A Scottish hospitality leader says the sector’s mission is now to ‘survive 25’ which will mean across-the-board prices increases following the Chancellor’s tax and wage hikes.

Louise Maclean, business development director at Signature Group, which owns 24 venues, says the company has “no choice” but to pass on price rises by suppliers and the budget on to customers.

“If we don’t, we are going to be a loss-making business in 2025,” she said. “It will be every single product. Everything will have to go up by about 10% if we want to remain in business.”

Signature Group’s venues include the Huxley, Copper Blossom and Cold Town House in Edinburgh, and The Spiritualist in Aberdeen and Glasgow.

Small businesses say they will take the brunt of the Chancellor’s hike in employers’ national insurance contributions and the living wage which comes into effect in April.

Ms Maclean, who is also director of the Scottish Hospitality Group, added: “We are seeing a raft of hospitality closures. We are seeing people pulling back hours.

“You only have to walk around George Street in Edinburgh at this time of year and 50% of the venues are shut on Mondays and Tuesdays. Everyone is having to rein it back in.

“Christmas was buoyant, the trade was alive. But we are so worried about what’s happening on April 1 that we have no choice but to contract just now.

“Nobody wants to see a contracting hospitality sector. We are the lifeblood of the high street. “

She said another “massive concern” was whether consumers will pay the increased prices.

“It is a big gamble. I don’t want to see £20 for fish and chips in Edinburgh’s Grassmarket but that is what we are looking at. These are the battles we are facing.

“We have to continue to offer value for money… which relies on us being on top of our game all through the year. But I am absolutely nervous that footfall will drop as hospitality may be seen as even more of a luxury item that people just can’t afford.

“The whole situation in 2025 is a concern and the phrase we are using is ‘survive 25’.”