One third of hospitality business fear permanent closure in coming months

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More than a third of businesses in the accommodation and foodservice sectors fear they will not survive the next three months, according to the Office for National Statistics (ONS).

Data from an ONS insight report reveals that 34% of hospitality businesses have 'little or no confidence' that they will have to close permanently by the end of January,

The data shows the accommodation and foodservice sectors to currently have the lowest confidence in the UK economy, as well as having the lowest percentage of businesses currently trading (63%).

Hospitality was also shown to have the highest percentage of businesses experiencing a decrease in turnover, at 79%.

Just 21% of restaurant and hotel businesses said that they were 'highly confident' about their future; 36% were 'moderately confident'; and 10% said they were 'not sure'.

It comes a day after research from members of hospitality and pub trade bodies UKHospitality, the British Beer & Pub Association (BBPA) and the British Institute of Innkeeping (BII) revealed that more than 70% of hospitality and pub businesses could become unviable and close in 2021 as a result of the pandemic.

The survey, carried out by hospitality market research company CGA, found that the tiering system used across England was particularly damaging. Under tier one restrictions, only 25% of operators said they could turn a profit, while under tier two restrictions, 76% said they would be unviable or operating at a loss.

For pub and hospitality businesses having to operate under tier three restrictions, the survey found that 94% would be unviable or operating at a loss.