City AM reports that the hospitality sector in Britain is facing significant challenges, with four businesses closing daily. According to the NIQ Hospitality Market Monitor, the number of food and drink venues decreased by 0.4% between October and December 2025. This resulted in a net loss of 382 businesses. The chief executive of UKHospitality, said: “The cost challenges facing hospitality businesses continue to grow.” Industry leaders have now warned that without comprehensive support, closures and job losses will escalate. UKHospitality forecasts that 963 restaurants, 574 hotels, and 540 pubs could close in 2026 without support. This comes ahead of an increase in business rates which will apply to all hospitality businesses with the exception of pubs.
iBOSS Comment:
The Chancellor is looking at yet another U-turn based on the disastrous miscalculation of the effect the increases in business rates would have, particularly on the hospitality industry. Even this looks currently to be inadequate! Some help for Pubs but what about the rest of the Hospitality industry
If you are an SME involved in hospitality and experiencing financial &/or operational difficulties at the moment then call us at iBOSS for a Free consultation on how we may be able to help. Call Phil on 07876 503830 or e-mail phil@theiboss.co.uk . Take advantage of our many years of experience in hospitality!
Monzo has introduced a free, HMRC-recognised tax tool to assist sole traders and landlords with the upcoming Making Tax Digital (MTD) for Income Tax regulations, effective April 2026. The tool allows users to submit tax updates directly through the Monzo app. This simplifies the filing process. Research shows that 52% of sole traders find tax management stressful, with many unprepared for the MTD changes. Jordan Shwide, general manager at Monzo Business, said: “By launching a free, HMRC-recognised tax tool, we’re making it easier for sole traders to send tax updates straight from their bank account.” The tool will be available before the new tax year begins.
iBOSS Comment:
Sounds like a very good idea although, as they say, “Proof of the pudding . . . etc.”. Well worth looking into, especially if one has little experience in this field. Might even save some accountancy fees! Certainly if you are looking for a bank for your business, worth considering Monzo, just take make sure it can provide all of the commercial finance services you may need!. If in doubt, ask.
Both the FT and the Telegraph report that The Chancellor has stated that only pubs will receive tax relief from the Government’s recent business rates U-turn. This leaves other hospitality businesses without the support they need. She was speaking at the World Economic Forum in Davos. She went on to say “The situation the pubs face is different from others in the hospitality sector.” Not surprisingly this decision has drawn criticism from industry leaders. They point out that the circumstances pubs face are not unique. The challenges, including economic and tax cost pressures, all of those are common across the whole hospitality sector. Kate Nicholls, the chairman of UKHospitality points out that that the specific issues on business rates that pubs face are also shared by hotels, “A whole hospitality problem needs a whole solution. The package needs to be substantive, and it needs to be sector-wide, otherwise it risks being too little, too late. More businesses are going to be closing.”
iBOSS Comment:
Ms Nicholls is basically right in that support is needed across the board for many hospitality businesses. Whilst it has recently been reported that on average one pub is closing each day in the UK, hospitality in general is suffering. Looking forward it is questionable whether this situation will improve soon with the present economic uncertainties. If you have a hospitality-oriented business and are struggling to survive, let alone grow, then contact us at iBOSS and request one of our free consultations on how we may be able to help. We have considerable experience in the hospitality industry. Simply call phil on 07876 503830 or e-mail him at phil@theiboss.co.uk.
The Times reports that businesses are reconsidering their vehicle choices. This is due to new tax rules introduced by Chancellor Rachel Reeves. The problem is that the changes classify double-cab pick-up trucks as cars for tax purposes. This potentially doubles the tax bill for employees. Simon Down from Deloitte said: “Taking these vehicles under the revised tax treatment will lead to significant cost increases.”
iBOSS Comment:
Another oversight by a struggling Chancellor. Having said that, if you are considering buying new fleet vehicles then give us a call at iBOSS on 01327 349779 to learn how we can help. Unfortunately we cannot guarantee to make the Chancellor change her mind about this change in the Tax situation. We can only hope that others make her see sense!