Hospitality Industry: Closures
The question
To ask the Secretary of State for Business and Trade, what assessment his Department has made of closure rates among small and independent hospitality businesses compared to larger chains; and what targeted support is available to those smaller operators.
Answered by Kate Dearden
The Department has not made a formal assessment of closure rates among “independent” hospitality businesses. Official statistics do not distinguish independent businesses from larger chains. However, ONS data provide context, showing that the number of private sector food and beverage service enterprises increased by around 16,300 between 2019 and 2025, with SMEs growing by around 11.8% and large enterprises by around 4.3% over the same period.
The Government recognises that smaller and independent hospitality businesses are a vital part of local economies, sustaining high streets, supporting jobs and contributing to community life. From 2026–27, we are introducing permanently lower business rates multipliers for eligible Retail, Hospitality and Leisure properties with a rateable value under £500,000. Smaller operators are also supported through the Small Business Plan, which sets out a comprehensive package of support for SMEs, including improved access to advice and finance through the Business Growth Service.
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