UK Hospitality Employment Declines by 8,784 Positions Following Budget

The UK hospitality sector recorded a decrease of 8,784 jobs in December 2025 compared to the previous month, based on figures released by the Office for National Statistics (ONS). The data also show that employment in the sector was down by 20,014 positions in December 2025 compared to September 2025.

The decline in employment occurred during a period when hospitality businesses typically increase staffing levels to prepare for the festive season. The figures follow the Autumn Budget and coincide with ongoing concerns about increased employment costs, including changes to employer National Insurance Contributions (NICs).

The sector faces additional cost pressures, with business rates scheduled to rise in April. Industry group UKHospitality has called for government intervention to address the planned increases. The group is advocating for an increase in the business rates discount for hospitality properties to the maximum level permitted by law, which is 20p.

Successive government budgets have increased the cost and tax burden on hospitality businesses, according to UKHospitality. The group notes that the sector experienced £3.4 billion in additional annual costs less than a year ago, and further increases are expected with the upcoming changes to business rates.

The latest ONS data highlight ongoing employment challenges in the sector, with job losses accelerating in the months following the Budget. UKHospitality has stated that further increases in business rates could result in additional job losses and business closures if no action is taken.

The government has not announced any changes to the scheduled business rates increase as of the latest reporting period. UKHospitality continues to call for a sector-wide solution to address rising costs and employment challenges.