Sunak, who will officially become Prime Minister today (25 October), will be UK's third leader in seven weeks having won a Tory leadership contest triggered by the resignation of Liz Truss last week.
Nicholls, who previously worked closely with Sunak in his role as Chancellor during the Covid-19 pandemic, encouraged the new Prime Minister to reform the business rates system and lower VAT rates.
She commented: “This is a critical time for hospitality businesses as they battle soaring energy costs, workforce shortages and waning consumer confidence, so stable political leadership is absolutely critical.
“Now is the time to steady the economy, deliver for the needs of the country and support businesses to help drive growth and create jobs.
“Hospitality clearly displayed its ability to grow prior to the pandemic and was on the road to a strong recovery before the energy crisis hit. It can return to those levels through pragmatic decision-making that eases the acute challenges businesses are facing.
“We worked very closely with the new Prime Minister in his previous role and we look forward to working with him again to address the current strain on businesses and bolster consumer confidence. I would encourage him to extend business rates relief, reform the entire business rates system in the longer term and lower the current rate of VAT.”
The Night Time Industries Association also called for an end to instability and uncertainty, along with a business rates reform and a reduction in VAT.
Michael Kill, CEO, said: “We look forward to working with the new Prime Minister in his new role, and hope he can address the current instability, uncertainty and begin a journey to build back consumer confidence for night time economy and hospitality businesses.
“At such a critical time for our sector with many businesses on a cliff edge, I would remind him that 10% of something is better than 20% of nothing.
“At the next budget announcement, I would encourage him to extend business rates relief, reform the entire business rates system and lower the current rate of VAT.
“Independent Businesses will not survive without it.”