By Peter Adams, Editor, CLH News.
I have often said that I resist the temptation to turn this column into a weekly attack on government policies towards the hospitality and on-trade sector.
But, my word, it is becoming increasingly difficult! The latest economic data and industry research paint a contradictory picture—one of resilience and optimism from operators, yet a worrying lack of support and recognition from those in power.
Let’s start with some rare good news—something we could all do with. According to the latest ‘Beyond the Booking: UK and Ireland Hospitality Trends Report 2025,’ nearly half (49%) of hospitality operators predict higher revenue in 2025 compared to the previous year.
The survey of more than 179 operators and nearly 1,000 diners shows that while the challenges persist, the sector’s resilience remains strong. Consumers are still engaging, businesses are still fighting, and the industry continues to demonstrate its ability to weather the storm.
I can personally attest to this resilience. Running my own wine bar and bistro here in Bournemouth from the mid-80s to mid-90s, I saw firsthand how tough the sector can be. Back then, we battled eye-watering interest rates that never seemed to fall below 10%, at times soaring to 15%. Different times, different challenges—but the fight to survive never changes.
And yet, the biggest challenge facing the industry today is not shifting consumer behaviour, nor even the cost pressures—though those are significant. No, the biggest threat to our sector is the government and, in particular, our dear Chancellor.
Yes, operators remain hopeful about revenue growth, but the hard truth is that GDP figures show a 0.1% fall in overall output, with an even steeper decline in accommodation and foodservice.
This is deeply concerning, especially considering that in recent months, our sector was one of the economy’s primary drivers. Hospitality was the largest contributor to growth in consumer-facing services in December 2024 and was the key driver of economic growth in November. That growth potential is undeniable.
Yet, as UKHospitality warned, the sector is about to be hit with £3.4 billion in extra costs from April. And what does the Chancellor offer? A vague “Plan for Change” soundbite. A promise to “kickstart economic growth” with not a single detail on how that will be achieved, nor even an acknowledgment of the hospitality sector’s recent decline. It’s beyond frustrating—it’s negligent.
I see the reality on the ground. Here in Bournemouth, a once-thriving holiday destination, the effects of the economic climate are painfully visible. Many hospitality businesses that should be flourishing are instead struggling to stay afloat, with little to no meaningful intervention from the government, which must change in the coming weeks!
On a brighter note, I must give a well-deserved shoutout to the community rallying to save the Ivy Inn in Heddington, one of Wiltshire’s best-known pubs. It has been closed for months after its owners, Wadworth Brewery, put it up for sale last July.
These grassroots initiatives—where local communities come together to rescue cherished institutions—are what make this country great. And, thankfully, they tend to succeed. I’ll be keeping an eye on this one and hope to report good news in the coming months.
For now, we continue to press on, ever resilient, despite the obstacles. But make no mistake—our industry needs real, tangible support, not just empty rhetoric. The government ignores us at its peril.
I can always be contacted at edit@catererlicensee.com