Skip to content
Monday 17 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,750.11
-0.21%
DAX
26,440.31
0.00%
CAC 40
8,636.80
0.00%
STOXX 50
6,539.59
0.00%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Wednesday 02 July 2025 5:00 am  |  Updated:  Tuesday 01 July 2025 6:02 pm

Labour warned that hospitality ‘is being taxed out of existence’

By: Amber Murray

Retail Reporter

Add as a preferred source on Google
67 pubs went bust in April 2025, the highest monthly total since last July
The Treasury has announced a £300m support package aimed at pubs

The government faced serious warnings from MPs about the state of the hospitality sector during an afternoon debate in the Commons on July 1.

Representatives from across the UK warned the government that high taxes were suffocating the sector – particularly for small businesses – putting ‘insurmountable burdens’ on businesses.

“Hospitality is being taxed out of existence, and that is a political choice we need to change,” Alistair Carmichael, Liberal Democrat MP for Orkney and Shetland, said.

The rate of employer National Insurance Contributions (NICs) increased from 13.8 per cent to 15.0 per cent, and the threshold for payment was lowered to include most part-time workers.

Since the budget in October, the hospitality sector had already shed 69,000 jobs – triple the national average.

“These are not abstract statistics… they’re real people’s lives,” Carmichael said. “Hospitality is not asking for handouts. It is asking for level play.”

MPs called for the ‘brakes to be taken off’ hospitality, with business rates reform and a lower rate of national insurance as crucial concerns.

Angus MacDonald, MP for Inverness, said that the hospitality sector in rural Britain “has not struggled more in my lifetime”.

Read more

We’re being taxed out of existence, companies warn

Rachel Reeves speaking at an IOD event.

“The governments, both the last two governments, have plucked the golden goose of hospitality so often it no longer has any feathers,” he added.

Consvertaive MP Andrew Griffith said that hospitality plays a “disproportionate role” in providing the next generation with their first step on the career ladder and that the government’s approach to hospitality has been “hostile”.

“It’s heartbreaking that Britain’s proud record of innovation, flexibility and business success is being thrown away thanks to that all knee jerk Labour instinct of tax success,” Griffith said.

The government plans to implement a lower business rate multiplier for  retail, hospitality and leisure properties from 2026/27, which it says will take the pressure off SMEs.

It has also introduced a ‘draught relief’ for pubs, which reduces alcohol duty by 9.2 per cent on beers and ciders, and by 23 per cent on spirits, wine.

Critics, however, say the measures do not go far enough, and that further steps will have to be taken to retain the UK’s SME hospitality sector.



Read more

‘Ever-widening gap’: Wetherspoon boss Tim Martin urges Burnham to cut more pub taxes

Founder and Chairman of JD Wetherspoon, Tim Martin

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

People & Organisations

  • Hospitality
  • hotels
  • National Insurance
  • Pubs
  • Restaurants
  • Tax
  • Tourism

Trending Articles

  • Is the Zeekr 9X Super Hybrid the new luxury SUV to beat?

  • Grandparents fund university degrees to avoid inheritance tax net

  • Aldi boss wades into supermarket ‘price-gouging’ row

  • Brompton Bicycle sues former adviser for ‘professional negligence’

  • Revolut chatbot goes rogue by charging users to cancel subscription

More from Morning Wire

  • We’re being taxed out of existence, companies warn

    Economics
    Rachel Reeves speaking at an IOD event.
  • ‘Ever-widening gap’: Wetherspoon boss Tim Martin urges Burnham to cut more pub taxes

    Hospitality
    Founder and Chairman of JD Wetherspoon, Tim Martin
  • Burnham urged to axe tourist tax expansion in devolution drive

    Hospitality
    Andy Burnham, Mayor of Greater Manchester, speaking outdoors with a lapel microphone on his suit jacket.
  • Hilton, Butlins left fuming over business rates snub 

    Hospitality
    Modern Butlins hotel building with multiple balconies, a path leading to it, and a small pond in the foreground.
  • Labour’s ‘chaotic’ zero-hour crackdown could cost firms £3bn per year

    Economics
    Andy Burnham, Mayor of Greater Manchester, in a suit and glasses, looking serious against a bright sky.
  • Burnham urged to go further to fix ‘broken’ business rates

    Retail
    Burnham cityscape at sunset with historic buildings and bustling streets, highlighting the vibrant urban landscape
  • Burnham to cut pub business rates by 20 per cent

    Hospitality
    Andy Burnham, Mayor of Greater Manchester, smiling in glasses, dark jacket, light blue shirt, blurred green background.
  • Burnham risks ‘breaking manifesto’ without business rates reform

    Retail
    Andy Burnham speaking at a public event, addressing the audience with a focused expression, highlighting his leadership role.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook