The UK hospitality sector has long been a cornerstone of the economy – creating jobs, driving growth and providing vital services in communities across the country. But the 2024 Budget has hit the industry hard, leaving businesses struggling to survive under the weight of rising costs and an unfair tax burden.

In seven months since October 2024, the industry has lost 69,000 jobs. According to UKHospitality, one-third of businesses are now operating at a loss, with many forced to cut jobs, reduce staff hours, restrict opening times, and cancel investment plans.

As Kate Nicholls, Chair of UKHospitality, warns:

“Hospitality is being taxed out of existence. But it is ready to lead the charge for economic recovery – if the Chancellor is ready to give us the tools to do the job.”

The #TaxedOut campaign

To stop further decline, UKHospitality launched its #TaxedOut campaign, demanding urgent government action in the next Budget. The campaign highlights the growing pressures facing the industry and makes three key asks:

1. Lower business rates

• A significant reduction for businesses with a rateable value under £500,000.
• Exemption for larger hospitality properties from new surcharges.
• Designed to revive high streets and keep local businesses trading.

2. Fix National Insurance Contributions (NICs)

• Extend exemptions to include young people and those moving from welfare to work.
• Reduce the cost of employing staff and boost job creation.

3. Cut VAT on hospitality 

• Bring the UK in line with European countries where VAT averages 10–13%, compared to the UK’s 20%.
• Make the UK more competitive, and free up investment across the sector.

A sector worth saving

Hospitality isn’t just about food, drink, and leisure – it’s about jobs, opportunities, and communities. The sector is one of the UK’s largest employers of part-time staff, young people, older workers, and those returning to employment. Every job lost and every business closed is a missed opportunity for growth, recovery, and local prosperity.

Where MCR Systems fits in

At MCR Systems, we see every day how hard hospitality businesses are working to adapt. From restaurants and hotels to cafés and leisure venues, our clients are being forced to do more with less – making efficiency, accuracy and insight more important than ever.

That’s why we provide EPOS and business management solutions that help operators:

• Control costs and improve margins.
• Gain real-time insight into performance.
• Streamline operations and reduce waste.
• Enhance customer experience and loyalty.

While tax reform is urgently needed to secure the sector’s future, technology plays a vital role in helping hospitality businesses weather the storm right now. By making operations smarter and leaner, MCR Systems is helping the sector fight back.

Add your voice

The message is clear: hospitality is ready to support the UK’s economic recovery – but it can’t do so if it continues to be #TaxedOut.

To learn more about UK Hospitality’s campaign and how you can show support, search #TaxedOut and add your voice to the call for change.