The report sets out 33 recommendations across seven areas: business rates, development, infrastructure, licensing, planning, rent and skills.
The report argues that restrictive local policies and regulatory requirements are creating unnecessary costs and delays for hospitality businesses, limiting their ability to invest and contribute to the development of local communities.
UKHospitality is calling for a series of planning reforms, including a system of presumptive permission that would allow automatic approval where certain criteria are met. It also wants a fast-track system for major and minor applications, improved pre-application engagement and automatic assumed support for applications where statutory consultees have not responded within 21 days.
On development, the report calls for a review of nutrient neutrality requirements, exemptions from Biodiversity Net Gain requirements for smaller businesses and greater standardisation of green lease requirements. It also wants the Agent of Change principle to be strengthened for existing and future developments.
It is also calling for greater investment in infrastructure, including the introduction of hospitality zoning through collaboration between local authorities, businesses and high street representatives.
Business rates remain a central concern. UKHospitality says the sector currently faces a tax burden equivalent to 82% of pre-tax profits in business taxes and argues that this needs to be addressed urgently at the Budget.
The report calls for meaningful change to hospitality business rates valuation methodologies, alongside reforms to the Check, Challenge, Appeal process and additional resources to handle appeals following the 2026 revaluation.
On rents, UKHospitality wants legislation governing upwards-only rent reviews to support sustainable rents and high street regeneration, while balancing protections for tenants with incentives for landlords to maintain hospitality properties.
The report also calls for the licensing reform taskforce to be implemented in full, with UKHospitality describing licensing reform as a potential blueprint for wider planning reform.
Skills are another area covered by the report, with recommendations including the rapid rollout of hospitality foundation apprenticeships and a national expansion of Sector Based Work Academy Programmes.
Alongside its recommendations for policymakers, the report provides guidance for hospitality businesses on engaging with local authorities, communities, and planning and licensing processes.
UKHospitality says the recommendations are intended to complement action to reduce the sector’s tax burden, which it describes as the ‘core issue’ holding hospitality back.
“Hospitality is one of Britain’s greatest strengths,” says Allen Simpson, chief executive of UKHospitality.
“Our sector creates places where people want to live, work and invest. Put simply, successful places need successful hospitality. Yet hospitality’s ability to fulfil its potential is being constrained. Hospitality businesses are facing some of the most significant cost pressures in a generation.
“Rising employment costs, high business rates, energy costs and an increasing regulatory burden are reducing the capacity of businesses to invest, expand and create jobs.
“These challenges must be addressed if hospitality is to continue driving economic growth and regeneration.”