Half of jobs lost since Budget are in hospitality – Daily Business

Hospitality has accounted for more than half (53%) of all job losses in the UK since the Budget, according to new research.

Trade body UKHospitality says the data confirms the sector is the hardest hit by Rachel Reeves’ tax increases.

The scale of job losses is three times worse than estimated by the Office for Budget Responsibility, which predicted 50,000 job losses as a direct result of changes to employer national insurance contributions.

It’s also been revealed that one in 25 jobs in hospitality have been lost – representing 4.1% of all jobs in the sector. The percentage of job losses within hospitality, as a proportion of its total workforce, is seven times larger than the rate of the wider UK economy.

UKHospitality is calling for urgent action in the autumn Budget, including lower business rates and a cut in VAT to reverse the damage done by increased taxes.

Kate Nicholls, chair of UKHospitality, said: “The number of job losses suffered in hospitality since the Budget is staggering.

“The sheer scale of costs being placed upon hospitality has forced businesses to take agonisingly tough decisions to cut jobs – with part-time and flexible roles often those most at risk.

“At a time when the country needs jobs, the Government should be encouraging hospitality to grow and create jobs, not tax them out of existence.”

The research concurs with research from the British Institute of Innkeeping (BII), the British Beer & Pub Association (BBPA), UKHospitality and Hospitality Ulster which shows 84,000 hospitality jobs have been lost since the Budget, which imposed an additional annual cost of £3.4 billion on the sector.

The hospitality sector has produced the most new businesses in the first half of the year, despite figures showing jobs continuing to be lost under rising costs.

However, the New Startup Index from NatWest and Beauhurst. revealed that hospitality was the stand-out sector with an 18.7% rise in startups (2,131) in Scotland in the first six months of this year over the last half of 2024.