Budget has cost hospitality sector 111,000 jobs – Daily Business

Hospitality leaders say 111,000 jobs will have been lost in bars, restaurants and hotels between last year’s budget and the Chancellor’s next statement in November.

The cost of employing workers has risen by £3.4 billion since Rachel Reeves’ announced changes to national insurance contributions (NICs) and hiked the living wage in October last year.

Trade group UKHospitality says the lowering of the threshold for employer NICs has been the most damaging, bringing 774,000 people working part-time and flexible jobs into the tax threshold for the first time.

Figures from the Office for National Statistics reveal that 10,963 hospitality jobs were lost in the last month alone.

Following revisions to ONS data, the total jobs lost in hospitality since the Budget now stands at 84,000. This is 4% of all jobs in the sector, and 55% of all jobs lost in the UK economy. 

UKHospitality says the scale of job losses necessitates urgent action from the Chancellor. It is urging her to lower business rates, take action on NICs and cut VAT.

Kate Nicholls, chair of UKHospitality, described the scale of forecast job losses as “a devastating landmark” that illustrates the “unthinkable damage” done to the sector.

“Hospitality is being taxed out and the sheer scale of cost increases hitting the sector is forcing businesses to make tough decisions to cut jobs, raise prices, slash investment and reduce hours,” she said.