Ahead of the Autumn Budget, new data suggests that grassroots vendors are rapidly losing faith in their future.
In a recent hospitality survey, only one per cent of respondents viewed the º£½ÇÊÓƵ street food sector as having a robust, viable future, according to independent hospitality group Kerb.
"There's a clear message here for the government," said Simon Mitchell, the group's chief executive, as reported by .
"Street food has long been where the next generation of hospitality businesses start out – but the system is stacked against them right now.
He noted that businesses are "having to massively reduce labour costs, meaning owners are stuck on the frontline of day-to-day operations instead of investing in growth".
Historically, street food has been a crucial development stage for hospitality brands, with Franco Manca, Bleeker Burger and Pizza Pilgrims all starting in just one food truck.
However, the survey of over 100 street food businesses revealed that they're being compelled to alter the way they operate due to escalating costs: 88.5 per cent of businesses have increased menu prices in the past six months, 71.2 per cent have reduced staff hours, and 29 per cent have cut headcount entirely. A quarter have reduced trading days, while just under half have shelved growth plans, including expanding to permanent sites.
º£½ÇÊÓƵ Hospitality has urged immediate intervention in the forthcoming November Budget to tackle significant job losses across the sector, chiefly through reductions in business rates, VAT, and reforms to National Insurance contributions.
Job losses within hospitality are projected to hit 111,000 by the conclusion of November, some 13 months after the last Budget imposed an additional £3.4bn in yearly costs on the sector.
Kerb discovered that a VAT reduction proved most favoured among those surveyed, with 94.2 per cent indicating that cutting VAT to between 10 and 13 per cent – aligned with the European average – would deliver the greatest impact.
Heston Blumenthal has likewise advocated for a VAT reduction to "save British pubs", whilst over 600 Greene King landlords have appealed to Chancellor Rachel Reeves to reduce taxes for pubs before the Autumn Budget, saying that pubs face "serious pressure".
Some two thirds of British hospitality businesses possess fewer than six months of reserves remaining, whilst one in five have no safety net whatsoever, the latest study showed.
Other countries are protecting their hospitality sectors and reaping the rewards of greater investment, growth and a flourishing independent food scene," Mitchell said. "It's time the º£½ÇÊÓƵ did the same."
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