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330,000 jobs could be lost if rental issues remain unsolved, says UKH

A new survey of UKH members, found that resolving the rent debt issue is ‘critical’ to ensuring the future health of a sector that prior to the pandemic accounted for 10% of UK employment

Over 330,000 sector jobs are at risk if the £2.5bn rent debt issue is not resolved, according to new analysis by UKHospitality (UKH).

A new survey of UKH members found that resolving the rent debt issue is “critical” to ensuring the future health of a sector that prior to the pandemic accounted for 10% of UK employment.

As part of its submission to the government’s call for evidence, the association highlighted that more than half of operators surveyed said they have not had a rent reduction from their landlord, despite prolonged periods of closure and over a year of trading restrictions.

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Other key findings include 52% of respondents suggesting they have not been given any extension to pay rent, whilst 73% revealed they are either “unable or don’t know how” they can pay their rent arrears.

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UKH analysts have estimated that if the current protections that are in place are removed this summer, a sixth of the remaining hospitality workforce, equivalent to 332,000 jobs, could be lost.

Kate Nicholls, CEO, UKHospitality, said: “Our survey shows that while a proportion of operators have been able to strike a deal with their landlords on payment of rent debt, for many there have been no concessions and little engagement on the issue.

“There has to be a sharing of the pain caused by lockdowns and trading restrictions. The 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.”

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