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Hospitality Sector Accounts for Over Half of UK Job Losses Since Budget – Image Credit UKHospitality
Nearly 89,000 jobs have been lost in the UK hospitality sector since the Budget last October, accounting for 53% of total job losses in the country.
UKHospitality has released data indicating that the hospitality sector has experienced significant job losses since the Budget announcement in October. The sector has lost nearly 89,000 jobs, which represents 53% of the total 164,641 job losses across the UK during this period. This figure is substantially higher than the Office for Budget Responsibility’s initial estimate of 50,000 job losses due to changes in employer National Insurance Contributions (NICs).
The analysis highlights that one in 25 hospitality jobs has been eliminated, equating to 4.1% of the sector’s total workforce. This rate of job loss is seven times greater than the overall rate in the wider UK economy. The changes to employer NICs, particularly the lowering of the threshold, have been identified as a significant factor contributing to these job losses, affecting part-time and flexible employment roles.
UKHospitality has called for urgent government action in the upcoming autumn Budget to address the situation. The organization is advocating for measures such as reducing business rates, revising NICs, and cutting VAT to alleviate the financial pressures on hospitality businesses.
The data underscores the disproportionate impact of recent tax policy changes on the hospitality industry, which has been forced to make difficult decisions regarding workforce reductions. The sector’s job losses are seen as a direct consequence of increased operational costs stemming from tax adjustments.
UKHospitality’s campaign, #TaxedOut, is urging stakeholders to engage with policymakers to address these challenges. The campaign encourages individuals and businesses to contact their Members of Parliament and support the initiative through social media and other platforms.
The organization emphasizes the need for government intervention to reverse the adverse effects of tax increases on the hospitality sector, which plays a crucial role in employment and economic activity across the UK.
