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The hospitality sector faces severe structural challenges, including excessive regulation and unsustainable tax burdens. Customers, particularly younger people, have less disposable income, while businesses face soaring costs that are pushing them to the brink, and pricing consumers out as a result. Without intervention, the mass closures, job losses and irreversible damage to its world-renowned nightlife.

This new report from Sacha Lord, in association with the Adam Smith Institute, exposes the true scale of the crisis, including:

• The hospitality sector will face a £3.4 billion tax bill in April due to upcoming tax changes.

• Operating costs have surged by 30 to 40% in the past year.

• 85% of businesses in the hospitality sector are planning to cut hours or salaries.

• 97% of operators have frozen investment, stalling growth and innovation.

The report outlines a number of policy recommendations including:

• Implement a sector-specific VAT reduction to ease financial pressures on businesses.

• Defer the reduction in business rate relief to provide continued support for struggling venues.

• Rethink the tax burden on hospitality,

• Rethink National Insurance to provide relief for businesses and support job creation.

• Conduct a fundamental review of energy costs