2026 a 'great concern' for hospitality businesses in Teesside
Hikes are coming in April which will affect many sectors
A hospitality business in Teesside says last year was 'tough' for them and 2026 is going to be even worse.
There's going to be hikes coming into effect from April meaning many local, independent businesses are going to struggle further.
Liam Percy is from Luna Blu in Yarm and he said: "The economic climate is such that people are going out less, they have less disposable income to spend on enjoying themselves, so the market place is shrinking yet the costs are going up. We're seeing hikes in energy prices, which we're big consumers of, including gas and electricity.
"Our rates have already gone up and that's not including the new budget rate increase on high street businesses. Our rates went from £42,000 a year to £59,900 in one jump and that's a huge increase for us. We've also lost the discount and yet all the other bills are going up.
"We've seen the increase in National Insurance, in minimum wage, which we understand they're trying to help people, but on a negative side for businesses it's becoming where it's impacting unemployment and the hospitality sector is playing quite a big role in actually having to offload people.
"I think we'll see a lot of the high street businesses closing in the early parts of the week. We see it in the country pubs already. They're already not open on a Monday or Tuesday and you'll see that moving into the high street I feel. Unfortunately, although it'll save you on your energy costs and your staffing costs, it still won't save you on your rates and rents.
"I love Yarm high street. I think Yarm high street is probably going to be one of the last high streets standing if this trend continues. It has its own economic climate. However, we're seeing that deteriorate. We see it in the car parks as it's now much easier to get parked in Yarm."