One in five UK hospitality businesses fear collapse as costs surge

Pubs are warning of business failures unless financial burdens are ‘dramatically reduced’. Photograph: Murdo MacLeod/The Guardian

One in five hospitality businesses fear collapse in the next 12 months, according to an industry-wide survey that comes days before rises in tax and employment costs kick in.

From Wednesday, many pub, restaurant and hotel companies face the prospect of a higher bill for business rates paid to their local authority, while an increase in minimum wage thresholds takes effect on the same day.