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Kate Nicholls, Chair of UKHospitality – Image Credit UKHospitality
A UKHospitality projection indicates significant job losses in the hospitality industry, attributed to financial impacts from the previous year’s Budget. The sector has reportedly faced £3.4 billion in additional annual costs since last October. The lowering of the employer National Insurance Contributions (NICs) threshold has been identified as a key factor, affecting 774,000 part-time and flexible workers who are now subject to tax.
Recent data from the ONS shows that 10,963 hospitality jobs were lost in the past month alone. This brings the total number of jobs lost in the sector since the last Budget to 84,000, accounting for 4% of all jobs in the hospitality industry and 55% of all job losses across the UK economy.
The upcoming Budget on November 26 is seen as a critical point for addressing these issues. UKHospitality, an industry body, is calling for the government to implement measures such as lowering business rates, adjusting NICs, and reducing VAT to mitigate further job losses.
The hospitality sector, which includes pubs, restaurants, hotels, and cafes, has been significantly affected by the increased costs. The impact is particularly severe for those employed on part-time or flexible schedules, who have been newly brought into the tax threshold.
The situation underscores the need for urgent policy intervention to prevent further job losses and support the recovery of the hospitality industry. The sector is urging the government to consider measures that could alleviate financial pressures and promote job creation, investment, and community support.
