345 hospitality firms call on Treasury to rescue a sector ‘taxed out of existence’

More than 340 hospitality businesses, from household names such as Greene King and IHG Hotels & Resorts to independent operators, have joined forces in a powerful open letter to Chancellor Rachel Reeves, urging decisive action in the upcoming Budget on 26 November.

The letter, coordinated by UKHospitality, represents one of the strongest collective appeals the industry has made in recent years. Signatories — including Marston’s, Stonegate, Wagamama, Butlin’s, and the Big Table Group — argue that without meaningful intervention, thousands more jobs could be lost and communities across the UK further weakened.

The letter paints a stark picture of the industry’s condition. It states that over the past year, more than 80,000 hospitality jobs have disappeared, with one Conservative MP warning earlier this year that the sector is being “taxed out of existence”.

Operators are calling for three key measures:

• A cut in VAT for hospitality.

• Lower business rates, particularly for properties under £500,000 rateable value.

• A freeze on National Insurance Contributions to help safeguard employment.

The collective message is clear — hospitality can no longer shoulder the financial burden of policies that have stifled growth and undermined local economies.

The letter to Reeves is forthright: “We are writing in advance of your forthcoming Budget as a sector united behind one message — deliver change for hospitality so that we can get back to growth.”

It highlights how businesses have been forced to close or abandon expansion plans, with young people and part-time workers among those most affected. Rural, coastal, and high-street areas have borne the brunt of these challenges, worsening economic inequality between regions.

“We are asking for urgent action at the Budget, so we can support your goals to get young people and the economically inactive into work, regenerate high streets and boost tourism, and ultimately drive economic growth,” the letter continues .

Kate Nicholls, chief executive of UKHospitality, said the coalition demonstrated an unprecedented level of unity and frustration across the industry.

“This extraordinary coalition demonstrates the united view of hospitality that there needs to be urgent action at the Budget,” she said. “The impact of the last Budget was devastating — business closures, job losses, curtailed investment, consumer price rises, and lost opportunities for young people are all direct impacts of the choice made to inflict £3.4 billion of additional annual cost on our sector.”

She warned that unless the Chancellor acts, these pressures will only “continue and intensify”, calling on the government to reduce the sector’s cost burden and “back our sector” before more damage is done .

The full list of participating businesses included:

UKHospitality’s open letter to the chancellor can be accessed here.

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