Trade bodies warns over sector closures

22 January 2021

UKHospitality is warning that businesses in the hospitality sector must receive further support if they are to survive the crisis and play their part in the rebuilding of the economy.

The warning follows figures published today by CGA show a net decline of nearly 6,000 licensed premises in the UK.

UKHospitality Chief Executive Kate Nicholls said: “The loss of 6,000 premises is a dreadful blow to this country’s hospitality sector, but it is going to be the tip of the iceberg if we continue on our current course.

“The sector’s outlet numbers have contracted 5% and one in five businesses say they do not have enough cash to last beyond February. The entire sector continues to be hit hard, but restaurants have arguably been hit hardest of all. Not surprisingly, many of the worst off are independent businesses teetering on the verge of collapse due, in large part, to the issue of rent debt.

“This is a stark reminder of the importance of having an exit strategy and ongoing support for businesses. Sustaining businesses, keeping them alive and keeping jobs protected is vitally important and is going to be key to recovery once we emerge from this. If we have the right support in place now, it will make the job of recovery much more achievable once we are in a position to reopen again.

“The forthcoming Budget must be a one which delivers a bold, wide-ranging package of financial support to ensure as many businesses as possible are saved. The VAT cut and business rates holiday extensions must be top of the menu.”

The British Beer & Pub Association also responded to the report.

Responding, Emma McClarkin, Chief Executive of the BBPA, said: “These figures show what a devastating year 2020 was for pubs. Our sector is far from out the woods yet though and it continues to fight for its very survival through the pandemic in 2021. We fear things could actually get much worse before they get better for our pubs and brewers.

“Given this latest evidence showing how the COVID crisis and lockdown is ripping pubs away from their communities for good, it is more important than ever that the Government backs our local pubs and brewers. Pubs are the heart of our communities and have a vital role to play in the economic recovery. If they are to survive the current onslaught they face though they need backing from Government.


“This means grants delivered to them immediately before it’s too late. It also means reopening properly along with a stimulus package that helps pubs to thrive including extensions to the Business Rates holiday and VAT cut, as well as a beer duty cut.”