Reeves warns no more cuts as hospitality sector faces severe losses

Inflation Erupts in July: Airfares Soar, Petrol Prices Bump, and Hospitality Grows Weary

In a bout of price tantrum, inflation spiked in July, leaving the UK’s pocketbooks moaning. The surge was amplified by the latest spike in summer travel, with airfares increasing by 30.2% between June and July—the biggest jump since 2001.

Fuel & Food: A Double‑Edged Sword

Petrol went up by 2p per litre.
Diesel edged up by 2.9p per litre.
Restaurants and hotels felt the heat, as overnight stays jumped and night‑time diners braved higher prices.

Annualised Numbers that Won’t Back Down

Annualised inflation ticked up to 3.8% in July from 3.6% in June, surpassing the 3.7% spy‑glass prediction. Core inflation followed suit, climbing from 3.7% to 3.8% year‑on‑year.

Tricky Times for Hospitality

Industry leaders warn: “The hospitality firm’s budget has hit its limit. So many costs – food, energy, transport – are climbing to the heavens—no stone left unturned.”

Michael Kill, CEO of Night Time Industries Association: “Our sector’s margins are pinched. After squeezing, trimming, and absorbing costs, the only way left is to compromise quality or staff levels.”

“With inflation persisting, the night‑time economy can’t just recover from the pandemic—it’s also grappling with these relentless price hikes.”

Policy makers, take note: support for these businesses is essential if city life and cultural vibrancy are to survive. Otherwise, the night‑time economy could churn into a silent, abandoned void.