© Reuters. Thousands of hospitality venues run out of cash as wage hike looms
Proactive Investors – Pubs, restaurants, hotels and bars across the UK are running out of cash, leaving thousands in a “perilous state”, new research revealed.
A quarter of hospitality venues have run out of cash, leaving many “extremely vulnerable to the slightest shock”, a joint survey from industry leaders like UKHospitality and the British Beer and Pub Association found.
A further 29% of businesses in the sector are said to have less than three months’ worth of cash reserves.
It comes as hospitality venues face a rise in business rates and the national living wage in April, leaving many of the vulnerable sites at risk of shutting their doors for good.
UKHospitality said nearly all the businesses it spoke to wanted to see a lower rate of VAT in the upcoming , while 80% backed a lower business rates multiplier.
“Measures to help the sector won’t just keep businesses afloat, but it will inevitably lead to further investment from the sector, which has a proven track record of driving economic growth, creating jobs and creating fulfilling careers,” said the hospitality body.
Soaring inflation, weakened spending and changes to consumer trends have led to more than 17,000 sites disappearing from cities and towns across the UK.
Last week, it was revealed insolvencies in England and Wales had continued to rise in 2024, continuing from a terrible 2023, which saw the highest number of collapses since 1993.
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