?’, featuring Juliane Caillouette Noble, chief executive at The Sustainable Restaurant Association; Emma McClarkin, chief executive at British Beer and Pub Association; and Allen Simpson, chief executive at UKHospitality.

What are the biggest challenges faced by the UK hospitality industry in 2026?

Juliane Caillouette Noble: It is the toughest cost environment for hospitality that I have seen in my career. And that’s without even thinking about the broader rising sustainability challenges.

Emma McClarkin: The brewing and pub sector is a driver of economic growth, essential employer, and key tax contributor, yet is among the most highly taxed of any business sector, accounting for 40% of brewers’ turnover and £1 in every £3 spent in the pub. The net impact of all the Budget measures added in November 2025 were an eye-watering £511m of business costs for pubs and brewers, meaning incredibly tough decisions for many and a major brake on investment and growth. This was on top of increases of over £800m in November 2024 Budget.

Allen Simpson: Government costs - we are taxed at 75-80% of profits, whereas banking is taxed at 35%. This is totally unsustainable, and most of that is VAT.

How have UK consumer attitudes to hospitality changed in the past decade?

JCN: The customer is flooded with choice, and everything about our media and cultural landscape has taught us to be obsessed with the new and ever changing. That is really hard for businesses who want to build to last.

EM: The pub is as valued as ever, but we know that consumers are stretched and they want real value for money. They are looking for premium experiences that make the most of what they can afford, which is why it’s key that businesses have good insight and strong networks so they can keep abreast of trends and learn about what works for the customer.

AS: The biggest change isn’t low/no or Ozempic - the biggest change is that the demographics in the UK are fundamentally changing, so it is important to understand what a much more diverse city means for running a hospitality venue.

What would you like to see central and local government do to help the UK hospitality trade?

JCN: VAT reform that does not incentivise grab and go, and business rates reform that cuts rates for businesses taking actions to lower their footprint. I would also like Government to see hospitality as an opportunity for solving some of our larger social challenges - youth unemployment, community design, restoring high streets - rather than focusing on language better suited to tech.

EM: We are always in contact with MPs about the values their locals bring to their constituents, and we want to work with government to deliver regulatory reforms alongside critical changes to tax, long-term business rates reform and cuts to beer duty and VAT. All of this is key to cementing the sector’s future and ensure it can create jobs, drive the economy, and retain its rightful place as the heart and soul of communities.

AS: Fundamentally it’s about cutting tax - everything else is marginal. I would also say to the local government that the holiday tax is going to cost your constituents’ jobs - don’t do it.

As a trade organisation, how are you helping to protect your members?

EM: We are leading advocates for the sector, campaigning for an optimum environment, socially and politically, which promotes investment in our members’ businesses and allows them to thrive. We advocate through our expert policy, public affairs and comms teams, and also provide data and insight that informs their strategic planning and day-to-day operations and ultimately helps to keep the cost of doing business low.

AS: We are fighting hard every day to chip away at the tax burden, but equally importantly we give practical advice and guidance to our members. For example, we recently launched our member offers one-stop hub, which will save businesses money - especially smaller and independent hospitality venues.

What action can consumers be taking to help the hospitality trade?

JCN: Champion good businesses. Support them. Vote with your wallets and spend in places that align with your values.

EM: Get involved in our Long Live The Local campaign which champions our sector, galvanises grassroots support, and gives people the means to make their voices heard with their local MP, government, and decision makers.

AS: Go and spend.

What is the biggest opportunity for UK hospitality in 2026?

JCN: Unify our voice.

EM: We have political momentum to really affect long term regulatory change. Given pubs are no longer viewed as just a watering-hole, or a place to grab a quick pint, there are opportunities to broaden the experience and really be creative in their offerings and giving the customer more occasions to visit.

AS: Leaning into experience - you can’t compete with Netflix on cost, but you can on creating a fun time in any section of the market. Anyone who sells experience will win.