Food and drink sector leaders to join forces as industry raises the alarm over rising taxes, costs and lower consumer spending

Hospitality and food and drink industry leaders from across Scotland are to come together to discuss how one of Scotland's most vital sectors can navigate mounting pressures.

Hospitality operators, business leaders and industry experts are increasingly calling for political action warning they're facing a potential cliff-edge scenario, driven in-part by NIC and business rate rises, a decline in consumer spending and some of the highest industry VAT rates in Europe.

Against the backdrop of deepening uncertainty, Henderson Loggie and Barclays are set to lead a dedicated event examining the commercial realities facing the sector and what action can be taken to build a more resilient future.

*The Business of Hospitality* event will take place at Barclays, The Beacon, Glasgow, on Wednesday 28 October, bringing together businesses from across Scotland's hospitality community for a morning of discussion, insight and networking.

The event will feature a keynote address from Michelin-starred chef Graeme Cheevers, alongside a live Q&A panel featuring industry leaders including Stephen Montgomery of the Scottish Hospitality Group.

The food and drink supply chain contributes more than £19 billion in economic value to Scotland and remains one of the country's largest employers. At the same time, estimates suggest operating profit margins in hospitality could now be as low as three per cent, highlighting the scale of the challenge facing operators.

Henderson Loggie has recently called for greater action from policymakers to support Scotland's wider food and drink sector, warning that businesses are increasingly at-risk of failure due to the cumulative impact of increasing costs and regulatory burdens.

*Matthew McDermott, Head of Food and Drink at Henderson Loggie, said:*

"Scotland's hospitality sector has shown remarkable resilience, but resilience alone cannot be the long-term strategy. Businesses are dealing with a combination of rising employment costs, taxation, regulation, energy prices and inflation, while many are operating on margins that leave very little room for error.

"However, this is also an industry full of ambitious entrepreneurs, innovative businesses and talented people. There are significant opportunities for those who can adapt, invest and find new ways to deliver value. The purpose of bringing people together at The Business of Hospitality is to have an honest conversation about the realities facing operators and focus on what comes next, sharing ideas, experiences and practical insight that can help businesses navigate the challenges and make the most of the opportunities."

*Darren Kippen, Relationship Development Director at Barclays UK, added:*

"Food and drink and hospitality are fundamental to Scotland's economy, our towns and cities and the visitor experience we offer to the world. There is a real opportunity to create the conditions for the sector to thrive, but that requires businesses, advisers, financial institutions and policymakers to understand the pressures on the ground and work together on practical solutions. We want this event to be about more than identifying problems. It is about asking what successful hospitality businesses will look like in the years ahead and what needs to happen now to give them the confidence to invest, employ and grow."

About Henderson Loggie

Henderson Loggie is an independent, owner-managed accountancy firm, based in Scotland since 1909. The business has more than 190 partners and staff and serves clients of all sizes, from self-employed entrepreneurs through to charities, public sector bodies and multinational corporations.