Governments of any party seem addicted to inflicting even higher taxation, operating costs, and regulation on the industry, says Hook Norton’s managing director.
And they are then surprised when productivity, investment, and the wider economy are sluggish, James Clarke adds.
“They also seem increasingly deaf, if not oblivious, to the concerns of the wealth creating private sector,” he said. “Changes to the inheritance tax regime for family companies such as Hook Norton also pose yet another massive threat.
“Increases in National Insurance contributions by employers have added significant cost to all businesses. The increase in the national minimum wage is also significant, and again affects our entire sector.”
He was writing in the company’s accounts, for the year to 30th September, 2024. Hook Norton reported that turnover increased to £9,423,515 (2023: £8,997,559), with a gross profit margin of 40.9% (2023: 39.2%).
• ONS labour market figures show average weekly earnings in the accommodation and food services industry reached a record high of £357.05 in August, up from £346.52 the previous month, and up 6.4% year on year.
Payrolled employees in the sector also rose from 2,085,155 in August to 2,111,295 in September 2025, while food and accommodation vacancies fell slightly from 78,000 to 74,000 in the same period.
“The steep rise in hospitality wages to a record high will come as a big concern to the sector, particularly following a prolonged period of subdued sales,” said Saxon Moseley, partner and head of leisure and hospitality at RSM UK.
“This puts more pressure on margins, with every £1 increase in wages also leading to additional employers’ NIC, resulting in a double whammy on operators’ costs.
“Payrolled employees in the hospitality industry rose for the first time since April 2025 and is only the second increase since March 2024. With vacancies coming down again after a surprise rise the previous month, this suggests operators have hit the bottom in terms of cutting staff numbers and are cautiously hiring again.
“Businesses are also likely to apply the brakes on recruitment as they wait to see what announcements come out of the autumn Budget.”
He added: “After bearing the brunt of this year’s tax rises, the sector is calling out to the government for bold, meaningful support measures in the Budget.
“Operators will also be hoping the Budget gives consumers a spring in their step, so they feel confident enough to part ways with their money, particularly in the lead up to the important Christmas season.”
• Amber Taverns has reported record turnover of £120m in the year to 2nd February with operating profit up 10% to £19.7m (2024: £17.8m). Pre-tax profit grew by 7% to £19.1m (2024: £17.9m).
An accompanying company statement said: “Despite global geopolitical instability continuing to exert significant pressure on the UK economy, as well as rising costs due to domestic factors such as increases in employers’ National Insurance contributions and a substantial uplift in the national living wage, Amber’s wet-led pub model continued to prove resilient to these macro factors, and consumers continue to see strong value for money in Amber’s pubs, which offer a broad range of value products, as well as a more premium drinks selection.”
• Nigel Sherwood will succeed Carol Campbell in running Stonegate Pubs’ managed businesses, the company has confirmed. He has previous held senior positions at Nando’s and Wagamama.
