Across the UK, Mother’s Day represented a vital revenue opportunity for the hospitality sector. Bars, restaurants, cafés and pubs would have anticipated a boost courtesy of family groups – and some spring-like weather. Sadly though, due to some harsh financial realities including higher tax and wage bills coming into force now, many of these establishments may not survive to serve customers next Mother’s Day.
The budget has introduced measures that are projected to directly increase the average hospitality wage bill by up to 8.5% thanks to increases in the minimum wage and employer national insurance contributions.
The UK’s most recent GDP figures showed the country’s economy shrank by 0.1% in January. But behind this small decline there was a more concerning trend. Trade in the hospitality industry fell by 2.4% – the biggest economic contraction among the figures – after it had shown promising growth of 0.9% in December.
