Campaign reveals the scale of hospitality businesses under threat
A group supporting struggling Forest of Dean pubs has snowballed into a national campaign as the enormous number of hospitality businesses battling to stay afloat begins to become apparent.
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Campaign reveals the scale of hospitality businesses under threat
A group supporting struggling Forest of Dean pubs has snowballed into a national campaign as the enormous number of hospitality businesses battling to stay afloat begins to become apparent.
It started out as an effort to try to generate support one or two Forest of Dean pubs struggling under the weight of tax hikes and rate changes, but quickly went viral - attracting 500 members to date.
Organisers say the explosion in interest is a measure of the scale of the strain facing a sector worth several billions of pounds a year to the UK but running on fumes, with owners barely paying themselves and recruitment and investment frozen.
Those behind what is fast-becoming a significant pressure group only expect its numbers to grow, and hope that will help it force the Government to look again at what they consider to be punitive tax increases and an unfair playing field for their businesses in areas.
This week the group, which has named itself HOOP - Hands Off Our Pubs - held its first public gathering at Speech House in the Forest of Dean, drawing support the current High Sheriff of Gloucestershire, Julie Kent MBE.
Nicola Bird, chief operating officer of KW Bell, chair of the Forest Economic Partnership and part of the campaign group, said: “We didn’t really know what to expect, but 60 representatives from Forest businesses came along, as well as some councillors.
“What started small has become a group that already has 500 members from around the country via our Facebook group. We know more people will join. What we need now is more people to come to future meetings.
“We have people who can talk on their behalf, but their support will be vital to us making an impact.”
Initial contact with the district’s MP Matt Bishop (Lab) was positive, Raikes understands, but the group now senses a retreat as the force of what is gathering behind them grows.
Mary Terry-Lush, chair, Forest of Dean and Wye Valley Tourism is now also co-founder of HOOP.
For Terry-Lush it is not just about generating attention and applying pressure on Government, it is also about raising awareness, it is about communities, local economies, jobs and a misunderstanding of the best way to raise revenue.
“What has quickly become very clear is that (business) rates are a problem. But those rises, which are incredible for some businesses, are only part of the picture. National Insurance increases and minimum wage increases have also hit hard,” he said.
Not to mention, persistently high energy, food and supply prices.
“One person I was talking to said her wage bill had risen by 35 per cent as a result of these changes (announced by Chancellor Rachel Reeves in her October 2024 Budget).
“Then there is the differential between hospitality businesses and supermarkets, which can sell alcohol much cheaper.
“Many business owners have been forced to lay people off, not recruit any new staff, and do that work themselves instead. Many of those are not even paying themselves the minimum wage.
“We’re conscious this can all sound like a big moan, but we are actually talking about a really positive sector. A sector that is hugely passionate about what it does. Three and a half million people work in hospitality.”
According to UK Hospitality the sector directly contributes £93 billion annually to the economy and in 2022 generated £54bn in tax receipts and £20bn in exports and attracted £7bn in business investment.
There are approximately 170,000 hospitality businesses in the UK, 96 per cent of which are small businesses.
According to the Government, there were 45,000 pubs in 2024. This was down from 60,800 in 2000 and 55,400 in 2010. While its figures show businesses continued to open in 2022 and 2024, the rate of closure increased markedly in 2023.
At the start of 2026 experts said the hospitality sector was shifting from recovery (from the slump post pandemic) to resilience. The question is, what is it’s stamina really like. The strain appears to be on the individual owners physical and mental wellbeing, so often part of the DNA of the business.
“If you help it (the sector) thrive, you it will contribute more to the Government. But as it stands, it will only shrink. We’re not asking for special treatment. We’re looking for some recognition,” said Terry-Lush.
Nicola Bird on Instagram: "FIGHTING THE GOOD FIGHT!! HANDS OFF…
It emerged at the start of 2025 that rates on many pub businesses were set to jump, in some cases by several thousand pounds in one year - with potentially crushing consequences.
Bird said: “One local pub is facing business rates of £18,037 this year, already £10,000 higher than last year.
“From April, that bill is expected to rise again to £27,940. That’s nearly £10,000 more for a business already operating on wafer-thin margins.
“The result? No money to reinvest, reduced services and opening hours, pressure on staff numbers, and higher bank charges just to manage cash flow.”
She added: “This is not just about ‘hospitality’. This is where many young people start their working life. We’ve all seen the recent figures for youth unemployment.”
“It’s also about communities. And it’s about what they have to offer. We have a housing plan for the Forest of Dean that wants to build 13,000 new homes.
“That’s great, but if there are not pubs or shops or hotels for people to go out and enjoy themselves in will anyone want to come?”
Official figures just released show unemployment among 18 to 24-year-olds reached a five-year high in the last three months of 2025.
If you take away the anomaly created by the Covid-19 pandemic in 2020, unemployment for that group has hit an 11-year high.
National insurance contributions (NICs) for employers rose from 13.8 per cent to 15 per cent from last April, with the threshold for NICs being levied cut from £9,100 to £5,000 a year.
Which came in at the same time as an increase in the national minimum wage, which rose by 6.7 per cent in 2025 and by 4.1 per cent in April 2026.
The Centre for Policy Studies said this means that the combined cost of employing an 18 to 20-year-old will have increased by 26 per cent or £4,095 from April and for someone aged 21 and over by 15 per cent since 2024, or £3,414.
Raikes approached Forest of Dean MP Matt Bishop for a comment.
EXPERT INSIGHT: Nikki Cairns is a partner at Gloucestershire-headquartered accountants Randall & Payne, which supports many businesses in the county and beyond.
“We are seeing the cost-of-living crisis hit many small businesses from both sides,” said Cairns.
“Customers are not spending as much while businesses are facing ongoing increases in wages, energy, rent, rates and other supplier costs.
“Hospitality has been hit particularly hard, with margins that were already tight being squeezed further. It’s a dilemma as cutting back may mean fewer staff, reduced service levels and may be less customers visiting.
“Hospitality is a sector we can’t afford to lose so we all need to rally around.”
