UKHospitality issue dire warning of rent time bomb

Recent analysis by UKHospitality has laid bare the threat posed by the £2.5bn in rent debt hanging over the hospitality industry. More than 330,000 jobs are at risk if the matter cannot be resolved, with a survey of members revealing the importance to the future health of any industry that accounted for 10% of employment pre-pandemic.

This follows the government’s call for evidence, during with UKHospitality highlighted that more than half of operators surveyed said they have not had a rent reduction from their landlord. This is in spite of the trade restrictions and closures imposed by government’s Covid measures.

Key findings include that 52% have been given no extension to repay rent, 73% are are unable or unsure if they can pay their rent arrears, and 40% have been unable to reach agreement with their landlord over rent concessions.

If the matter remains unresolved up to one sixth of the remaining hospitality workforce is at risk, equivalent to 332,000 jobs. This would be on top of the many jobs already lost.

UKHospitality chief executive Kate Nicholls said: “The issue of rent debt must be resolved in a way that shares the burden as businesses simply cannot be expected to pay their rent arrears in full. This is why the government must take affirmative action to help hospitality rebuild and play its part in the economic recovery. Government must extend and expand protections until the end of the year and force the writing off of a fair amount of covid rent debt.”