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Government must stop treating hospitality as collateral damage as pubs get relief and the rest of the sector is left exposed

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The government must stop treating hospitality as collateral damage writes Chris Teague, Managing Director UK of Syrve
The government must stop treating hospitality as collateral damage writes Chris Teague, Managing Director UK of Syrve. Picture: LBC/Alamy
Chris Teague

By Chris Teague

The government's announcement that it will water down business rate rises for pubs is welcome news for a sector that has already been pushed much too far.

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Treasury officials have at last recognised the financial difficulties facing many landlords. Following sustained outcry from both pub owners and the public, this climbdown acknowledges the very real threat to community institutions.

However, the victory is bittersweet. The relief reportedly applies only to pubs, not the wider hospitality sector. Restaurants, cafes, hotels, and music venues face identical pressures yet have been excluded from support, raising serious questions about the government's understanding of the crisis.

The problem runs deeper than this single policy: hospitality sits at the intersection of every policy domain. Health initiatives, employment law, taxation changes, and energy regulation all converge on our businesses. Each decision, however well-intentioned in isolation, compounds the last.

Yet policymakers continue treating these as separate issues rather than recognising their cumulative impact on a single sector.

The business rates increase is merely the latest challenge. Energy costs remain astronomically high, the cost-of-living crisis has fundamentally altered consumer behaviour with families cutting back on dining out, and even the emergence of weight-loss medications is reshaping dining patterns entirely, reducing customer frequency and spend in ways we're only beginning to understand.

What makes hospitality uniquely vulnerable is that we cannot absorb these shocks in the ways other sectors can. We cannot offshore operations, automate away the human element that defines our service, or stockpile inventory during better times.

Our capacity is fixed, our costs are immediate, and our revenue depends entirely on people having both disposable income and the confidence to spend it.

When policymakers develop regulations in isolation - whether concerning public health, local planning, transport, or taxation - they rarely consider how these intersect within our businesses.

The cumulative weight of these uncoordinated decisions, each seemingly reasonable on its own terms, becomes an impossible burden for a sector with no cushion to absorb repeated blows.

Each pressure alone would test any business. Together, they create endless uncertainty. We have seen even large, established legacy brands struggle under these conditions.

When hospitality fails, the consequences extend far beyond individual businesses. Struggling venues contribute directly to decaying high streets and hollowed-out town centres, creating a downward spiral that impacts entire communities and local economies.

Government must recognise you cannot pull a single policy lever without affecting hospitality. It's time policymakers genuinely consulted business owners who understand these cumulative impacts before implementing changes, not after the damage is done.

The sector deserves coordinated attention and comprehensive support across all hospitality businesses, not U-turns, piecemeal relief and inadequate gestures that ignore the scale of challenges we face

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Chris Teague is the Managing Director UK of Syrve

LBC Opinion provides a platform for diverse opinions on current affairs and matters of public interest.

The views expressed are those of the authors and do not necessarily reflect the official LBC position.

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