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Up to 963 UK restaurants could close this year due to rising costs, industry representatives have said. While a relief package was announced at the end of January for struggling pubs, UKHospitality says that a wider approach is needed to help the whole hospitality industry, including restaurants and hotels. In January, the group's analysis suggested that six venues could close each day in the UK due to increased costs and business rates.

Rising energy costs, supply costs, National Insurance and minimum wage have all contributed to increased costs for restaurants. Responding to the relief package announced for pubs back in January, Kate Nicholls, Chair of UKHospitality, said that the group welcomes the package, which will bring some much-needed help to pubs. However, the group believes there is more to do.

She added: "The rising cost of doing business and business rates increases is a hospitality-wide problem that needs a hospitality-wide solution."

"The devil will be in the detail, but we need to see pace and urgency to deliver the reform desperately needed to reduce hospitality's tax burden, drive demand, and protect jobs and growth," she said. "We will work with the Government over the next six months to hold their feet to the fire to deliver this.

"This emergency announcement to provide additional funding is helpful to address an acute challenge facing pubs.

"The reality remains that we still have restaurants and hotels facing severe challenges from successive Budgets. They need to see substantive solutions that genuinely reduce their costs."

Before January's announcement, UKHospitality found that 963 restaurants and 574 hotels were at risk of closure throughout 2026.

Nicholls added: "Without that clear action, they will face increasingly tough decisions on business viability, jobs and prices for consumers. Those are costs borne by us all, and I hope the Government delivers on its promise to support the whole hospitality sector."

Earlier this year, UKHospitality reported that almost 9,000 jobs had been lost in the hospitality sector since the Autumn Budget in November. It came after the Office for National Statistics reported that the hospitality industry employed 20,014 fewer people in December 2025 than in September 2025, despite the festive season traditionally being far busier.

The group had urged the Government to increase the business rates discount for hospitality properties to the maximum 20p permitted in law.

"Hospitality is being hit by costs at every angle, and it is the cumulative effect of this growing tax burden that is resulting in the number of people employed in hospitality continuing to fall," said Allen Simpson, chief executive of UKHospitality.

He added: "It was less than a year ago when our local hospitality venues were landed with £3.4 billion in additional annual cost, and now they face their business rates increasing too."