Hospitality Ulster has joined leading UK industry bodies in warning the Chancellor of the Exchequer that escalating geopolitical tensions in the Middle East are intensifying cost pressures across the hospitality sector, placing businesses, jobs and local economies at serious risk.

In a joint letter to HM Treasury, industry leaders highlight a “triple whammy” facing operators: rising direct energy costs, inflation across supply chains, and weakening consumer confidence. These challenges come on top of recent increases in the National Minimum Wage and business rates, which have already pushed many businesses to the brink.

The letter outlines a series of urgent, targeted interventions needed to stabilise the sector, including energy cost support, protections for businesses renewing contracts, and relief on non-commodity energy charges. Hospitality Ulster has stressed the importance of ensuring that Northern Ireland benefits fully from any support introduced in England.

The organisation emphasised that Northern Ireland’s hospitality sector faces unique structural challenges, including higher energy dependency in rural areas and limited ability to absorb sudden cost increases.

Hospitality Ulster is calling on policymakers to ensure parity of support across all regions of the UK and to recognise the sector’s vital role in economic growth, tourism, employment and community cohesion.

The joint letter also warns that, should the crisis persist, more fundamental measures, such as a reduction in VAT for hospitality and further business rates relief, may be required to protect the long-term viability of the sector.

Colin Neill, Chief Executive, Hospitality Ulster, said:

“Hospitality businesses here are already operating on wafer-thin margins, and this latest surge in energy and supply costs risks tipping many over the edge. Without swift intervention, we will see viable businesses lost from our high streets and communities.

“The latest inflationary developments caused by the Middle East crisis have pushed a sector already in crisis even closer to the brink. It is essential that deliver supports for a sector that is the community cornerstone in so many areas throughout the UK. It is equally important that the Barnett consequentials created by any England-specific measures taken are identified quickly and ringfenced specifically for hospitality in Northern Ireland. This funding must not be diluted or diverted. Our sector needs direct, targeted support to survive this crisis.”