In the survey of members conducted by UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster, almost three-quarters (74%) of respondents saw increases in their electricity bills, with 65% and 61% seeing increases in gas and heating oil costs, respectively.
Of the non-tax challenges facing businesses over the next 12 months, food and drink cost inflation was the biggest concern for businesses, with 88% putting that concern first, with energy prices a close second (80%).
As a result, 80% of respondents says the current business environment is stifling new investment in the sector, hampering growth and limiting employment opportunities.
The survey results follow data published yesterday by the latest NIQ RSM Hospitality Business Tracker that like-for-like sales at Britain’s leading managed groups were 2.7% above the levels of September 2025. However, that growth is below the UK’s rate of inflation, meaning that the sector has not achieved real-terms growth since spring 2025.
In a joint statement, the trade bodies say: “A great summer of sunshine and sport brought customers through the door to connect with friends and family, but strong sales are not the same as healthy profits.
“In addition to paying the highest tax burden in the economy, energy costs have risen sharply, with more to come, and food and drink inflation remains stubbornly high, so many businesses are working harder than ever for less. It is no surprise that four in five say the current business environment is holding back investment.
“This is about more than balance sheets. Hospitality is the biggest employer of young people in the country, and our survey shows nearly half of businesses would take on more of them if the tax burden were eased, with almost 60% saying it would protect against further job losses.
“We urge the Government to recognise that opportunity and act at the Budget to reduce our tax burden and remove barriers to support investment, growth and jobs in every postcode.”