Editor’s Viewpoint: The Hospitality Sector’s Devastating Reckoning

By Peter Adams, Editor, CLH News.

The chickens have come home to roost, and the carnage is exactly as predicted.

This week’s ONS figures and our lead story make difficult but entirely predictable reading.

Hospitality accounting for 45% of all job losses will come as a surprise to absolutely no one who has been paying attention to the sector’s warnings since October.

The moment Chancellor Rachel Reeves announced her punitive tax hikes, industry leaders were crystal clear about the consequences: mass closures, devastating job losses, and economic vandalism on an unprecedented scale.

Well, here’s the proof of the pudding. At 4.7%, unemployment has hit its highest level in four years, while job vacancies have plummeted for three consecutive quarters.

The estimated 727,000 openings between April and June 2025 represent a crushing 56,000 drop from the previous quarter. In my view, this is nothing short of criminal economic mismanagement.

I had a stark reminder of this reality this week during our regular West Country exhibition trip.

For over two decades, we’ve maintained a cherished ritual – stopping at the same beautiful, thatched pub with its wonderful beer garden for lunch on the drive from Bournemouth.

As we approached, a large “For Sale” sign greeted us, and the pub had clearly been shuttered for months.

Another long-established, attractive free house consigned to history (hopefully not), a direct casualty of the Chancellor’s reckless fiscal assault on our industry.

The insolvency figures released today compound the misery. While overall company insolvencies have fallen, hospitality insolvencies have bucked the trend entirely.

The latest statistics show accommodation and food services insolvencies rose 6% from 277 in April to 295 in May 2025 – the highest monthly figure since November 2024. These aren’t just numbers; they represent livelihoods destroyed, communities fractured, and Britain’s social fabric torn apart.

This government’s approach to the economy has delivered precisely zero growth while systematically dismantling one of our most vital sectors.

Something really has to give. We cannot continue on this path of closures, job losses, and economic stagnation without irreparable damage to the very heart of British hospitality.

I genuinely hope the government finally listens to the plethora of warnings from sector leaders and operators – people who, unlike anyone in government, have actually walked the walk, run businesses, employed people, and contributed meaningfully to the economy.
Their expertise has been consistently ignored, and we’re now witnessing the catastrophic consequences.

On a brighter note, what a game last night!

The Lionesses have reached the semi-finals, and I’ll admit I thought it was all over at half time.

Thankfully, pubs can now stay open until 1am for the Italy clash, thanks to the extended licensing hours MPs agreed for England’s European Championship run.

Add to that the Oasis tour boost – the Cardiff shows alone generated over £4m in beer and cider sales across just two days – and we’re seeing glimpses of what this sector can achieve when given the chance to thrive rather than merely survive.

These bright spots only underscore the tragedy of what we’re witnessing.

Despite the government’s economic vandalism, hospitality remains the beating heart of British culture and community. We just need politicians who understand that before it’s too late.

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I can always be contacted at edit@catererlicensee.com