Sacha Lord highlights the dire situation for pubs and restaurants, warning of impending closures and the need for government support in the face of rising costs.
Sacha Lord, the founder of Parklife and the Warehouse Project, has expressed significant concern regarding the current state of the UK hospitality industry, describing it as being ‘hurtling towards a double cliff-edge’. Speaking on the BBC’s Sunday with Laura Kuenssberg programme on March 23rd, Lord detailed the challenges facing pubs, bars, and restaurants, asserting that conditions have worsened since the height of the Covid-19 pandemic.
Lord, who also serves as the chair of the Night Time Industries Association, highlighted the impending increases in national insurance costs and business rates as major threats to the stability of hospitality enterprises. He stated that these financial burdens could potentially lead to more closures of businesses than have been witnessed in the past. “I’ll be honest with you, I was at the Labour Party manifesto launch that was in Manchester and the party said they were the party of business and growth,” he commented. “My sector is hospitality, we’re the fifth biggest sector in the UK, the third largest employer, and actually we are hurtling towards a double cliff-edge now.”
According to Lord, the average pub would need to sell an additional 60,000 pints annually to offset the forthcoming business rates increase. He noted that an overwhelming 97 per cent of hospitality operators have stalled on investments due to the grim financial outlook. “So to say it’s the party of business and growth – I doubt it,” he added, indicating his scepticism towards Labour’s claims of support for the business community.
Additionally, Lord referenced his prior legal battles with the government regarding Covid restrictions, in particular the controversial ‘scotch egg rule’, which he referred to as ‘ridiculous’. He remarked on the current lack of financial support for the industry, stating, “It’s tougher in this industry now than it was during Covid. At least during Covid there was financial support there. There’s none at the moment and with the cost of living crisis, we know that people are going out less.”
In his dialogue, Lord urged Chancellor Rachel Reeves to consider lowering VAT rates as a measure to bolster the hospitality industry. He stressed the urgency for government intervention to avert further closures, asserting, “we’re going to see more closures post April than ever before.”
Chancellor Reeves defended the government’s fiscal policies, arguing the necessity of tax increases on businesses to fund vital public services. “That money we raised through increasing tax on the wealthy and on business has meant that for five months in a row, we’ve been able to reduce NHS waiting lists, delivering on that promise of change,” she stated, reinforcing the administration’s focus on health service improvements amidst economic challenges.
The discourse sheds light on the intricate balance between financial regulation and the sustainability of key industry sectors, as the hospitality sector grapples with growing pressures and uncertainty in the face of shifting governmental economic strategies.
Source: Noah Wire Services
- https://www.morningadvertiser.co.uk/Article/2025/02/04/sacha-lord-writes-open-letter-to-chancellor-to-help-hospitality – Sacha Lord wrote an open letter to Chancellor Rachel Reeves, expressing concerns about the hospitality sector and requesting support to prevent business closures. Lord also reconsidered his Labour Party membership due to perceived lack of support for the industry.
- https://www.morningadvertiser.co.uk/Article/2025/02/25/sacha-lord-calls-for-long-term-strategy-ahead-of-spring-statement – Sacha Lord and the Adam Smith Institute released the ‘Last Orders Report’, stressing the need for a long-term strategy to address cost pressures in the hospitality sector. The report highlighted the financial strain caused by tax policies and cost-of-living crises.
- https://www.prolificnorth.co.uk/news/manchester-central-predicts-record-breaking-2025-as-lord-warns-of-crippled-hospitality-sector – Manchester Central forecasts a record-breaking year despite Sacha Lord’s warnings about the hospitality sector’s struggles. This contrasts the success of large event venues with the broader challenges faced by smaller hospitality businesses.
- https://www.morningadvertiser.co.uk/Article/2025/02/20/national-insurance-increase-will-cost-jdw-12m-a-week – The article discusses the financial impact of national insurance increases on hospitality businesses, such as JD Wetherspoon, which could face significant weekly costs, exacerbating sector-wide financial pressures.
- https://www.morningadvertiser.co.uk/Article/2025/02/24/trade-bodies-urge-gov-to-delay-employers-nics-changes – Trade bodies are advocating for a delay in employer’s National Insurance changes to ease cost pressures on hospitality businesses. This reflects the widespread concern about the economic viability of the sector under current fiscal policies.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative references current events, such as an appearance on the BBC’s Sunday programme on March 23rd, and recent financial challenges in the hospitality sector. It is up-to-date with detailed examples of contemporary issues.
Quotes check
Score:
8
Notes:
Direct quotes are attributed to Sacha Lord and Chancellor Rachel Reeves. While no earlier online sources for these exact quotes were found, they could be from recent events or press coverage, making them likely original in this context.
Source reliability
Score:
9
Notes:
The narrative originates from the Manchester Evening News, a reputable regional publication known for its news coverage. This suggests high reliability in reporting local and national events.
Plausability check
Score:
9
Notes:
Claims about challenges in the hospitality industry, such as business rate increases and the need for financial support, align with current economic trends and the sector’s known struggles. These assertions are plausible and consistent with contemporary economic discourse.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
This narrative is highly plausible, well-supported by reliable sources, and includes original quotes likely from recent events. The information is current, reflecting ongoing issues in the UK hospitality sector, thus warranting a high overall assessment score.
