Resignation Rocks Hospitality Council as Industry Voices Clash with Government Policy

The chair of one of Britain’s foremost bar chains has resigned from a high-level government taskforce, citing pressure from civil servants after voicing concerns about Labour’s fiscal strategy. Alex Reilley, Chairman of Loungers, relinquished his position on the influential Hospitality Sector Council (HSC) following his outspoken criticism of Rachel Reeves’s tax policies, which he claims are undermining the future of Britain’s high streets and town centres.

Loungers, founded in Bristol in 2002, operates approximately 300 venues nationwide and was publicly traded on the Alternative Investments Market until its acquisition by US private equity firm Fortress earlier this year for £354 million. Mr Reilley, who recently led a group within the HSC focused on rebuilding struggling high streets, emphasised the necessity of candid dialogue between industry leaders and government. However, he alleged that civil servants pressured him to curtail his public critiques once he became part of the council.

"I was critical of the Government, which they didn’t like because their view is ‘well hang on, you’re on the inside now and you can’t be publicly criticising what the Government is doing’," Mr Reilley remarked. "Well, I’m going to publicly criticise when I feel that criticism is justified, and so I took the view that I wasn’t prepared to stop speaking my mind."

Mr Reilley’s resignation highlights a growing chasm between policymakers and those at the sharp end of Britain’s hospitality sector. The former council member expressed scepticism about the government’s willingness to engage meaningfully with business leaders, asserting that, “you’re not even speaking to a person that’s in the same building, let alone then the same room as the decision makers.”

Concerns have been mounting within the hospitality and retail industries following tax rises introduced in last October’s Budget. The recent increase in employers’ National Insurance contributions and the lowering of the associated threshold have, according to sector leaders, disproportionately impacted pubs, restaurants, and shops—many of which are already on precarious financial ground. Reports of hiring freezes, cancelled investments, and business closures convey a sense of mounting crisis.

Mr Reilley’s disappointment was exacerbated by a government initiative proposing the creation of “hospitality zones”—areas where applications for outside dining, street festivities, and extended opening hours might be fast-tracked. He dismissed the measure as "tokenistic", arguing it fails to address the foundational challenges faced by the hospitality sector. “Labour are wilfully crushing ambition and penalising job creators and this policy is just tokenism,” he stated. “Why would anyone risk their hard-earned savings to open what would potentially have been their dream, in an environment where everything is being taxed out of existence?”

The consequences, according to Mr Reilley, are already evident: an increasing number of independent operators are exiting the market, while restaurant and pub chains undergo restructuring that lead to further closures and job losses. “Without wishing to sound like the merchant of doom, I think this is just the start,” he concluded.

Responding to the resignation, a government spokesperson noted: “Mr Reilley’s departure from the council was mutually agreed. We work closely with the Hospitality Sector Council to ensure the views of industry are heard as we revitalise the sector. We’ll continue to listen to industry leaders as we take bold action to renew our high streets in the Plan for Change, increasing access to finance and taking tough action on late payments, speeding up licensing reforms to slash red tape and boost growth, as well as bringing in permanently lower business rates for hospitality businesses.”

The episode raises fundamental questions about the relationship between government policymakers and the business community at a critical juncture for the hospitality sector. As Britain’s high streets face mounting pressures, the need for authentic, constructive engagement has never been clearer.