Hospitality industry braced for soaring inflation

A survey by UK Hospitality expects inflation across the sector to increase by 11%.

In a UK Hospitality survey of over 340 hospitality businesses, representing 8,200 venues, nearly half of operators (47%) reported that they will be forced to increase consumer prices by over 10% this year, with 15% anticipating hikes of over 20%.

In April 2022, VAT in the UK will return to 20% which is currently reduced to 12.5% for the hospitality sector. Rises in national insurance (a tax on workers) and increases in energy bills are all pressures that will contribute to rising prices.