The heads of seven trade associations, representing more than 40,000 independent takeaways and restaurants, have signed a letter to the government outlining the challenges currently facing the industry and proposing a five-point action plan.
The Independent Hospitality Alliance addressed the letter to chancellor Rachel Reeves on behalf of takeaways, restaurants, pubs, cafés, and small accommodation providers. The Alliance warned that the sector is in an extremely vulnerable position, with many businesses unlikely to withstand another difficult winter.
In the two-page letter, the organisation writes: “The combined impact of high taxation, business rates, employer National Insurance contributions, and Value Added Tax (VAT) is eroding profitability across the sector. Independent operators, in particular, lack the economies of scale and financial resilience enjoyed by larger corporate entities. As a result, many now face difficult decisions about pricing, staffing, and long-term viability. We also feel that we are not represented on the Hospitality Sector Council which means government is not fully furnished with the correct information when making key decisions that affect our members.”
It goes on to state five key policy recommendations it would like The Treasury to consider in order to safeguard the future of the independent hospitality industry:
- Conduct a comprehensive review of the business rates system, ensuring it reflects the realities of location-based service industries.
- Reduce or reform employer National Insurance contributions to support workforce retention and recruitment.
- Introduce a permanent reduced rate of VAT for the hospitality sector to enhance competitiveness, stimulate growth, and protect employment.
- Reassess the proposed minimum wage alignment for 18-year-olds, adopting a phased or differentiated approach.
- Engage in structured consultation with the sector before implementing new employment rights legislation, ensuring that measures are proportionate and practical.
Signatures included The NFFF, Bangladeshi Caterers Association, Kebab Alliance, Northern Ireland Food-To-Go Association, Caribbean Food Collective, The Wonky Table and K10 Japanese Restaurants. It closed with an offer to meet with the Chancellor and her officials to discuss the issues in more detail and to ”’explore more sustainable solutions”.
Andrew Crook, chair of Independent Hospitality Alliance and president of The NFFF, added: “As a sector we would like to extend an offer to support government when making key decisions that may impact our sector and hopefully together, we can help our members not only survive but to play a pivotal role in economic recovery. “
